Siemens Expands in Mexico, Cuts CO₂, Advances ESG Goals

Siemens is expanding its strategic manufacturing capacity, while making measurable advances in environmental, social, and governance (ESG) objectives, says the company in its latest Sustainability Report for Mexico, Central America, and the Caribbean. The company reports significant advances in its DEGREE framework, noting a 2% reduction in operational CO₂ emissions achieved concurrently with the expansion of its operations.

“As we approach critical tipping points for our planet, the demand to accelerate a sustainable transformation has never been greater,” reads the report. “Our technology enables our customers and partners to expand their sustainability impact faster on the backbone of our economies.”

As part of its 2024 business strategy, Siemens expanded its manufacturing capacity to meet growing regional and export demand. In Queretaro, it doubled the production capacity of its facility located in the Kaizen industrial park. This expansion focused on medium and low-voltage products targeting key industries such as automotive, food and beverage, and data centers. In Nuevo Leon, Siemens inaugurated a new plant in Santa Catarina, which specializes in medium and low-voltage electrification. This facility is pursuing LEED Gold certification and will incorporate Siemens’ SiGreen solution to monitor its carbon footprint. Meanwhile, in Ciudad Juarez, the ITESA 4 plant was expanded to respond to the increasing demand for energy measurement and distribution products, particularly in the residential sector. 

Sustainability and Decarbonization

Siemens structures its sustainability progress around its DEGREE framework, a 360° approach encompassing six action areas: decarbonization, ethics, governance, resource efficiency, equity, and employability. Globally, Siemens met seven of its 14 key performance indicators (KPIs) associated with this framework by the end of fiscal year 2024. 

In alignment with its objective to achieve net-zero emissions by 2030, Siemens reported a 2% reduction in Scope 1 and 2 emissions during fiscal year 2024 in Mexico, Central America, and the Caribbean. This decrease, equivalent to 5,976 tons of CO₂, was accomplished despite increased operational activity linked to the opening and expansion of manufacturing centers. 

Among the key measures implemented to reach this milestone was the enhancement of operational efficiency, including the replacement of gas stoves with electric ones at the assembly center in Vallejo, Mexico City. Siemens also strengthened oversight across its supply chain: all new suppliers signed the company’s Code of Conduct, and sustainability standards were embedded into management system audits. Furthermore, logistics processes were optimized through load consolidation and the deployment of electric or hybrid vehicles. 

Siemens also initiated a transition from conventional machining technology to sintering in the manufacturing of circuit breakers, a shift that reduces resource consumption and waste. These actions are part of the company’s broader circularity framework, which promotes sustainable product design, component lifespan extension, and customer enablement through its software portfolio.

Governance, Ethics, and Social Impact

Siemens achieved a 93% compliance rate across the region with its mandatory Business Conduct Guidelines training, which must be renewed every three years. It structures its compliance processes around three core pillars: reporting mechanisms, internal investigations, and corrective actions. The company reports that women held 27% of management positions in Mexico, Central America, and the Caribbean by the end of fiscal year 2024, surpassing Siemens’ global average of 22%. 

Siemens also ensured that 100% of employee requests related to psychosocial risks were addressed through dedicated support programs, says the company. It also executed over 20 social impact projects in Mexico during the year. These initiatives involved 1,087 volunteers from the company who contributed a total of 2,800 hours, positively impacting over 5,000 people.