Siemens 2012 Annual Report Download - page 195

135 D. Consolidated Financial Statements
239 E. Additional Information
130 C. Siemens AG (Discussion on basis of
German Commercial Code)
134 C. Notes and forward-looking statements
129 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report

...  –
  
The qualification of Environmental Portfolio elements as well
as their respective reporting is based on defined processes and
criteria. In principle, any product, system, solution or service
of Siemens’continuing operations may qualify for the Environ-
mental Portfolio. The business portfolio of Siemens’ continu-
ing operations is reviewed annually regarding the qualification
of Environmental Portfolio elements based on the criteria de-
scribed below. This covers the inclusion of newly developed
elements as well as the integration of additionally qualified
elements where evidence of fulfillment of the qualification cri-
teria was not available in prior reporting periods. For addition-
ally qualified Environmental Portfolio elements, we report
their prior-year revenue and prior-year contribution to reduc-
ing customer carbon dioxide emissions on a comparable basis.
Elements that no longer fulfill our qualification criteria are
excluded from our Environmental Portfolio.
Prior to inclusion in the Environmental Portfolio, potential new
Environmental Portfolio elements have to undergo a multilevel
internal evaluation process. The Sustainability Board annually
acknowledges changes in the composition of the Environmen-
tal Portfolio. One task of the Sustainability Board is also to dis-
cuss potential concerns of stakeholders with regard to the
inclusion or deletion of certain technologies in the Environ-
mental Portfolio.
...   
   
An Environmental Portfolio element can be a product, a sys-
tem, a solution or a service as defined above. Furthermore, a
core component of a system or solution may qualify as an
Environmental Portfolio element if the component provided by
Siemens is key to enabling environmental benefits resulting
from the system’s or solution’s overall application. To qualify
for inclusion in the Environmental Portfolio, an element must
meet one of the selection criteria described below, which are
energy efficiency, renewable energy or environmental technol-
ogies. Products, systems, solutions and services with planned
application in military use or nuclear power are not included in
the Environmental Portfolio.
> Energy efficiency: The criteria for energy efficiency are an
improvement in energy efficiency of % or more during the
customer use phase compared to the applicable baseline, or
a reduction of at least , metric tons of carbon dioxide
equivalents per reporting period in the customer use phase.
Examples of elements that meet the energy efficiency crite-
rion are combined cycle power plants and intelligent build-
ing technology systems.
> Renewable energy: This criterion covers technologies in
the field of renewable energy sources such as wind turbines
or smart grid applications and their respective core compo-
nents.
> Environmental technologies: This criterion is related to wa-
ter and wastewater treatment, air pollution control, waste re-
duction, recycling, e-car infrastructure and its core compo-
nents. Additionally, a criterion for the Healthcare Sector is an
environmental impact reduction in terms of noise, radiation
or total weight of at least % compared to the baseline.
...  
Energy efficiency, annual customer reduction of carbon diox-
ide and environmental impact are all assessed by a comparison
with a reference solution (baseline). There are three different
options for the reference solution: before-after comparison,
comparison with a reference technology or comparison with
the installed base. The baselines are reviewed annually and, if
necessary, adjusted, such as when statistical data on the in-
stalled base is updated because of technical innovations or
regulatory changes. The calculation of the reduction of carbon
dioxide emissions is based on a comparison for every relevant
Environmental Portfolio element with a baseline. For this cal-
culation, we focus on those elements that have a material
impact on the overall carbon dioxide emissions reduction. For
some emission reduction calculations, the baseline reference
for the installed base is determined using known global emis-
sion factors such as those for power production. The baselines
used for our calculations are mainly based on data of the Inter-
national Energy Agency (IEA) for gross power production and
for grid losses, on data from the Intergovernmental Panel on
Climate Change (IPCC) for fuel based emission factors, and our
own assessments of power production efficiency. For consis-
tency reasons, we generally apply global emission factors for
calculating emission reductions.
...  
The inclusion of elements in the Environmental Portfolio is
based on criteria, methodologies and assumptions that other
companies and other stakeholders may view differently. Fac-
tors that may cause differences, among others, are: choice of
applicable baseline methodology, application of global emis-
sion factors that may be different from local conditions, use
patterns at customers that may be different from standard use
patterns used for carbon dioxide abatement calculations and
expert estimates if no other data is available.
To date, there is no applicable international standard that ap-
plies across companies for qualifying products, systems, solu-
tions and services for environmental and climate protection, or
for compiling and calculating the respective revenues and the