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Schneider Sustainability Report2017 – 2018A clear vision for the pepoporrt.rttt.ssese.e.ccomecoomom 1
CONTENTS3 INTRODUCTION: OUR MISSIONThe digital transformation of energy management and automation isour mission. As our CEO, Jean-Pascal Tricoire says, “When it comes toclimate change, I’m neither an optimist nor a pessimist. I’m an activist.”9 SUSTAINABLE SOLUTIONSWe believe meaningful action is the only path to a sustainable world.Discover how we use EcoStruxure innovation and open collaborationto create efficient, effective, green solutions for our customers.17 OUR CUSTOMERSAcross buildings, data centers, industry, and infrastructure, we’re equippingthe world with connected solutions that increase operational and energyefficiency — and make sustainability a reality. See the results.22 OUR PEOPLEIt takes great people to power our sustainability efforts and our company.We offer a learning-focused, inclusive workplace that fosters innovationand fuels professional development. Learn more about our shared,meaningful purpose.28 OUTREACH AND INITIATIVESToday, 1.1 billion people lack access to electricity. As we work to reducethe energy gap and address fuel poverty, we must do so responsibly.Learn how we’re innovating to solve this energy paradox.36 COMPANY PERFORMANCEWe launched more than 100 new products, continued to optimizeour portfolio, and delivered growth for shareholders. See howSchneider Electric performed in 2017.44 LOOKING AHEADWe’re taking proactive steps toward co-creating a sustainable future withimmediate and short- and long-term sustainability targets. See what’s next.2 sdreport.se.comON THE COVER: Sustainability is driving growth in Shenzhen, China's greenest city.
CHAPTER 1INTRODUCTION:OUR MISSIONWelcome from the CEOAt Schneider Electric, sustainability is part of everything we do — every decision, every innovation, and everyinitiative. For us, sustainability extends far beyond a vague hope for a cleaner planet. We believe that access toenergy is a fundamental right, and therefore a truly relevant vision for sustainability must take into account humanrights, ethics, and health and equity concerns.The challenge of our timeAs we once again provide this report on our sustainability efforts, we’re reminded of the urgency of the climatecrisis and inspired by those who, together, are rising to meet the challenge head on. Two years ago, the ParisClimate Agreement gave us all a clearer understanding of what’s at stake. Limiting global temperature risethis century to less than 2 C above pre-industrial levels is essential if we are to avoid widespread, disastrousecological problems.The path to a healthier planetWe believe that concrete, meaningful action is the only successful path to address climate change and createa heathier world. That is what this report is about. Each year, our Schneider Sustainability Report shows howwe’re taking steps to ensure our own sustainability; how we’re empowering our people; how we’re deliveringsustainable innovations to the world; and how we’re supporting the sustainable development of others throughoutreach and initiatives.Follow us on:Co-creating a sustainable futureWe also believe that sustainability is business — a core pillar for any successful company. This is because,in working for a more sustainable world, we not only ensure a healthier planet for future generations, we alsopromote innovation and prosperity here and now. Because Life Is On when life is powered and digital, we areempowering our partners and customers to accelerate the transition to a sustainable future in buildings, industry,data centers, and the grid. As I have said before, when it comes to the climate, I’m neither an optimist nor apessimist. I’m an activist. At Schneider, we’ll continue to actively participate in all useful initiatives to increase thelow-carbon approach to the world’s economy.We believe climate change canbe overcome through innovationand collaboration. But the worldmust be proactive. We mustact now. We must co-create asustainable future.JEAN-PASCAL TRICOIRE,CHAIRMAN & CEO,SCHNEIDER ELECTRIC@schneiderelecsdreport.se.com 3
INTRODUCTION: OUR MISSIONThe energy paradoxThe energy equation existsalongside a surprising reality,what we call “the energyparadox:”Two global megatrendsElectrification and digitization are presenting the world withthe opportunity to make energy more decarbonized and moredecentralized. The question is if we all will harness theseopportunities to create a healthier, sustainable world.ELECTRIFICATIONDIGITIZATIONBy 2040, consumptionof electricity will increase1by.30 billion60%devices will beconnected by 20202.We believe access to energy isa basic human right, yet we allmust be mindful of the effectsof energy consumption on theenvironment.The world must find a way tobring energy-poor populationsaccess to energy whilesimultaneously fighting climatechange. Here, again, initiativeand proactive innovation arethe answer.By 2050, energy consumption will increase by 50%.3But 1.1 billion people currently lack access to electricity.4The energyequationEnergy consumption and CO2emissions will continue to increaseover the coming decades. Thesolution is efficiency. We mustleverage technological innovationto use less energy, and to use theenergy that we do consume moreintelligently.1.5xenergy consumptionwill grow by 50 percent. 2CO2 emissions worldwidemust be cut in half.3xthe world must become3 times more efficient.Note: Forecast for 2050 compared to 2009 levelsSource: Intergovernmental Panel on Climate Change (IPCC); IEA 2014 – 2015, Schneider Internal Analysis4 sdreport.se.com1IEA, World Energy Outlook 2016IHS, March 2016Increase of global energy consumption 2014 –2040 in New Policy Scenario extrapolated to 2050.IEA, World Energy Outlook 20164International Energy Agency, Energy AccessOutlook 2017 outlook.html23
INTRODUCTION: OUR MISSIONSustainability atSchneider ElectricWith the challenges of climate change and the global megatrends made clear, the next steps alsobecome apparent: we must act; we must take responsibility; and we must begin with ourselves.We are committed to providing innovative solutions that empower our own sustainability journeyand help the world to overcome the energy paradox. Together, we can balance our planet’s carbonfootprint with the irrefutable human right to quality energy.In 2017, Schneider Electric was one of 120 companies placed on the Climate A List of CDP (formerlyClimate Disclosure Project) and is the only company in its industry to achieve an A rating for theseventh year in a row. Looking forward, our climate-related goals include:Reach the 21 new commitments of the 2018 – 2020 SchneiderSustainability Impact statement; define a precise trajectoryrespecting the 2 C scenarios up to 2050; validate it via theScience Based Targets initiative to which the company hasbeen a signatory since 2016; and increase the impact of theSchneider Electric internal carbon price.Achieve carbon neutrality by reducing the carbon emissions of oursites and those of our industrial ecosystem, including suppliers andcustomers; quantify the CO2 emissions avoided by our customersthanks to our offers; aim for 100% renewable electricity, 100%recycled or certified packaging, and 100% recycled waste; anddouble our energy productivity compared to 2005.On Scopes 1 and 2, reduce by more than 50% our CO2 emissionsin absolute value compared to 2015, in line with the guidelines ofthe Science Based Targets1.100%We will shift to 100%renewable electricity.Scope 1 are also referred to as Direct Green House Gases (GHG) and are defined as emissions from sources thatare owned or controlled by the organization. Scope 2 are also referred to as Energy Indirect GHG and are defined asemissions from consumption of purchased sources of energy generated upstream from the organization.We will double ourenergy productivity.2015 – 2017 Planet & Societybarometer achievementsCLIMATECLIMATE & DEVELOPMENT(SUSTAINABILITY OFFERS)10.3%168,400 tonsCO2 savings from transportation12xof CO2 avoided through maintenance,retrofit, and end-of-life servicessdreport.se.com 5
INTRODUCTION: OUR MISSION10 commitments for a sustainable futureAt COP21 in 2015 we unveiled our 10 sustainability commitments. The goal of these pledgesis to ensure that Schneider Electric’s entire ecosystem — from our own operations to those ofour suppliers, customers, and partners — becomes carbon neutral by 2030. With this in mind,we have now renewed and strengthened our 10 sustainability commitments.0102030405Avoid the emission of 100million metric tons of CO2on our customers’ end, thanksto our offers (2018 – 2020).Use 80% renewableelectricity by 2020 and100% by 2030; and continueto drive energy efficiencytoward doubling our energyproductivity in our sites over2005 – 2030 period.Achieve 75% of ourturnover under the newGreen Premium program(2018 – 2020).Avoid 100,000 metrictons of primary resourceconsumption throughECOFIT, product recycling,and take-back programs(2018 – 2020).Use 100% cardboard andpallets for transport packingfrom recycled or certifiedsources by 2020 (Q4).6 sdreport.se.com0607080910Reach 200 sites labeledToward Zero Waste to Landfillby 2020 (2015 – 2020) andrecover 100% ofour industrial waste by2030 (2015 – 2030).Reduce CO2 emissions fromthe transport of our goodsby 3.5% per year (annuallysince 2012).Facilitate access to lightingand communication withlow-carbon solutions for50 million underprivilegedpeople by 2025 (2009 – 2025).Propose alternatives to theuse of SF6 gas by 2020(2015 – 2020) and eliminateSF6 from our products by 2025(2015 – 2025).Invest 10 billion ininnovation and R&D forsustainability in 10 years(2015 – 2025).UN Sustainable Development GoalsSchneider Electric aligns with the United Nation’s SustainableDevelopment Goals (SDGs), a universal call to action to endpoverty, protect the planet, and ensure that all people enjoy peaceand prosperity by 2030.We’re committed to accomplish the 17 SDGs through our corebusiness and five sustainability megatrends: Climate, CircularEconomy, Ethics, Health & Equity, and Development.
INTRODUCTION: OUR MISSIONThe Schneider Sustainability Impact guides our sustainabilityefforts by making our goals clear. Formerly known as the Planet& Society barometer, it reflects our holistic view of sustainabilityand how our efforts affect the planet, its people, our profit, andthat of our customers. The Schneider Sustainability Impact isaudited by a third party and our progress is published quarterlyat: schneider-electric.comCLIMATECIRCULAR ECONOMY200sites labeledtoward zero wasteto landfill100,000HEALTH & EQUITYmedical incident permillion hours worked195%of employeescovered in the gender payequity commitmentETHICSDEVELOPMENT300suppliersunder Human Rights &Environment vigilancereceived specficon-site assessmentof sales,procurement, and financeemployees trained everyyear on anti-corruptionof avoided primaryresource consumption350,000100 million100%avoided CO2 on ourcustomers’ end throughour offers80%100%25%75%renewable electricityincrease inturnover for our Energy &Sustainability Services10%CO2 effciencyin transportationrecycled packagingof sales under ournew Green Premiumprogramx4turnover of outAccess to Energy program90%of white-collarworkers have an individualdevelopment plan90%of employeeshave access to acomprehensive well-beingat work program70%scored in ourEmployee EngagementIndex100%of workersreceived 12 hours oflearning in the yearWe value collaboration and partnershipbecause we believe that, together, we cantransform the world’s buildings, industries,infrastructure, and data centers.underprivileged peopletrained in energymanagementof countrieshave fully deployed ourFamily Leave policymetric tonsDecades ago, sustainability and environmental concerns emerged asscientific studies began to uncover the harm being done to the planetby development and industry. Some corporations reacted to this trendby trying to demonstrate how they were working to use fewer resourcesor to offset their carbon footprint. Some organizations still operate in thismanner, with sustainability and environmental responsibility viewed as“nice to haves” instead of the what they truly are: an engine for innovation.The reality is, good environmental strategy is good business strategy.100%metric tonsEnvironmental strategyXAVIER HOUOT,SENIOR VICE PRESIDENT,GLOBAL SAFETY, ENVIRONMENT, REAL ESTATE,SCHNEIDER ELECTRIC12K5 pts / 100increase in average scoreof ISO 26000 assessmentfor our strategic suppliersvolunteeringdays thanks to ourVolunteerIn global platform2015 – 2017Planet &SocietybarometerachievementsCLIMATE & DEVELOPMENT(SUSTAINABILITY OFFERS)CIRCULAR ECONOMY80.1%130of product revenue withGreen Premium ecoLabel industrial sites labeledTowards Zero Waste toLandfillsdreport.se.com 7
INTRODUCTION: OUR MISSIONSustainability: the new pillarof business growthBusiness growth and sustainability are not at odds. Quite theopposite — sustainability drives business growth. Leadingcompanies have recognized that environmental responsibility is aboon to the bottom line. Renewable energy is now cheaper in manyareas than traditional brown power. The economy of the futureis low carbon, and companies that prepare for that future gain acompetitive advantage.Becoming more sustainable makes good business sense, helping toensure long-term market viability, competitiveness, and resiliency.Schneider Electric is among the more than 400 companiesworking with the Science Based Targets initiative. We’recurrently at the second step of their four-step process —Commit, Develop, Submit, Announce — and look forward tosharing our targets publicly and doing our part to achieve thegoals of the Paris Climate Agreement.Our six pillars of environmental strategyAt Schneider Electric, our environmental strategy extends our vision forsustainability into six principles that guide our operations and transformour entire supply chain.0102Deploying low-CO2,efficient strategiesfor a planet-compatiblegrowth pathBuilding anincreasingly greensupply chain040506Promoting greenattributes andvalue-addsImplementing acircular economyStrengtheningour environmentalgovernanceConsideringwaste as worth#MoveTheDateWhen it comes to environmental responsibility, incremental gains are no longer enough. We already consume1.7 planets’ worth of resources per year1. And if we do nothing, we are bound to a 4 C increase in globaltemperature by 2100.In 2017, August 2 was Earth Overshoot Day. This means that in 2017, all of us who call Earth home used morefrom nature than our planet can renew in the whole year — and we did so in less than eight months. Overshoothappens through overfishing, overharvesting forests, and emitting more carbon dioxide into the atmospherethan forests can recycle into oxygen. We must #MoveTheDate.1 According to the Global Footprint Network8 sdreport.se.com03
CHAPTER 2SUSTAINABLESOLUTIONSData is the new oil. It’s a new currency.It’s a new way to monetize and createvalue in our businesses.EMMANUEL LAGARRIGUE,EXECUTIVE VICE PRESIDENT, STRATEGY,SCHNEIDER ELECTRICData-driven sustainabilityT U R N DATA I N TO AC T I O NIf the world is going to become more sustainable, we all need to knowhow much energy we’re using and how to use energy more intelligently.The convergence of the “internet of things” (IoT) and energy gives us atremendous opportunity to tap the value of data to advance sustainabilityacross buildings, data centers, industry, and infrastructure.Just as oil has delivered the economy of today, data is driving thesustainable, low-carbon economy of tomorrow.90%of the data in the worldtoday was created overthe past two years.1Schneider Electric brings together energy management, automation,and software in one interoperable IoT architecture: EcoStruxure. We alsopartner with clients to help them buy energy more strategically, reduceenergy use, and operate more sustainably through our EcoStruxureEnergy & Sustainability ServicesWith these innovations, we empower our customers’ bold ideas — to bothachieve their sustainability goals and compete in today’s digital economy.1ConnectConnect everythingfrom the shop floorto the top floor.CollectCapture critical dataat every level, fromsensor to cloud.AnalyzeConvert data intomeaningful analytics.Take actionDrive action throughreal-time informationand business logic.IEA, Digitization & Energy 2017 .com 9
SUSTAINABLE SOLUTIONSEcoStruxure InnovationsThe EcoStruxure platform and architecture is our IoT-enabled solution that increases operationaland energy efficiency. EcoStruxure solutions have been deployed in 480,000 sites, with thesupport of 20,000 system integrators and developers, connecting over 1.6 million assets undermanagement through 40 digital services.Digitization is at the core of Schneider’sDNA. We connect people and assets todrive efficiency, safety, and reliability.HERVÉ COUREIL,EXECUTIVE VICE PRESIDENT, INFORMATION SYSTEMS,SCHNEIDER ELECTRICEcoStruxure provides Innovation At Every Level:EcoStruxure leverages the cloud for computing power, aggregation ofdata and one data pool, machine learning models / new functionalities,and digital services. Thanks to analytics and artificial intelligence, datacan take on meaning across a business (from shop floor to top floor),allowing a company to scrutinize energy use, for example, and to makemore targeted decisions about how to prioritize energy projects.and/or on premiseLevel 3: Apps, Analytics & ServicesLevel 2: Edge ControlMission-critical environments need local control of devices at the edgeand reliable access to data from operational technology (OT) devices.Advancements such as artificial intelligence enable analytics close tothe source of data, reducing latency while protecting safety, productivity,and uptime.Level 1: Connected ProductsThe “internet of things” starts with the best things. EcoStruxure is based onsmart, connected products with open integration to third-party products.Embedding sensors in devices opens a vast window to what’s happeningboth inside that product — from its energy efficiency to its performanceand within its environment, too. Through internet connectivity, IoT enablesall these connected “things” to talk to each other.10 sdreport.se.comIT
SUSTAINABLE SOLUTIONSThrough six domains of expertise:The benefits of EcoStruxure solutions:EcoStruxure PowerSafe, highly available, and energy-efficient electrical distribution systemsfor low- and medium-voltage architectures to enhance connectivity,real-time operational reliability, and smart analytics. Maximize energy efficiency and sustainability throughsmarter systems and real-time, data-driven decisions Optimize asset availability and performancethrough predictive analytics and proactive maintenanceEcoStruxure BuildingFrom design, through integration, to commissioning, EcoStruxure Buildingbrings best-in-class engineering efficiency to buildings, combined withasset and energy performance services. Enable smart, productive, and profitable operationsthrough the reduction of waste and downtime Leverage mobile insights and proactive risk-mitigationthrough simulation, situational awareness, and digitizationEcoStruxure GridSeamless local production of distributed energy resources and integrationat the grid edge, bridging demand and supply via energy flexibility basedon analytics and increasing grid efficiency for sustainable networks.EcoStruxure ITConnected products and remote, digital services to ensure that data centerphysical infrastructure can adapt quickly to support both future demanddriven by IoT and growth — in the cloud and at the edge — without evercompromising availability or operational efficiency.EcoStruxure MachineInnovative machine solutions and smart automation technologies for safer,connected, flexible, and more efficient machines.EcoStruxure PlantIoT-enabled, future-proof solutions for improved operational profitability ina measurable, safe, and sustainable way. Lower CapEx and OpEx across the digital life cycle byusing “digital twin” capabilities to design, build, operate,and maintain systems and infrastructureDiscover how EcoStruxure delivers efficiency and sustainability for our customers(See Page 17.).A transformative platform that changes the core waythat data centers are monitored and managed.—INTERNATIONAL DATA CORPORATION, 2017sdreport.se.com 11
SUSTAINABLE SOLUTIONSES S AT A G L A N C E 30 billionmanaged energy spend650,000utility invoices collectedand reviewed monthly40 millionmetric tons of CO2 managed2,000 EcoStruxure Energy &Sustainability ServicesThrough EcoStruxure Energy & Sustainability Services (ESS),Schneider Electric helps clients design a strategy, deliver efficiencyin their facilities, and sustain results over time through long-termpartnerships. Strategic sourcingBUY ENERGYSMARTER Energy budgets Energy efficiency consultingREDUCEENERGY USE Remote energy monitoring Data collectionand management Sustainability strategy Climate change complianceOPERATESUSTAINABLYin renewable energytransactions (power purchaseagreements) in 2017 Rate analysis Market intelligenceAs an unbiased, independent consultant, we work with clients in morethan 100 countries — from regional companies to the world’s largestcorporations.megawatts Risk-management Sustainability reporting Sustainable operations Water and waste optimization Renewables and cleantechESS’s impact for our customers55%of companies rank “lack oforganizational alignment” asthe top factor preventing themfrom reaching their energy andsustainability goals.11Based on a recent internal survey of clients at theEnergy & Sustainability Perspectives Summit.12 sdreport.se.comAEGThe right tools and data make AEG a more profitable and sustainablecompany.WhirlpoolData and expert support arehelping Whirlpool achieve itssustainability strategy.Results: Visibility to 53 different types ofdata streams across 59 facilities inone central platform 3 million savings sinceimplementation 53% of worldwide wastediverted from landfill 14% reduction in GHGemissions from 2010 baselineResults: Three plants achievedzero-waste-to-landfill Projected to save more than 1 million over the next threeyears through corrugatedcardboard recycling
SUSTAINABLE SOLUTIONSH I G H LI G H T S:S C H N EI D ER EL EC T R I CR& D I N 2017Research & Development16,250patentsor patent applicationsDigital innovation is really about solving realcustomer problems. To do so, you needto have an open ecosystem of technologypartners, system integrators, customers,startups, and universities to accelerate andscale innovation.670 new patentassets in 201720 digital servicesin development for 2018CYRIL PERDUCAT,EXECUTIVE VICE PRESIDENT,IoT & DIGITAL TRANSFORMATION,SCHNEIDER ELECTRIC5% of salesdevoted to R&DEmpowered by more than 8,000 research and development engineersworldwide, we bring bold ideas to life by developing connected, efficient,and sustainable products and solutions.Six digital foundations are drivingour success in the digital space:Working together is the only way to fuel and advance digital innovation, sowe’ve built an ecosystem that comprises customers, system integrators,startups, and technology partners.1. One IoT-ready architecture and platform, EcoStruxure2. Historical leadership at the edge, where operational technologyand IT can converge securely to deliver fast, accurate intelligenceat the edge3. Digital life-cycle management, meaning that we apply IoTadvancements to drive down cost and complexity across bothCapEx and OpEx stages4. Deep domain and segment expertise, which enables us toadvance technology that solves specific customer problems5. A robust, active digital services portfolio, which amplifies the valuewe offer customers through services such as Resource Advisorand Asset Advisor6. An open partner ecosystem, which allows us to scale andaccelerate each customer’s digital journey quicklyThe Aster Capital FundWe invest in innovative startups through the Aster Capital Fund, a leadingventure capital firm that specializes in the energy, mobility, and industryfields. This venture capital activity has supported over 55 early-stagecompanies since its inception.In 2017, Aster supported the design and activation of a business incubationmodel to bring additional innovation and growth to Schneider Electric. Thisallows employees to propose new ideas, setting the foundation for growthin new and critical areas.2015 – 2017Planet & Societybarometer achievementsCIRCULAR ECONOMY100%of products inR&D designedwith SchneiderecoDesign Way sdreport.se.com 13
SUSTAINABLE SOLUTIONSIt’s amazing to see the solution [WaterForceSCADAfarm] that Schneider has built andwhat it can do for us as a society.SATYA NADELLA,CEO, MICROSOFT,AT THE 2017 MICROSOFT INSPIRE CONFERENCEH I G H LI G H T: ST R AT EG I CD I G I TA L A L LI A N C ESMicrosoft and Schneider createcommercial IoT solutions in theareas of energy managementand automation, marryingMicrosoft’s secure, trusted cloudcapabilities and Schneider’s OTdomain expertise.Schneider and Cisco developadvanced automation architecturesacross end-markets, mergingSchneider’s operational technologyleadership and Cisco’s world-classknowledge of networking andcommunication solutions.Co-innovating with digital alliance partnersWith our network of digital technology leaders, we co-innovatesolutions that: Respond effectively and quickly to market trends and customerneeds Innovate in a way that benefits the bottom line for business Leverage technology advancements such as sensing, mobility,cloud, analytics, and cyber security14 sdreport.se.comWith funding from the U.S.Department of Energy, Schneiderand Intel research, develop,and commercialize silicon-basedcyber security solutions for theelectrical grid.We’re working with Accenture tocut development time to market by80%, so customers gain improvedefficiency, sustainability, andproductivity.Digital Services Factory:speeding up innovationAn accelerated development life cycle is essential for helping customersbecome more sustainable in today’s digital economy. That’s the goalof our Digital Services Factory. The DSF is organized to accelerate thecreation of new digital services and connected products withinSchneider Electric businesses.DSF capitalizes on the following expertise of our IoT & Digital Offersorganization: Pervasive sensing Cyber security Device intelligence Analytics Digital services Mission-critical control at the edge
SUSTAINABLE SOLUTIONSEnergy UniversitySupply ChainEnergy University is an online training program that offers morethan 200 free, vendor-neutral e-learning courses in 13 languages.Its purpose is to improve careers and help companies improveefficiency and sustainability.Schneider Electric works withsectors that account for the majorityof global energy consumption andCO2. Therefore, we are especiallycommitted to making sure our ownsolutions help reduce energy useand CO2 emissions — from designto manufacturing to shipping anddeployment to products’ end-of-life. 5 pts / 100 increase in averagescore of ISO 26000 assessmentsfor our strategic suppliers 300 suppliers under HumanRights & Environment vigilancereceived specific on-siteassessment 100% of sales, procurement, andfinance employees trained everyyear on anti-corruptionOur new Schneider SustainabilityImpact for 2018 – 2020 includes thefollowing goals:73,077total registrationsTop countries forregistrations:1. United States2. Brazil3. Egypt4. Mexico5. India115,242courses takenTop countries forcompletions:1. United States2. Egypt3. India4. Mexico5. Brazil675,0001 millionregistered userssince inceptioncourses completedsince inceptionProfessionalEnergy Managercertifications awardedin 201728Top countries forProfessional EnergyManager certifications:1. United States2. Saudi Arabia3. United Kingdom4. Australia5. LebanonS U PP LY C H A I NAT A G L A N C E207 factories in44 countries9886,000 11 B in purchases150,000ANNETTE CLAYTON,EXECUTIVE VICE PRESIDENT, SUPPLY CHAINAND NORTH AMERICA OPERATIONS,SCHNEIDER ELECTRICorder lines per day#7CLIMATE10.3%CO2 savings fromtransportationemployees24,000 suppliersWe hold really high standards notonly for ourselves, but also our suppliers.We think of our suppliers as anextension of our supply chain.2015 – 2017Planet & Societybarometerachievementsdistributioncentersof the Gartner Top 10 Supply ChainOrganizations for 2017ETHICS87.9%of our strategicsuppliers embraceISO 26000 guidelinesof the Gartner#17 SupplyChain Top 25 of 2017sdreport.se.com 15
SUSTAINABLE SOLUTIONS2 017 S U P P LY C H A I NH I G H LI G H T SSocial, environmental, and ethical responsibilityfor our upstream supply has been one of ourkey initiatives. Over the last several years, wehave led efforts such as ISO 26000 and conflictminerals tracking and contributed to GreenPremium and hazardous material compliance.358 on-site audits thatincluded sustainability criteria2,400kilotons ofgoods shippedDK SINGH,CHIEF PROCUREMENT OFFICER,SCHNEIDER ELECTRIC88% of the strategicsuppliers passed thethird-party evaluation forsustainable development,2015 – 201710% reductionof CO2 emissions fromtransportation over2015-2017 period74% goods shippedby road (23% by ocean,3% by air)70% of relevantpurchases confirmed asconflict-free under the ConflictMinerals rule of 2012Tailored Supply Chain 4.0In this digital economy, Schneider Electric’s global supply chainis evolving to become even more tailored, sustainable, andconnected with our Tailored Supply Chain 4.0 strategy, powered byEcoStruxure solutions.Tailored: We are passionate about our customers’ success,always seeking to provide what they value while levera
Schneider Sustainability Report 2017 - 2018 A clear vision for the future sdreport.se.com. . IEA 2014 - 2015, Schneider Internal Analysis. sdreport.se.com 5 INTRODUCTION: OUR MISSION 2015 - 2017 Planet & Society barometer achievements CLIMATE 10.3% CO 2 savings from transportation CLIMATE & DEVELOPMENT (SUSTAINABILITY OFFERS)
