Siemens Integrity Initiative Annual Report 2018 siemens.com/integrity-initiative Content 2 Foreword A WORD FROM THE SIEMENS INTEGRITY INITIATIVE STEERING COMMITTEE 4 A WORD FROM THE SIEMENS INTEGRITY INITIATIVE PROJECT OFFICE 8 A. INTRODUCTION 14 Project management and reporting 16 Project organization 18 B. SIEMENS INTEGRITY INITIATIVE 20 Status of the First Funding Round 22 Status of the Second Funding Round 23 Status of the Third Funding Round 24 C. PROJECT PROFILES AND HIGHLIGHTS OF ACTIVITIES IN 2018 36 C1. First Funding Round Projects: Project Profiles and highlights of activities in 2018 38 C2. Second Funding Round Projects: Project Profiles and highlights of activities in 2018 40 D. ANNEX 86 D1. International Center for Collective Action: Conference in Basel 86 D2. Third Funding Round Press Release by Siemens and Eligibility and Selection Criteria 90 D3. Additional Siemens Reports 96 Note: Please refer to the following website for a general overview of the Siemens Integrity Initiative, the selection process for the First, Second and Third Funding Rounds and highlights of activities: www.siemens.com/integrity-initiative. The Siemens Integrity Initiative Annual Report 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 can be found here: www.siemens.com/integrity-initiative/Report2011 www.siemens.com/integrity-initiative/Report2015 www.siemens.com/integrity-initiative/Report2012 www.siemens.com/integrity-initiative/Report2016 www.siemens.com/integrity-initiative/Report2013 www.siemens.com/integrity-initiative/Report2017 www.siemens.com/integrity-initiative/Report2014 www.siemens.com/integrity-initiative/Report2018 Kindly note that the online version of this Annual Report 2018, available at www.siemens.com/integrity-initiative/Report2018, is complemented by numerous hyperlinks which provide a wealth of additional external information on the projects funded under the Siemens Integrity Initiative. 3 A Word from the Siemens Integrity Initiative Steering Committee A Word from the Siemens Integrity Initiative Steering Committee A Word from the Siemens Integrity Initiative Project Office Dear Reader, March 2019 After a decade of promoting Collective Action, The Siemens Integrity Initiative was established which is building alliances against corruption in 2009 and is backed by funding in excess of around the world, we are pleased to present to USD 100 million out of settlements with the you the Annual Report 2018 of the Siemens World Bank in 2009 (USD 100 million over 15 Integrity Initiative, which is an important pillar years) and the European Investment Bank in of our Siemens compliance system. 2013 (EUR 13.64 million over 5 years). For us in Siemens, the responsible business Since the first Siemens Integrity Initiative pro- conduct we commit to is based on integrity, jects were launched in December 2010, we fairness, transparency and responsibility. This have held to our longstanding commitment builds the core principles for all our compliance of transparency and continuity through eight and anti-bribery, supply chain management Annual Report editions covering the activities, and human rights-related activities. Collective outcomes and status of our First and Second Action is a prominent activity field in our Com- Funding Round projects. pliance System, and through our engagement Once again, we are pleased to show-case the with external stakeholders in the private sec- most recent accomplishments of the Integrity tor, government and civil society, we continue Initiative in this Annual Report 2018, with an to drive and enable sustainable and transpar- exciting and impressive summary of project ent market conditions for the benefit of all. activities and outcomes in Section C based on information provided by our Integrity Partners as of key date March 1, 2019. 4 The narrative of accomplishments once again levels of government and / or with their strate- The Project Office has kept the Steering Com- emphasizes and demonstrates the importance gic local stakeholders in their respective coun- mittee, the World Bank Group and the Euro- of Collective Action in levelling playing fields, tries of implementation, but have also collec- pean Investment Bank up to date on emerging and the ever-increasing aggregation of contri- tively advocated for and placed responsible developments and the status of projects. As butions to the global fight against corruption. business conduct themes on the international before, it has been a pleasure for the Steering agenda through platforms such as the World Committee to provide supervisory and advisory Looking ahead, we are confident that the Third Economic Forum and the G20 / B20 process. support to the Project Office, where needed. Funding Round which we launched on March 13, 2018 will build – with some 25 new pro- Secondly, we would like to thank Sabine Zindera Our final sentiment of thanks is to Dr. Klaus jects and up to USD 30 million in funding – and the Munich based Project Office of the Moosmayer, who served as the Chief Compli- on the solid and far reaching accomplishments Siemens Integrity Initiative who at the outset ance Officer of Siemens AG and the Integrity backed with more than USD 70 million to date. in 2010 designed the program and its gover- Initiative Steering Committee member until nance structures. Supported by a motivated November 2018, and who has in addition con- We would like to express the following senti- network of local in-country Mentors on CEO tributed to the global fight against corruption ments of thanks: level and Project Relationship Managers from in various distinguished capacities. Firstly, we wish to acknowledge the commit- our local Compliance Organization, the Project ment and engagement of our Integrity Partners Office has under her leadership maintained who have not only individually addressed the highest standard of professional guidance, important anti-corruption issues at the highest support and oversight. 5 A Word from the Siemens Integrity Initiative Steering Committee A Word from the Siemens Integrity Initiative Project Office His strong belief that business can and must Steering Committee make a difference in fighting corruption of the Siemens Integrity Initiative: through clear tone from the top, effective com- pliance systems and constructive collaboration Dr. Andreas Christian Hoffmann with civil society and the public sector has well General Counsel, Siemens AG informed his invaluable contributions to the Dr. Klaus Moosmayer Siemens Integrity Initiative, the Siemens Com- (until November 2018) pliance system and Collective Action. Martina Maier This Annual Report was approved by the (from December 2018) Siemens Steering Committee on March 18, Chief Compliance Officer, Siemens AG 2019 and submitted together with a compre- Dr. Horst J. Kayser hensive presentation to the World Bank Group Corporate Vice President, in Washington on March 20, 2019 and to the Chief Strategy Officer, Siemens AG European Investment Bank in Luxembourg on April 25, 2019. 6 Much of the information available to us is Our very first 2011 edition introduced to you We hope that this will encourage additional transparently accessible to the public and the Siemens Collective Action program, and in allies to sign up to Collective Action and join can be viewed on our dedicated web site Sections A and B of the report provided us in our fight against corruption. The positive www.siemens.com/integrity-initiative. insight into the conceptualization, planning, external and internal feedback received in project selection, award of funds and project response to our reports, and especially to our The information provided relates in particular implementation relating to the First Funding externally conducted Mid-term Review has to the framework conditions for the First, Round tranche of USD 37.7 million. strengthened our resolve to extend our pro- Second and Third Funding Rounds, the appli- gram even further, enabling us to highlight cation and selection process for the projects, Our seventh 2017 edition signaled the half- more and more anti-corruption success stories the brief profiles and the individual funds way mark of the 15-year World Bank settle- across all countries and, in so doing, integrate earmarked for the selected projects from the ment period and featured a Summary Report additional stakeholders and activities. First and Second Funding Round, and the of the external Mid-term Review of the unabridged versions of the Siemens Integrity Integrity Initiative in Section D. The Mid- Initiative Annual Reports for 2011, 2012, term Review was independently conducted by 2013, 2014, 2015, 2016, 2017 and 2018. the Canadian Universalia Management Group Two editions stand out and merit further who found there to be “strong evidence” that mention: projects have “achieved their intended short- term results” and have made “significant con- tributions to change within their respective contexts”. 7 A Word from the Siemens Integrity Initiative Project Office A Word from the Siemens Integrity Initiative Steering Committee A Word from the Siemens Integrity Initiative Project Office Dear Reader, March 2019 “Even with a 171-year history, we at Siemens Siemens’ commitment to sustainable practices keep asking ourselves: What kind of company using the United Nations Agenda 2030 and its do we want to be? What is it that drives our 17 Sustainable Development Goals (SDGs) as a 379,000 employees to give their best every guideline measure to the value we create for day? The answers to these questions lie in