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Welcome to the Schneider Electric corporate Website

Learn more about our ESG strategy and performance

Sustainability strategy

Sustainability is at the core of our business strategy. We create solutions for a more efficient, sustainable, resilient, and inclusive world for all.

ESG performance and disclosure

Discover how Schneider Electric acts for a more sustainable and socially-equitable world


Sustainability strategy

  • For Schneider Electric “Sustainability” is about creating system value. It encompasses continuous improvement of environmental, social, and ethical dimensions across an organization's 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 2022 - Pages 76 to 79
  • Schneider Electric’s short-term sustainability 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 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 cyber secure solutions to boost the positive impact.

    To cover all these priorities, Schneider Electric defined 6 long-term commitments (Climate, Resources, Trust, Equal, Generations, and Local) and our 2021-2025 Schneider Sustainability Impact and Schneider Sustainability Essentials programs to measure progress against them. 

    Universal Registration Document 2022 - Pages 85 to 86
  • 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.

    Find out more about our contribution to all SDGs.

    Universal Registration Document 2022 - Pages 77 to 83
  • As part of its Extra-Financial Performance Declaration, the Group presents the main risks and opportunities identified with respect to major societal challenges. To compile the list of risks for the Group every year, a panel of both internal and external tools is used to address the expectations of its stakeholders as best as possible. The Group Sustainability team leads the evaluation, working in close collaboration with the Group Risk Management function and with the Duty of Vigilance Committee.

    The Group’s corporate governance bodies supervise the development of internal control and risk management systems. The Audit & Risks Committee has particular responsibility for following up on the efficiency of internal control and risk management systems and reports to the Board of Directors.

    Internal tools:

    • A regular stakeholder consultation (materiality assessment and matrix), at least once every three years (last exercise done in 2020);
    • The Group risk matrix, led by the Group Risk Management function, updated every year;
    • Specific committees (Carbon, Human Resources, Ethics, etc.);
    • Vigilance risks matrix.

    Continuous monitoring of external signals and international frameworks:

    • Regulatory framework: the key topics listed under Article R. 225-105 of the French Commercial Code (Extra-Financial Performance Declaration);
    • International institutions/organizations (United Nations Global Compact and SDGs);
    • Environment, Social, and Governance (ESG) rating agencies;
    • Specific requests from investors and customers;
    • Recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), and various frameworks (SASB, GRI, etc.).

    Each topic is monitored by the relevant departments and their management teams, or “Risk Overseers”, who are in charge of proper risk assessments and the implementation of mitigation and prevention actions.

    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. Each program of the SSI has a dedicated pilot in charge of driving the transformation and is sponsored at the Senior Vice President 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). 

    Universal Registration Document 2022 - Pages 89 to 91

  • Schneider Electric uses a risk management model with central functions and experts that are independent of any business lines to oversee setting risk management mechanisms, establishing policies, and other activities, while the ownership of the risks belongs to the Business Units and Operating Divisions who are responsible for deploying the central framework to manage their risks.

    A list of Key Risks, managed by different risk owners, are consolidated by the Risk Management Function and reviewed every year by the Board Audit & Risk Committee for disclosure, where the committee would have several dedicated sessions over each reporting year to ensure full details are examined.

    Finalized results of ERM process is published each year in the Universal Registration Document and awareness promoting risk management is also promoted within the Group.

    The Group has launched various trainings and campaigns targeting the board and all employees in order to further raise awareness on our risk management mechanisms. For the Board of Directors, the Group has started an initiative to enhance risk culture education across board members to ensure understanding of the Enterprise Risk Management framework. While for other employees, training sessions were organized to raise the maturity of risk owners and risk overseers through various communities. General employee awareness was also raised through videos and social media campaigns that communicates our risk management mechanisms.

    Universal Registration Document 2022 - Page 299

  • As a world corporate leader in sustainability, we believe that what makes Schneider Electric stand out today and tomorrow is that it is an Impact company through 5 guiding principles:

    1. Performance: we are convinced that to do good, we need to do well, and vice-versa. Our sustainability and business impacts converge to act for a climate-positive and socially equitable world.
    2. All stakeholders: we seek to address the needs of all stakeholders in its ecosystem, from employees to supply chain partners, customers, as well as local communities, and institutions.
    3. All ESG: to deliver sustainability in our entire value chain, we must combine a solid profitability with leading practice on all Environmental, Social, and Governance dimensions.
    4. Business: we have integrated sustainability at the heart of our business strategy to be the digital partner for sustainability and efficiency for all partners.
    5. Model & Culture: the company’s operating model is set up to impact on all of the above at global and local levels. Our culture builds on strong and practiced values with the right talent and processes to be a leading purpose-led company.

    Universal Registration Document 2022 - Pages 30 to 33

  • Schneider Impact 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 Impact 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. Neutral technologies such as signaling, racks and enclosures, access control, or emergency lighting are excluded;
    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 PremiumTM 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 (to maintain 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 and sustainable finance practices, even though Schneider Electric’s technologies deliver resources 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.

    All revenues consolidated in financial accounts are taken into account. The calculation is based on revenues per line of business. The exclusion of fossil revenues is based on orders per customers’ end segment, with extrapolation to estimate the destination of transactional sales.

    Universal Registration Document 2022 - Pages 243 to 244
  • Schneider Electric has been an early adopter of transparent disclosures on sustainable revenues, and created its own methodology of “Impact revenues” in 2019, covering offers that bring environmental efficiency to its customers, while not generating any significant harmful impact to the environment, and excluding revenues from carbon-intensive segments. Recently, the European Union (EU) has shown international leadership by being the first to develop a Regulation and Taxonomy aiming at driving investments towards environmentally sustainable activities, which the Group applauds. Both methodologies are somewhat aligned but currently differ in the scope of eligible activities, and in end-segments exclusions. The Group is supportive of a better alignment over the next years to provide its multinational stakeholders with standardized metrics and empower them to shape a more sustainable future for all.

    Universal Registration Document 2022 - Pages 100 to 103

  • The methodology for calculating Taxonomy-eligible turnover, Capital Expenditure, and Operational Expenditure is detailed in the Group’s annual report. In a nutshell, regarding revenues, two main approaches are used:

    • An offer-based (by nature of technology) approach, whereby workshops are conducted with offer management teams for each line of business to define whether products are in line with the definition of economic activities included in the EU Climate Delegated Act. For example, Building Management Systems (BMS) generally include energy efficiency systems, which are Taxonomy-eligible, and fire safety and access control systems, which are not. In this example, the analysis enables to account only for energy efficiency systems installed as part of a BMS.
    • An end-segment-based approach, whereby commercial teams indicate for each product line the amount of revenues generated from Taxonomy-eligible end-segments (Green Transport and Renewables mainly). Double-counting between offer-based approach and end segment-based approaches are removed before consolidation.

    Universal Registration Document 2022 - Pages 253 to 263

ESG performance and disclosure

  • Schneider Electric is regularly top-ranked by many ESG rating agencies. For instance, in 2022 the Group obtained a CDP Climate Change A rating and was included in the Dow Jones Sustainability Index, both for the 12th year in a row. The Group is also part of Euronext Vigeo World 120, Europe 120, Eurozone 120, and France 20 indices. Schneider Electric obtained an Ecovadis Platinum medal (top 1%), is rated AAA by MSCI and Low risk by Sustainalytics. In January 2023, Schneider Electric has also been named the #7 World Most Sustainable Corporate according to Corporate Knights Global 100.

    Universal Registration Document 2022 - Pages 105 to 107

  • 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 External and Relative Index (SSERI) measures the Group’s performance in 4 independent ESG ratings.

    The numerous awards received (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.), confirm that Schneider Electric is headed in the right direction.

    Read our reports to see our performance through the years.

    Universal Registration Document 2022 - Pages 76 to 79
  • The SSI is the translation of our 6 long-term commitments into a selection of 11 highly transformative and innovative programs. Program 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 that spirit of continuous improvement, and in a holistic vision of sustainability, the SSE tracks 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 2022 - Pages 77 to 81
  • Yes, annual short-term incentives for the Group’s executives and about 64,000 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 24 other French entities.

    Universal Registration Document 2022 - Page 220

  • 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 2022 - Pages 384 to 388
  • The Schneider Sustainability External and Relative Index (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 (SSI). The SSERI weighs 25% of the long-term incentives (LTI) performance criteria for about 3,000 Group leaders.

    Using external indices ensures 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.

    As their content is dynamic and includes new and more relevant topics as they emerge, it forces participants to constantly anticipate the most demanding trends in global sustainability. The Board has selected some of the most challenging external indices 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:

    • DJSI World which covers three dimensions: economic, environmental, and social;
    • Euronext Vigeo which covers environment, community involvement, business behavior, human rights, corporate governance, and human resources;
    • EcoVadis which covers four dimensions: environment, labor and human rights, sustainable procurement and ethics; and
    • CDP Climate Change representing a major reference for climate change leadership globally.

    Universal Registration Document 2022 - Page 388
  • Yes. Our TCFD correspondence table can be found page 266 to 269 of our 2022 Universal Registration Document. Likewise, a SASB correspondence table is provided page 264 to 265. You can find more details in our reports.

    Universal Registration Document 2022 - Pages 264 to 269

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