Building Technologies Table of Contents A Commitment to Sustainability Our Challenge and Response The Sustainability Committee Our Pillars of Success Committee Actions To-Date
A Commitment to Sustainability Dear Colleague: Siemens Building Technologies is committed to delivering long-lasting benefits to our customers. Among them is helping customers reduce energy consumption and improve the environment for their workers and their communities. As part of our commitment, we are applying the energy efficiency and green building sustainability practices we offer our customers to our own business operations. Consequently, we have launched an internal Sustainability Committee. Formed in the summer of 2007, the committee is comprised of business leaders representing all segments of our organization and providing cross-functional guidance and responsibilities. The committee represents members from the following business segments: Manufacturing Product Development Environmental Health and Safety Human Resources Facilities Management Field Excellence and Standards Procurement and Supply Chain Management Corporate Communications Marketing This report outlines the vision, mission, approach, and leadership team behind the committee. It lays out our goals, initiatives and achievements to date. And while providing you with insight into our internal plans, we hope this report will also offer customers and other companies a glimpse at what strategies and tactics might be most effective to help guide their own sustainability efforts. 2 Siemens Building Technologies
Our Challenge and Response Buildings are integral to our lives. From our homes, schools, hospitals and offices, to the places where we eat, shop and socialize, we spend a great deal of time indoors. It is no wonder that buildings use up a large share of resources. According to recent U.S. Department of Energy figures, buildings account for 40% of all energy consumed in the United States as well as 71% of electricity and over 38% of carbon dioxide emissions. And these sobering numbers are higher than they were just two years ago. Fortunately, today s technology is helping us make our buildings green making them more energy-efficient, less costly to operate, and more sustainable, while improving indoor environmental quality. New technology is providing dramatic benefits, but it takes more than a green building to significantly reduce greenhouse gas emissions across an organization. It takes a comprehensive plan, a focus on business practices and a culture of sustainability. Siemens Building Technologies is committed to reducing its greenhouse gas emissions. While we remain dedicated to advancing the role green buildings play in reducing energy consumption and improving the environment, we are examining and adopting sustainable practices throughout our own operations. To do that, Siemens Building Technologies has formed the Siemens Sustainability Committee. 3 Siemens Building Technologies
Corporate Communications Marketing Manufacturing Procurement and Supply Chain Management Sustainability Committee Product Development As a committee, our goal is to incorporate sustainability into all corporate initiatives as well as making it a part of every employee s mission and vision. Members of the Sustainability Committee include: Field Excellence and Standards Facilities Management Human Resources Environmental Health and Safety Brad Haeberle (Co-Chair) Vice President, Marketing Richard Walker (Co-Chair) Sr. National Manager, Environmental Solutions Shane Adams Director, Operations Standards, Service The Sustainability Committee Siemens Building Technologies approaches sustainability holistically. We examine every aspect of our business practice and our operations that impacts the environment, as well as the products, services and solutions that we bring to the marketplace everyday. To succeed in this approach, the Sustainability Committee consists of a cross-functional team of leaders from key areas of our company. Team leaders have the expertise and the responsibility within their specific organizations necessary to ensure that Siemens Building Technologies sets the right strategies, implements effective actions, and conducts continuous monitoring and performance measurements. Specifically, our committee responsibilities include: Goal setting determining key environmental goals, objectives and metrics for the organization Planning developing the roadmap for Siemens Building Technologies sustainability initiatives and implementing specific environmental initiatives and programs throughout the organization Tracking providing updates regarding initiatives both to our employees and to the broader community Integrating making sustainability a part of our organizational mission and vision Reporting developing and producing an annual sustainability report Randy Drolen Director, Corporate Communications Ali Khan Manager of Corporate Facilities Ari Kobb Sr. Marketing Manager, Energy and Environmental Solutions Dan Majewski Manager, Product Engineering and Quality Assurance Carl Oberland Vice President, Procurement Michael Poutre Manager, Information Technology Robert Perlowski Vice President, Supply Chain Management Thomas Strollo Director, Operations Standards, Solutions Jody Torres Vice President, Field Excellence Mark Wiemer Director, Safety, Security and Environmental Affairs 4 Siemens Building Technologies
Sustainability Initiatives: After launching in Summer 2007, the Sustainability Committee established a vision, mission, and process to help Siemens Building Technologies establish its leadership in energy conservation and sustainability. Our Vision: Become the global leader in facility infrastructure sustainability Our Mission: As a steward for the environment and leader of our industry, Siemens Building Technologies is committed to fostering a culture of environmental responsibility. That culture includes reducing the carbon footprint of our business operations and developing innovative products, services and solutions that reduce environmental impact. To execute our mission, the Sustainability Committee will focus on four areas that form our pillars of sustainability: 1. Products Reduce the environmental impact of the products we manufacture 2. Operations Minimize the environmental impact of our business operations 3. Solutions Develop industry-leading solutions that generate a positive impact on the environment for our customers 4. Transparency Provide transparency and visibility of sustainability strategies and performance Annual Sustainability Report: We will publish an annual sustainability report as a benchmark of our success. The progress report will be made available to our shareholders, employees, customers, and industry in early 2009. 5 Siemens Building Technologies
Our Pillars of Success Products Operations Solutions Transparency 1 Reduce the environmental impact of the products we manufacture Many of our products have a direct environmental benefit for our customers, reducing the amount of energy consumed in day-to-day building operations and providing the tools and technology to manage energy consumption. Our sustainability goals go one step further. They include implementing standards for how our products are made, packaged and delivered. Specifically: Measuring the recycled content of our products, including packaging Setting goals and targets for recycled content for every product that we manufacture Developing and implementing strict environmental standards for every product that we manufacture 2 Minimize the environmental impact of our business and operations At Siemens Building Technologies, we re looking beyond the greenhouse gas emissions associated with our facilities. We re examining every aspect of our operations. For example, our 8,000 employees are an integral part of our customers businesses and our communities nationwide. To serve them well, we operate a fleet of service vehicles, ship our products cross country, and travel throughout the country daily. Fuel use involved with travel, service and product delivery make up the largest percentage of our greenhouse gas emissions. Therefore, to reduce our carbon footprint, our activities will include: Measuring and reducing the greenhouse gas emissions associated with key aspects of our business, including our facilities, our fleet, our air travel and our package shipping and freight Reducing our net energy consumption in electricity, petroleum and natural gas Reducing the net water consumption at our facilities Measuring and reducing our contribution to landfills through aggressive recycling programs at our facilities 6 Siemens Building Technologies
3 Develop industry leading products, services and solutions that generate a positive impact on the environment At Siemens Building Technologies, we are proud of our industry-leading energy management systems and solutions that improve the energy and environmental performance of thousands of buildings in all sectors of the economy. However, to maintain our leadership in helping customers reduce energy consumption and greenhouse gas emissions, our sustainability goals focus on continually advancing the sophistication of our products and services and their ability to curb greenhouse gas emissions. They include: Developing products, services and solutions that have a direct impact on achieving certification through the U.S. Green Building Council s LEED Rating System Focusing our research and development spending on products that have a positive impact on the environment through increased energy and water efficiency, emissions monitoring and reductions, renewable energy solutions and energy management systems Developing and marketing products, services and solutions that have a direct impact on reducing emissions for our customers and their facilities Providing our customers with an environmental classification system for our products and services that clearly highlights their environmental benefits 4 Provide transparency and visibility of sustainability strategies and performance Siemens Building Technologies is committed to communicating our sustainability initiatives our progress toward achieving our goals to our employees, our customers and to the broader marketplace. By being as open and transparent as possible, we can educate our customers and employees and learn from them. Our sustainability goals include: Communicating our progress toward meeting our sustainability commitments through a Siemens Building Technologies sustainability report issued each fiscal year 7 Siemens Building Technologies
Committee Actions To-Date While a full report of our activities will be published in early 2009, the Sustainability Committee has taken a series of actions in the product and operations areas as beginning points for implementing our program. These first steps toward reaching our goals of lowering greenhouse gas emissions are listed below. Products Actions taken to reduce environmental impact of the products we manufacture: All new products are designed for easy disassembly at the end of product life, eliminating the need for additional mechanical fasteners and expediting disassembly for recycling purposes. Plastics used for housings are miscible to minimize segregation requirements during recycling. Batteries are readily removable when provided. Adoption of the Siemens standard SN36350 - Environmentally Compatible Products and Systems - which provides guidelines for designing environmentally compatible products and systems and integrating environmental benefits into planning, development or installation processes. Suppliers are also required to report any additional hazardous materials that are supplied within purchased devices/ components in accordance with this standard. All mechanical prints for products specify that a specific maximum recycled content must be used. 8 Siemens Building Technologies Operations Actions taken to minimize the environmental impact of our business and operations: Changes in our package shipping policies focus on ground vs. air shipments except for the most urgent cases. The result is a 1/3 reduction in associated CO 2 emissions. Changes in our travel policies encourage employees to reduce air travel and utilize available communications technologies as alternatives. From FY2005 to FY2007 we reduced total airline miles traveled by 15%, resulting in CO 2 emission reductions of over 3 million pounds We have reduced our electricity consumption in our Buffalo Grove headquarters and manufacturing facilities on average 3% per year from FY2003 to FY2007. This has resulted in a cumulative reduction of over 9 million pounds of CO 2. We have implemented a number of recycling programs at our headquarters and manufacturing facilities. From FY2002 to FY2007 we have recycled 3.6 million pounds of material vs. sending 2.7 million pounds of material to landfills. We provide free passes for our employees to utilize public transportation from our corporate offices to the nearby commuter train station, and provide preferential parking locations for carpooling. To improve water efficiency, we have replaced water fixtures with hand s free fixtures, and have installed humidity sensors in lawns to reduce frequency of sprinklers. The Beginning of a New Stage of Industry Leadership As Siemens Building Technologies prepares to establish leading practices for sustainability, we look for your active participation by providing ideas, insight and recommendations on how we can further improve our practices and achieve our goals. All members of the Sustainability Committee welcome your suggestions and comments. For future updates and progress reports, please access the Sustainability Committee s web site at usa.siemens.com/buildingsustainability. Associations and Memberships Siemens Building Technologies is an active supporter and sponsor of a number of organizations dedicated to promoting energy efficiency, environmental responsibility and green buildings, including: Energy Star Partner U.S. Green Building Council (Member) Alliance to Save Energy (Member) Association for the Advancement of Sustainability in Higher Education Association of Energy Engineers National Association of Counties (NACo) Green Government Initiative