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Schneider Electric is uniquely positioned among the 1,000+ companies taking action for climate change because it acts on both sides of the equation:

• The solutions Schneider Electric brings to the market are directly linked to activities to mitigate, adapt, and improve humanity’s resilience to climate change;
• At the same time, Schneider Electric acts to reduce its end-to-end CO2 footprint, aiming for a net-zero CO2 supply chain by 2050, with precise steps for 2025, 2030 and 2040.
  • Sustainability is at the heart of our strategy

    At Schneider Electric, sustainability has been at the core of our business strategy for the past 15 years. We create technologies and solutions to advance a more efficient, sustainable, resilient, and inclusive world for all. We work with customers, partners, governments, and suppliers to deploy these solutions and create a low-carbon future.

ESG FAQ

  • General
  • Climate
  • Resources
  • Trust
  • Equal
  • Generations
  • Local

Strategy

  • For Schneider Electric “Sustainability” is about creating system value. It encompasses continuous improvement of environmental, social, and ethical dimensions across an organizations entire value chain and stakeholders. This holistic approach to sustainability allows the Group to greatly mitigate risks and also brings tangible value added through a greater attractivity to customers, new talents, and investors, while boosting innovation.

    Sustainability is integrated in the processes and bodies that design and execute the Group’s strategy at board (Human Resources and CSR Committee), executive (Group Sustainability Committee) and operational levels.

    Universal Registration Document 2020 - page 72 to 73
  • The results of Schneider Electric’s 2020 materiality matrix showed that the most material topics for the Group are:

    1. Leading climate action in our ecosystem with our partners;
    2. Pioneering circular economy and being efficient with resources;
    3. Ensuring a fair transition and guaranteeing high ethical, social, and environmental standards along more local value chains;
    4. Leveraging digital in cybersecure solutions to boost the positive impact.

    Schneider Electric’s 6 long term commitments for the Climate, Resources, Trust, Equality, Generations and Local and our 2021-2025 Schneider Sustainability Impact and Schneider Sustainability Essentials programs cover all these priorities.

    Universal Registration Document 2020 - page 76 to 77
  • Risks are assessed through interviews with experts and leaders, run by the Internal Audit Department, to update the list of general risks at the Group level each year. In 2020, around 100 of the Group’s top managers were interviewed in addition to external financial analysts, board members, and a sample of strategic Customers. Since 2016, individualized risk matrices by Operation or by Business have been created. Every 3 years, a materiality analysis is conducted by the Sustainability department, leveraging an external consultant, and complements the risk analysis with a focus on ESG topics and longer-term risks and opportunities.

    Overall, the different governance bodies involved in the definition and monitoring of our Sustainability roadmap and programs (Schneider Sustainability Impact, SSI) are in charge of defining strategic mitigation programs in response to the risks and opportunities identified. Strategic programs defined at group level are then cascaded into business divisions down to the sites for implementation and are monitored through our digital platform Resource Advisor. Performance against those programs is published quarterly in our SSI, and annually in our SSE (Schneider Sustainability Essentials) and our Universal Registration Document. Each program of the SSI has a dedicated pilot in charge of driving the transformation, and is sponsored at the SVP, and Executive level to ensure management control and oversight.

    Where appropriate, opportunities for growth are identified and translated into new products (for instance our unique SM AirSeT™ switchgear to avoid using SF6, or the creation of our new Sustainability Business Division).

    Universal Registration Document 2020 - page 76 to 77
  • Schneider Electric’s short-term roadmap for 2025 is built on a consultation process involving external and internal stakeholders, called a materiality assessment, as well as dedicated internal governance mechanisms involving the Strategy & Sustainability team, employees, experts in the Group, the Executive Committee, and the Board of Directors, under the leadership of the Chief Strategy & Sustainability Officer. In the medium (5-10 years) and long term (10-30 years), Schneider Electric aligns its strategy on key issues under the United Nations Sustainable Development Goals and global climate scenarios in coherence with its business model and global footprint.

    The execution of the Group’s 2021-2025 sustainability strategy is tracked through quantitative Key Performance Indicators (KPIs), under two complementary tools: Schneider Sustainability Impact (SSI) and the new Schneider Sustainability Essentials (SSE).

    Another tool called Schneider Sustainability Relative and External Index (SSERI) measures the Group’s performance in 4 independent ESG ratings.

    The numerous awards received each year (e.g. #1 Most Sustainable Corporation, RE100 Clean Energy Trailblazer, Financial Times top 50 Diversity Leaders, Gartner Supply Chain Top 25, etc.) and the Group’s leadership in the main ESG indices (e.g. Dow Jones Sustainability World Index, Euronext Vigeo Eiris World 120, etc.), confirms that Schneider Electric is headed in the right direction.

    Universal Registration Document 2020 - page 72 to 73
  • The SSI is the translation of our 6 long-term commitments into a selection of 11 highly transformative and innovative programs. Programs results are published quarterly, audited annually, and linked to short term incentive plans for the managers of the Group. A notable addition to the SSI in 2021 is the local aspect, aiming to deploy local actions in the 100+ markets where the Group operates in order to better empower all leaders and collaborators to unlock meaningful local impacts.

    Another tool has been created to maintain a high level of commitment and transparency in the actions taken by the Group: the SSE. This new tool brings balance between the innovative transformation plans of the SSI and the need to keep progressing on other long-lasting programs. In this spirit of continuous improvement, and in a holistic vision of sustainability, the SSE will track annual progress with 25 quantitative KPIs, and some additional qualitative programs. Collectively, the SSI 11 Global Impacts and its Local Impact, as well as the 25 SSE programs, are the Group’s short-term sustainability roadmap and our contribution to the 17 UN Sustainable Development Goals.

    Universal Registration Document 2020 - page 74
  • Yes, annual short-term incentives for the Group’s executives and about 58,000 eligible employees are linked to the Schneider Sustainability Impact (SSI) performance since 2011. From 2019, the weight of the SSI criteria has increased from 6% to 20% in the collective part of the annual incentive, highlighting further the importance of ESG on Schneider Electric’s business agenda. In France, since 2012, the SSI has also been included in the profit-sharing incentive plan for the French entities, Schneider Electric Industries and Schneider Electric France. The reduction in the occupational accidents severity rate is also considered in the profit-sharing incentive plans of 27 other French entities.

    Universal Registration Document 2020 - page 166

    Universal Registration Document 2020 - page 287

  • Yes, Schneider Electric’s long-term incentive plan offers share ownership opportunities to the Group’s key talents and critical roles to align their rewards with the interests and experience of Schneider Electric shareholders. Similar to the short-term incentive, a portion of the award under the long-term incentive plan is subject to the achievement of sustainability objectives. From 2020, the long-term sustainability performance is measured through the Schneider Sustainability External & Relative Index (SSERI), which accounts for 25%, a combination of external indices which cover a range of environmental, social, and governance indicators wider than and different from the SSI criteria included in the annual incentive plan.

    Universal Registration Document 2020 - page 288
  • The SSERI measures the long-term sustainability performance of the Group in terms of relative performance, through a combination of external indices which cover a range of environmental, social, and governance indicators wider than and different from the Schneider Sustainability Impact. Using external indices will also ensure that the sustainability priorities governing the assessment of the long-term sustainability performance of the Group are at all times those which matter the most to the stakeholders. For the 2021-2023 plans, the Board has selected some of the most challenging external indices (DJSI World, Euronext Vigeo, Ecovadis and CDP Climate Change) which are objective, recognized, and independent, covering main geographies in line with the Group’s global footprint and which complement each other as they cover different sustainability dimensions. Using external and relative indices for performance assessment encourages permanent progress as their content is dynamic and includes new and more relevant topics as they emerge, forcing participants to constantly anticipate the most demanding trends in global sustainability. In line with Schneider Electric’s sustainability strategy, external indices stand at the forefront of new academic research of sustainability practices (e.g. IPCC 1.5ºC report, TCFD recommendations, UN SDGs) and continuously raise the bar to deliver stronger impacts.

    Universal Registration Document 2020 - page 287
  • Yes. Our TCFD correspondence table can be found page 194 to 195 of our 2020 Universal Registration Document. Likewise, a SASB correspondence table is provided page 192 to 193. You can find more details on the Report page of our website: Sustainability reports.

    Universal Registration Document 2020 - pages 192 to 195
  • Our Schneider Sustainability Impact (SSI) is a scorecard demonstrating that rapid, disruptive changes for a more sustainable world are possible across diverse, complex topics. We are committed to taking urgent action to co-create a brighter future aligned with the United Nations Sustainable Development Goals (SDGs), consisting of 17 objectives and measuring our impact with transparency. The SDGs are about protecting the planet, alleviating poverty, and achieving worldwide peace and justice. Since 2005, we have updated our SSI every three years. By tracking our sustainability performance and publishing quarterly results, we uphold our commitments to the SDGs and industry leadership in corporate social responsibility. Beyond our SSI, we also instill a culture around sustainability through performance incentives for employees and leadership.

    Universal Registration Document 2020 - page 72 to 75
  • Schneider Electric’s is regularly top ranked by many ESG rating agencies. For instance, in 2020 the Group obtained a CDP Climate Change A rating for the tenth consecutive year, is DJSI Industry Leader for the Electrical Components & Equipment sector, is part of Euronext Vigeo World 120, Europe 120 and France 20 indices, obtained an Ecovadis Platinium medal (top 1%), is rated AAA by MSCI and Low risk by Sustainalytics. Schneider Electric is also the #1 World Most Sustainable Corporation according to Corporate Knights in the January 2021 ranking.

    Universal Registration Document 2020 - pages 94 to 95
     

Our long term commitment is to act for a climate positive world, by continuously investing in and developing innovative solutions that deliver immediate and lasting decarbonization in line with our Carbon pledge.

General

  • Yes. Climate Change has been clearly identified as crucial to both Schneider Electric’s internal and external stakeholders during the various materiality assessments that took place in 2014, 2017 and 2020. It is also one of the pillars of the Group’s Ethics Charter. Overall, transformations linked to climate change are a source of opportunities for Schneider Electric, the main risk being to fail leading by example and thereby lose traction with customers, investors, new talents and collaborators in the company. Concrete climate related programs to either grab opportunities, or mitigate risks are deployed every 3 to 5 years in our Schneider Sustainability Impact (SSI) and complement the Group’s Climate Pledge – our short-term (2025), mid-term (2030) and long-term (2040, 2050) objectives, aligned with a 1.5°C trajectory and validated by the Science Based Targets initiative (SBTi).

    Universal Registration Document 2020 – pages 194 to 197
  • Schneider Electric updates its scope 1 and 2 carbon footprint annually, and scope 3 emissions annually or every three years (depending on the source of emission). Its industrial carbon footprint (i.e. scopes 1, 2 and 3 upstream, as per the Greenhouse Gas Protocol, excluding use and end-of-life of products sold) enables the Group to quantify and reduce CO2 emissions from its supply chain, adopting a cradle to gate view. Scope 3 emissions represent around 90% of the Group’s industrial carbon footprint, mainly from the purchase of raw materials, equipment, and services to its suppliers. Emissions produced, saved, and avoided by Schneider Electric’s products and services during their use phase and end-of-life are also quantified.

    Thanks to Schneider Electric’s energy efficiency and renewable strategies, the Group has achieved significant CO2 emissions reduction in absolute terms in 2020 versus 2017 baseline: scope 1 and 2 operational emissions have reduced from 698,162 tCO2e to 287,356 tCO2e, which is an absolute reduction of 410,806 tCO2e, and a -59% decrease.

    Universal Registration Document 2020 – page 202 to 203
  • Schneider Electric is a signatory of the Business Ambition for 1.5°C initiative aimed at setting Greenhouse Gas (GHG) emissions reduction targets in line with the global effort to limit warming to 1.5°C. Climate ambitions are defined for 2025, 2030 and 2050:

    • Before 2025, demonstrate that Schneider Electric is carbon positive together with its customers and partners, thanks to CO2 savings delivered by EcoStruxure™;
    • On the Group’s operations (scope 1 and 2): be carbon neutral by 2025 (allowing CO2 offsets) and net-zero CO2 emissions by 2030 (with no CO2 offsets);
    • On indirect emissions (scope 3) in its supply chain and with customers: reduce emissions by -35% by 2030 (versus 2017) as part of the Group’s validated 1.5°C SBT targets, by actively engaging suppliers to accelerate their climate strategy and sourcing greener materials, as well as reducing offers’ emissions on customers’ ends;
    • Become carbon neutral on the Group’s full end-to-end footprint by 2040 (scope 1, 2, and 3), 10 years ahead of 1.5 °C trajectory. This means that all Schneider Electric’s products will be carbon neutral in 2040;
    • Engage with suppliers to move towards a net-zero CO2 supply chain by 2050 (with no CO2 offsets).

    Universal Registration Document 2020 – page 197
  • As a global specialist in the digital transformation of energy management and automation, the Group places its expertise and solutions at the service of its customers to ensure that energy is safe, reliable, efficient, connected, and sustainable. The Group proposes an integrated offering of technologies and market-leading solutions tailored to customer needs, promoting the transition towards more electric, digital, decarbonized, and decentralized energy. In fact, Schneider Electric is uniquely positioned among the 1,000+ companies taking action for climate change because it acts on both sides of the equation:

    • The solutions Schneider Electric brings to the market are directly linked to activities to mitigate, adapt, and improve humanity’s resilience to climate change;
    • At the same time, Schneider Electric acts to reduce its end-to-end CO2 footprint, aiming for a net-zero CO2 supply chain by 2050, with precise steps for 2025, 2030 and 2040

    The Group’s 2030 targets (net-zero CO2 emissions on scope 1 and 2, and -35% on scope 3) are a validated 1.5°C Science-Based Target.

    To deliver on its targets, the Group has launched several ambitious transformations measured under the Climate and Resources pillars of Schneider Sustainability Impact and Schneider Sustainability Essentials.

    Universal Registration Document 2020 – pages 124 and 125
     
  • At Schneider Electric, we are convinced that the climate challenge can only be solved through collective action and collaboration. We are willing to engage our supply chain in a rapid and ambitious reduction of CO2 emissions, in line with a 1.5°C trajectory. Targeting to reduce CO2 emissions of our top 1000 suppliers is indeed a bold target, that will require us to support them in capacity building on climate. To commit to and deliver on such CO2 savings, suppliers will need to understand their scope 1 and 2 CO2 footprint, embed climate in their strategy, commit to enact and deploy concrete programs – all within the next 5 years. Schneider Electric will support suppliers by providing training and consulting support. In addition, the Group will share how it has leveraged EcoStruxure technologies, such as Resource Advisor, in its own operations to deliver energy and CO2 savings. Schneider Electric has reduced its own scope 1 and 2 CO2 emissions by -60% in 3 years, demonstrating that we can cut CO2 emissions fast with efficiency, electrification and decarbonization technologies.

    Please note that this is a separate program from the Vigilance Program, that will target 4000 suppliers over the next 5 years.

Sustainability business

  • Our mission is to be the digital partner of our customers for sustainability and efficiency, as digitization becomes increasingly pervasive in buildings, in data centers, across smart grids, industries, and in homes. For years, we have continuously developed and reinforced a full offer for an all-digital, all-electric world. By combining digital and electric solutions and services, we deliver a unique efficiency value proposition based on four dimensions of integration. Firstly, we enable integration of energy and automation for energy and resource efficiency. Secondly, we connect everything from end-point to the cloud, making every installation transparent and the data available to all those who need it, from operators to the control room. Thirdly, based on a fully integrated suite of software and digital twins, we enable the integration of an installation’s life cycle across all phases, from design and build, to operate and maintain. And finally, digitization allows us to connect and manage companies across sites to reach new levels of enterprise-wide efficiency.

    Universal Registration Document 2020 – page 5

    Schneider Electric’s ESS division (Energy & Sustainability Services) helps the world’s leading companies proactively manage their energy, carbon, and resource footprints. ESS annually manages more than EUR 30 billion in energy spend (70 GW), 128 million metric tons of CO2 , and over 250,000 client sites. ESS is the foremost advisor to corporations on global energy procurement, including renewable energy and emission-reducing technologies. It has received recognition for its microgrid solutions, sustainability consulting, and EcoStruxure™ Resource Advisor software, as well as being honoured as a leading ESCO and Energy-as-a-Service provider.

    Schneider Electric | Perspectives (se.com)
  • With EcoStruxure™, the IoT-enabled architecture, Schneider Electric helps companies become more efficient and reduce their CO2 emissions.

    To demonstrate this positive impact, a new indicator was launched in 2018 to quantify CO2 savings delivered to customers through the use of Schneider offers. The methodology allows to quantify CO2 induced and saved by the Group’s solutions at its customers’ premises. Detailed calculation rules are defined per offer, leveraging sales data, market expertise, and technical knowledge. Emission savings are net emissions (savings are netted from use- phase caused emissions) and considered solely as savings delivered on brownfield (retrofit) projects. Avoided emissions are defined with respect to greenfield sales (new infrastructure); they are defined as a limitation of emissions increase versus a reference scenario. Avoided emissions are net emissions, they are the difference between emissions of a reference scenario and emissions with the implementation of Schneider Electric’s offer.

    The methodology is designed to become a shared industry standard, its principles are applicable across capital goods and consumer durables sectors. Attention was given to define rigorous calculations, with conservative assumptions. The methodology is public and was developed with an expert CO2 accounting consulting company, Carbone 4.

    For 2021 onwards, Schneider Electric is committed to extend the methodology to progressively include all relevant offers, as well as report both saved and avoided CO2 emissions with customers and partners. From 2018 to 2025, as part of Schneider Sustainability Impact, Schneider Electric is committed to help customers save and avoid 800 million tonnes of CO2. From 2018 to 2020, Schneider Electric helped customers save and avoid 263 million tons of CO2e (155 million tons saved, 108 million tons avoided). This indicator is audited every year as part of the extra-financial audit.

    CO2 savings figures here include calculations for new offers compared to the SSI 2018-2020 KPI (microgrids, ADMS, cooling, power quality and 3 phase UPS), which explains the difference (155 million tons CO2 saved vs 134 million tons).

    Universal Registration Document 2020 – page 126

Green Revenues*

  • Green Revenues* are defined as offers that bring energy, climate, or resource efficiency to our customers, while not generating any significant harmful impact to the environment. Schneider Electric’s Green Revenues* are split into four categories described thereafter. Activities included are:

    1. Energy efficiency architectures bringing energy and/or resource efficiency to customers. Offers include building management systems, power management systems, lighting and room control, thermal control, variable speed drives, Energy and Sustainability Services (ESS), and industry automation;
    2. Grid reinforcement and smart grid architectures contributing to electrification and decarbonization. This includes all technologies and architectures contributing to a New Electric World, helping grid and electrification come to life: smart grid and microgrid technologies, EV charging infrastructures, medium voltage systems to upgrade electricity distribution networks, low voltage connectable offers enabling smart grid management and energy efficiency, secure power and switches that enable security, and security of supply;
    3. Products with differentiating green performance, flagged thanks to our Green Premium program. Green Premium products offer environmental transparency (with digital life cycle analysis and circular end-of-life instructions), superior compliance to stringent environmental regulations, and differentiating performance on climate, resources, or health (note: double-accounting with categories 1 or 2 is removed);
    4. Services that bring benefits for circularity (prolonged asset lifetime and uptime, optimized maintenance operations, repair, and refurbish) and energy efficiency (maintenance to maintain the operational performance of equipment and avoid a decrease of energy efficiency over time).

    Revenues derived from activities with fossil sectors and others are excluded, including Oil & Gas, coal mining, and fossil-power generation, in line with prevailing corporate responsibility reporting practices and forthcoming EU regulations (Green Taxonomy), even though Schneider Electric’s technologies deliver resource and carbon efficiency in such sectors as well. In line with Schneider Electric’s strategy to phase out SF6 from offers by 2025, SF6-containing switchgear for medium voltage applications are also excluded. In addition, neutral technologies such as signaling, racks and enclosures, access control, or emergency lighting are excluded.

    *per Schneider Electric definition and methodology

    Universal Registration Document 2020 –page 99

Targets

  • In 2017, Schneider Electric joined RE100 and committed to source 100% of electricity from renewables by 2030, with an intermediary target of 80% by 2020. In 2020, the Group sourced 80% of its electricity from renewable sources, up from a starting point of 2% in 2017. To deliver its target, the Group leverages four complementary tools: green tariffs, renewable certificates, power purchase agreements, and on-site generation.

    This commitment entails many benefits. First and foremost, going green is deeply aligned with the Group’s strategy. Schneider Electric wants to be one of the corporate players who shape the future energy landscape, having its own sites producing and consuming renewable electricity. Second, renewable sourcing is an important pillar to drastically cut CO2 emissions from the Group’s operations, following a 1.5 °C trajectory in line with Science-Based Targets. Third, because it makes good business sense. In a lot of cases, renewable supply enables savings on electricity costs. It is also a way of diversifying energy supply risks and reduces exposure to the volatility of market prices. Also, in some developing countries, microgrid technologies coupled with renewables can enable the securing of power supply and reduce downtime risks. Fourth, because the Group wants to demonstrate the value add of its own technologies and solutions, by showcasing EcoStruxure™ Microgrid IoT architecture on its own sites. Sites leverage Schneider Electric’s connected inverters, Molded Case Circuit Breakers (MCCB), and transformers to connect on-site solar panels to the grid and use the energy and microgrid software to manage energy production and consumption. Schneider Electric also leverages the expertise of ESS consulting teams to deliver this transformation.

    In 2020, Schneider Electric was recognized as the 2020 Clean Energy Trailblazer by The Climate Group’s RE100. This is the first year of the RE100 Leadership Awards, which recognizes companies going above-and-beyond to accelerate a clean energy future. Schneider Electric was awarded the honor based on its wide-ranging commitments, including the Company’s own CO2 reduction targets, CO2 savings delivered by EcoStruxure™ technologies to customers, clean energy advisory services, and Access to Energy program, providing energy access in underserved communities globally.

    Universal Registration Document 2020 – page 133

Programs/Actions

  • Schneider Electric is part of initiatives RE100, EV100 and EP100 and has set respective targets for 2030 :

    • Consume 100% renewable electricity (RE100)
    • Double energy productivity (vs 2005) (EP100)
    • Switch to 100% electric cars (EV100)

    Universal Registration Document 2020 – page 118

Scenarios

  • Since 2018, Schneider Electric has built a scenario planning function and roadmap. This exercise led to the creation of several scenarios leading to 2040, developed following an inductive methodology approach. These scenarios include critical reviews of the geopolitical landscape, commodity and resources availability, economic and financial evolutions, climate sensitivity and evolving policies, energy transition pathways, and technology developments, among others.

    The consequences on the energy transition are quantified, looking at 10 regions and a number of sectors individually, framing the business landscape in which Schneider Electric operates. Key findings are regularly cross-checked with new publications, particularly the ones from the International Energy Agency, among others, on a regular basis. Governance is in place, under the leadership of the Chief Strategy Officer, and this exercise is shared internally and used to inform strategic priorities across the business and operations. Across all scenarios, a key takeaway is the dominant role of:

    • Efficiency: a critical enabler for decarbonization, resiliency and security;
    • Electrification: the world is becoming more electric, with 2x growth against other sources of energy;
    • Digitization: with the increase in connectivity, complemented by real-time information and competitive computing capabilities, digital technologies play a major role in reaching decarbonization targets while augmenting economic productivity.

    Based on these inputs and findings, and by estimating the financial impact such scenarios may have on the Group’s business (as risks or as opportunities), key development areas have been identified that allow to actively contribute to the low-carbon transition. These scenarios therefore heavily drive the Schneider Electric business strategy in terms of investments (R&D, incubation, efficiency), and enable to develop its sustainability portfolio of offers.

    Universal Registration Document 2020 – page 125

Our long term commitment is to be efficient with resources, by behaving responsibly and making the most of digital technology to preserve our planet.

Green Premium

  • Green Premium™ program was created to provide customers with peace of mind and differentiating environmental performance: transparent environmental and regulatory information, superior energy, climate and circular performance, and protection of people and ecosystems from chemical substance risks. Today, 76.7% of Schneider Electric eligible sales are Green Premium.

    In 2008 a Green Premium ecolabel was introduced to provide transparent information on regulated substances and to share the environmental information of Schneider products. Launched in 2018, the updated Green Premium™ program is designed to deliver customer valued sustainable performance around five value propositions:

    • A brand promise of compliance and digital transparency, with offers that comply with RoHS and REACH regulations, an environmental disclosure, and a circularity profile;
    • A minimum of two environmental performance claims selected from any of the performance pillars (Resource, Circular, Well-being);
    • Obtaining recognition from an external organization.

    Schneider Electric targets to have 80% of product revenues covered by Green Premium™ by 2025 (Schneider Sustainability Essentials #6)

    Universal Registration Document 2020 – page 141
  • Due to the nature of most of its industrial processes (manual and automatic assembly), water consumption is not generally a critical resource for Schneider Electric, and the Group has a minimal impact on water quality. The topic was considered not very material by both internal and external stakeholders during the sustainability materiality analysis. In 2020, water management and performance information was disclosed in the CDP Water program, and Schneider Electric was awarded an A- rating.

    Schneider Electric’s ambition is to reduce water intensity (in m3 of water consumption per euro of turnover) by 35% in 2025 versus 2017, with a focus on sites with high water consumption and within severely water-stressed areas. In 2020, water consumption intensity was 76 m3 per million Euro of revenue, an evolution of -29.6% against the 2017 baseline.

    The Group provides a breakdown of water consumption per source, with details on water consumed from the public network, groundwater, surface water (lakes, rivers, etc.), and other sources of water (rain, recycled water, etc.). At Group level, water is primarily used for cooling and sanitary purposes and, in a few select sites, for processes such as surface treatment. Water drawn for the sole purpose of cooling and immediately released without alteration is also monitored separately. For industrial water use, water discharge is subject to appropriate treatments to reduce pollutant potential and subject to a monitoring plan.

    In Schneider Sustainability Essentials, the Group commits that 100% of sites in water-stressed areas have a water conservation strategy and related action plan by 2025 (SSE#11).

    Universal Registration Document 2020 – page 135

Biodiversity

  • Schneider Electric recognizes the importance of Nature and Biodiversity for humanity to thrive; we are all dependent on natural resources and ecosystem services. Our Purpose is to allow everyone to make the most of their energy and resources to reconcile progress and sustainable development for all. In the new Schneider Sustainability Impact 2021- 2025, we are stepping up our commitments for biodiversity. The scope of all the below commitments is global.

    1. Quantify and regularly publish the assessment of impacts on biodiversity (MSA.km²)
    2. Commit to reduce our impacts and align biodiversity objectives with science”
    3. Develop solutions and technologies that contribute to the preservation of biodiversity
    4. Engage and transform the value chain
    5. Act locally, engaging employees and partners

    By 2025, Schneider Electric commits that 100% of sites have local biodiversity conservation and restoration programs (SSE#8).

    Schneider Electric Biodiversity Pledge

    Universal Registration Document 2020 – page 128

Circularity

  • For Schneider Electric, circular economy is an all-encompassing strategic transformation, rather than an isolated initiative (such as incorporating recycled materials in some products). It is core to the lasting success and touches everything Schneider Electric does, detailed under three main channels:

    • Circular business models and value propositions for customers: through circular capabilities such as local models of reuse, retrofit, repair, refurbish, and take-back, and by unleashing the potential of IoT, connecting and digitizing products (predictive maintenance, performance optimization, leasing, pay-per-use, performance contracting);
    • Circular resources and product development: starting at the product design phase to minimize resource usage and maximize reuse, recycled resources, and recyclability;
    • Circular supply chain: zero-waste and circular excellence in operations and sites with strict targets on waste reduction, reuse, and recovery.

    Being the winner of The Circulars award in 2019, Schneider Electric was invited as a panelist at WEF, Davos 2020 for the launch of the Circular Economy Handbook. Schneider Electric also provided a case study and endorsement for this book, along with a video of Jean-Pascal Tricoire detailing its approach to the circular economy.

    The Circulars 2019 - Schneider Electric, Winner (Multinational Category) - YouTube

    Schneider Electric has set ambitious goals for 2025 under its Resources pillar:

    Schneider Sustainability Impact:
    #4 – Increase green material content in our products to 50%
    #5 – 100% of our primary and secondary packaging is free from single-use plastics and uses recycled cardboard

    Schneider Sustainability Essentials:
    #6 – 80% of product revenues covered by Green PremiumTM
    #9 – 200 “Waste-to-Resource” sites
    #10 – 420,000 metric tons of avoided primary resource consumption through “take-back at end-of-use” since 2017

    Universal Registration Document 2020 – page 136

Supply Chain

  • Since 2004, the Group has been encouraging its suppliers to commit to a sustainable development initiative. Since 2012, Schneider Electric has wanted to place itself in a continuous improvement process as well as to follow up with its suppliers by requiring them to make progress according to the ISO 26000 guidelines. This approach is strengthened by the General Procurement Terms and Conditions which all suppliers must abide by: each supplier undertakes to apply the principles and guidelines of the ISO 26000 international standard, the rules defined in the ISO 14001 standard, and is informed that the energy performance of its supply has been considered as part of the selection criteria.

    Schneider’s strategy combines actions on large and deep coverage (multiple tiers), seeks to engage strategic & impacting suppliers, allows supply chain risks identification & prevention, and drives continuous improvement on four main pillars:
    • Net zero CO2 emission
    • Decent work & Human Rights (Decent work program)
    • Circular supply Chain
    • Environment friendly

    Vigilance audits on risky suppliers:
    Schneider Electric is conducting a specific evaluation of suppliers. This evaluation covers all natures of risks identified and considers specific parameters such as the type of industrial process used by the suppliers, their technology, and the geographic location of those suppliers. This allows the Group to factor in risks that may arise from a country’s specific situation (social, political, etc.). These parameters are compiled in a third-party independent database (Responsible Business Alliance methodology, RBA, ex-EICC, of which Schneider Electric has been a member since January 2018), with an annual evaluation.

    Schneider Electric has defined new objectives for the period 2021- 2025, as part of the sustainability strategy. Expanding from the previous plan to audit 350 “high-risk” suppliers, the Group took the objective to conduct 1,000 on site audits on high-risk suppliers and 3,000 self-assessment audits on medium-risk suppliers.

    Universal Registration Document 2020 – pages 110 to 117

    Vigilance plan 2020 page 34
     

Our long term commitment is to live up to our principles of Trust, by upholding ourselves and all around us to high social, governance, and ethical standards.

  • The Principles of Responsibility are the Group’s Ethics Charter, which serves as a reference for every person and every team in the Company. Together they aid us in pursuing Schneider’s objectives in a way that is meaningful, inclusive and positive. The Principles of Responsibility apply to all employees at Schneider and its subsidiaries, as well as to contractors, self-employed workers, and persons working on the Group’s premises. They also serve as a source of inspiration in its relations with customers, partners, suppliers, and external stakeholders in general.

    The Principles of Responsibility were inspired by the Universal Declaration of Human Rights, the ten principles of the United Nations Global Compact, and standards issued by the International Labor Organization (ILO) and the Organization for Economic Cooperation and Development (OECD). The new version of the Principles of Responsibility was published in June 2019 on Schneider Electric internal and external website and can be downloaded in 26 different languages.

    Today the Principles of Responsibility are built on the following five pillars:
    1. Human rights and people development
    2. Ethical business conduct
    3. Digital trust and security
    4. Act for the environment
    5. Responsible corporate citizenship

    In 2021, building on this foundation, Schneider Electric will shift towards how the Group earns the trust of its internal and external stakeholders:
    • Adding new topics such as quality and leadership focusing on earning and keeping trust with customers, partners, teams, investors and communities around the world.
    • Strengthening ties to policies to ensure all employees know and understand the framework within which Schneider Electric works.

    Universal Registration Document 2020 – page 100

    Schneider Electric's Principles of Responsibility
  • Safety is a value on which Schneider Electric will not compromise, and this extends to employees, customers, partners, and those working on their behalf. Included in the Principles of Responsibility is a chapter on Safety at Work which reinforces the Group’s commitment to provide a healthy and secure workplace for all.

    The Safety and Occupational Health Policy establishes the commitment that Schneider Electric has made to maintaining safe and healthy working conditions, to fulfil legal obligations, to engage employees in safety processes, and to continually improve the health and safety program, and is the cornerstone of its certified Safety Management System.

    In 2020, as part of its improvement efforts, Schneider Electric successfully achieved re-certification for ISO 45001 Safety Management System as part a fully integrated management system certified through Bureau Veritas. This certification is in place for about 200 manufacturing, logistics, and R&D locations.

    The Schneider Electric global safety strategy includes “S.A.F.E. First” at the core. Developed as a personal reminder to pause and reflect on safety before beginning any task, the program empowers employees to perform S.A.F.E. First checks and if “Unsafe? Stop Work!”

    The global safety strategy also takes into consideration the five guiding principles that help to determine actions to be taken as part of a work task. They are:
    • Ensuring employees are qualified for the work task before performing work;
    • Empowering employees to stop work if unsafe;
    • Reporting opportunities for improvement;
    • Resolving and sharing solutions to problems;
    • Encouraging employees to care about their own safety and the safety of their co-workers and customers.

    To ensure successful implementation of the strategy, annual Environmental, Health, and Safety (EHS) Assessments are performed in industrial sites worldwide.

    Schneider Electric has been very successful in meeting goals for the reduction of workplace injuries and illnesses, including those injuries resulting in lost time days. Since 2011, the Group has reduced the frequency of incidents (Medical Incident Rate, MIR) by 85% and the severity of incidents (Lost Time Incident Rate, LTIR) by 84%. This is based on 1 million hours worked.

    Schneider Electric was the recipient of several awards for occupational health and safety programs in 2020. This includes Royal Society for the Prevention of Accidents (RoSPA) Gold Awards for both Safety and Fleet. The RoSPA Awards recognize achievement in health and safety management systems, including practices such as leadership and workforce involvement. Schneider Sustainability Essentials 2021-2025 - SSE#14 : 0.38 or below Medical Incident rate

    Universal Registration Document 2020 – pages 146 to 148
  • Schneider Electric seeks to be a role model in its interactions with customers, partners, suppliers, and communities, when it comes to ethics and the respect and promotion of human rights. The Group strives to have a positive impact on the planet and the environment by contributing to finding solutions to limit climate change. The Group’s vigilance plan reflects this ambition. It also complies with the provisions of 2017 French law on Corporate duty of vigilance.

    The plan includes:
    • A risk analysis specific to vigilance: risks that Schneider Electric poses on the ecosystem and environment;
    • A review of the key actions implemented to remediate or mitigate these risks;
    • An alert system;
    • Governance specific to vigilance.

    In this Registration document, Schneider Electric reviews the risk matrix analysis and some of the actions to mitigate these risks are described. When necessary, the reader will be directed to other sections of the report to get the relevant information. For more comprehensive and complete information, the full vigilance plan of the Group is available as a standalone document and can be downloaded from Schneider Electric’s website.

    Universal Registration Document 2020 – page 110

    Vigilance Plan 2020 (se.com)
  • Schneider Electric’s human rights approach is articulated around three principles.
    • First, Schneider Electric is committed to fully respecting and applying laws and regulations in all countries where it operates.
    • Second, Schneider Electric is committed to fostering and promoting human rights throughout all its operational sites and subsidiaries worldwide.
    • Third, Schneider Electric wishes to support human rights beyond its borders, leveraging its large network of partners and stakeholders to promote the implementation of actions that will ensure the respect of people’s rights.

    Through its Principles of Responsibility, Schneider Electric is taking a strong position on what values it stands for. The “human rights and people development” pillar gives guidance on the following subjects:
    • Respect, fairness, and dignity;
    • Diversity, inclusion, and individual development;
    • Safety at work;
    • Health, well-being, and the way we work;
    • Protecting the vulnerable against labor abuses;
    • No tolerance for harassment.

    Schneider Electric has formulated a specific global human rights policy that defines its position on human rights. It is applicable to all Schneider Electric permanent or temporary employees working on Group premises. It also aims to inspire external stakeholders. For all human rights risks identified above, and based on the “Protect, Respect, Remedy” principles, the policy provides a framework and gives guidance to employees and teams on how to behave in their daily operations or when facing a specific situation

    Universal Registration Document 2020 – page 101
  • As stated in our Principles of Responsibility and Anti-Corruption Code of Conduct, Schneider Electric is committed to comply with all applicable laws and regulations, such as the OECD’s Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the US Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and the French Sapin II law.

    Schneider Electric applies a zero-tolerance policy towards corruption and other unethical business practices and considers that “doing things right” is a key value-creation driver for all its stakeholders. We count on our employees and third parties to promote business integrity. For doing so, we must provide them with the tools to encourage them to act right. In order to meet the requirements of the French Sapin II law, the Group released an Anti-Corruption Code of Conduct. The Code was reviewed in November 2019 to take into account results of the corruption risk mapping, to incorporate principles of the former Anti-Corruption Policy, and to provide employees with examples illustrating situations they may face.

    Anti-corruption awareness is one component of the compliance program. We want to ensure that country leaders, managers, employees, and third parties are aware of our Anti-Corruption Code of Conduct. In addition to the compliance with all international and local regulations, all Schneider Electric employees are expected to comply with the Company’s values of integrity and transparency.

    To allow specific alerts to be reported with a high level of confidentiality and to be dealt with at a high level, Schneider Electric relies on an online internal system called Red Line. A similar alert system has been implemented for external cases. This system, called Green Line, is available for external stakeholders including suppliers, subcontractors, customers, and business agents. It allows alerts to be raised on issues such as corruption, theft, human trafficking, health and safety, environmental pollution, etc. Green Line is managed similarly to the internal alert system, Red Line.

    Note that the Anti-Corruption Compliance program is part of the Ethics & Compliance program.

    Universal Registration Document 2020 – page 103 to 108
  • To address a fast, complex, and ever-changing threat landscape, Schneider Electric adopted an enterprise-wide end-to-end risk-centric approach. As a backbone of our IT and OT cyber resilience strategy we use a companywide Cyber Risk Register that translates cybersecurity risks into business and operational risks with plausible scenarios, financial exposure, and clear risk accountability up to C-level. This business-driven common framework allowed Schneider Electric to make cyber an integral part of discussions & decision making with company business leaders and to promote a common understanding of the critical business risks and foster collaboration in risk mitigation.

    Cyber threats are mitigated by implementing cyber practices and capabilities, policy driven controls, and enforcing mechanisms. When events and issues result in incidents, they are classified per severity matrix which then guides the actions that the Incident Response Team takes in conjunction with the Security Operations Center. End-to-end incident management is orchestrated by a Cyber Defense and Incident response team with support from Security Operations Center (SOC) as per an Incident Response Plan and the Security Incident Management Policy that both define the required incident management activities and all roles and responsibilities. A post-mortem analysis is conducted for all critical and some repetitive events. They represent an opportunity for continuous improvement of security controls or policies, and enhancements to the Incident Response Process. These lessons are reviewed and introduced as corrective actions.
  • Schneider’s Product & Systems Security Office (PSO) has implemented a Secure Development Lifecycle (SDL) process based on our company’s certification to industry standard IEC 62443-4-1. Our Cybersecurity Policy for Products and Systems provides rules and references concerning cybersecurity for the specification, development, testing and maintenance of all products and systems and requires compliance with SDL through the entire lifecycle. The Policy maximizes the security of all Schneider Electric products and systems and creates a culture of cybersecurity and privacy awareness.

    SDL’s structure brings a consistent, disciplined approach to building security into all Schneider Electric products. SDL is a foundational element of offer creation and is integrated into Schneider’s Offer Creation Process. It provides a framework for teams to define, design, develop, test, and maintain offers securely. SDL treats security as a design requirement, so security is integrated into every component of the system. Penetration testing is scheduled earlier in the process, when security issues can be corrected, tested, and tracked to closure.

    Everyone on the project team is responsible for complying with the SDL practices, which directly map to the 62443-4-1 standard. Following SDL is a substantive step for our products toward gaining external certifications.
  • Schneider Electric performs various internal and external reality checks on its cybersecurity posture and on the posture of its federated businesses.

    We have deployed a cyber scoring platform with continuous assessment mechanisms on the entire scope. We keep strong collaboration with the ecosystem to ensure continuous improvement of our shared cyber posture and a sustainable monitoring of our brands’ reputation. We have defined clear processes and objectives to help us in this journey and assimilate the lessons learned.

    We also partner with third party companies to perform “stress tests” on our cyber capabilities (penetration testing, red & purple teaming, ISO27001 audits, customer audits) on a regular basis and the learnings are systematically injected into the business & financial decisions making process. Furthermore, cyber crisis simulation exercises are performed quarterly. Finally, the internal audit group performs independent and transversal reviews on our cybersecurity posture.

    In conclusion, Schneider Electric’s posture is continuously revisited and adapted through “reality checks”, including emergency and improvement plans across the Company and cyber scoring platforms.

Our long term commitment is to create equal opportunities, by ensuring all employees are uniquely valued and work in an inclusive environment to develop and contribute their best.

  • The Board of Directors pays due attention to its composition and that of its committees. It relies on the works of the Governance & Remunerations Committee which reviews regularly and proposes as often as required, the relevant changes to the composition of Board of Directors and its committees depending on the Group’s strategy.

    In that respect, in conformity with its internal regulations, the Board of Directors ensures through its proposals and its decisions that:
    • its composition reflects the international nature of the Group’s activities and of its shareholders by having a significant number of members of non-French nationality;
    • it protects the independence of the board through the competence, availability, and courage of its members;
    • it encourages open and unrestricted speech;
    • it pursues its objective of diversifying the Board of Directors in compliance with the legal principle of attaining balanced representation between men and women on the Board;
    • it appoints persons with the expertise required for developing and implementing the Group strategy while considering the objectives of diversity based on criteria such as age, professional skills, nationalities and background;
    • employee shareholders and employees shall continue to be represented on the board in compliance with the provisions set forth in Articles 11.3 and 11.4 of the Articles of Association; and
    • it preserves the continuity of the Board by changing some of its members at regular intervals, if necessary, by anticipating the expiry of members’ terms of office.

    The gender diversity ratio of the Board of Directors, should the appointment of Mr. Anna Ohlsson-Leijon be confirmed in the 2021 Annual Shareholder’s Meeting, will reach 42% (excluding the employees Directors and the representative employee shareholders Director).

    Schneider Electric is deeply committed towards diversity in general and gender diversity in particular. Schneider Electric focuses on taking proactive measures to encourage a balanced representation of men and women at the leadership level: the portion of women at the Executive Committee had been increased from 27% in 2019 to 38% in 2020. On July 1, our Executive Committee passes an important milestone: seven of its 16 members – 44% – will be women. That means Schneider Electric will be led by one of the most gender-balanced senior management team among the 40 biggest listed companies in France. For the leadership pool comprising of the top 1,000 leaders, the female representation is 23.2%, while among NDVC (i.e. white collars) representing more than 60,000 employees, the female representation reaches 32.8%.

    At its meeting of December 14, 2020, the Board of Directors reviewed senior management’s ambitions regarding the balanced representation of men and women at the leadership level and noted that the objective is set to at least 30% of women at the Executive Committee and 35% among NDVC. To achieve these objectives and further improve gender diversity, the Group aims at attracting female talents by offering a training leadership program and dedicated mentoring, implementing an equal treatment policy and a tailored family leave policy.

    Universal Registration Document 2020 – page 230
  • Schneider Electric’s overall aspiration to improve the lives of people everywhere in the world by developing sustainable energy solutions for its customers extends to its diversity and inclusion ambition. The Group’s Diversity Policy was first written in 2006 and broadened at the end of 2013. With the new People Vision launched in 2018, Schneider Electric’s Global Diversity & Inclusion Policy follows two major commitments which incorporates the Group’s ambition:
    • Embrace different; and
    • Build a culture of inclusion.

    At the Group level, diversity and inclusion focuses on five areas of diversity:
    • Gender;
    • Nationality, ethnicity, race;
    • Generation;
    • LGBT+; and
    • Disability.

    While diversity and inclusion is increasingly driven by local and regional regulations, with which the Group complies, other countries where Schneider Electric operates are encouraged to tackle additional diversity and inclusion challenges specifically relevant to their markets and tailored to their local needs.

    Schneider Electric's Diversity, Equity & Inclusion

    Universal Registration Document 2020 – page 166
  • Schneider Electric’s diversity and inclusion strategy places strong emphasis on gender diversity, based on the conviction that building a gender balanced Company that is equally inclusive of men and women is both the right thing to do and critical to diversity of thought, to unleash innovation and deliver the best sustainable energy solutions to customers

    As of end of 2020, women make up 24% of the senior leadership and 25% of managerial positions. To build a robust gender balanced leadership pipeline, the Group has engaged in several actions.

    Because they are a key internal leadership talent pool, Schneider Electric has been focusing on hiring and including more women in sales and technical roles. As of end of 2020, women made up 21% of STEM (Science, Technology, Engineering and Math) roles with a hiring rate of 34%. Similarly, as of end of 2020, women made up 19% of the sales population with a hiring rate of 24%.

    In 2019-2020, the Company revitalized its commitment to gender equity in leadership roles and launched the Schneider Women Leaders’ Program (SWLP) – a global program with a common cause – enabling more women at their mid-career point, to build the skills and confidence to step up their leadership capability and impact.

    The SWLP program is an award-winning nine-month coaching and virtual workshop experience, culminating in a three- day virtual global summit, bringing the graduating women together with senior Schneider leaders and well-class business school faculty. The initial cohort included 116 women across all regions. 236 women have benefited from this targeted leadership development, accelerating the preparation for even more women as the Company steps up its targets for women in mid-level leadership roles by 2025.

    Employee Resource Groups (ERGs) also play a large role in empowering women locally and helping drive efforts to advance women in leadership. As of the end of 2020, local ERGs have contributed to the Group’s efforts towards gender equality and inclusion in more than 40 countries.

    Universal Registration Document 2020 – page 157 - 164
  • In line with its Human Rights Policy and Principles of Responsibility, Schneider Electric believes earning a decent wage is a basic human right. Schneider Electric is committed to paying employees in the lower salary ranges at or above the living wage to meet their families’ basic needs. By basic needs, the Group considers food, housing, sanitation, education, healthcare, plus discretionary income for a given local standard of living.

    In 2018, Schneider Electric started working with an independent advisor – Business for Social Responsibility (BSR) – to implement its living wage commitment. Schneider Electric has initiated a global process to analyze wage levels and employment practices against local living wage standards set by BSR. At the end of 2019, the analysis had covered 63 countries, reaching 99% of the Schneider Electric footprint. Moving forward into 2020, the COVID-19 crisis highlighted even more strongly the need for a safety net to guarantee a minimum income level for employees. Given the complexity to evaluate and mitigate the macroeconomic impact of the crisis, the Group did not run a gap analysis this year. However, Schneider Electric reiterated its commitment to pay 100% of employees at least a living wage as part of its fair and equitable policies.

    From 2021 onwards, the commitment will be audited annually with the support of an independent third party. Schneider Electric also continues to be part of leading companies’ coalitions such as G7 Business for Inclusive Growth (B4IG), OECD, and the UN Global Compact (Decent Work in Global Supply Chains Action Platform). These global coalitions work together to implement living wage standards within their workforce and their entire ecosystem.

    Universal Registration Document 2020 – page 166
  • Schneider Electric launched its Access to Energy program in 2009, with a unique approach combining three dimensions that enrich each other:


    • A training & entrepreneurship program aimed at developing skills in the electricity trades and supporting entrepreneurs in this area, in particular women, in order to promote sustainable and inclusive local development. 

    • A social and inclusive business, with products and solutions for rural electrification (collective and individual, such as solar lanterns, solar home systems including Pay As You Go feature, solar water pumping systems, microgrids including plug and play containerized solutions, etc.), creating local jobs in distribution, energy services, agriculture, etc., and promoting in particular women’s empowerment.


    • Impact investment funds to support local economies in gaining access to energy and reducing energy poverty.

    To date, Schneider Electric has provided energy access solutions to 30 million people, invested in 25 companies, trained more than 281,000 underprivileged people and supported more than 2,800 entrepreneurs. It targets enabling 80 million people access to electricity by 2030, and 1 million people trained, 10,000 trainers trained, 10,000 entrepreneurs supported by 2025.

    Universal Registration Document 2020 – pages 172 to 175

  • The World Employee Share Ownership Plan (WESOP) is one of the Group’s recurring key annual reward programs, offering employees across the world an opportunity to become owners of the Company, at preferred conditions.

    In March 2020, the subscription was cancelled, and focus turned towards short-term priorities, starting with employee health and safety. WESOP will return in 2021 for 40 countries. As of December 31, 2020, the employee shareholding represented 3.6% of Schneider Electric SE’s capital and 6.1% of the voting rights. 70% of the Group employee shareholders were located outside of France, of which 13% are in China, 11% in India and 9% in US. This also includes employee shareholding resulting from the long-term incentives grants.

    Universal Registration Document 2020 – pages 167 to 175
  • Schneider ensures that all employee benefits are locally and globally compliant, as well as market relevant. Because employee benefit plans vary significantly between countries due to different levels of social, tax, and legal regulations, Schneider Electric’s benefits portfolio is primarily country-driven and aims at providing similar benefits within a country territory.

    Global benefit standards
    Schneider Electric regularly reviews compliance with its global benefit policies and principles to ensure that its inclusive global benefit standards are delivered for everyone, everywhere. These standards cover healthcare, family leave, and life cover and are audited in the Schneider Sustainability Impact.

    One of Schneider Electric’s underlying benefit objectives is to ensure all its employees are equipped to manage their basic health and well-being and to provide adequate security to employees and their dependents. Health and well-being are embedded in the Schneider Electric strategic people priorities and contribute to its sustainability mission. The Company has a commitment to strive, at a minimum, that 90% of Schneider Electric’s employees have access to a comprehensive well-being at work program – translated into a dual standard of access to healthcare and well-being training programs. Access to an inclusive and comprehensive standard of healthcare coverage (outpatient, hospitalization, key health risks/chronic conditions, maternity, children) is defined by local regulations and employment agreements. Schneider Electric also supports its employees with personal time off at critical life stages and this is fully deployed in 100% of countries. In addition, the Group commits to provide financial security to employee dependents, in the event of an employee’s death, in the form of a minimum standard of life assurance coverage of at least a multiple equivalent to one year’s salary.

    Employee Share Ownership
    The World Employee Share Ownership Plan (WESOP) is one of the Group’s recurring key annual reward programs, offering employees across the world an opportunity to become owners of the Company, at preferred conditions.

    Universal Registration Document 2020 – pages 166 to 167

Our long term commitment is to harness the power of all generations, by fostering learning, upskilling, and development for each generation, paving the way for the next.

  • The key challenge of training in the energy sector is to provide underprivileged people with the knowledge and skills to be able to carry out a trade in a safe and responsible way, providing them and their families with the means for satisfactory subsistence. It will also give them the ability, should they wish, to sell and maintain energy access offerings and to create their own small business in time. Furthermore, they are a vital and indispensable element for all responsible and sustainable rural electrification policies.

    Schneider Electric’s strategy, backed by its Foundation, under the aegis of Fondation de France, for training to underprivileged populations in the energy sector, includes three key priorities:
    • Basic training over a few months, which is free and accessible to many people and adapted as much as possible to the local situation. These training courses lead to the issuing of a certificate of competence by Schneider Electric;
    • Single or multi-year trainings leading to qualifications, in partnership with local Ministries of Education, or even under bilateral agreements; and
    • The training of trainers to support the effective and quality rollout of training down the line.

    Capitalizing on the results of its trainings, the Access to Energy Training & entrepreneurship program decided to go further by supporting social and informal entrepreneurs in the energy sector. Job markets in emerging and developing economies are strongly influenced by the importance of the informal sector, sub-activity or multi-activity in order to accumulate sources of income. Training in the specific skills needed by the entrepreneur – start-up support, support, and financing – are key to creating sustainable activities. In particular, Schneider Electric tries to support women’s entrepreneurship in the energy sector, integrate them at every step of the energy access value chain, and find the right partners to create a supportive ecosystem.

    These actions are always implemented in partnership with local players and/or national or international non-profit organizations (NGOs, governments, etc.). They systematically work with Schneider Electric’s local subsidiary. The actions may be accompanied by funding for investments in materials and missions of the volunteers of VolunteerIn, which, if the need arises, enables the transfer of expertise. Since starting the program in 2009, More than 280,000 people have been trained in more than 46 countries. In Schneider Sustainability Impact 2021-2025, Schneider Electric aims to reach 1 million people trained (since 2009).

    Universal Registration Document 2020 – page 176 to 178
  • Schneider Electric places a strong focus on the effective management of talent at all levels. There are two aspects to talent management for Schneider Electric – for all employees and for high potential talent. The Group ensures all employees have the tools and processes in place to set clear goals and have a development plan to guide their performance, development, and learning in their current role as well as for future potential roles. The process is enabled by an integrated HR information system called TalentLink. This system allows data management and analytics in the areas of strategic workforce planning and talent management; it also improves the matching of resources to demand regarding learning in different parts of the Company.

    In 2020, a one-stop-shop career development platform called Open Talent Market was launched to our employees to create an internal talent market leveraging Artificial Intelligence (AI) to match the supply and demand of talent throughout Schneider Electric. This creates better transparency around job and project opportunities, ensuring employees can drive their career and develop to their fullest potential at Schneider Electric.

    For high potential talent, an annual talent review process operates across the Company to help ensure that high potential individuals are identified and realize their full career potential. Structured succession planning for critical roles helps to accelerate individual career development while maintaining continuity for the organization. In selecting and developing talent, an important consideration is also to foster diversity such as gender and nationalities (new economies as well as mature economies). Towards the end of the talent review process across the entities, there is an aggregated review with the Executive Committee to discuss the overall health of the leadership pipeline and succession strength for top positions

    Universal Registration Document 2020 – page 150
  • During the OneVoice employee engagement surveys, Schneider Electric employees are asked a series of questions; six of them are used to generate the Employee Engagement Index (EEI). The EEI is a standard international index. Our bi-annual surveys moved from twice a year to once a year since 2018, to free up HRBPs and Managers’ energy and allow time to deep dive into the results and build impactful action plans. All employees are surveyed.

    The level of employee engagement recorded in 2020 was 69%, which is the highest since 2012 when it was at 55%, demonstrating a strong commitment of our employees toward the organization. This Employee Engagement Index is also registered in the Schneider Sustainability Essentials with the target to reach 75% by 2025 (SSE#24). It enables Schneider Electric to compare itself with the best employers in the industry and the best employers in key regions of the world.

    Universal Registration Document 2020 – pages 150 to 151

Our long term commitment is to empower local communities, by promoting local initiatives and enabling individuals and partners to make sustainability a reality for all.

  • In the Schneider Sustainability Impact Q1 2021 Publication, 5 examples of local commitments are presented:
    • Advancing equality in India for 24,000 students by powering 100 co-educational schools with solar energy
    • Promoting circularity in France with our employees by expanding our internal shop catalog with 150 circular product references
    • Giving electrical products a new life in Spain with an online marketplace and improved electrical installations for families in need
    • Fast-tracking e-mobility in Norway for our entire car fleet to become 100% electric in 2023
    • Supporting reconciliation in Australia by increasing fivefold spend with indigenous-owned suppliers, as part of the Reconciliation Action Plan
  • The Schneider Electric Foundation supports innovative initiatives all over the world that enable the most vulnerable, especially young people, to access the energy needed to succeed and build the world of tomorrow. To be relevant and effective, i.e., to have the greatest possible impact and respond specifically to the needs of the people concerned, it is essential that these initiatives combine education, technological innovation, social innovation and entrepreneurship. These initiatives cover three main areas.

    Vocational training for the youth, underprivileged persons and entrepreneurship support
    Training is the historical mission of the Schneider Electric Foundation. The energy sector, and more particularly electricity and renewable energies, offers a lot of potential, especially in areas where access to energy is difficult and growing. Passing on skills to young people, and giving them the means to support their families could, in the long term, boost the local electricity and electrotechnical sectors. This will improve their quality of life and create sustainable jobs. That is what the Training & Entrepreneurship program set up in 2009 is all about

    Tackling energy poverty
    In Europe, the Schneider Electric Foundation supports the implementation of information and awareness-raising campaigns, and supporting actions that target households faced with energy poverty with:
    • Multiparty programs that make it possible to better understand the phenomenon of energy poverty, to bring about solutions, and to connect players;
    • Projects to support families affected by energy poverty; and
    • Projects that seek to develop social innovations and social entrepreneurship.

    Raising awareness of sustainability and the use of reliable, affordable, and clean energy
    The Schneider Electric Foundation therefore invests in emblematic and international programs by making available its knowledge of energy systems management, through donations in resources and/ or knowledge.

    Universal Registration Document 2020 – pages 178 to 184
  • In April 2020, the Schneider Electric Foundation set up the Tomorrow Rising fund in response to the COVID-19 health crisis. The purpose of this global initiative is to provide local responses to meet the challenges of the emergency, to promote the recovery of education and training of the most vulnerable young people and to boost resilience.
    • Response: an initial response to the emergency. Food bank, first aid, COVID health kits, maintenance of access to education, etc. For example, a project in China to help low-income students in technical schools to cope better with the crisis (SDG 1 and SDG 4);
    • Recovery: support to the Foundation’s partners in resuming their activity and helping them to roll out new activities, in particular, the establishment of new partnerships to provide training in energy trades to young people. For example, a project in Brazil to provide young people with tablets and Internet access (SDG 4 and SDG 10);
    • Resilience: the ability to continue to train and awareness-raising actions using digital technologies.
    In October 2020, more than 74 initiatives, contributing to 1,500,000 beneficiaries in 67 countries, were identified by the Schneider Electric Foundation delegates and validated by the Schneider Electric chairman of each country concerned.

    The first recovery projects have already been launched in Morocco, Ecuador, Lebanon, and Brazil and more than 5,000 days of volunteering have been deployed.

    Universal Registration Document 2020 – page 180
  • The Schneider Electric Foundation strongly focuses on the involvement of Company employees in all the actions it implements. Whether they are Foundation delegates or employee volunteers, they are the link between the Company, the Foundation and the supported organizations. In 2012, the Schneider Electric VolunteerIn NGO was created to organize volunteer missions benefiting the Foundation’s partners. Wherever the Company is based, Schneider Electric VolunteerIn empowers people to be actors and ambassadors of societal commitments in the fields of education, access to energy, and the fight against energy poverty. In particular:
    • Employees volunteer their time and make their skills available;
    • Partners look for skills to support their activities, specify their needs and support volunteers in carrying out their mission;
    • The Schneider VolunteerIn association as well as the Foundation delegates coordinate, connect and organize the process and cover costs related to carrying out missions, in particular abroad;
    • The Schneider Electric entities host the volunteers when the mission takes place outside their country of habitual residence.

    In 2020, there were more than 130 projects and 35,000 young people receiving support through 7,048 days of volunteering.

    Universal Registration Document 2020 – page 178 and pages 180 to 182

Sustainability Disclosure Dashboard

Discover all Schneider Electric annual ESG data and SASB, TCFD, GRI and WEF reporting in one place.

Dedicated ESG investor events and documentation

2020 Universal Registration Document

Universal Registration Document
  •  

    ESG Investor Day

    November 16, 2020

    At Schneider Electric, considering environmental, social and governance criteria is integral to our strategy, purpose and business model.
    A unique event where you will hear from our Executives, Board members, customers & subject matter experts.

    Watch the full replay of the event here

Dedicated investor documentations

 

January 2019 newsletter

Allowing our customers to save 100m tons of CO2 by 2020 (ambition revised up, to 120mt) – focusing on the impact of our offers in reducing our customers’ CO2 emissions.
 

In 2021, Schneider Electric listed on Dow Jones Sustainability World Index for 11th year in a row. This index selects top 10% rated companies by S&P Global Corporate Sustainability Assessment for 61 sector groups. Schneider Electric obtained an 86/100 score in 2021, compared to a sector average score of 28/100.
 

In 2021, Schneider Electric was one of the 200 companies to secure a place on the Climate change A list, making the cut of the top 1.5% of 13,000 companies assessed.

The Group is the only one in its sector to have achieved this rating 11 years in a row.

 

EcoVadis, the world’s largest provider of business sustainability ratings for more than 75,000 companies, awarded Schneider Electric with a Platinium medal in 2020, with a rating of 82/100. This distinction is reserved to the top 1% best companies across all companies assessed across all industries.
 

Following assessment in October 2021 by Vigeo Eiris, an ESG rating agency, Schneider Electric is an industry leader (Electric Components and Equipment) at the highest level (Advanced), with a rating of 71/100 (+5 points versus previous rating). As of November 30, 2021, Schneider Electric is part of the Euronext Vigeo Eiris indices World 120, Europe 120, Eurozone 120 and France 20.

 

MSCI rates over 8,500 companies globally, collecting thousands of data points for each company. Schneider Electric has been at AAA grade since 2011, an industry leader and a member of the MSCI World Socially Responsible, ESG Leaders, Select ESG Rating & Trend Leaders, Low Carbon Leaders, and Low Carbon Target indices (list non-exhaustive).

 

Sustainalytics, a Morningstar company, is a leading independent ESG research, ratings and data firm. In August 2021, Schneider Electric received an ESG Risk Rating of 17.1 and was assessed by Sustainalytics to be at Low Risk of experiencing material financial impacts from ESG Factors.

Contact Investor Relations

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