Measuring environmental impact: A systems approach to carbon footprint assessment in complex value chains
From metrics to systems: A holistic approach to environmental impact
At Schneider Electric, our view is that businesses need to move beyond isolated metrics and adopt a systems-level approach to measure and improve their environmental impact. Environmental consideration is no longer confined to operational boundaries; it extends across upstream suppliers and downstream users. As some value chains are reshoring and trade restrictions increase across the world, there is still demand for global assessment of environmental footprints. Precisely identifying environmental responsibilities remains essential for driving meaningful progress.
Mapping impact across the value chain
The complexity of modern supply networks necessitates a shift in how we perceive and allocate environmental responsibilities. Traditional models often compartmentalize impact within individual operational silos, overlooking the interdependencies between various actors. However, a systems approach provides a more cohesive understanding by incorporating data from every node in the network.
At Schneider Electric, we deploy advanced data analytics and modelling tools to track emissions, resource consumption, and waste production across the full lifecycle of all our offerings. This comprehensive mapping enables us to attribute environmental impact across the multiple layers of our value chain, ensuring that no emission or inefficiency goes unnoticed.
Environmental metrics: Are they enough?
Explore why traditional sustainability metrics may fall short and how Schneider Electric helps businesses measure their true environmental impact.
The role of digital infrastructure
To manage this complexity, digital infrastructure plays a pivotal role. It enables organizations to monitor, verify, and benchmark performance using consistent metrics. We employ such systems to integrate environmental impact data across our internal operations and those of our suppliers, creating a unified ecosystem of management.
By leveraging IoT-enabled equipment and AI-based analytics, companies can go beyond estimation. We incorporate measured energy consumption, material lifecycle data, and emission footprints to generate granular insights that allow for targeted action.
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Clearly identifying where impact is most significant is critical for sparking meaningful change. Once we pinpoint these areas, we can prioritize interventions. For instance, if a specific manufacturing process involving high-voltage electrical equipment is disproportionately resource-intensive, we can redeploy investments to upgrade or replace that process.
We have helped clients across multiple sectors employ sustainability-focused redesigns, be it in material sourcing, equipment deployment, or waste reduction. The value lies in linking impact data with actionable solutions. Using these insights transforms what might be seen as a compliance exercise into a driver of operational efficiency and innovation.
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Sustainable transformation cannot be achieved in isolation. A systems approach mandates deep collaboration across the value chain. With initiatives like our Zero Carbon Project, covering our 1,000 top suppliers responsible for 70% of the company’s upstream carbon emissions, reactively engage suppliers to ensure that environmental impact data is shared transparently and consistently. This means training partners to deploy similar measurement frameworks, employ energy-efficient electrical devices, and incorporate standardized reporting formats.
When we help global manufacturing firms aligning their supplier networks into a single environmental management framework, we can help them improve emissions tracking and also optimize resource allocation and enhance resilience when regulations change.
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The journey towards transparent environmental impact is not without challenges. Data heterogeneity, varying regulatory requirements, and technological gaps across geographies can complicate efforts. However, systems thinking allows us to view these issues not as barriers but as design constraints that can be resolved through the integration and strategic deployment of resources.
We advocate for combining top-down policy frameworks with bottom-up innovation. Our sustainability consulting team works closely with clients to create bespoke environmental strategies that address both local constraints and global standards. These strategies incorporate adaptable electrical solutions tailored to the unique contours of each value chain.
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At Schneider Electric, we provide an integrated suite of energy management and automation with expert consulting services. Our solutions go beyond products and drive real transformation. With a systems-based approach, we help clients turn environmental data into actionable insights, aligning sustainability with business performance.
We make understanding environmental impact more than just a number - it becomes a powerful tool for long-term value creation. With us, clients can aim to unlock improved efficiency, reduced costs, and a stronger commitment to sustainability - all within a single, cohesive framework designed to deliver both environmental and financial returns across the board.
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