Siemens 2014 Annual Report Download - page 221

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

chains. We have established and continually further develop
a risk-based system of appropriate processes to enable us to
systematically identify potential risks in our supply chain. It
consists of sustainability self-assessments by suppliers, risk
evaluation conducted by our purchasing department, sustain-
ability questions within supplier quality audits and sustainabil-
ity audits by external auditors. To further encourage sustain-
able business conduct throughout our entire global supply
chain, we are committed to building our suppliers’ competence
and intensifying knowledge transfers related to sustainability.
C.. Distribution and customer relations
Our Divisions have global responsibility for their business,
sales and results. They are able to support customers around
the world directly from their respective headquarters, espe-
cially for large contracts and projects. However, most of our
customers are small and medium-sized companies and organi-
zations that require local support. To address local business
opportunities with them, we are able to draw upon a large
global sales force steered by our regional companies. They are
responsible for serving our customers in the respective coun-
tries, leveraging our global network of market partners like
consultants, distributors, integrators, EPCs and machine build-
ers. We are currently selling products and services in almost
every country in the world.
Sustainable customer relationships are the basis for our long-
term success. We employ a structured key account manage-
ment (KAM) approach throughout the Company to take care of
our key customers. This means that we tailor our products and
solutions to their size and regional site structures. We also
ensure that our key account managers continually develop and
maintain relationships with them over the long term. This
approach is supplemented by our Executive Relationship Pro-
gram. In this program, members of the Company’s Executive
Management stay in direct contact with selected customers
and maintain an ongoing dialogue with them to familiarize
Siemens with their needs.
Our business success is strongly dependent on the satisfaction
of our customers. For this reason, we measure customer satis-
faction in every unit of the Company using the Net Promoter
Score (NPS). This internationally recognized and commonly ap -
plied managerial performance indicator, which we determine
annually on a worldwide basis by means of customer surveys,
measures the referral rate of our customers. The NPS for fiscal
 was based on the results of more than , interviews,
compared to more than , interviews in fiscal . In
fiscal , our company-wide NPS once again increased com-
pared to previous fiscal year.
An elementary component of all our global marketing and sell-
ing activities is compliance with applicable laws and internal
rules and regulations. Therefore, Siemens values and compli-
ance are an integral part of our training program.
C.. Environmental Portfolio
Indicators

Year ended September ,
 
Revenue generated by the Siemens
Environmental Portfolio (in billions of €) 33.0 31.9
Accumulated annual customer reductions
of carbon dioxide emissions generated by
elements from the Siemens Environmental
Portfolio (in millions of metric tons) 428 369
1 Continuing operations.
Our Environmental Portfolio serves as an example of how we
strive to align our business activities with the aforementioned
megatrends, in this case climate change. The Environmental
Portfolio consists of products, systems, solutions and services
(Environmental Portfolio elements) that reduce negative im-
pacts on the environment and emissions of carbon dioxide and
other greenhouse gases (defined together in the following as
carbon dioxide emissions) responsible for climate change.
In addition to its environmental benefits, our Environmental
Portfolio enables us to compete successfully in attractive mar-
kets and generate profitable growth. In fiscal , revenue
from continuing operations from the Environmental Portfolio
amounted to € . billion, which accounted for  % of our rev-
enue from continuing operations in this fiscal year. This rev-
enue includes revenue from newly developed and additionally
qualified elements, and excludes revenue from elements that
no longer fulfill our qualifications.
In fiscal , we set ourselves a revenue target for the Environ-
mental Portfolio within the One Siemens framework: to exceed
€  billion in revenue from the Environmental Portfolio by the
end of fiscal . Due to recent and ongoing portfolio changes
we have not been able to achieve this target. Siemens’ strategic
focus on technologies for energy efficiency and climate and en-
vironmental protection will nevertheless remain in place. For
fiscal year , almost three-quarter of the revenue from our
Environmental Portfolio were already generated with products
and solutions for energy efficiency.
With our Environmental Portfolio, we intend, among other
things, to help our customers reduce their carbon dioxide foot-
print, cut their energy costs and improve their profitability