Innovation at the grid edge | Barbara Humpton, CEO of Siemens USA
Jun 27, 2024
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Barbara Humpton, the CEO of Siemens USA, is a leader in advancing sustainability across various sectors. She discusses Siemens' innovative approaches to decarbonization and the importance of energy resilience. The conversation highlights the revival of U.S. manufacturing spurred by government initiatives, advancements in EV infrastructure, and how digital tools are transforming production. Humpton also shares her leadership philosophy and the optimistic outlook that shapes her work, emphasizing the need for action in tackling climate challenges.
Siemens is leveraging its 175-year history to address climate change by integrating sustainability and decarbonization into its core business strategies.
The integration of digital tools allows manufacturers to design environmentally friendly products, significantly influencing their sustainability footprint from the design phase.
Siemens is expanding its manufacturing capabilities in the U.S. through legislative support, while focusing on workforce development for electric vehicle infrastructure.
Deep dives
The Role of Design in Sustainability
The design phase of a product significantly influences its ultimate environmental impact, with approximately 80% of an item's footprint determined at this stage. Utilizing digital tools can empower manufacturers to not only achieve their economic objectives but also prioritize sustainability. This integration of sustainability into design allows companies to create products that are environmentally friendly from inception. Consequently, manufacturers can leverage these tools to meet both financial and non-financial goals, establishing sustainability as a core part of their business strategies.
Siemens and the Shift Towards Decarbonization
Siemens, with a rich history of over 175 years, is at the forefront of evolving its strategies to address global megatrends, including climate change. The company's portfolio, which generates 90% of its global revenue, is increasingly focused on sustainability initiatives that align with decarbonization efforts. By tying its business strategies to climate-related challenges, Siemens is not only facilitating growth but also defining a new tech sector that integrates technology into the core of economic improvement. The firm aims to utilize its expertise in electrification, automation, and digitalization to address contemporary issues within industry and infrastructure.
Addressing the Power Grid Challenge
The American economy's growth is directly linked to the efficiency and capacity of its power grid, particularly as new demands arise from AI-driven data centers and electrification of transportation. Siemens recognizes the urgent need for grid expansion to support increased electricity generation from renewables and the rise of new industries. The company has developed grid software to enable utilities to manage decentralized power generation and storage effectively. This software allows for efficient energy use, addressing the considerable challenge posed by fluctuating energy demands and ensuring resilience within the electrical infrastructure.
Innovations in Energy Storage and Microgrid Development
Energy storage is becoming a pivotal component of modern energy systems as it facilitates the integration of renewable sources and enhances grid resilience. Siemens has been involved in innovative projects like the Bronzeville microgrid in Chicago, which utilizes distributed energy resources to ensure power availability during crises. By tapping into local storage and generation, such microgrids provide greater community resilience compared to traditional power systems. Siemens aims to support the development of a diverse array of energy storage solutions, including advancements in battery technology and the exploration of unconventional storage methods.
Reinvention of U.S. Manufacturing and Workforce Development
Recent legislative measures in the U.S. have sparked a resurgence in domestic manufacturing, supported by the Chips and Science Act, the Infrastructure Investment and Jobs Act, and the Inflation Reduction Act. Siemens is actively expanding its manufacturing footprint and integrating advanced technologies to support this growth while emphasizing sustainability in production processes. The company is also focused on workforce development, creating programs to educate and train a new generation of workers skilled in electric vehicle and charging infrastructure. This push for advanced manufacturing and workforce training aims to enhance supply chain resilience and promote innovation across various sectors.
Barbara Humpton, President and CEO of Siemens USA, sits down with Gil Jenkins and Susan Nickey to discuss Siemens' pivotal role in advancing sustainability across industry, infrastructure, and transportation sectors. The conversation dives into Siemens' approach to decarbonization as an engine for growth and spotlights how innovation at the grid edge will be key to delivering a more sustainable future, guiding energy flows and balancing supply with the demands of buildings, industry, and private consumers. Additionally, Barbara discusses the encouraging trend of U.S. manufacturing expansion, advancements in EV charging infrastructure, and more. Finally, Babara shares insights into her leadership philosophy, discusses her passion for integrating work and personal life priorities, and explains why she started a podcast for Siemens, The Optimistic Outlook, back in 2021.
