Schneider Electric shows they are acting to build a green and inclusive future for all through H1 extra-financial results

Schneider Electric, the leader in digital transformation of energy management and automation, announces its financial and extra-financial year results. Each quarter, Schneider Electric publishes 21 indicators from the Schneider Sustainability Impact (SSI), which measures their progress towards their sustainability commitments from 2018 to 2020. These objectives are closely aligned with the United Nations (U.N) Sustainable Development Goals (SDGs) and summarize the extra-financial performance of the Group.

This quarter, Schneider Sustainability Impact reached a 7.71 out of 10 score. They are confident that they will meet their end-of-year target through the programs they have in place.

The extra-financial results by indicator are as follows : 

Gilles Vermot Desroches, Sustainability Senior VP at Schneider Electric commented that, “The crisis will not compromise the achievement of our sustainability goals for 2020. We will keep the bar high for our 2030 commitments: to embark our worldwide ecosystem to fight climate change and uphold our responsibilities towards inclusive growth. As we continue to respond to those most in need through the Tomorrow Rising Fund - more than one million people so far in 65 countries - our focus for H2 is supporting the recovery of education and training programs. I want to give a special thanks to our employees who are giving so much of their time volunteering to support our local partners.”

Olivier Blum, Chief Strategy & Sustainability Officer at Schneider Electric commented our future outlook, “This year is pivotal. Whilst Earth Overshoot day has moved to August 22, more than three weeks later compared to last year, we know there is more to do to build a safer, greener and truly inclusive world. Collectively, we need to contribute. This is why we have collaborated with like-minded companies on initiatives such as the CEO Initiative for Europe’s Recovery, Reform and Resilience. Supporting recovery post COVID-19 is one step but the aim is green recovery for all. The future relies on innovation that brings digital and energy together to fight climate change everywhere, for everyone.”

CLIMATE  
2020 Goal #3: 120 million metric tons of CO2 saved on our customers' end through our offers

The Group’s ambition to help cut its customers' emissions is bold. As of Q2 2020, they helped customers save 107 million metric tons of CO2 and are on track to meet the end-of-year target of 120 million metric tons. The Group published the Time for Climate Impact Disclosure paper, outlining how their offers have saved and avoided emissions. Transparency and robustness are key to building trust and driving action which is why the methodology was vetted by an independent third party. Working with customers to embed sustainable performance in architecture design and quantifying positive environmental impacts of projects is something that the teams are working on. 

CIRCULAR ECONOMY  
2020 Goal #8: 120,000 metric tons of avoided primary resource consumption through ECOFIT^TM, recycling and take-back programs

Schneider exceeded their year-end target, taking their overall performance for avoiding primary resource consumption to just over 126,000 metric tons. H1 2020 accounted for 29,000 metric tons alone. Whilst recycling of lead batteries accounted for a large part of this performance, it was Schneider Electric’s ECOFIT™ solution that set the scene by modernizing customer equipment. It replaces key switchboard components instead of a complete product replacement. In Italy, Schneider Electric’s Stezzano plant produced 55 Medium Voltage circuit breakers, helping to resurrect switchboards and extend their life. This avoided using 44 metric tons of primary resources, predominately for Electric Utilities, Oil, Gas, Petrochemicals, Mining, Metals and Minerals segments. Refurbishment and repair of equipment played their part too. In Schneider Electric’s workshop at Greensboro, USA, 29 metric tons of programmable controllers, Human Machine Interfaces, and drives have been repaired or refurbished, thus extending their lifespan

HEALTH AND EQUITY 
2020 Goal #14: 90% of white-collar workers have an individual development plan

With the SSI 2018-2020, the Group has further integrated performance and development processes to enable employees and managers to have broader conversations on development. This has enabled the creation of individual development plans to help employees achieve higher performance rates as well as support their career paths.

• As of Q2 2020, 76% of white-collar employees have an individual development plan.

• Employees and managers are encouraged to have regular check-in meetings during the year to review progress on performance and development. Schneider Electric is aware that its future success depends on the ability of all employees to drive high performance, develop critical skills and competencies, and grow their careers

ETHICS 
2020 Goal #17: 350 suppliers under Human Rights & Environment vigilance received a specific on-site assessment

In alignment with the Group strategy, and to comply with the French Duty of Vigilance law (2017-399), Schneider committed to implementing a vigilance plan. The plan identifies and addresses sites most exposed to risks in terms of labor practices, health and safety, and environment in the Group’s ecosystem. Originally, targeting 300 onsite audits in 2018 for their suppliers, the ambition was elevated to 350 a year later – a move to lead by example. Whilst audits were frozen for several months due to Covid-19, a total of 298 audits have been completed since launch, with 19 in H12020. Simultaneously, the team has been working on non-conformances raised in 2019, closing 65% of those identified. The commitment is to close out the remaining by 2020.

Development 
2020 Goal #21: 15,000 volunteering days thanks to our VolunteerIn global platform

The Schneider Electric Foundation’s “Tomorrow Rising Fund” supports emergency and longer-term reconstruction activities related to COVID-19. It invites employees to volunteer for ‘digital missions’ such as supporting students with their studies, coaching social entrepreneurs or even keeping in touch with isolated people. The Foundation have also partnered with NGOs to deliver essential learning tools such as IT equipment to those without direct access. Examples of volunteering missions are available on the VolunteerIn website.

Highlights

• Schneider Electric has published several Corporate Social Responsibility reports since the beginning of 2020: Universal Registration Document,  Integrated Report, Sustainability Report, Vigilance Plan, Compliance Report.

• Schneider Electric’s Tomorrow Rising Fund has mobilized employees, customers, and partners across more than 65 countries by supporting 74 local projects, which contribute to supporting 1 million people.

• The Group joined a coalition of 11 major international companies joining forces to accelerate the energy transition in transport and logistics.

Recognition and Awards

• Schneider Electric has been ranked 4^th in the 2020 Gartner Supply Chain Top 25 for 2020 and ranked 1^st in the 2020 Gartner Supply Chain Top 25: Europe Top 15.

• Schneider Electric has been awarded the Solar Impulse Efficient Solution label for its EcoStruxure™ Microgrid Advisor and NEO Network™ solutions from the Solar Impulse Foundation.

• The Group won the Industrial Energy Efficiency Award at Hannover Messe for SF6-Free Medium Voltage Switchgear.

The non-financial results for the second quarter of 2020 are available on our site www.se.com/sri