We drive sustainable transformation in Egypt and beyond
Mr. Blaim, as CFO of Siemens Mobility, how has the relevance of sustainability evolved for our business?
Sustainability is a key strategic cornerstone for Siemens Mobility, right alongside digitalization. It has truly become a business-critical factor and a core part of our DNA.
I see sustainability impacting our business in three important ways:
- First, it is an obligation we must fulfill, with increasing external regulations like the Eco-design guideline and internal commitments through our Siemens ESG program "DEGREE".
- Second, sustainability is a key driver fueling the growth of the rail industry, as governments worldwide invest in rail transport as the most sustainable mode of transport.
- And third, customer demand has shifted dramatically, with sustainability criteria now a critical win-or-lose factor in tenders. Our sustainability leadership is key to securing profitable business.
Mr. Mehlhorn, you took over responsibility for sustainability at Siemens Mobility in 2022. How have you seen it evolve?
Siemens Mobility has made a significant step-up in sustainability across all dimensions. Compared to 2022, there is a clear shift from awareness to tangible performance.
We are differentiating ourselves through four key areas:
1) Delivering measurable sustainability KPIs
2) Providing end-to-end sustainability solutions for our customers
3) Expanding beyond decarbonization to resource efficiency and circularity, and
4) Integrating sustainability and digitalization
Mr. Blaim, as CFO, how do you measure the business impact of this sustainability performance?
It's not enough to just make claims - we have to deliver on our promises. The EU Taxonomy is a key proof point, with 86% of our revenue aligned in 2024. We also perform strongly across rating agencies, showing we are the sustainability leader in our industry.
Importantly, we have integrated sustainability throughout our "DEGREE" program, managing it holistically across our own operations and value chain. This is where the real work gets done, from decarbonizing our factories to securing our supply chain.
Mr. Mehlhorn, you mentioned end-to-end sustainability as a key focus. Can you dive deeper into that?
End-to-end sustainability is at the core. It's not enough to just optimize individual rail systems or components. We need to look at the full lifecycle and help our customers manage their entire sustainability transformation.
This means providing high-performance, low-emission rolling stock, but also solutions for energy efficiency, asset utilization, and digital operations management. And it extends beyond just environmental impact to the social aspects as well.
Mr. Soulier, the Egypt High-Speed Rail project is a great example of this end-to-end approach. Can you tell us more?
The Egypt project is a prime example of how we operationalize end-to-end sustainability.
We're constructing 2,000 km of electrified rail infrastructure, providing 90% of Egyptians with access to sustainable transportation and cutting CO2 emissions by 70%.
But our commitment goes beyond just the business impact. We're deeply invested in societal impact as well. This project is creating over 40,000 direct jobs, and we've launched extensive training and education initiatives to prepare young Egyptians for careers in rail.
Additionally, on the passengers’ side, it will transform daily life for Egyptians by cutting travel times by up to 50% for about 500 million journeys per year.
Last but not least, this project will enable about 46% more transport of goods, delivered faster for the regional market.
That's impressive. Can you tell us more about these educational programs?
With 50% of Egypt's population under 24, we have a unique opportunity and responsibility to harness the potential of this young generation. Our specialized programs like the Fit4Rail Internship, University Boot Camps, and Vocational Education are designed to equip them with practical skills and real-world experience.
Overall, the Egypt High-Speed project is anticipated to generate $2 billion annually in socioeconomic and broader economic benefits. It truly embodies our end-to-end sustainability approach, delivering tangible benefits to the environment, economy, and society.
Can you share some of the biggest challenges faced since the implementation of this project has started and how Siemens Mobility is overcoming them?
The main challenge is managing a large-scale, complex infrastructure project with many disciplines and stakeholders involved. Our Digital Project Management solution is helping us a lot! It brings everything together into one unified solution - the so-called Project Insight Board.
Our software integrates all processes into a holistic data model, creating a Digital Twin of the project. It enables data-driven decision-making and increases transparency in both planning and execution phases.
By providing a single source of truth, we ensure that everyone involved is on the same page. This is how we strive to deliver mega projects on time, within budget, and at the highest quality.
To conclude, for our Turnkey projects, it’s all about having a holistic approach that integrates sustainability throughout the entire project and delivers environmental, economic, and social benefits. Beyond offering and integrating sustainable products, we prioritize responsible supply chain management and optimize our own operations.
