Schneider Electric Creating Shared Value - December 2013

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Schneider Electric Creating Shared Value - December 2013
Schneider Electric
Creating Shared Value

December 2013
Schneider Electric Creating Shared Value - December 2013
Discussion Agenda

● SE and how we think about Sustainability

● SE and the UN Global Compact

● Our progress

● The role of ISO 26000

● The Bigger Picture

● Drivers of the Challenges

● Solutions
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Sustainability: A very big topic

● How do we think about it? Two ways.

● Internally. How do we manage a responsible business for our
  employees , suppliers and investors?

● Externally: We are a product and service provider that has a big impact
  on sustainability. It is our business to help advance the ideals we hold
  ourselves to internally.

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SE and the UN Global Compact

● SE endorsed the UNGC principles in 2003

● Our objective was to officially state our position on human rights,
  working conditions, environment and corruption

● We have communicated progress since 2005

● In 2011, we elected to report at the “advanced level” and describe in
  more detail how we meet each of the 24 criteria

● We have set a target of having 60% of our global suppliers as
  signatories of the UNGC

Schneider Electric - Division - Name – Date                               4
Three levers’ of a sustainability strategy
for a consistent commitment

  Green business                              Responsible practices     BoP* Innovation
                                                                        Access to energy -
               Energy                                  Green products
               efficiency
                                                                        BipBop
                                                       and sites

               Smart cities, smart
                                                       Responsible                   Business
               grids, sustainability
                                                       employer
               services

                                                       Communities                   Innovation
               Renewables
                                                       support
               connection

               Electric vehicle                                                       People
                                                       Ethics
               charging

  A measured commitment: The Planet & Society Barometer
  > Measuring sustainability
  > Communicating quarterly
  > Auditing annually                 http://www.schneider-electric.com/barometer

*Base of the Pyramid
Schneider Electric - Division - Name – Date                                                       5
2012 Sustainability results at a glance
Results far above expectations
Planet  & Society Barometer
Planet & Society
Barometer at                                                           A recognised commitment
                                                                                            World
6.52/10                                                                                     Europe
Schneider Electric
exceeds its
sustainability targets
for 2012

 Walking the talk of our solutions

 6,1% energy savings
                                                                           Global 100
10%
                                                     200                   Most Sustainable Corporations
                                                     sites connected
                                                     to Struxureware
                                                                                  Ethisphere
 5%                                                  36                           Most ethical companies
                                                     ISO 50001
             6,1%                             10%    certified sites
 0%
              2012             2013           2014
Schneider Electric - Division - Name – Date                                                                6
2012 Progress

● Accuracy and Completeness
       ● The COP describes any action(s) that the company plans to undertake to
         have the credibility of information in its COP externally assessed, including
         goals, timelines, metrics, and responsible staff
       ● Information is assured by independent assurors (e.g., accounting or
         consulting firm) against recognized assurance standard (e.g., ISAE3000,
         AA1000AS, other national or industry-specific standard)

● Elements of all 21 criteria can be found on the UN GC site
       ● http://unglobalcompact.org/COPs/detail/21534

● Actual elements of progress are contained in our 2012 Annual Report

Schneider Electric - Division - Name – Date                                              7
2012 Progress Meets the Advanced
Level (Self Assessment)

● Includes an explicit statement of continued support for the UN Global
  Compact and its ten principles

● Description of actions or relevant policies related to Human Rights

● Description of actions or relevant policies related to Labour

● Description of actions or relevant policies related to Environment

● Description of actions or relevant policies related to Anti-Corruption

● Includes a measurement of outcomes

Schneider Electric - Division - Name – Date                                8
ISO Standards

● We have used numerous ISO standards across our business:
       ● ISO 9000 – Quality Management Systems
       ● ISO 14000 – Environmental Management
       ● ISO 50001 – Energy Management

● ISO 26000
       ● Reasonable reference for corporate social responsibility
       ● Through our overall sustainability and corporate responsibility program we
         believe we are well beyond that of ISO26000
       ● We utilize as a reference for our suppliers to provide them with guidance on
         our expectations for their own performance

Schneider Electric - Division - Name – Date                                             9
The Bigger Picture

What is relevant about our business is that
we are part of the solution to one of the
biggest challenges society faces going
forward, energy and other key resource
management.

Schneider Electric - Division - Name – Date   10
The big picture, what is the
basic challenge that we all
face with energy?
                   The facts                                                         The need

                                                                           vs
               Energy demand                                                         CO2 emissions to
               By 2050                                                               avoid dramatic climate
               Electricity by 2030                                                   changes by 2050
               Source: IEA 2007

                                                                                     Source: IPCC 2007, figure (vs. 1990 level)
Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3                                                11
Drivers of the challenges

● Economic development

● CO2 emissions

● Population growth

● Fuel source choices

● Lack of strong public policy in many countries

Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3   12
world
populat
ion
to
reach
more
than
7.5
billi
on
Schneider Electric - Division - Name – Date   13
CO2 emissions continue to
increase

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U.S. Energy Profile
                                                                 2010                2020             2030
  Energy Consumption
  Increase from previous                                         2%                  1.6%             1.1%
  Buildings (new)                                                26 kWh/sq. ft.      20 kWh/sq. ft.   10 kWh/sq.ft.

  Generation
  Coal                                                           45%                 40%              37%
  Natural Gas                                                    24%                 29%              30%
  Renewables                                                     10%                 11%              15%
  Nuclear                                                        21%                 19%              16%
  Virtual                                                                            1%               2%

  Electrovehicle
  Electric Vehicles
How do we address the challenge?

● We make products and provide services that make energy safe,
  reliable, productive and green.

● We practice internally what we perform externally. Over 200 of our sites
  are connected globally and we aggressively manage our use of
  resources.
      ● In NA, we have been managing our energy efficiency aggressively since
        2000.
      ● Signatory to the President’s Better Buildings Initiative in the US.

● In 2013, we will have over 36 of our facilities registered as ISO 50001

● Highly engaged in Industry, Government and University affairs globally.

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Schneider Electric – the global specialist
in energy management
                                                                                     Balanced geographies – FY 2012 sales

billion € sales in 2012                                                                                              Western
                                                                                        North                        Europe
                                                                                       America                        30%
                                                                                         25%
                                                                                                                                  Asia
                                                                                                                                 Pacific
                                                                                                          Rest of                 27%
of sales in new economies                                                                                  World
                                                                                                           18%

                                                                                     Diversified end markets – FY 2012 sales
people in 100+ countries
                                                                                        Utilities & Infrastructure                   25%
                                                                                        Industrial & machines                  22%
                                                                                        Data centres                   15%
                                                                                        Non-residential buildings                          29%
of sales devoted to R&D                                                                 Residential      9%

Schneider Electric Global Marketing - Managers’ toolkit – February 2013 Final – V3                                                               17
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