Siemens is investing €100 million (£73.4m) in the next three years to improve the energy efficiency of its buildings and production facilities.
That is expected to slash the engineering giant’s energy costs by around €20 million (£14.7m) a year.
It is part of the company’s plans to achieve a net zero carbon footprint by 2030.
It aims to halve its carbon emissions – which currently totals to around 2.2 million metric tons a year – by the end of this decade.
Siemens said it will use distributed energy systems, employ low emission vehicles in its global car fleet as well as move towards a “cleaner power mix” by increasing the use of natural gas and wind power.
It plans to invest around €40 million (£29.4m) in a carbon reduction programme, which will be launched next year.
Joe Kaeser, President and CEO of Siemens AG said: “Cutting our carbon footprint is not only good corporate citizenship, it’s also good business.”