How do we create sustainable value?
Through responsible business and leadership linking sustainability goals to incentives.
At Siemens Healthineers, our aim is to create sustainable value for the benefit of customers and societies, and to fulfill our promises to our investors. We believe that sustainable value creation is strongly supported by responsible business and leadership practices. To this end, we endeavor to act with integrity toward our stakeholders and instill a focus on sustainability in our leadership team. This is why three selected sustainability targets play a part in determining the long-term share-based compensation awarded to the Managing Board and parts of the eligible senior management.
Zero-tolerance for ethical and legal framework
We safeguard responsible business practices with our Business Conduct Guidelines and our certified Quality and Environmental, Health, and Safety (EHS) Management System, which provide the ethical and legal framework for our company and are binding for all employees. They build on our zero-tolerance approach, which is continuously monitored by our compliance organization comprising more than 80 compliance professionals. In addition, we have established direct and anonymous reporting channels for potential violations of internal regulations, codes of conduct or legislation.
We have established a corporate governance system that provides the basis for our decision-making and control processes, and we regularly monitor the system’s implementation and development. In this way, we also conform with the German Corporate Governance Code. Comprehensive information can be found in our Annual Report and on the Investor Relations homepage. Our efforts to provide responsible business and leadership contribute to progress on the UN SDGs in many ways, in particular UN SDG 16 “Peace, Justice and Strong Institutions”.
Clear leadership commitment
As a company, we acknowledge our duty to create a livable and sustainable environment for all of society. Accordingly, sustainability is both an integral part of our strategy and a prerequisite for our future viability. We hope to help address some of the greatest global challenges with our innovative products and services. The Managing Board and top management team are committed to sustainable leadership practices with the aim of establishing a culture of sustainability throughout the company. Our approach to sustainability creates value for all: With our products, we help to enable healthcare for everyone, everywhere.
This is why three selected sustainability goals play a part in determining the long-term share-based compensation awarded to the Managing Board and eligible senior managers, demonstrating the commitment of Siemens Healthineers to sustainability. Good governance can contribute to progress on the UN SDGs in many ways. In particular, Siemens Healthineers is contributing to the fulfillment of UN SDG 16 "Peace, Justice and Strong Institutions".
Apply best business ethics through compliance
At Siemens Healthineers, our goal is to be a responsible partner in society by acting with integrity toward our employees, customers, business partners, shareholders, regulatory authorities, and the communities in which we operate. Our Business Conduct Guidelines and our certified Quality- and EHS Management System provide the ethical and legal framework that applies within our company and to our supply and sales processes. They are binding for all employees worldwide.
They detail our zero-tolerance approach to violations of anti-corruption laws, anti-money laundering laws, antitrust and competition laws, violations of export control and customs laws, data privacy laws, human rights regulations, transparency rules, regulatory laws, and other applicable laws or codes of conduct of industry associations to which we belong. Our Compliance System is based on three pillars: prevent, detect, respond. It is designed to support the company through our compliance organization, comprising more than 80 compliance professionals (FTEs). It also offers tools used for comprehensive due diligence processes and risk management efforts to protect our company against violations.
Protected reporting channels
In addition, Siemens Healthineers provides protected channels that can be used to report potential violations of internal regulations, codes of conduct or legislation. All reports can be submitted anonymously and are handled and tracked by the compliance organization. In the 2020 fiscal year, 84 compliance concerns requiring further investigation were reported. The total number of disciplinary measures for such cases was 47 in the same period. Our efforts to uphold business ethics support UN SDG target 16.5, “Substantially reduce corruption and bribery in all their forms” by 2030, thereby contributing to UN SDG 16 “Peace, Justice and Strong Institutions”.
Responsibly enhance long-term business value
Enhancing our business value is the core element of the Upgrading phase of our Strategy 2025, in which we focus in particular on growth in adjacent markets to increase the value we can provide to societies. Upgrading is the second phase of the Siemens Healthineers Strategy 2025 and will run until the end of the 2022 fiscal year. During the Upgrading phase, Siemens Healthineers aims to achieve comparable revenue growth of more than 5% p.a. (per annum) and growth of adjusted basic earnings per share of around 10% p.a.
Our comprehensive portfolio supports customers all along the care continuum, from prevention and early detection to diagnosis, treatment, and follow-up care. We continuously innovate and invest in these fields to drive our progress. Our priorities include securing a leading role in the field of clinical decision-making based on artificial intelligence in the Imaging segment, exploiting the opportunities offered by automated workflows in laboratory diagnostics in the Diagnostics segment, and further developing innovative technologies and services that promote image-guided clinical procedures in the Advanced Therapies segment.
Reliable partner and innovative leader
Growing in existing markets, entering adjacent fields, and creating new markets are additional core elements of the Upgrading phase of our Strategy 2025. The acquisitions completed in FY20 (ECG and Corindus) and the announced acquisition of Varian demonstrate the progress of the Upgrading phase in this regard. These efforts are also supported by R&D activities, in particular in the fields of digitalization, artificial intelligence, and robotics. In pursuit of our goal of being a reliable partner to our customers and an innovative leader throughout the healthcare continuum, Siemens Healthineers plays a decisive role in reshaping the healthcare market, contributing to UN SDG 12 “Responsible Consumption and Production” and UN SDG 8 “Decent Work and Economic Growth”.