Q1. How closely interlinked are sustainability and profitability? Do you think integrating sustainable practices into core business can enhance profitability by reducing costs and improving competitiveness? For the past two decades, sustainability has been at the core of everything we do at Schneider Electric, embedding it into our purpose, culture, and business. More than just a responsibility, at Schneider we see sustainability as a key driver of business success.
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Since first monitoring our environmental and societal impact back in 2005, we have seen firsthand how these efforts lead to innovation, new revenue streams, improved operational efficiency, risk management, stakeholder trust, and high employee satisfaction – all of which are critical for long-term success.
For example, at Schneider, we adopt a circular economy approach, designing products to use longer, use better, use again – reducing the need for raw materials and minimising waste, ultimately leading to cost savings. Going one step further with our commitment to helping our customers understand and reduce their environmental impact, we launched the Environmental Data Programme to provide our customers with unprecedented clarity on the environmental impact of our offerings.
Rooted in circularity, the program in turn empowers our customers to also use better, use longer, use again. By integrating sustainable practices into our own operations, we not only demonstrate our commitment to environmental responsibility, but we also show our dedication to our customers, empowering them to also adopt more sustainable practices, setting us apart from the competition.
We also recognise that creating positive impact goes hand in hand with achieving business success and continuously drives our financial performance. As the world’s most sustainable company (by Time Magazine and Corporate Knights), we believe that what makes Schneider stand out today and tomorrow is that we are an Impact company where we do well to do good, making sure that our entire ecosystem is brought along this journey towards a more sustainable and inclusive future.
In 2021, we established the Schneider Sustainability Impact 2021-2025 (SSI) program – our sustainability roadmap related to climate, resources, equal opportunities, trust, all generations, and local communities. The SSI enable us to drive action and impact through our operations, partners, customers, and communities. On top of impacting ourselves, the SSIs help our entire ecosystem. For example, as of the end of 2024, we’ve saved and avoided 679 million tonnes of emissions for our customers since 2018.
Our top 1,000 suppliers engaged in Schneider’s Zero Carbon Project have made strides in adopting energy efficiency initiatives and shifting to renewable energy, leading to an overall reduction in supplier emissions of 40%.
At the end of the day, we are a for profit company. And the best way to tackle decarbonization is to reduce and save energy, which means saving money. We ensure our Schneider ESG and sustainability initiatives are grounded in tangible benefits for the environment, society, and business. We remain committed to developing a future that’s better for all, and sustainability, driven by electrification and digitalization, is an essential way to do that.
Q2: Why is it so important to reduce Scope 1, Scope 2 and Scope 3 emissions in order to effect a complete sustainability transition of a business? And what are the specific measures applied by Schneider Electric to accomplish these emission reductions?
A: Lowering emissions is no longer merely a choice for companies who wish to remain competitive. Shareholders, regulators, customers, and the general public are all demanding action, basing purchase decisions to corporate climate accomplishments. Many manufacturers have already begun the hard work of reducing their emissions (Scope 1). But they must look beyond their walls to generate real progress, by targeting Scope 2 (indirect emissions from the generation of purchased energy) and 3 (emissions that occur within a company’s supplier value chain) emissions.
At Schneider, we take a holistic approach to sustainability, ensuring that every part of our operations and value chain contribute to reducing our overall carbon footprint. From decarbonization, to reducing waste, to decent work, to sustainable packaging, to sourcing more green materials, and to co-innovation for more sustainable solutions like re-designing components that use less plastic.
By 2030, we aim to be net-zero ready in our own operations with a 25% GHG absolute reduction across the value chain, aligned to SBTi. To deliver our Scope 1 and 2 targets, we’ve launched several transformations to achieve by the end of this year, like reach 150 Zero-CO2 sites, source 90% of electricity from renewables, increase energy efficiency in our sites by 15%, shift one third of corporate vehicle fleet to electric vehicles, have 200 ‘Waste-to-Resources’ sites.
Looking outside of our own operations with more than 99% of our carbon footprint under shared influence with our ecosystem and with a network of over 53,000 suppliers globally, we are committed to developing lasting relationships, supporting our partners to progress and embrace more sustainable, social, and environmental practices.
That’s why we launched The Zero Carbon Project in 2021 with an aim to cut 50% of operational carbon emissions from our top 1,000 suppliers by 2025, and as of the end of 2024 we have reached 40% to the 50% target. Through The Zero Carbon Project, we leverage our influence as a sustainability leader to magnify impact, leveraging the expertise of our Schneider Sustainability Business consultants to advise on sustainability targets, compliance, roadmaps, deployment, reporting, and more; creating a community to exchange on best practices, promote learning, and accelerate actions together; hosting technical trainings and in-person, local events to connect our suppliers with experts and solution providers for tailored and targeted support; and finally providing resources to our suppliers like a carbon calculator and online learning opportunities through Schneider’s Zeigo Hub. In just one year, we witnessed the number of suppliers computing and declaring their GHG emissions increase by almost 7X.
A testament to the success of this initiative is SAA AB Engineering’s (SAA AB) story – a manufacturer of automotive and engineering components and one of our suppliers based in Bangalore. SAA AB has addressed both energy efficiency and green energy intensity since 2019. As one of the top 1,000 suppliers participating in Schneider Electric’s Zero Carbon Project, SAAB has increased its consumption of renewable energy to 55.2% and reduced greenhouse gas (GHG) emission intensity by 44%. In 2024, we were also proud to award SAA AB as a Schneider Sustainability Impact Award winner honoring their contribution to creating a more sustainable and electric world.
Q3: In what ways does Schneider Electric customise its global sustainability goals to meet local cultural and economic contexts? Can you share an example where adapting global goals to a regional context led to unexpected innovations or community-driven solutions?
A: We are a people company and embrace diversity and inclusion in everything we do. With 150,000 employees worldwide, at Schneider, we customize our solutions and global sustainability goals to align with local cultural and economic contexts. Our multi-hub approach allows us to empower our people on the ground, local teams, and partners, to lead and deliver grassroots impact, making sure our people’s actions are relevant and effective in the various regions we operate in.
Take our collaboration with local partners and NGOs in India as an example. In India, we’ve partnered with Professional Assistance for Development Action (PRADAN), a non-governmental organization which believes that embedding knowledgeable, empathetic professionals at the grassroots level can strategically and sustainably shift the endemic poverty in rural India.
Recognising the challenges communities face in rural India, we developed an innovative, efficient, reliable, and cost-effective “Climate Smart Village Solution”. Together with the Schneider Electric Foundation India arm and through PRADAN, we implemented the solution in two villages in the Gumla District of Jharkhand to power productive loads like irrigation pumps, oil expeller, rice huller, groundnut sheller, flour/spice grinding mill, and electric rickshaws. The Climate Smart Village Solution in the Sehal and Chatti villages also feature solar arrays with innovative IoT-enabled smart power management systems. This system ensures 100% capacity utilization of the solar panels by diverting power to different loads based on demand, benefitting the 110 families in the two villages where households benefit from access to a reliable power supply.
These have led to new economic opportunities, such as a 2X increase in farmers’ income, reduced migration, and a decrease in carbon emissions by 60,000 kg/year. Since 2019, together with PRADAN, we’ve already installed 800+ solar irrigation pumps impacting the lives of 16,000+ women farmers. It also birthed the woman-led, Farmer Producer Organization (FPO), to build the critical, direct market linkages these farmers need. Partnering with PRADAN has been essential to the success of our sustainable energy transition initiatives. These partnerships at a local level allow us to leverage their deep understanding of community dynamics and needs, empowering us to ensure that our Climate Smart Village Solutions are tailored to the unique challenges faced by rural populations in India, fostering sustainable development through community empowerment, setting a new standard for rural transformation in India, and serving as a model for similar efforts across the globe.
Q4: How does Schneider Electric tailor its decarbonization solutions for different industries to balance sector specific challenges with urgent emission-reduction targets?
A: To deliver on our mission to be the trusted partner in Sustainability and Efficiency, at Schneider we adopt and recommend to our customers across industries a three-step approach: strategize, digitalize, and decarbonize. When it comes to strategizing, we help our clients to define their sustainability journey with our advisory capabilities. This involves establishing a baseline through auditing and benchmarking, as well as developing a roadmap towards net-zero. In terms of digitalizing, Schneider software enables our customers to track energy and resource consumption data, facilitating data-driven decision-making and progress reporting. Coupled with the use of AI, customers can drive automation across various applications for improved efficiency and productivity. Because we believe that measurement and reporting, leads to action, driving behavioral change and ensuring accountability. Finally, with decarbonizing, Schneider’s latest electrification technologies offers customers the ability to directly drive decarbonization impact, whether it’s for new builds or retrofits.
By applying this three-step approach framework, we have witnessed repeated success across different industries. For example, with our Technopole building in Grenoble, France, our retrofitted building has achieved net-zero carbon operations. The site consumes only 43kWh per sqm annually and saves €92,000 annually in energy costs. It is one of the first buildings in France to achieve a LEED Platinum certificate and the project is delivering an ROI in 4.3 years on renovation costs. All this was achieved through our three-step approach consisting of strategizing and planning, digitalizing the existing infrastructure with Schneider’s EcoStruxure Building suite of building management monitoring and analytics software, and finally decarbonizing by installing a renewable energy microgrid using our EcoStruxure Microgrid solutions.
To address sector specific challenges, we tailor our decarbonization solutions and services to different industries by leveraging our teams’ deep understanding of sector-specific challenges and combining it with innovative technologies and strategies. Our dedicated teams with expertise in buildings, data centers, infrastructure, and industry, understand the unique challenges and regulatory requirements of each sector. Our teams offer customized solutions that address the specific needs of each industry. Going back to the importance of partnerships, we also engage in sector-specific enterprise-level partnerships, like Energize, a first-of-its-kind effort to leverage the scale of a single industry’s global supply chain to increase access to renewable electricity for the top pharmaceuticals. Currently, the collaboration is between 25 pharmaceuticals, including the likes of Pfizer, Novartis, Johnson & Johnson, GSK, AstraZeneca, and more. Recently, four members of the program collaborated to execute an aggregated purchase of 245 GWh of renewable energy per year for a 10-year term. Representing an estimated 41,7481 metric tons CO2 avoided per year, equivalent to approximately 90,122 Indian households’ average annual electricity consumption!
Q 5: What makes electrification combined with digital technologies such an effective strategy for Schneider Electric to move towards a low-carbon future? How does this strategy empower customers to become active participants in the energy transition?
A: At Schneider, driven by our purpose to empower all to make the most of our energy and resources, we believe that the key to unlocking a more sustainable future lies in the power of electrification combined with digital technologies. Electricity is the most versatile and efficient form of energy; it is also the best vector for decarbonization. By electrifying across sectors, industries, and communities, we can dramatically reduce GHG emissions. The International Energy Agency (IEA) reports that by 2050, electrification could account for up to 60% of the total reductions needed to achieve net-zero emissions. Combining electrification with digital technologies, like the internet of things and AI, we have tools at our disposal to optimize consumption, transform power grids, and seamlessly integrate renewable energy sources. The good news is that most of the energy and digital automation technology already exists to enable us to do so!
Enter our EcoStruxure solution – an IoT-enabled, plug-and-play, open, and interoperable architecture and platform. It is designed to enhance safety, reliability, efficiency, sustainability, and connectivity across various sectors, including homes, buildings, data centers, infrastructure, and industries. EcoStruxure leverages advancements in IoT, mobility, sensing, cloud, analytics, and cybersecurity to deliver innovation at every level. It connects everything in an enterprise, from the shop floor to the top floor, collects critical data from sensors to the cloud, analyzes this data to discover meaningful insights, and enables real-time actions based on business logic.
Zooming in on Capgemini’s story, the Energy Command Center solution, developed by Capgemini and powered by Schneider Electric’s EcoStruxure, is an integrated and centralized platform to monitor, control and optimize all building assets consuming energy including data centers or critical environment rooms. The platform combines advanced artificial intelligence (AI), machine learning logics and algorithms, and the Internet of Things (IoT) technologies to measure and predict various metrics like energy intensity, health of critical assets, critical operations, renewable energy generation, and the overall performance across all energy assets. Our leading connected products, edge control, and advisory applications help organizations efficiently manage their energy supply across multiple assets, such as factories, offices, or other infrastructure, while also reducing energy consumption across their operations in one integrated platform.
Using real-time energy consumption and carbon emission data combined with modular and interoperable building management software and systems, the Energy Command Center helps to lower energy consumption and spend to help achieve organizational goals while accelerating towards a net-zero future. With over 180,000 employees in India, spread across multiple campuses, Capgemini is able to manage all energy-consuming assets, across 23 campuses and 70+ buildings, using EcoStruxure connected products and services. Resulting in 29% energy saved and a transition to 100% renewable electricity while exporting surplus back to the grid.
Q6. Schneider Electric has been recognized as the world’s most sustainable company. How do principles like gender diversity and innovative energy solutions strengthen your holistic ESG approach, which in turn leads to such recognition?
A: At Schneider we lead with inclusion and care because we know, by fostering an inclusive workplace where diverse perspectives are valued, we enhance creativity and innovation. More than that, it also drives better business outcomes, strengthening our social responsibility efforts.
For instance, women constitute a substantial portion of the labor force, yet they often face systemic inequalities, such as restricted access to financial resources and limited participation in decision-making processes. By engaging women in key economic activities, we not only empower them but also harness their potential to drive local economies forward. Focusing on the expansion of women-led businesses creates a ripple effect, fostering gender-inclusive growth that benefits entire communities. When women are empowered to lead and innovate, they contribute to sustainable practices and economic resilience. Moreover, capacity building initiatives, such as training women to operate solar-powered machines, have proven to be transformative. These programs enhance women’s roles within their communities, promote gender equality, and ensure that they are active participants in the transition to a sustainable future.
In essence, prioritizing women in our sustainability efforts is not just a matter of equality; it is a strategic approach that amplifies the effectiveness and reach of our programs, ultimately leading to a more sustainable and inclusive world. Earlier this year, we were honored to be recognized as a DEI Lighthouse by the World Economic Forum (WEF) with the DEI Lighthouse Award for supporting The Economic and Social Development of Women through Renewable Energies in the Sahel (DESFERS) program, we believe that shaping a just energy transition is a collective effort. Through our Youth Education & Entrepreneurship program, with our Foundation and local partners, we’ve provided 7,204 women with green skills training since 2021, supported the generation of 6,099 women-led green enterprises, and empowered 21,000 women with improved access to renewable energy solutions and credit facilities in the Sahel region.
At the same time, with sustainability at the core of our DNA, our people are empowered to innovate for impact and create sustainable products. For instance, with our range of AirSeT medium-voltage (MV) switchgears, we are using pure air to replace SF6 insulation typically used in MV switchgears, to significantly reduce environmental impact. As SF6 has a high global warming potential, a single AirSeT installation avoids around 3kg of greenhouse gas (GHG) emissions, eliminating the potential footprint of 75,000kg of CO2. For example, E.ON – Sweden’s largest electricity distributor – has the goal of becoming fossil fuel-free by 2025. By implementing AirSeT MV switchgears and several additional Schneider solutions, E.ON is able to monitor its network status and detect faults early to minimize interruption time for customers, better planning network maintenance times with data collected across the network. As a result, E.ON achieves its sustainability goal of eliminating GHG from its operations, all the while, maintaining a high level of network reliability for its customers.
Q7. In India, your work blends energy access with social impact. How do initiatives like Schneider Electric Access to Energy program create long term economic resilience in underserved communities?
A: Today, more than two billion people have little or no access to energy, representing 25% of the world’s population. Access to greener energy offers a chance to live a better life. It can have a positive multiplier effect on all socio-economic dimensions of the individuals or communities: livelihood, health, education, security, and women empowerment. And energy is pivotal in enabling access to these necessities. In rural India, many areas still lack reliable electricity access, relying on polluting diesel power, which incurs high costs and environmental hazards. Even in electrified areas, challenges like power limitations and unreliable supply hinder essential services.
Our Access to Energy program aims to provide sustainable, reliable, and affordable energy solutions to underserved communities worldwide. Focusing on training and entrepreneurship, social and inclusive business, and impact investment funds, by 2025 we aim to provide electricity access to 50 million people, training 1 million people in the electricity field, and supporting 10,000 entrepreneurs.
Circling back to our Climate Smart Village story, it represents a transformative approach to expanding access to clean energy, particularly for marginalized communities. By leveraging cutting-edge technology and fostering collaboration, these initiatives address critical challenges like unreliable energy supply, agricultural inefficiencies, and gender disparity. This initiative redefines how rural communities access and utilize energy, empowering individuals to make profound changes in their lives. At the same time, we focus on creating a holistic framework for community transformation through innovative technology and innovative community-led implementation models.
The Climate Smart Village model integrates energy solutions with essential aspects of community life, including education, agriculture, livelihoods, and gender empowerment, thereby creating a sustainable ecosystem that promotes self-reliance and resilience. In this new frontier, technological interventions ensure that clean energy is not only available but also truly accessible, paving the way for equitable growth and sustainable development worldwide. In just four short years, we’ve witnessed a reduction in migration, from 54% to 17%; the planting of second and third crops, including cash crops, generating additional incomes of USD $710 to USD $830 a year; the decarbonization of agriculture through better technologies, and more consistent, higher-quality output; every child has greater access to education; and a paradigm shift for the women in these communities, creating work, income, and agency.
Ultimately, Schneider’s Climate Smart Village initiative demonstrates that integrated, community-focused approaches can drive systemic change and create scalable, replicable models for rural transformation globally. Through our Energy to Access program where we prioritize collaboration and local empowerment, we can ensure that sustainable energy transitions are effective and meaningful for all.
Q8: Looking ahead, what emerging technologies or initiatives excite you the most in accelerating global decarbonization? And how is Schneider Electric positioning itself to lead in these areas?
A: I’m really excited to continue scaling the Climate Smart Village model across various parts of India and beyond, with the aim of empowering rural communities through sustainable development. By 2025, we aspire to transform over 20 villages in India into climate-smart hubs, focusing on expanding clean energy solutions, enhancing agro-processing capabilities, and providing reliable electricity to underserved communities. Really engaging all to make the most of energy and resources. I hope this collaborative approach will help us expand our model to more communities, fostering sustainable development across India and globally!
Through this initiative, we not only provide access to clean and affordable energy but also creating opportunities for economic growth and social equity. By empowering local communities – especially women and marginalized groups – we foster inclusive development that ensures no one is left behind. I hope this serves as a model for integrating sustainable practices into rural development, showcasing how targeted interventions can lead to resilient and self-sufficient communities. Ultimately, the Climate Smart Village Solution embodies our Schneider commitment to driving meaningful change and facilitating a just energy transition that benefits all.
The Climate Smart Village model exemplifies how by working together with private groups, NGOs, and local governments, we can expand this concept to more communities, fostering self-reliance, enhancing livelihoods, and promoting gender equality. These partnerships embody the principles of sustainable development and act as catalysts for systemic change in rural India and beyond. I look forward to accelerating and reenacting at scale, where it’s critical to find synergies between the public and the private, and to collaborate, so that together, we witness everyone thrive.
I’m also quite excited for the progress of the enterprise-level partnerships Schneider engages in. We already touched on Schneider’s Zero Carbon Project and its incredible impact in engaging our top 1,000 suppliers and Energise, a first-of-its-kind effort to leverage the scale of a single industry’s global supply chain to increase access to renewable electricity for the top 25 pharmaceuticals. There’s also the Schneider Catalyze program which aims to decarbonize the semiconductor value chain by accelerating the supply chain’s transition to renewable electricity, and sponsors of the program include Google, Intel, hp, and more. And, with Materialize, the decarbonization program is aimed at companies in the metals and minerals sector to reduce carbon emissions across its global supplier base. We’re only just getting started!
