Schneider Electric
Creating Shared Value
December 2013
Discussion Agenda
● SE and how we think about Sustainability
● SE and the UN Global Compact
● Our progress
● The role of ISO 26000
● The Bigger Picture
● Drivers of the Challenges
● Solutions
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
2
Sustainability: A very big topic
● How do we think about it? Two ways.
● Internally. How do we manage a responsible business for our
employees , suppliers and investors?
● Externally: We are a product and service provider that has a big impact
on sustainability. It is our business to help advance the ideals we hold
ourselves to internally.
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
3
SE and the UN Global Compact
● SE endorsed the UNGC principles in 2003
● Our objective was to officially state our position on human rights,
working conditions, environment and corruption
● We have communicated progress since 2005
● In 2011, we elected to report at the “advanced level” and describe in
more detail how we meet each of the 24 criteria
● We have set a target of having 60% of our global suppliers as
signatories of the UNGC
Schneider Electric - Division - Name – Date
4
Three levers’ of a sustainability strategy
for a consistent commitment
Green business
Responsible practices
BoP* Innovation
Access to energy BipBop
Energy
efficiency
Green products
and sites
Smart cities, smart
grids, sustainability
services
Responsible
employer
Business
Communities
support
Innovation
Renewables
connection
Electric vehicle
charging
Ethics
People
A measured commitment: The Planet & Society Barometer
> Measuring sustainability
> Communicating quarterly
> Auditing annually
http://www.schneider-electric.com/barometer
*Base of the Pyramid
Schneider Electric - Division - Name – Date
5
2012 Sustainability results at a glance
Results far above expectations
Planet
& Society Barometer
Planet & Society
Barometer at
A recognised commitment
World
Europe
6.52/10
Schneider Electric
exceeds its
sustainability targets
for 2012
Walking the talk of our solutions
6,1% energy savings
200
10%
sites connected
to Struxureware
36
5%
0%
10%
6,1%
2012
2013
Schneider Electric - Division - Name – Date
ISO 50001
certified sites
Global 100
Most Sustainable Corporations
Ethisphere
Most ethical companies
2014
6
2012 Progress
● Accuracy and Completeness
● The COP describes any action(s) that the company plans to undertake to
have the credibility of information in its COP externally assessed, including
goals, timelines, metrics, and responsible staff
● Information is assured by independent assurors (e.g., accounting or
consulting firm) against recognized assurance standard (e.g., ISAE3000,
AA1000AS, other national or industry-specific standard)
● Elements of all 21 criteria can be found on the UN GC site
● http://unglobalcompact.org/COPs/detail/21534
● Actual elements of progress are contained in our 2012 Annual Report
Schneider Electric - Division - Name – Date
7
2012 Progress Meets the Advanced
Level (Self Assessment)
● Includes an explicit statement of continued support for the UN Global
Compact and its ten principles
● Description of actions or relevant policies related to Human Rights
● Description of actions or relevant policies related to Labour
● Description of actions or relevant policies related to Environment
● Description of actions or relevant policies related to Anti-Corruption
● Includes a measurement of outcomes
Schneider Electric - Division - Name – Date
8
ISO Standards
● We have used numerous ISO standards across our business:
● ISO 9000 – Quality Management Systems
● ISO 14000 – Environmental Management
● ISO 50001 – Energy Management
● ISO 26000
● Reasonable reference for corporate social responsibility
● Through our overall sustainability and corporate responsibility program we
believe we are well beyond that of ISO26000
● We utilize as a reference for our suppliers to provide them with guidance on
our expectations for their own performance
Schneider Electric - Division - Name – Date
9
The Bigger Picture
What is relevant about our business is that
we are part of the solution to one of the
biggest challenges society faces going
forward, energy and other key resource
management.
Schneider Electric - Division - Name – Date
10
The big picture, what is the
basic challenge that we all
face with energy?
The facts
The need
vs
Energy demand
CO2 emissions to
By 2050
avoid dramatic climate
changes by 2050
Electricity by 2030
Source: IEA 2007
Source: IPCC 2007, figure (vs. 1990 level)
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
11
Drivers of the challenges
● Economic development
● CO2 emissions
● Population growth
● Fuel source choices
● Lack of strong public policy in many countries
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
12
world
populat
ion
to
reach
more
than
7.5
billi
on
Schneider Electric - Division - Name – Date
13
CO2 emissions continue to increase
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
14
U.S. Energy Profile
Energy Consumption
Increase from previous
Buildings (new)
Generation
Coal
Natural Gas
Renewables
Nuclear
Virtual
Electrovehicle
Electric
Vehicles <40,000
2010
2020
2030
2%
26 kWh/sq. ft.
1.6%
20 kWh/sq. ft.
1.1%
10 kWh/sq.ft.
45%
24%
10%
21%
40%
29%
11%
19%
1%
37%
30%
15%
16%
2%
1M
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
5M
EIA: 2011
15
15
How do we address the challenge?
● We make products and provide services that make energy safe,
reliable, productive and green.
● We practice internally what we perform externally. Over 200 of our sites
are connected globally and we aggressively manage our use of
resources.
● In NA, we have been managing our energy efficiency aggressively since
2000.
● Signatory to the President’s Better Buildings Initiative in the US.
● In 2013, we will have over 36 of our facilities registered as ISO 50001
● Highly engaged in Industry, Government and University affairs globally. Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
16
Schneider Electric – the global specialist
in energy management
Balanced geographies – FY 2012 sales
billion € sales in 2012
Western
Europe
30%
North
America
25%
Rest of
World
18%
of sales in new economies
people in 100+ countries
Asia
Pacific
27%
Diversified end markets – FY 2012 sales
Utilities & Infrastructure
25%
Industrial & machines
Data centres
15%
Non-residential buildings
of sales devoted to R&D
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3
Residential
22%
29%
9%
17