Schneider Electric: A Guide to Supply Chain Decarbonisation

Schneider Electric is escalating its strategy to decarbonise its value chain by placing a strong focus on its Scope 3 emissions.

Schneider Electric is introducing a series of programmes centred on industry collaboration and educational initiatives for its global supply chain.

By engaging directly with its suppliers, Schneider Electric is aiming to transform the sustainability of numerous global supply chains.

It is providing its partners with new tools platforms and partnerships to facilitate this change.

This approach targets Schneider Electric’s Scope 3 emissions by helping its suppliers reduce their own Scope 1 and 2 emissions which are those generated from their direct operations and energy use.

As a company specialising in the digital transformation of energy management and automation Schneider Electric combines expertise in electrification and automation to support infrastructure data centres and buildings.

This latest strategy extends its sustainability focus to its extensive network of suppliers creating a more structured pathway for decarbonisation across its value chain.

Fostering decarbonisation through supplier collaboration

Schneider Electric is building more sustainable supply chains by providing its partners with educational resources regional market intelligence and collaborative procurement opportunities.

These programmes are designed to empower suppliers to progress on their own decarbonisation journeys and demonstrate methods for reducing large-scale Scope 3 footprints.

The initiatives are showing measurable results. Through these efforts suppliers have procured 752,000MWh of renewable electricity using Energy Attribute Certificates (EACs). Schneider Electric continues to broaden these programmes encouraging greater collaboration and the development of climate solutions across different industries.

“To decarbonise global supply chains at scale we need more than commitments; we need collaboration innovation and practical tools tailored to regional realities,” explains John Powers Vice President of Strategic Renewables at Schneider Electric.

John adds: “This expansion reflects our belief that every supplier in every geography should have access to the insights and partnerships needed to accelerate their climate journey.”

Cross-industry partnerships and programmes

A key part of Schneider Electric's strategy involves a range of programmes and initiatives dedicated to supply chain decarbonisation.

These partnerships bring together various corporate sponsors to accelerate the transition to renewable energy.

The Catalyze programme for instance promotes collaboration between corporate sponsors and their suppliers to clear a path for decarbonisation through renewable energy adoption.

It has expanded its sponsorship and is now working to establish new multi-buyer groups to improve global access to renewable energy.

Other notable collaborations include:

• Energize: initially launched for the pharmaceutical sector this programme is now expanding across the wider healthcare industry with the support of 25 corporate sponsors to advance decarbonisation in that field.
• LEAP: Levi Strauss & Co. is partnering with Schneider to launch the LS&Co. Energy Accelerator Program (LEAP). This initiative aims to increase access to renewable energy throughout LS&CO.'s supply chain helping to meet a target of a 42% reduction in supply chain emissions by 2030.
• REnew: a collaboration between PepsiCo and Schneider Electric the REnew programme has achieved its first supplier-PepsiCo cohort agreement for a Virtual Power Purchase Agreement (VPPA) in the US with plans for further expansion into other markets.

Expanding digital tools and education

Alongside its partnership programmes Schneider Electric is enhancing its technical training and educational resources to help suppliers understand how to address their emissions effectively.

Through its digital platform Zeigo Hub organisations can access learning modules on critical decarbonisation topics.

The platform now offers training on greenhouse gas accounting science-based target setting energy efficiency circularity and electrification strategies.

These resources are designed to help suppliers reduce their direct operational emissions which fall under Scope 1.

Schneider Electric is also providing guidance on Scope 2 decarbonisation through renewable electricity procurement.

To ensure this information is accessible globally Schneider Electric is offering live educational webinars with translations available in more than 60 languages.

This commitment to education is a core component of its effort to transform global supply chains and reduce its own hard-to-trace Scope 3 emissions.