Electronics giant Siemens is leading by example when it comes to embracing new technology and focusing on its environmental responsibilities.

The company, which employs 430,000 people in 30 countries, including 18,000 in the UK, has introduced the latest internet-based video conferencing system from Microsoft to reduce the number of long-distance journeys undertaken by its staff.

In just one year, the number of miles travelled has reduced “dramatically”, according to Paul Tate, commodity manager at Siemens.

Employees were given internet cameras and headsets – the communications system can accommodate more than 20 people at one time. “Staff have embraced it,” Tate adds.

And, while the move has bolstered Siemens’s green credentials by cutting its carbon footprint, its use of technology has also been good news for the bottom line, saving the company £1.7 million in travel costs between October 2008 and September 2009.

Siemens’s fleet in the UK consists of around 1,200 vehicles on contract hire and approximately 2,700 through an employee car ownership (ECO) scheme, called the Siemens Vehicle Plan (SVP).

However, the company has recently reviewed its ECO offering with an eye on driving down emissions.

“It isn’t necessarily the most environmentally friendly mechanism to deliver vehicles and as Siemens is one of the leaders in producing environmental products it would not make sense for us to be seen driving around in vehicles that are not environmentally friendly,” says Tate.

“Originally, employees had the ability to buy what they wanted to as long as it was job specific and within band.

“However, now we’ve looked at our ECO offering and said ‘what do we want to achieve in the UK?’.

“In Germany, they want to be down to a 120g/km cap by 2012, but we realise with our ECO scheme that would be an uphill challenge, so we’ve put in a ceiling of 160g/km.”

However, while that ceiling figure will be reviewed, Tate is quick to point out that it is only advisory and employees can still opt for higher-polluting cars.

“But if they do they will have to pay an ‘environmental penalty’,” he adds.
“We charge a premium on top of the rental for taking a vehicle which has emissions above 160g/km. That premium is around £20 per month.”

The cash is ploughed back into the company, which has invested €1 billion into developing green technologies in the past financial year.

Siemens Environmental Portfolio is continually developed and expanded and embraces nearly all relevant areas involving the generation, distribution and use of energy.

Efficient gas turbines, wind power systems, energy efficient lighting and eco-friendly trains are the latest additions to the portfolio, which focuses on reducing CO2 emissions.

However, Tate, who is based at Sir William Siemens House in Manchester, intends to help employees cut their emissions further.

“I’m in the process of organising a green vehicle day where we will invite manufacturers to showcase their lowest-emitting vehicles,” he says.

This will be billed as a CO2 reduction event, which he hopes to hold in March 2010, and will showcase a variety of other products too.

“We have around 18,000 employees in the UK and, while not all of them have access to vehicles through Siemens, such an event would be of interest from a wider educational perspective considering the huge inroads manufacturers have made in reducing emissions,” explains Tate.

 

Siemens operates a ‘four-family badge’ fleet, incorporating Ford,
Vauxhall, Volkswagen and Renault.

Employees who are eligible for a company vehicle and are travelling fewer than 8,000 business miles a year must enter into a contract hire arrangement, because it is more cost effective.

Only those covering more than 8,000 miles qualify for the Siemens Vehicle Plan.

“Where fuel choice is concerned, if you’re contract hire and covering less than 8,000 business miles you can either choose petrol or diesel; if you cover more than 8,000 miles, it has to be diesel,” Tate says.

“We’ve also been looking at electric and hybrid vehicles too. But the issue is batteries and their cost.”

Tate adds: “Our main procurement method is via the leasing companies. We were looking at an electric minibus to use between sites with the potential to acquire six units to do the job.

“However, when we priced them up they were £80,000 per unit - £1,300 per month contract hire over five years – and that was dependent on whether the contract hire company wanted to do it anyway.

“When you looked at a diesel alternative it was just a no-brainer. We tried everything, but the cost of electric vehicles is prohibitive at the moment.

“However, we are looking at the hybrid systems that are available as an intermediary option until the manufacturers come up with a cost-effective fully green product.”

Siemens takes a similar approach to its contract hire fleet.
“When somebody’s contract comes up, we look at the CO2 impact of the vehicle and what environment they’ll be working in,” says Tate.

“Then we will provisionally offer them the standard vehicle, but we will also look at the innovative products that are available, something which has low emissions, something electric and something which has a hybrid offering,” he says.

Green technology

The Greenster may not find its way on to many fleets, but the fully-electric sports car developed by Siemens and car manufacturer Ruf can reach speeds of 142mph.

Fleets, however, may benefit from the technology after researchers at Siemens Corporate Technology developed the integrated system of engine/generator, power electronics and an interface with battery application for the prototype.

With its expertise in energy distribution, smart grid and system integration, Siemens has joined the intelligent architecture advisory group, which is part of the Joined-Cities Plan – an £11 million plug-in vehicle programme accelerating the deployment of affordable, low-carbon energy technologies in the UK.

London mayor Boris Johnson, who is a key supporter of the scheme, was on hand to test drive the Greenster in London recently.

Company profile

Siemens was established in the United Kingdom 166 years ago and employs 430,000 staff globally, with 18,402 people in the UK, including about 6,000 in the manufacturing sector.

Last year’s revenue was £3.7 billion, including exports of more than £1 billion.

More than £40 million was invested in research and development.
Siemens has offices and factories throughout the UK, with its headquarters in Frimley, Surrey.

Its main research and development centres are located in Germany, Austria, United States, China and India.

To date it boasts around 55,000 patents and in 2008 alone it registered 8,200 inventions.

During the same period, it filed around 5,000 patent applications – which amounts to 38 inventions and 23 patent applications per working day.