Schneider Electric's Sustainability in Supply Chain
Schneider Electric has long been acknowledged globally as an exemplary figure in sustainability one of the world’s most sustainable companies.
The company's dedication is clearly evident in their supply chain strategies, as outlined in their Sustainability Impact Report.
The report reveals Schneider's impressive overall sustainability score of 7.95 out of 10, demonstrating meaningful progress towards 2025 objectives.
The company has achieved 75% of its carbon reduction goal, an accomplishment facilitated by significant supply chain improvements.
Notably, Schneider has made substantial strides in reducing emissions from its top 1,000 suppliers, with a current reduction rate of 49% against their aim of 50%.
Strategic commitments in supply chain
Schneider Electric's sustainability strategy is anchored by six long-term goals: climate, resources, trust, equality, generational impact and local initiatives.
Each of these aligns closely with optimizing their supply chain. For instance, the company’s impact revenues program has extended sustainable solutions to 697 million customers, nearing its target of 800 million, showcasing its broad supply chain reach.
“As an Impact Company, at Schneider Electric, we're steadfast in creating meaningful and lasting impact for our customers, partners, communities and the planet for today and tomorrow,” expressed Chris Leong, CSO of Schneider, echoing the company's commitment to integrating sustainability across its supply chain operations.
Resource management and supplier relations
The report outlines significant progress in resource efficiency within the supply chain.
Schneider currently boasts 40% green material content in its products, alongside 80% of packaging being free from single-use plastics. Despite this progress, the company is still targeting 50% green materials and 90% reduction in single-use plastics by 2025.
Trust is another key area, with 66% of strategic suppliers now ensuring decent work conditions. Employee confidence in reporting unethical conduct is at 83%, approaching the firm’s 84% target.
Notably, Schneider is a consistent presence in Ethisphere's Top 100 World's Most Ethical Companies list, a testament to its supply chain integrity practices.
Gender diversity and community engagement in supply chain
Schneider Electric's focus on diversity extends into its supply chain management. The company reports advancements in gender diversity, with female representation in hiring at 41% and leadership diversity at 32%, surpassing its 30% target.
The supply chain also forms a crucial part of Schneider's community impact goals.
By enhancing front-line management diversity, currently at 31%, Schneider is on track to achieve its 40% target. The company has even surpassed its goal by providing access to green electricity to 56 million people.
Recognition and external validations
Globally, Schneider's sustainability efforts within the supply chain have been recognised multiple times.
Leading in the Carbon Clean 200 list for companies transitioning to clean energy, Schneider is a prominent figure in advancing supply chain sustainability.
The company's Wuxi factory in China is acclaimed for emissions reductions and circular economy innovations, earning it recognition as a World Economic Forum Sustainability Lighthouse.
These achievements underline Schneider Electric's commitment to advancing sustainability within its supply chain. By continuously pushing forward its practices and partnerships, Schneider ensures that it remains a leader in sustainable supply chain management.
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