Siemens Energy Limited · Physical Exposure and Transition

SF6 (GWP 24,300) leaks from HV switchgear. Vendor readiness on SF6-free switchgear sets the phase-out timeline. Single largest Scope 1 lever available to a TSO.

SF6 leakage from high-voltage switchgear makes up over 50% of Siemens Energy's combined Scope 1+2 emissions, concentrated in the Grid Technologies business area [E2][E3]. As a manufacturer and installer of transmission equipment, the company's exposure is twofold: direct SF6 leakage from its own operations and equipment fleet, and the embedded SF6 risk it sells into customers' grid infrastructure ahead of the mandatory EU phase-out starting 2030 [E1][E4].

Siemens Energy is replacing SF6 with a clean-air and vacuum-switching "Blue Portfolio" across its high-voltage product range, developed in Grid Technologies R&D [E2][E3][E5][E7]. It has a formal target to cut SF6-related emissions 60% by 2030 versus a 2019 baseline, reaching 43% by FY2021, 46% by FY2022, and 57% by FY2023, tracking ahead of the EU's 2030 mandatory phase-out deadline [E6][E8][E2][E3]. The company also reports increasing site-level transparency on SF6 emissions to support further reduction pathways [E5].

Steel, aluminium, copper, concrete for every new circuit + substation. Sector decarbonisation of these materials caps how quickly grid Scope 3 falls.

As a manufacturer of transformers, switchgear and turbines for grid build-out, Siemens Energy's largest transition exposure sits in Scope 3 purchased goods — steel, copper and aluminum embedded in transformers and grid infrastructure — rather than its own operations [E1][E2]. This exposure grew after Siemens Gamesa's upstream purchasing volumes were consolidated into reported Scope 3 figures, adding wind-turbine material intensity (steel towers, castings) to the base [E3][E4][E5]. No disclosed operational detail breaks out tonnage of steel, copper or concrete specifically, but the TenneT partnership frames copper and steel as the dominant supply-chain decarbonization levers [E1].

Siemens Energy has a formal Scope 3 target to cut relative emissions from purchased goods and transportation 30% per procurement euro by 2030 versus 2018 [E6], reinforced by an SBTi-aligned 28% absolute Scope 3 use-of-sold-products reduction target by 2030 from a 2019 base. Its most concrete build-out-materials lever is the 2024 TenneT alliance, targeting a 30% cut in shared grid-infrastructure supply-chain emissions by 2030 through 100% recycled copper windings in transformers and greener steel/aluminum, with a single recycled-copper measure projected to save ~6,500 tons of emissions and up to 14 million tons if scaled globally by 2040 [E1][E2][E7]. Siemens Gamesa's supplier base is also covered by earlier science-based targets requiring 30% of suppliers by spend to hold SBTs by 2025, rising to 50% by 2040 [E8].

Contractor + OEM supply chain (transformer, cable, civils) carries most enabled Scope 3 through embodied materials.

Siemens Energy's Scope 3 footprint is concentrated in purchased goods and services and transportation/distribution — transformers, switchgear components, cabling and civils inputs from its OEM and contractor base — rather than in its own switchgear/transmission operations [E3][E4]. This embodied-materials exposure is large enough that the company sets a dedicated relative reduction target for it (30% per euro of procurement spend by 2030 vs. 2018), separate from its own-operations Scope 1+2 target [E3][E8]. No structured emissions data is disclosed, so exposure sizing here relies on the target and engagement metrics rather than absolute figures.

Siemens Energy runs the Carbon Reduction@Suppliers Program with an external service provider, requiring suppliers to complete a Decarbonization Due Diligence Assessment; in FY2024 this reached over 3,400 suppliers covering more than 75% of the supply-chain carbon footprint, up from over 3,000 suppliers in FY2023 [E4][E5][E7]. In China specifically, procurement teams engaged 300+ suppliers requesting at least 70% green electricity coverage, with about 52% having implemented decarbonization measures by FY2023, backed by negotiated I-REC pricing and training for ~130 suppliers [E1][E2]. The company also expanded its Supplier Code of Conduct in FY2023 to fully align with the German Supply Chain Due Diligence Act, adding community impact, security-force conduct, and natural-resource protection clauses [E6].