Company reaffirms position at forefront of global sustainability efforts through joining The Climate Group's EP100, RE100 initiatives
Dubai, UAE: 13 December, 2017 – Schneider Electric, the leader in digital transformation of energy management and automation, has committed to obtaining 100 percent of its electricity from renewable sources and doubling its energy productivity. To achieve these objectives, the company intends to carry out a comprehensive optimization of its energy system.
The commitment is yet another step in Schneider Electric's journey to becoming carbon-neutral by 2030. In line with this priority, Schneider Electric decided to join two global collaborative initiatives, led by The Climate Group, that bring together influential businesses dedicated to accelerating climate action:
- RE100: To use 100 percent renewable electricity by 2030 with an interim goal of 80 percent by 2020.
- EP100: To double energy productivity – the economic output from every unit of energy consumed – by 2030 against a 2005 baseline.
Schneider Electric seeks to address the world's new energy challenge through boosting energy efficiency everywhere: in homes, buildings and cities, industry, the grid, and across remote communities. In order to deliver on its new promises and step up its sustained energy efficiency efforts, Schneider Electric will continue leveraging its own technical solutions, EcoStruxure™ Power and EcoStruxure™ Grid, that have helped the company reduce its energy consumption by 10 percent every three years for the past 10 years.
Schneider Electric aims to utilize a broad range of renewable energy sources, including solar, wind, geothermal and biomass, across its more than 1,000 sites around the globe, including 200 factories.
The company will use a three-pronged approach to drive its transition to 100 percent renewable electricity:
- Onsite projects at Schneider Electric facilities around the world: The company already has renewable energy projects in place at several locations, such as solar rooftops in Vadodara, India, and Bangpoo, Thailand. While onsite projects are expected to cover only a certain proportion of Schneider Electric's electricity needs, they enhance the company's renewable energy capabilities and act as a showcase for other organizations contemplating such options in addition to energy efficiency-enabling technologies.
- Offsite long-term procurement through power purchase agreements (PPAs): A PPA is a long-term – 12- to 20-year – contract between a renewable energy developer and a dedicated, creditworthy buyer. PPAs enable developers to secure financing for new wind, solar and other renewable electricity projects, and allow buyers to benefit from predictable pricing from clean energy sources.
- Energy attribute certificates (EACs) and green tariffs: An EAC is a free market instrument confirming that one megawatt hour of renewable electricity was generated and added to the grid from a green power source. Schneider Electric will use EACs as a fast and flexible way to acquire and track renewable electricity.
Emmanuel Lagarrigue, Chief Strategy Officer and Executive Vice President at Schneider Electric, said: 'We live in a new world of energy that is becoming more electric, more decarbonized, more decentralized and more digital. Our mission at Schneider Electric is to supply the technologies that enable, drive and catalyze the transition to this new world. In joining RE100 and EP100 today, we have made a commitment to obtain 100 percent of our electricity from renewable sources and double our energy productivity. This commitment demonstrates that consumers and businesses can be empowered to ensure the affordability, resilience, sustainability and security of the energy that they consume.'
Helen Clarkson, Chief Executive Officer at The Climate Group, said: 'Already a leader in the energy space, Schneider Electric has made a smart business decision in joining RE100 and EP100. This commitment will help the company deliver on its climate ambition to become carbon-neutral by 2030. Doubling energy productivity will allow it to use energy as economically as possible while making the transition to renewables that are cost-competitive in many markets. I applaud the powerful message Schneider Electric is sending to peers, investors and governments to accelerate the transition to a zero-emissions economy.'
At the 2015 United Nations Climate Change Conference (COP21) in Paris, Schneider Electric announced 10 Commitments for Sustainability that reflect the company’s dedication to achieving carbon neutrality across its sites by 2030 in a coherent industry ecosystem encompassing suppliers and clients. The commitments align with the Planet & Society Barometer, Schneider Electric's sustainability scorecard that measures the progress of the company’s journey to sustainable development and its contribution to the UN Sustainable Development Goals on a quarterly basis.
Other carbon neutrality initiatives from Schneider Electric include:
- Climate Leadership Council: In June 2017, Schneider Electric became a founding member of the Climate Leadership Council, a global platform dedicated to developing and promoting a new market-based climate solution that is both pro-growth and pro-environment.
- Global Footprint Network: In September 2017, Schneider Electric entered a partnership with the Global Footprint Network, an international non-profit organization that seeks to enable a sustainable future where all people have the opportunity to thrive within the means of one planet.
- Launch of EcoStruxure™: In November 2016, Schneider Electric launched the next generation of EcoStruxure™, its IoT-enabled, plug-and-pay open architecture that delivers end-to-end solutions across six domains of expertise – power, IT, building, machine, plant and grid – for four end markets: building, data center, industry and infrastructure.
- Livelihoods Carbon Fund: Together with Crédit Agricole, Danone, Firmenich, Hermès, Michelin, SAP and Voyageurs du Monde, Schneider Electric started a new impact investment fund with a target of €100 million. The fund aims to improve the lives of two million people and reduce CO2 emissions by up to 25 million tons over 20 years.