Sustainability in Cities

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1 Sustainability in Cities September 22 nd, 2011 Alison Taylor Chief Sustainability Officer, Americas Siemens Corporation Page 1

2 Presence (# Countries) Revenue ($Billion USD) } Employees } Siemens at a Glance US 62, ,000 57,000 Patents world wide US Most efficient gas turbine in the world #1 Provider of LIGHT RAIL mass transit vehicles 190 #1 In Offshore Wind Power #1 Scoring Company CDP and Best of Sector DJSI 2011 Sources: Siemens: Annual Report 2010 Page 2

3 Sustainability has always been a part of Siemens culture I won't sell the future for short-term profit. Werner von Siemens Page 3

4 Efficient use of resources Sustainable thinking takes into account long-term, global megatrends Urbanization Demographic change Climate change Globalization Page 4

5 Efficient use of resources Sustainability for a city means meeting long-term challenges presented by megatrends Urbanization Effective and environmentally friendly infrastructure, whether in developed or rapidly growing emerging nations (e.g. the supply of energy, power and water; mobility) Demographic change Climate change Globalization Establish efficient and affordable long-term medical care and age-appropriate infrastructure (e.g. mobility, medical care, nursing care, administration) CO 2 reduction and energy efficiency (e.g. in power generation, transport and distribution; industry; buildings; mobility; households) Specific requirements of regional markets and the management of global processes and development (e.g. products for emerging countries, global value chains) Page 5

6 Sustainability Studies with Cities London Case Study Technological levers for environmental impact London can meet GHG goals without shift in citizen s lifestyles Majority of solutions save money through reduced energy costs Profitable strategies exist for water and waste reduction Simple steps can have a big impact Buildings: better insulation Transport: fuel efficiency, hybrid buses Energy: combined heat and power Water: efficient appliances Waste: recycling Many choices are in the hands of consumers and businesses City s main opportunity is to promote adoption of cleaner technologies Sustainability issues need to be seen holistically Page 6

7 Sustainability Studies with Industry 2009 Greening of Corporate America Researched by McGraw Hill Construction Survey of CEOs, COOs, CFOs, and CSOs of largest corporations in America, representing 75% U.S. equities market Page 7

8 U.S. Conference of Mayors Survey Policy Considerations/Perspectives for Cities Percent of Cities Agree Neutral / Don't know Disagree Federal/state tax incentives would help incentivize city to deploy energy technologies 87% 10% 3% Energy-efficient technologies represent strong economic opportunity 85% 10% 5% Energy-efficient technologies represent new jobs 69% 23% 8% Adapting to climate change is an element of capital planning/improvement 66% 23% 11% Page 8

9 U.S. States have developed their own Renewable Portfolio Standards (27) (5) (8) Page 9

10 There are a variety of technology needs posed by long-term challenges Renewable energy Efficient power transmission Energy-efficient buildings Traffic management systems Power grid links from ships Efficient fossil power plants Low-loss power distribution Energy efficiency in industry Integrated urban trans. systems Street lighting with LEDs Page 10

11 Cities are rising to the challenge, as we have seen through the Green City Indices A unique tool to help cities learn from each other and address shared environmental challenges Build on Green City Index series, launched in Europe, including Asia and Africa as well Methodology developed and researched by the Economist Intelligence Unit An independent panel of experts assisted with the selection of indicators in the index Data collected from public sources using most recent data available Page 11

12 U.S. and Canada Green City Index Results 12 Page 12

13 U.S. and Canada Green City Index Results U.S. and Canadian cities excel in several areas: water infrastructure, recycling and environmental governance History of urban sustainability is relatively long in the U.S. and Canada through private sector and nonprofit engagement U.S. has room for improvement: CO 2 Electricity usage Public transportation and cars Water usage Urban sprawl 21 of 27 cities have a comprehensive climate action plan Page 13

14 Our Key Learnings from U.S. and Canada Green City Index America s cities are not waiting for Washington to make up their minds on climate change to take action. Cities are more focused on stress of increased urbanization on aging infrastructure than debating climate science. Cities with comprehensive sustainability plans are more likely to succeed with sustainability goals. Cities don t need green to go green. Page 14

15 Overall Performance Latin America Green City Index Results Page 15

16 Holistic infrastructure planning is the key to tackling environmental challenges Latin American cities face a number of serious environmental challenges that require immediate attention This has shifted the focus away from a strategic perspective This ad hoc approach is reflected by widely differing scores in the Index Many cities perform well in some categories and poorly in others Experts agree that an integrated approach for environmental governance and comprehensive forward planning are the best ways to break the pattern of Crisis > policy response > next crisis Curitiba has a strong track record of such a holistic approach Page 16

17 Brazilian cities: Demonstrating strong policies Brazilian cities perform very well overall Five of six cities scoring above or well above average are Brazilian A major driver: strong environmental policies Five of the six Brazilian cities perform significantly better when only the policy indicators are assessed However, the impact of strong policies on actual results hasn t fully come through yet across all infrastructure areas A further contributing factor: High share of hydro power in electricity production All Brazilian cities have below average CO 2 emissions Within the eight categories, the performance of Brazilian cities varies widely, signaling that cities are focusing their efforts on different areas Page 17

18 Sustainable Solutions: Clean and Automated Transportation for Sao Paulo New Yellow Subway Line Siemens driverless train technology and operational control center for Line 4 System operated by ViaQuatro, first public private partnership in Brazil for subway services Hybrid Buses Siemens and Agrale developed bus for Sao Paulo Buses utilize a Siemens traction system Reduction of up to 30% of emissions Less noise and lower maintenance costs Page 18

19 Sustainable Solutions: Building an Underground Substation in Anaheim Anaheim Public Utilities City of Anaheim, CA Successful integration of high-voltage substations into densely populated urban settings Area landscaped with grass and foliage and turned into a community park 1 st gas-insulated switchgear (GIS) substation in the US able to serve 25,000 current & future residents Sought economical & reliable solution for growing energy demand that would also enhance surroundings Page 19

20 Sustainable Solutions: Upgrading the Orlando Iron Bridge Treatment Plant Future-proof efficiency Reliability means as much as 40 million gallons of water are reclaimed everyday, delivering a high return on investment New system is extremely cost-effective in both the short & long-term allowing future applications to be added along the way Siemens automation platform controls everything at the plant for maximum efficiency from electricity flow to water discharge Page 20

21 Sustainability in Cities September 22 nd, 2011 Alison Taylor Chief Sustainability Officer, Americas Siemens Corporation Page 21