Faisal Kazi is the president and chief executive officer for Siemens Canada.
Think climate change is a future problem? Here’s a hard dose of reality: In 2023, the Earth hit its hottest temperature on record and, with climate-driven events such as the recent fires in Los Angeles, we’re seeing more and more the real and highly damaging effects of our warming planet.
Climate change is the defining challenge of our time – a global crisis with irreversible effects that will only get worse as we continue to release human-made greenhouse gases into atmosphere. According to the United Nations Intergovernmental Panel on Climate Change, global temperatures have risen faster in the last five decades compared to any other 50-year period in the last 2,000 years.
To lessen the impact of climate change on people, animals and ecological systems, the IPCC has urged that we keep global temperatures from rising to more than 1.5 degrees Celsius above pre-industrial levels. This is why we need to make the right choices today and in the near future.
While the daily choices we make as individuals can make a significant difference in the fight against climate change, we know that the actions we take as businesses also have tremendous impact. We see proof of this at Siemens.
In 2015, Siemens became one of the first global industrial companies to commit to carbon neutrality by 2030. This bold target – which is supported by rigorous governance structures, dedicated teams and a $100-million global investment in decarbonization efforts – reflects our belief that addressing climate change is essential not only for the planet but also for long-term business viability.
By the end of 2024, we had reduced our global carbon dioxide-equivalent (CO2e) emissions by 60 per cent, surpassing our interim target of 55 per cent by 2025. How did we do this? By setting ambitious goals and backing them with decisive action. We follow a framework that encompasses decarbonization, ethics, governance, resource efficiency, equity and employability – or DEGREE for short. Through this comprehensive approach, we address sustainability holistically, ensuring that our actions benefit all stakeholders while contributing to global climate goals.
Our journey to carbon neutrality begins with our own operations. Across our 312,000 employees, 190 countries and hundreds of factories, we’ve been systematically reducing emissions over the last decade. Every Siemens factory in Canada has a clear plan to achieve net-zero emissions by 2030. For our factory in Nanjing, China, we built a “digital twin” – essentially, a digital replica built from that site’s factory, production, performance and building data. Through this digital twin, we can plan operations for optimal energy use, more efficient manufacturing and minimized downtimes.
We’ve transitioned to 100-per-cent renewable power in many of our sites, including our Canadian headquarters. By integrating our own smart building technologies – such as our Building X climate control platform and Enlighted Internet of things sensors – we’ve optimized our energy use, reduced our lighting costs by 75 per cent and cut our emissions significantly.
Under Siemens’ global EV100 initiative, we are converting our fleet to electric vehicles. While infrastructure challenges persist in many places around the world – including Canada – we are investing in charging stations to support this transition. We’ve also adopted AI-driven fleet and route management solutions to ensure our vehicles operate efficiently, even in extreme conditions.
Converting our fleet to electric vehicles is not without its hurdles. Canada’s vast geography and harsh winters pose unique challenges to fleet electrification. But by collaborating with governments and industry partners, we are making steady progress. British Columbia’s expanding EV charging network is a testament to what can be achieved through collective action.
We’ve also reduced our waste through programs such as our e-waste recycling initiative, which has diverted more than 3,100 kilograms of electronic waste from landfills and repurposed thousands of laptops for educational and community use.
While transforming our own operations is critical, the greatest impact comes from helping our customers and partners decarbonize. With 90 per cent of Siemens’ technology solutions portfolio now classified as “green,” we are uniquely positioned to enable sustainable transformations across industries.
In 2024 alone, our technologies helped other organizations avoid 144 million metric tonnes of CO2e globally. At the sports and recreational RA Centre in Ottawa, for example, our recent collaboration delivered a 40-per-cent reduction in energy consumption, $4-million in capital upgrades and $250,000 in annual savings through a combination of energy efficiency measures and government incentives. Through projects like the net-zero classroom at Bishop James Mahoney High School in Saskatoon, Sask. we are demonstrating how distributed energy solutions can create sustainable, self-sufficient communities and inspire the next generation to embrace green technologies.
In all of our efforts, we’ve learned that regular communication is key to aligning our work force with our sustainability goals. Through training, town halls and sustainability milestones, we ensure that every employee understands their role in our collective mission. They are, without question, fully engaged and committed to our sustainability goals. Among their many contributions, our employees have planted more than 18,000 trees to date, removing 3.6 million kilograms of CO2 from the atmosphere.
As a global leader in industrial technology, we recognize both the responsibility and the opportunity to lead in this fight. By integrating decarbonization into our operations and empowering our customers with innovative solutions, Siemens is proving that sustainability and business success can go hand in hand.
At the same time, we understand that decarbonization and sustainability may be more challenging for heavy industries and many small- and medium-sized enterprises because of such barriers as limited access to technology and capital. This is why it’s critical for industries to collaborate on scalable, win-win solutions that drive technological innovations, and to develop financing tools. In this spirit, we launched Siemens Xcelerator, an open business platform where Siemens and more than 500 of our global technology partners provide scalable and interoperable sustainability solutions to the industry.
As we approach 2030, I am confident that we will achieve our carbon-neutral target along with our other sustainability goals. By working together and implementing a concrete plan, we can overcome the consequential challenges of climate change and achieve our shared goals. Let’s join forces and seize this opportunity to create a sustainable future for all.
This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about the world of work. Find all Leadership Lab stories at tgam.ca/leadershiplab and guidelines for how to contribute to the column here.