Schneider Electric recognized for their sustainable supply chain

Schneider Electric recognized for their sustainable supply chain

 June 23, 2021

Schneider Electric has been named the Best Global Sustainable Supply Chain organization at the Global Sustainable Supply Chain Summit 2021 (GSSC Summit).

This award puts Schneider Electric ahead of its peers in terms of operating greener and fairer supply chains.

Achieving the highest score across more than 100 indicators

The prize was presented at the inaugural summit’s award ceremony which took place virtually. Schneider Electric was selected as the winner from a shortlist of top international companies, with the highest scores across more than 100 indicators, including energy waste, occupational health, and diversity and equal opportunities.

This award commends Schneider Electric’s efforts to reduce its supply chains’ carbon emissions by more than 100,000 tons over the past three years. By the end of 2020, 80 percent of Schneider Electric’s operations were powered by renewables, enabled by Schneider Electric’s own technologies and leveraging renewable Power Purchase Agreements (PPAs).

Placing sustainability at the heart of its supply chain strategy

By placing sustainability at the heart of its current supply chain strategy, known as STRIVE (2021-2023) program, Schneider Electric plans to have 70 net-zero carbon Plants and Distribution Centers by 2025 and progressively pursue further energy and carbon efficiencies across all of its 300 manufacturing and warehousing facilities. Schneider has fixed its own carbon price up to 130€/ton to help with decision-making for supply chain investments with a significant CO2 impact.

A number of STRIVE’s program ambitions encompass Schneider Electric's 15,000-strong network of main supply chain suppliers, engaged to continuously enhance their environmental, safety and social responsibility practices. Suppliers will also support the increased use of green materials in Schneider’s products and its transition to recycled cardboard packaging only.

Aiming to lower carbon footprint of supply chain

As part of this commitment, Schneider Electric launched the Zero Carbon Project, which aims to lower the carbon footprint of its supply chain. Under this initiative, the company will partner with its top 1,000 suppliers - which represent 70% of Schneider Electric’s carbon emissions - to halve their operations’ CO2 emissions by 2025. The initiative is part of Schneider’s 2021-2025 sustainability goals, and is a concrete step towards limiting the rise in average global temperatures to 1.5°C or less by 2050, as targeted by the Paris Agreement.

Helping customers reduce carbon emissions 

Schneider Electric also helps its customers to reduce carbon emissions. Walmart, world’s biggest retailer, is working with Schneider Electric on the Gigaton PPA Program, for Walmart suppliers to participate in aggregate PPAs as smaller companies may lack the size needed to approach these markets individually. Schneider’s work with Walmart aims to accelerate the use of renewables with Walmart’s supplier base and deliver one billion metric tons of avoided carbon emissions by 2030.

“Sustainability is central to STRIVE, Schneider Electric’s supply chain transformation strategy," explains Mourad Tamoud, Executive Vice-President, Global Supply Chain at Schneider Electric. “We always consider decarbonization, circularity, safety, and biodiversity preservation in our decision-making and supplier relationships. In a context of ongoing supply chain disruption caused by the pandemic, we value the open collaboration with the supply chain community at the GSSC Summit and are honored to receive this recognition.”

Schneider Electric was also recognized by Corporate Knights as the most sustainable corporation in the world and was ranked fourth the Top 25 Corporate Supply Chains ranking by Gartner.

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