London 1 Cities are growing 2011 50% 2050 In 2011, more Percentage of people worldwide lived in cities than in rural areas – and the world population in cities number of city dwellers is continuing to grow. Experts predict that urban areas will be home to about 60% of the world’s population by 2030 – and this figure is expected to reach 70% by 2050. Over the next 20 years, the global population will increase by an estimated 1.4 billion. Total world population 7 billion ~50 7.8 million inhabitants 5,030 people per square kilometer % Percentage of world population in cities – 2011 > London Total world population 9 billion ~70 % Percentage of world population in cities – 2050 London 1 Cities are growing 2050 In 2011, more people worldwide lived in cities than in rural areas – and the number of city dwellers is continuing to grow. Experts predict that urban areas will be home to about 60% of the world’s population by 2030 – and this figure is expected to reach 70% by 2050. Over the next 20 years, the global population will increase by an estimated 1.4 billion. 2 Cities are influencing climate change The challenge of climate change will be mastered in cities. Urban areas account for up to 70% of the world’s greenhouse gas emissions, twothirds of its energy consumption and about 60% of its freshwater consump7.8 million tion. Thisinhabitants situation has arisen mainly 5,030 people per square kilometer because of inadequate infrastructures > London for mobility, power and water as well as energy-inefficient buildings – and it’s clearly cause for concern. But it also contains the seeds of a solution: cities committed to sustainable urban development can make a powerful contribution to climate and environmental protection. London ~70 % Percentage of the world’s greenhouse gas emissions generated in cities ~60 % Percentage of the world’s freshwater consumed in cities 3 Cities are the engines of growth Cities are major contributors to global economic growth. The ten economically strongest cities already generate one-fifth of the world’s total GDP – and this share is increasing. The result? A growing need to invest 7.8 million inhabitants in advanced infrastructure solutions 5,030 people per square kilometer worldwide. > London London ~3.5 % Annual GDP growth to 2025 – Cities ~3.0 % Annual GDP growth to 2025 – Worldwide 4 Our contribution to sustainable urban development Siemens is already making important contributions to sustainable urban development. Our reports on selected cities – such as the Green City Indexes – provide mayors, urban planners and city administrators worldwide with 7.8 million inhabitants comparative data that they can use to 5,030 people per square kilometer evaluate their cities’ per formance and > London plan development measures. In more than 60 metropolises around the globe, our City Account Managers are advising urban decision-makers in the crucial planning phase of infrastructure projects. And last but not least, our innovative products and solutions are making cities more environmentally friendly, improving the quality of urban life and cutting costs. > www.siemens.com/cities > www.siemens.com/greencityindex London London Page 1 million inhabitants Page 26 Singapore million inhabitants São Paulo Page 62 million inhabitants To learn more about how we’re promoting sustainable development and improving the quality of life in London, Singapore and São Paulo, please take a look at our three city reports. Contents Part I 1 20 26 46 City report: London Siemens – A pioneer of our time City report: Singapore Focus on innovation7.8 million inhabitants driven growth markets 5,030 people per square kilometer > London 50 56 62 82 21 Vision 22 Strategy 22 One Siemens Get closer to our customers Use the power of Siemens 47 Be a pioneer in technology-driven markets 48 Strengthen our portfolio 49 Provide a leading environmental portfolio 51 Grow in emerging markets 52 Expand our service business 54 Intensify our customer focus 57 Encourage lifelong learning and development 58 Empower our diverse and engaged people worldwide 60 Stand for integrity City report: São Paulo Unleash the strengths of an integrated technology company 83 Siemens is more than the sum of its parts 84 Our organization as a reflection of current market opportunities