Schneider Electric: Building Sustainable Supply Chains
In a global economy increasingly shaped by environmental responsibility, Schneider Electric positions supplier collaboration as essential to its supply chain transformation.
Ard Verboon, Chief Procurement Officer at Schneider Electric, says a more sustainable chain of production depends on closer ties with partners.
“While challenging, we cannot afford to not make our supply chain more sustainable and we won’t achieve it alone,” says Ard. “Greater impact is made when we collaborate with our suppliers to work towards a common goal.”
Cutting emissions
Schneider Electric has built a supplier-led sustainability model by focusing on emissions across its extended supply network.
In 2021, it launched the Zero Carbon Project, aimed at its top 1,000 global suppliers. These suppliers account for 65% of the company’s Scope 3 emissions.
The company framed this initiative around three core areas:
- Analytics refers to the process of quantifying carbon emissions, such as Scope 1 and Scope 2, while setting up consistent data collection practices
- Ambition focuses on setting short- and long-term targets for carbon reduction
- Action involves implementing a roadmap, determining priorities and identifying which stakeholders need to be involved
Rather than imposing top-down rules, Schneider provides suppliers with tools and training to decarbonise their own operations.
According to the company, the programme has already led to a 42% average reduction in operational emissions among suppliers globally.
It has also helped approximately 700 suppliers quantify and outline their carbon footprints.
“Through this programme, we’re not only working towards our own sustainability commitment but multiplying our impact – suppliers feel encouraged and supported to do the same across their own ecosystems with their own suppliers, partners and customers,” adds Ard.
Rethinking packaging
For procurement leaders, improving sustainability involves more than reducing carbon. It also requires examining materials used across the entire sourcing process.
Global resource use has expanded rapidly, with raw material extraction rising from 30.9 billion tonnes in 1970 to 95.1 billion tonnes in 2020, according to the United Nations' 2024 Global Resource Outlook Report.
The same report warns that, without change, global resource use could rise by 60% by 2060.
Ard says this demands a shift in procurement practices: “Take a moment and think back to the last time you ordered something, how many layers of packaging did it come with before you reached the item you bought?
"Now, imagine that across your organisation’s value chain. If this concerns you, I guarantee your customers are concerned about it as well.”
Schneider Electric has responded by committing to using 50% low-carbon materials in its products by 2025.
It has also moved to entirely recycled cardboard packaging.
These commitments are being delivered through supplier partnerships that encourage circular and low-CO₂ methods in the extraction and processing of plastics, aluminium and steel.
Embedding ethical standards
Sustainability also applies to ethical working conditions throughout the supply chain.
Schneider conducts yearly ESG (environmental, social and governance) reviews across its supplier base to identify any gaps in compliance or ethical practices.
“Since 2022, we have been building our Decent Work programme which aims to drive beyond regulatory framework practices, which provides training and resources to our supply base,” adds Ard.
This includes monitoring suppliers for risk of human rights violations and improving workplace conditions beyond legal minimums.
To address fair pay, Schneider formed a three-year partnership with the WageIndicator Foundation in 2024 to refine its living wage approach.
The collaboration helps both Schneider and its suppliers make informed decisions on compensation levels in global markets.
By incorporating environmental performance, labour rights and responsible sourcing into its supplier strategy, Schneider Electric’s procurement function is redefining supply chain resilience.
