Reduction of CO2 emissions

Schneider Electric is not subject to European quotas on carbon emissions since it is an industrial business that globally produces few emissions in comparison to energy intensive industries. Schneider Electric is therefore classified in the low emissions sector by the Carbon Disclosure Project. However, the Group has defined measures to reduce its carbon emissions. It has performed a carbon footprint on scopes 1, 2 and 3, from its upstream suppliers to its downstream distribution chain.

The main sources of emissions are purchases of raw materials (steel, plastic, metal) and equipments, logistics transportation from upstream to customer delivery, and energy consumption at site level.

Schneider Electric defined its new carbon emission reduction targets for the 2012-2014 period within the scope of its company program. Schneider Electric maintains the target cap of 0.95% of SF6 leakage for the 2012-2014 period and included two new ambitions in the Planet & Society Barometer:

• 10% savings in energy consumption;
• 10% CO2 savings in transport.

In general, Schneider Electric sites are low consumers of energy, compared with more energy intensive industries. However, Schneider Electric wishes to set an example in the reduction of energy consumption by applying its own solutions.

Energy Action is a program for the continual reduction in energy consumption in all of the Group’s sites. The objectives are:

• cutting out waste of electricity, natural gas and oil, and thereby reducing costs;
• deploying Schneider Electric’s energy efficiency solutions at its own sites;
• demonstrating the know-how of the Group to its customers;
• raising employees’ awareness about new energy efficiency solutions and their own contribution to product development.

The Energy Action program uses Schneider Electric energy service activities to identify opportunities in key areas as HVAC, certain equipment (such as air compressors), lighting and specific industrial processes.

The Group has set to achieve 10% energy efficiency over 3 years (2012-2014), with to the following actions:

• Connexion of all sites above 5,000 m² to Schneider Electric energy efficiency solutions Struxureware Resource Advisor and Struxureware Energy Operation;
• Implementation of ISO 50001 standard for energy management in 20 sites;
• Identification of opportunities to reduce energy consumption over all sites as a result of the Energy Action audits.

Logistics transportation represents 15% of the Group carbon footprint. The mobilisation of major players in the supply chain and logistics allowed reducing air freight in favour of sea transport for long distance freight since 2009.

In 2011, within the carbon footprint initiative launched at Group level, the ambition was to recover – on 70% of our transport costs at a global level – the greenhouse gas emissions generated by transport. This summary is based on the information provided by approximately 60 of the largest transport providers of the Group. The exercise has resulted in specific collaborative meetings with the transporters to understand better their calculation hypotheses and to start to plan the actions required to reduce their carbon footprint.

The Group has set to achieve 10% CO2 savings in logistics transportation (downstream) over 3 years (2012-2014), with the following actions:

• Selection of cleaner transportation modes: Substitution of the air transport by the sea transport favored, use of low fuel consumption vehicles;
• Rationalization of logistic flows and implementation of an axis of progress on the load factor of the transportation means;
• Implementation of a working framework around the carbon footprint of the carriers; to become a Preferred Supplier of the Group, the carrier must be able to measure and transmit its carbon footprint.