Schneider Electric has released its half-year progress report on its 2021-2025 sustainability impact targets, which are aligned with the UN Sustainable Development Goals (SDGs) and linked to executive compensation.
In January this year, Schneider announced its updated sustainability strategy, including 6 long-term sustainability commitments, and alignment with 5 SDGs: Affordable and clean energy; Industry, innovation and infrastructure; Sustainable cities and communities; Climate action; and Partnership for the goals.
The report illustrates the company’s progress against ‘11+1’ 2025 impact targets, which are tied to annual incentives for the company’s executives and 58,000 eligible employees:
- Grow our green revenues
- Help our customers save and avoid millions of tons of CO2 emissions
- Reduce CO2 emissions from top 1,000 suppliers’ operations
- Increase green material content in our products
- Primary and secondary packaging free from single-use plastic and using recycled cardboard
- Strategic suppliers who provide decent work to their employees
- Level of confidence of our employees to report unethical conduct
- Increase gender diversity in hiring (50%), front-line management (40%) and leadership teams (30%)
- Provide access to green electricity to 50M people
- Double hiring opportunities for interns, apprentices and fresh graduates
- Train people in energy management
- Country and Zone Presidents with local commitments that impact their communities
For example, in the second half of this year, Schneider helped customers save and avoid 302 million tons of CO2 emissions compared to an 800 million 2025 target, and grew its green revenues by 70% compared to an 80% 2025 target.
To support its supply chain sustainability targets, Schneider launched The Zero Carbon Project earlier this year. Thus far, 917, or 91%, of the company’s suppliers have joined the initiative, which aims to halve carbon emissions from top suppliers by 2025. The Impact report notes that, for targets #4 and #5, Schneider is “working to increase traceability in the supply chain, as well as identifying and qualifying new sources of supply. This transformation entails deep changes on product and packaging design and procurement contracts.”
Oliver Blum, Schneider Electric’s Chief Strategy and Sustainability Officer said in a statement, “A successful sustainability program can only be built on trust and engagement. It’s very encouraging to see such a high-level mobilization from our supply chain partners in our decarbonization journey, as well as that of our customers and employees – all of whom count on our unique expertise and experience in this field.”