Schneider Electric, the global leader in energy management, automation, and sustainability, today announced an enhanced global supply chain decarbonization service designed to help organizations address the significant emissions volume contained in their value chains. The announcement comes on the heels of the company’s new ambition to increase its own efforts to decarbonize its supply chain, committing to reduce carbon emissions from the top 1000 suppliers’ operations by 50% by 2025.
For many companies, a majority of their carbon footprint rests in the supply and value chain. CDP reports that, based on 2020 data from more than 8,000 companies, supply chain emissions are more than 11 times higher on average than operational emissions. These volumes can be even larger in industry segments like retail, apparel, and services.
Schneider Electric’s offer, which is nested inside the company’s broader Climate Change Advisory Service, helps organizations tackle this staggering figure through a unique combination of supplier engagement, measurement, strategy setting, and implementation via efficiency, renewable energy procurement, and carbon offsetting. The offer builds on successful supply chain solutions already developed for clients including Walmart, Maple Leaf Foods and Takeda Pharmaceuticals.
“The momentum on corporate climate action today is tremendous, driven in large part by increasing investor pressure for environmental, social and governance (ESG) risks transparency and disclosure,” said Steve Wilhite, SVP for Schneider Electric. “For a majority of companies, the next frontier beyond their own operations is the supply chain. The good news is that by engaging suppliers in decarbonization efforts, companies can not only respond to these pressures but also identify cost-savings, develop innovations, and increase the value of their supplier relationships.”
In January, Schneider Electric was honored by Corporate Knights as the world’s most sustainable corporation, a recognition earned by the company’s 15+ year commitment to sustainable practices and the U.N. sustainable development goals (SDG’s). In addition to the company’s specific target to reduce the emissions of its own supply chain by 2025, Schneider Electric is also committed to decent work from 100% of its strategic suppliers and the achievement of a net-zero supply chain by 2050.
Source: MSL Group