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Organisation<br />

At the corporate level, the Sustainable Development Department<br />

establishes the Group’s environmental strategy and leads the<br />

corporate environmental actors, jointly with the Global Supply Chain<br />

Management. The Director of Sustainable Development is ranked<br />

below the Executive Vice President of Strategy and Innovation<br />

(member of the Group’s Executive Committee).<br />

The Environment Director, ranked below the Senior Vice President<br />

of the Global Supply Chain Management (member of the Group’s<br />

Executive Committee), defi nes and rolls out the environmental<br />

policies and programs; he reports the results and leads the<br />

environmental manager network comprising:<br />

• for product management: environmental managers in each<br />

business who are responsible for integrating environmental<br />

concerns in line-up management, environmental representatives<br />

who are responsible for assessing the impact on marketing,<br />

and environmental specialists with expertise in integrating<br />

environmental aspects into product design;<br />

• for site management: environmental managers in each major<br />

region, environmental managers in each large region with<br />

signifi cant business volume, and environmental managers in<br />

each plant or supply chain centre.<br />

In 2010, the organisation within Global Supply Chain Management<br />

changed from a corporate only leadership to a regional organisation<br />

(North America, Asia-Pacifi c, Europe-Middle East, Africa and South<br />

America). Three SERE (Safety, Environment, Real Estate) directors<br />

were appointed: each one is responsible for implementing the<br />

Group’s policies in these fi elds for all sites within their geographical<br />

area and for reporting on progress plans. There is a meeting of the<br />

3.2 Reduction of CO2 Emissions<br />

Approach<br />

<strong>Schneider</strong> <strong>Electric</strong> is not subject to European quotas on carbon<br />

emissions since it is an industrial business that globally produces<br />

few emissions in comparison to energy intensive industries.<br />

<strong>Schneider</strong> <strong>Electric</strong> is therefore classifi ed in the low emissions sector<br />

by the Carbon Disclosure Project (1) . However, the Group has defi ned<br />

measures to reduce its carbon emissions.<br />

With the support of the Carbon 4 consultancy fi rm, <strong>Schneider</strong><br />

<strong>Electric</strong> in 2011 updated the carbon footprint performed in 2007<br />

(from 2006 data), from its upstream suppliers to its downstream<br />

distribution chain. The main sources of emissions remain the same:<br />

purchase of raw materials (steel, plastic, metal) and equipments<br />

represents around 70% of the total. The logistics involving<br />

upstream and downstream supply from and to suppliers and fi rst<br />

tier customers represents 15%, of which the main part comes from<br />

road freight. <strong>Schneider</strong> <strong>Electric</strong> is aiming to reduce these emissions<br />

by 10% over the next three years. Direct emissions (scope 1 and<br />

2) in Group buildings represent around 9%. More modest sources,<br />

employees’ travels and waste represent 5% and 1% respectively.<br />

This emissions split is representative of a second transformation<br />

activity.<br />

SUSTAINABLE DEVELOPMENT<br />

SCHNEIDER ELECTRIC’S COMMITMENT TO ENVIRONMENTAL PERFORMANCE<br />

three directors every quarter to ensure coherence in the Security,<br />

Environment and Real-Estate policies for the entire Group. To<br />

implement this policy, the SERE directors lead a network of more<br />

than 200 managers responsible for the environmental management<br />

of industrial, logistic, and administrative sites.<br />

These networks have access to a wide range of management<br />

and experience sharing resources including directives, application<br />

guides, an intranet site, and databases.<br />

The Transport Director, within Global Supply Chain Management,<br />

is in charge of measuring and reducing freight CO emissions at<br />

2<br />

Group level.<br />

Highlights of 2011<br />

• indexation of the performance incentives for the Executive<br />

Committee members to one of more components of the Planet<br />

& Society Barometer, chosen according to their fi eld: particularly<br />

Green Premium for Global Supply Chain Management and<br />

Activities, CO 2 reductions, ISO 14001 and Energy Effi ciency<br />

Monitoring for the Global Supply Chain Management;<br />

• a very steep rise in the Green Premium indicator, particularly<br />

as a result of the Environment Director rejoining the Executive<br />

Committee Management in charge of Global Supply Chain as<br />

well as because of the indexation of a portion of the performance<br />

incentives of the Activity directors of progress plans linked to<br />

Green Premium;<br />

• sustained reduction in CO 2 emissions due to the efforts to reduce<br />

the SF 6 leakage rate in industrial processes (0.94% leakage at<br />

the end of 2011).<br />

Compared to emissions evaluated in 2006, carbon intensity of the<br />

Group fell and certain sources were the subject of specifi c work in<br />

which the results are very visible: SF emissions for example were<br />

6<br />

signifi cantly reduced.<br />

Finally, the structure of emissions has changed: freight emissions as<br />

a percentage have decreased following a correction of the method<br />

used for 2006 fi gures.<br />

9%<br />

Site energy consumption<br />

(and SF 6 )<br />

15%<br />

Logistics transportation<br />

(from upstream<br />

to customer delivery)<br />

(1) Source: Carbon Disclosure Project 2008, Survey of the SBF120 French companies.<br />

1%<br />

Others<br />

(including waste)<br />

5%<br />

Employee travel<br />

(daily commute<br />

and business trips)<br />

70%<br />

Purchases of raw<br />

material and equipment<br />

REGISTRATION DOCUMENT 2011 SCHNEIDER ELECTRIC 61<br />

2

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