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Siemens Business to Society Working together to realise the National Development Plan siemens.co.za NDP Vision 2030 Summit

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Page 1: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

Siemens Business to Society Working together to realise the National

Development Plan

siemens.co.zaNDP Vision 2030 Summit

Page 2: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

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.”

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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

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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

Page 5: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

Page 5

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

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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

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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: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

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: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

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

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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: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

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: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

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

Page 13: Siemens Business to Societyvision2030.co.za/wp-content/uploads/2017/06/Siemens.pdf · Siemens technology Digitalization: Insights from 640bn process and pieces of operation information

Thank you Sabine Dall’Omo

siemens.co.zaNDP Vision 2030 Summit