A recent seminar in Beijing, organized by Sina Finance and the China International Chamber of Commerce, focused on ESG in the supply chain. Siemens AG China's sustainability director, Yang Hailin, shared that sustainability is an integral part of the company's DNA. He emphasized that while reducing the negative impacts of business operations is crucial, the company also aims to create positive effects through technological innovation and management systems.
Yang noted that besides tracking its own carbon footprint, Siemens AG uses digital tools to calculate and disclose the "avoided emissions" it helps customers achieve. From fiscal years 2023 to 2025, the company globally helped customers avoid 694 million tons of emissions. He outlined three key areas where Siemens AG's technology supports green industrial transformation: electrification, the use of renewable energy, and energy efficiency improvements. These paths not only support the company's own sustainable operations but also align with the ESG upgrade needs of various industries.
In supply chain management, Siemens AG has integrated sustainability into its supplier management and procurement processes. Supplier carbon reduction performance is a key evaluation metric, and zero-carbon indicators are now part of major procurement decisions.
Regarding the popular trend of artificial intelligence, Yang said a balanced approach is needed. AI should be used to promote sustainability, but it must also be deployed responsibly to manage and reduce its own carbon footprint. Siemens AG has created a platform where suppliers share green services and cases. Using AI, product managers and R&D colleagues can more efficiently and accurately identify green material solutions and their suppliers. This supports the global promotion of green technologies and advances low-carbon innovation within the company's R&D systems.
In terms of ecosystem building, Siemens AG launched the "Zero Carbon Pioneer Program" in 2021, followed by the Zero Carbon Pioneer Award. This program has brought together hundreds of winning companies, including suppliers, customers, and industry partners. Through this initiative, Siemens AG continuously provides green technology to empower the supply chain and leverages domestic and international platforms to promote green application cases, helping Chinese supply chains adopt sustainable practices globally.
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