Siemens Gamesa

Since 2020, SGRE uses 100% renewable electricity for all of its own operations, which has contributed to significantly decreasing its scope 2 emissions. Moreover, the company discloses it is “carbon neutral” since 2019 as a result of energy reduction and efficiency measures, while offsetting non-avoidable emissions. The company also reports that 99% of its revenues come from low-carbon activities aligned with the EU taxonomy.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

SGRE has set a target to reduce its scope 1 and 2 emissions by 100% by 2040, with an interim target of reducing scope 1 and 2 emissions by 70% per megawatt (MW) of installed capacity by 2025, compared to 2017. This target has been validated by the Science Based Targets initiative (SBTi) as aligned with a 1.5°C pathway in 2020. In addition, the company has committed to a net-zero target for 2040, covering its entire value chain emissions. However, the company does not disclose enough emissions data to meaningfully assess this target and it is not clear how it intends to measure progress. The company also aims to deliver a fully recyclable wind turbine by 2040.

SGRE’s Sustainability Vision by 2040 demonstrates comprehensive elements of transition planning. The company has assessed the materiality of climate-related risks and opportunities and considered the implications of a 1.5°C scenario. It has also implemented board-level oversight of climate change and has developed a Sustainability Policy which applies to all its activities. In 2022, 99% of SGRE’s revenues came from low-carbon activities aligned with the EU taxonomy.

SGRE reported that 93% if its capital expenditure (CapEx) in 2022 was dedicated to low-carbon activities aligned with the EU taxonomy. The company has identified the most important sources of emissions linked to its sold products. It has planned ambitious interventions with a wide coverage, such as a commitment to 100% net-zero steel, to significantly lower these emissions. Additionally, the company carries out research and development (R&D) activities at its technology centres focused on the improvement of its wind turbines, with a share of more than 80% dedicated to low-carbon activities.

SGRE has an SBTi-validated commitment to contractually engage 50% of its suppliers in the SBTi by 2040 initiative. In line with this, it has an interim target for 2025, to engage 30% of its suppliers by spend in setting science-based targets to reduce their greenhouse gas (GHG) emissions . Moreover, SGRE has developed a Decarbonization Annex to include sustainability commitments as part of standard contracts to foster transparency and target setting among its suppliers. It has established a dedicated Supply Chain Sustainability Team within its Procurement Unit to oversee decarbonisation efforts in its value chain. Additionally, SGRE demonstrates consistent support for climate-aligned policies. The company has advocated for both international and national initiatives, such as WindEurope’ s call for a European ban on landfilling rotor blades by 2025.

SGRE’s Sustainability Vision aims to achieve a carbon intensity rate of zero emissions per MW of installed capacity without any offsets by 2040, and to go beyond and become carbon positive. The company has set a target to reduce its scope 1 and 2 emissions by 100% by 2040, with an interim target of reducing scope 1 and 2 emissions by 70% per megawatt (MW) of installed capacity by 2025, compared to 2017. In addition, the company has committed to 100% net-zero steel through the international SteelZero initiative, although it does not disclose details on how this will be achieved.

SGRE demonstrates comprehensive elements of a transition plan informed by climate scenario analysis, which has considered the implications of a 1.5°C scenario. The company’s financial planning is also informed by an internal shadow carbon pricing. Additionally, the company has implemented board-level oversight and incentives for managing the low-carbon transition.

SGRE is on track to meet its scope 1 and 2 emissions reduction target for 2040, having achieved the interim target it set for 2025 in 2022 itself. However, the company does not disclose sufficient information to assess progress on its scope 3 emissions reduction.

The company’s reported scope 1 and 2 emissions decreased from 2017 to 2022 in alignment with the company’s 1.5°C pathway. However, its reported scope 3 emissions are insufficient to assess its future alignment with its 1.5°C pathway.

SGRE’s targets, strategy and emissions intensity data suggest that the company is fully committed to the low-carbon transition. The company reports that more than 90% of its CapEx investments are aligned with the EU taxonomy, and 99% of its revenues come from low-carbon activities.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the actions it takes to create jobs for its offshore wind turbine nacelles and offshore blade factory. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it offers training and job experience for its employees and promotes technological education to young students. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While the company commits to respecting human rights and the ILO fundamental rights at work, no evidence that it expects its business relationships to respect the ILO fundamental rights at work. While the company discloses its material human rights topics through an internal assessment, no evidence that it describes the process to identify its human rights risks and impacts in its own operations and through relevant business relationships. No evidence that the company takes action to mitigate these risks in its own operations and supply chain, nor does it engage with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. The company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. While the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships, no evidence that it has a policy prohibiting bribery and corruption. Moreover, no evidence that the company has a lobbying and political engagement policy, nor does it specify that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.