A material necessity: securing the supply chain

We’ve taken the steps to secure the materials needed

Rising costs, changing circumstances

Expanding renewable energy requires huge quantities of minerals and raw materials. Power generation units now need 50% more minerals than in 2010. The pandemic and the war in Ukraine have also pushed up the price of raw materials.

Making progress with our partners

During the energy crisis largely precipitated by the war in Ukraine, we were able to almost offset the rise in raw material prices in many areas. We will continue to work on reducing to a minimum the number of suppliers where there is a risk of disruption.

Procurement's major shifts, fueled by demand for resilience, sustainability, growth enablement and new technologies, provide a competitive edge to organizations that can address these challenges.

Vinod Philip

Member of the Executive Board, Siemens Energy

Specific challenges and solutions

In an uncertain world, it is vital that we diversify our supply chains and reduce our dependency on any particular source of raw materials. Our strategy involves:

The regionalization and expansion of supply chains.
Securing availability and prices through long-term contracts.

Energy transition targets

Every supply chain has an objective. Our focus on the supply chain has two:

To make it more resilient by increasing levels of sustainability, transparency and accountability
Reduce dependencies by diversifying our supply chains. We at Siemens Energy pursues a strategy of regionalization and expansion of supply chains

Recognizing and rating the risks

The Siemens Energy sustainability risk analysis system continuously identifies potential risks in the supply chain, using information from internationally recognized organizations.