Innovation

The company structure is subdivided into eight divisions: Building Technologies, Digital Factory, Energy Management, Financial Services, Mobility, Power and Gas, Power Generation Services and Process Industries and Drives. Together the conglomerate cover physical solutions in the value chain of electrification, from energy transmissions to focus on energy efficiency. In excess, Siemens also has two strategic units in terms of Siemens Healthineers and Siemens Gamesa Renewable Energy.

Erica Conradson is working at Siemens Industrial Turbomachinery AB (SIT AB) in Finspång, Sweden, and is the manager and chairman of SIT AB Sustainability and Diversity board. During the interview with Conradson, she expresses the significance of diversity, regardless of ethnicity, cultural background, sexual orientation, gender identity etc. "Siemens AG has established an open work environment for all the employees to feel welcomed and accepted. To achieve the company’s overall goal of having a diverse mindset throughout the company, Siemens AG creates possibilities for diverse interactions and experiences". Diversity is performed at all levels of Siemens in their activities, programs and actions to help employees to develop their talents in their best way. In the interview, Conradson says that "one of the most important parts of the work within equality and diversity is the awareness of what it is and how it impacts employees as well as their business". Conradson, together with one of her colleagues, base trains the employees at SIT AB in the subject of diversity, to educate and to make them comprehend the significance of its existence.

Inspiration

In 2016, Siemens AG reported 7,513 new innovations. The immense amount of innovation reported in Siemens AG also results in a large research cost, which Siemens AG measured up to 5,4 billion dollars during the fiscal year of 2017. That is an increase of over 300 million dollars from 2016 (Siemens.com, 2017). Throughout Siemens AG’s innovations, it makes sure to address five of the 17 Sustainable Development Goals (SDGs); SDG 3 ”Good Health and Well-being”, SDG 7 ”Affordable and Clean Energy”, SDG 9 ”Industry, Innovation and Infrastructure”, SDG 11 ”Sustainable Cities and Communities” as well as SDG 13 ”Climate Action” (Siemens.com, 2017)

Overall impact

The branch in Finspång is working hard on reaching the sustainability goals when it comes to the production of turbomachinery (Interview, 2018). The production of turbomachinery is in constant development and SIT’s AB focus lies largely in how to create a powerful engine that affects the environment as little as possible (Sit-ab.se, 2018). The Swedish branch has set sustainable goals higher than the ones of the domestic government and they are convinced that these high goals are possible and needed in order to become carbon-neutral. (Interview, 2018)

Siemens SIT has recently invested in better energy sources and is constantly looking to minimize their carbon footprint. This project is expected to be paid back within five years and after that start saving 5% of Finspångs energy costs. It is similar to the ones conducted by Siemens AG have decreased the energy costs with €20 million a year. (Interview, 2018)

Business benefit

Back to diversity, several studies have shown that companies having a diverse workforce perform better in many various ways. According to Mckinsey.com, (2015), diverse companies have a wider talent pool, a stronger customer orientation, greater employee satisfaction, improved decision making and innovative thinking. Siemens AG values diversity at all levels of the company and is constantly improving its diversity and equality work through different actions.

SIT AB is focusing on introducing technology and engineering to young people through lecturing at different middle schools and high schools. Moreover, the company is a part-owner of the high school “Curt Nicolin Gymnasiet” in Finspång, mainly educating in technology, industry, energy and healthcare (Curt Nicolin Gymnasiet, 2018). Many students at the school have an opportunity to do an internship or work extra at SIT AB during their time in school, which initially helps them grow their interest in technology (Interview, 2018).

Siemens AG has an overall goal of having 25% women in the business at all the levels (interview, 2018). However, the individual goal of SIT AB is to increase the number of managing women, from the current statistic of 22% to 30%.

Social and environmental benefit

Regarding the SDG of “Climate Action”, the company aims to become carbon neutral by 2030 and is currently cutting down carbon emission by 80,000 metric tons annually. In addition, Siemens AG has invested €100 million in order to develop new technology that will reduce the energy footprint from its productions. The efforts done to reduce the energy carbon footprint are expected to lower the energy costs of Siemens AG by €20 million each year (Siemens.com, 2017). Siemens AG is a devoted supporter of the Paris agreement, which works to combat climate change and also to help developing countries get access to more renewable energy (Unfccc.int, 2017).

In the area of sustainable infrastructure, Siemens AG is actively working on the light and lighting systems with the accent on cost reduction. The ways of saving come from the use of more energy-efficient lights to the intelligent light management that adjusts itself to the conditions (Mobility.siemens.com, 2014). This project can provide citizens with useful information that can minimize pollution peaks in advance, and, therefore, make cities sustainable (Siemens.com,2017).

Siemens AG is passionately trying to reduce waste and consumption, by working with refurbishment, energy contracting, and 3D printing. The total company’s recycling rate is 90%. By 2020, the company aims to reduce waste to landfill by 100%, control 100% of emissions by replacing ozone-depleting substances and reducing solvents, as well as increase energy efficiency by 6% with the help of energy management systems (Siemens.com, 2018). Additionally, SIT AB is working towards cutting their energy consumption. The company has an energy management project that will be done in a matter of 5 years and will eventually save more than 50% of the energy consumed.

Interview

Erica Conradson, Manager and Chairman of SIT AB Sustainability and Diversity board