Why being Chief People and Sustainability Officer is a game changing superpower

The challenges to human (co-)existence on the planet from resource depletion, climate change, and unsustainable practices of the industrial age are undeniable. Managing and mitigating these factors requires a broad approach that transcends environmental concerns. We must rethink the way we conduct business and organize our societies. Focus and dedication are necessary if these efforts are to be effective.

In the corporate world, the broader attention needed to handle sustainability issues is generally allocated to the role of the Chief Sustainability Officer (CSO). There are, however, no universal standards for what this function does or how much authority it has to be effective. At Siemens, the CSO role has been a board-level position since 2008, underscoring the importance of sustainability as a building block of our DNA and setting a strong foundation to build on. And that’s what we do, every day.

?As Chief People and Sustainability Officer (CPSO) at Siemens, I have the unique opportunity to wear two hats: one for ensuring the well-being of our people and nurturing our company culture, and one for advancing sustainable practices in our own operations and all aspects of our business – multiplying the impact for our customers and communities. For me, this is a superpower. It joins two powerful elements that run horizontally across all our businesses: People and Sustainability – both necessary if solutions are to be found for solving the most critical issues of our time. Add in the power of technology that Siemens brings as a technology company, and you have an unstoppable combination that actively supports the mindset shift needed for achieving a more sustainable world.?

People-centric approach to transformation?

Sustainability issues are commonly viewed in terms of environmental, social, and corporate governance (ESG) goals. At Siemens, our push for sustainable business practices is encompassed in our 360-degree framework, containing six fields of action: Decarbonization, Ethics, Governance, Resource Efficiency, Equity, and Employability or DEGREE . Our DEGREE framework is, among other things, a commitment to ethical standards based on trust and respect for human rights in the supply chain. It takes the sustainability conversation to another level – it is no longer a topic with a goal, but an integral part of all that we do and stand for.

?DEGREE allows a holistic view of sustainability that puts people topics like employability and equity, as well as environmental and societal impact topics, in focus. We encourage continuous learning and are committed to re- and upskilling, especially green skills that are needed to tackle the complex issues we face. In the last fiscal year, we invested €280 million in professional training and continued education to transform our workforce into sustainability ambassadors. Our highly popular Base Camp for Sustainability offers an introduction to DEGREE and 66,000 participants have completed the course already in FY23.

?We value the E for Equity that helps us integrate and promote diversity, equity, and inclusion into the fabric of our company. It helps us create a workforce that reflects our customer landscape and brings in fresh perspective to the way we think about creating solutions. The intersection of people’s interest with our company values creates a sense of belonging and engagement that we both admire and appreciate.

?Combining the responsibilities for sustainability and people operations allows social aspects to be complemented by proficiency in the environmental and corporate governance spheres. At Siemens, with sustainability at the core of our processes, we need relevant skillsets across our business units and corporate functions. This allows sustainable approaches to be developed in an ecosystem manner, observing the cross-functional and business governance standards required to comply with new EU Taxonomy regulations and develop non-financial reporting and accounting guidelines.?

Tangible business benefits at the nexus of sustainability with people and organizational change

To effect change, a cultural and organizational transformation and mindset shift are necessary. The convergence of people and sustainability can be a useful tool to speed up the momentum of much-needed change in all aspects of our existence. Indeed, for a company like Siemens – undergoing the transformation from industry to global technology leader – sustainability is a tremendous opportunity. Crucially, this applies both to our own operations and to our portfolio. We have increased our CO2 reduction target from 50% to 90% by 2030, compared to 2019, and will invest €650 million in decarbonizing our activities by 2030. But our products and solutions can also help our customers with their sustainability challenges - ~150 Mio tons of emissions were avoided by customers in FY22 alone. ?

?Those companies that recognize the power of this combination will be well positioned to be drivers of innovation and growth, increase employee engagement, and mitigate the challenges associated with rapid transformation.

?As a company at the intersection of the real and digital worlds, we at Siemens believe that technology is a key driver of sustainability. Embracing a holistic view that goes beyond environmental topics, we anchor sustainability firmly in all our business and operations. We are confident that leveraging the superpower combination of technology, people and sustainability can make a difference, solve the existential challenges of our age, and transform the lives of billions.

This article is an extended version of what appeared on the World Economic Forum's Agenda .