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      The Schneider Sustainability Impact

    A transformation plan and steering tool for sustainability

    Schneider Electric launched its sustainability approach in 2002 by creating a department for the Group, signing up to the 10 Principles of the Global Compact and publishing a first report dedicated to these issues. We were then faced with a two-pronged question:

    • First, how to mobilize the corporate community around sustainability objectives?
    • Secondly, how to report to our stakeholders regularly and in summary form on the initiatives taken in these fields?

    The response we found was to create the Planet & Society barometer in 2005: a composite indicator updated every quarter, and rendered as a score out of 10 and as a performance display panel. In 2018, the Planet & Society barometer became the Schneider Sustainability Impact.

    The Schneider Sustainability Impact is Schneider Electric's transformation plan and steering tool for sustainability. It presents the Group sustainability objectives for 3 years and the quarterly results of the key performance indicators.

    Integrating sustainability

    ...in the strategic functions

    Every three years, Schneider Electric defines a new Schneider Sustainability Impact (formerly Planet & Society barometer). The barometer’s score is part of the key indicators included in the company program scorecard.

    The Schneider Sustainability Impact’s results are the Group non-financial results; they are presented in an integrated manner, together with the Group’s financial information: by the CEO at the annual and half-year results, and by the CFO at the first and third quarters’ results, to institutional and SRI investors. This integrated communication demonstrates our commitment to making sustainability part of the company’s long-term strategy.

    The results of the Schneider Sustainability Impact are followed in Sustainability Executive Committee, which decides the corrective actions potentially needed to achieve the objectives. Two times a year, this committee gathers four members of the Executive Committee in charge of the Strategy, Global Supply Chain, Human Resources and Marketing.

    ...and operating units

    The Schneider Sustainability Impact’s score is included in the variable compensation of the global functions and all the leaders of the company (7,000 people), in the profit-sharing incentive plans for 32 French entities (15,000 people), and in the long-term incentive plans for the 2,000 beneficiaries each year. The Schneider Sustainability Impact’s indicators can also be included in the variable compensation of the teams responsible for them, if relevant and decided.

    Finally, the indicators are audited every year by an independent third party (limited or reasonable assurance).
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