The role of carbon footprints in the circular economy: Strategic approaches for sustainability
Circular economy for a greener future
A carbon footprint represents the total volume of greenhouse gases (GHGs) released into the atmosphere due to human activities. This includes both direct emissions (like burning fuel) and indirect emissions (from the lifecycle of products we consume).
The development of a circular economy, contrasting with the traditional linear "take-make-dispose" model, is contributing to reducing the environmental impact of human activities. Indeed, it is an economic model built on the principles of reusing, recycling, and regenerating resources, aiming to minimise waste and maximise the value of products, components, and materials.
Reducing the environmental footprint is essential for sustainable growth and it starts with tracking and managing carbon footprints. For this, organisations need to employ accurate tools and strategies to reduce emissions effectively without compromising operational efficiency. At Schneider Electric we can provide advanced solutions to support this critical mission.
Why managing carbon footprints matters in a circular economy?
Managing carbon footprints in the circular economy ensures these processes reduce overall carbon emissions and help companies align with their sustainable development goals. Without careful monitoring, emissions can be inadvertently shifted rather than lowered, weakening the impact of circular initiatives.
The good news is that applying circular strategies to materials and emissions hotspots can make a profound difference. The Circularity Gap Report highlights that by doubling global circularity, we could cut global emissions by a significant 39% and reduce the total material footprint by 28% by 2032, ensuring we steer well below a 2-degree temperature rise.
Key drivers of carbon footprints in industrial and consumer systems
- Understanding the primary factors behind carbon footprints helps identify where businesses, industries and consumers can have the greatest impact in reducing emissions. These are:
- Energy consumption from electrical instruments and devices.
- Raw material extraction and processing for equipment manufacturing.
- Transportation and logistics across global supply chains.
- Inefficient waste management of electrical devices.
- Operational inefficiencies in electrical systems and equipment.
To align with circular economy principles, organisations must adopt a holistic approach to carbon management. Key strategies can include:
Product redesign for energy efficiency, durability, and recyclability. At Schneider, we have implemented the 'EcoDesign Way' since 2015 for all products.
Deployment of renewable energy sources (solar, wind, hydropower) to decarbonise operations, for instance through power purchase agreements and Microgrid Solutions.
Implementation of reverse logistics with take-back programmes to recover, refurbish, reuse and recycle materials. At Schneider, we have developed 2 labels for Repacked and Refurbished products.
Use of smart electrical devices, like connected sensors, and AI to monitor and optimise energy use in real time.
Strategic procurement to prioritise low-carbon suppliers and materials, and local sourcing to reduce transport emissions. As part of our Sustainability Impact programme, we have committed to increase green material content in our products to 50% by 2025.
Digital monitoring and analytics, like Resource Advisor, to track emissions across all stages of the value chain and enable data-driven decisions for continuous improvement
Schneider Electric's platform EcoStruxure Resource Advisor can collect and analyse energy data from electrical equipment and systems. Such technologies enable precise tracking of carbon footprints in the circular economy, empowering organisations to make informed decisions and accelerate progress toward sustainable development goals.
"What gets measured, gets done." - Ron Voglewede, Global Sustainability Director, Whirlpool Corporation
Whirlpool, a global appliance giant, aimed for zero waste to landfill by 2022 and leadership in renewable energy. Facing a massive challenge across 40 manufacturing sites, their small sustainability team partnered with Schneider Electric.
Schneider Electric's Solutions
Strategic Consulting: Defined clear goals and ensured consistent data collection globally.
EcoStruxure™ Resource Advisor: A powerful platform for global data tracking (electricity, water, waste) with customised dashboards and analytics, enabling precise identification of inefficiencies.
Energy Efficiency Initiatives: Guided implementation of resource-saving and renewable energy projects.
Tangible Results & Key Metrics
Schneider Electric's solutions transformed Whirlpool's sustainability efforts into measurable business value:
Accelerated Zero Waste: Three Brazilian plants achieved zero waste to landfill two years early, with more sites rapidly gaining ground.
Significant Savings: Identified over 9,071,847kg of cardboard waste in Ohio plants alone, anticipating $1M+ savings over three years.
Renewable Energy Leadership: Wind turbines provide 15% of electricity at a U.S. plant, slashing utility costs. Whirlpool is expanding this to become a top Fortune 500 on-site wind power user.
Data-Driven Decisions: The platform provides comprehensive data, enabling Whirlpool to track performance, identify "free resources," and wisely invest for both company and community benefit.
This partnership demonstrates how precise measurement and strategic support drive both ambitious environmental goals and significant financial returns.
