APC 2011 Annual Report Download - page 63

REGISTRATION DOCUMENT 2011 SCHNEIDER ELECTRIC 61
SUSTAINABLE DEVELOPMENT
2
SCHNEIDER ELECTRIC’S COMMITMENT TOENVIRONMENTALPERFORMANCE
Organisation
At the corporate level, the Sustainable Development Department
establishes the Group’s environmental strategy and leads the
corporate environmental actors, jointly with the Global Supply Chain
Management. The Director of Sustainable Development is ranked
below the Executive Vice President of Strategy and Innovation
(member of the Group’s Executive Committee).
The Environment Director, ranked below the Senior Vice President
of the Global Supply Chain Management (member of the Group’s
Executive Committee), defi nes and rolls out the environmental
policies and programs; he reports the results and leads the
environmental manager network comprising:
•for product management: environmental managers in each
business who are responsible for integrating environmental
concerns in line-up management, environmental representatives
who are responsible for assessing the impact on marketing,
and environmental specialists with expertise in integrating
environmental aspects into product design;
•for site management: environmental managers in each major
region, environmental managers in each large region with
signifi cant business volume, and environmental managers in
each plant or supply chain centre.
In 2010, the organisation within Global Supply Chain Management
changed from a corporate only leadership to a regional organisation
(North America, Asia-Pacifi c, Europe-Middle East, Africa and South
America). Three SERE (Safety, Environment, Real Estate) directors
were appointed: each one is responsible for implementing the
Group’s policies in these fi elds for all sites within their geographical
area and for reporting on progress plans. There is a meeting of the
three directors every quarter to ensure coherence in the Security,
Environment and Real-Estate policies for the entire Group. To
implement this policy, the SERE directors lead a network of more
than 200 managers responsible for the environmental management
of industrial, logistic, and administrative sites.
These networks have access to a wide range of management
and experience sharing resources including directives, application
guides, an intranet site, and databases.
The Transport Director, within Global Supply Chain Management,
is in charge of measuring and reducing freight CO2 emissions at
Group level.
Highlights of 2011
•indexation of the performance incentives for the Executive
Committee members to one of more components of the Planet
& Society Barometer, chosen according to their fi eld: particularly
Green Premium for Global Supply Chain Management and
Activities, CO2 reductions, ISO 14001 and Energy Effi ciency
Monitoring for the Global Supply Chain Management;
•a very steep rise in the Green Premium indicator, particularly
as a result of the Environment Director rejoining the Executive
Committee Management in charge of Global Supply Chain as
well as because of the indexation of a portion of the performance
incentives of the Activity directors of progress plans linked to
Green Premium;
•sustained reduction in CO2 emissions due to the efforts to reduce
the SF6 leakage rate in industrial processes (0.94% leakage at
the end of 2011).
3.2 Reduction of CO2 Emissions
Approach
Schneider Electric is not subject to European quotas on carbon
emissions since it is an industrial business that globally produces
few emissions in comparison to energy intensive industries.
Schneider Electric is therefore classifi ed in the low emissions sector
by the Carbon Disclosure Project(1). However, the Group has defi ned
measures to reduce its carbon emissions.
With the support of the Carbon 4 consultancy fi rm, Schneider
Electric in 2011 updated the carbon footprint performed in 2007
(from 2006 data), from its upstream suppliers to its downstream
distribution chain. The main sources of emissions remain the same:
purchase of raw materials (steel, plastic, metal) and equipments
represents around 70% of the total. The logistics involving
upstream and downstream supply from and to suppliers and fi rst
tier customers represents 15%, of which the main part comes from
road freight. Schneider Electric is aiming to reduce these emissions
by 10% over the next three years. Direct emissions (scope 1 and
2) in Group buildings represent around 9%. More modest sources,
employees’ travels and waste represent 5% and 1% respectively.
This emissions split is representative of a second transformation
activity.
Compared to emissions evaluated in 2006, carbon intensity of the
Group fell and certain sources were the subject of specifi c work in
which the results are very visible: SF6 emissions for example were
signifi cantly reduced.
Finally, the structure of emissions has changed: freight emissions as
a percentage have decreased following a correction of the method
used for 2006 fi gures.
9%
Site energy consumption
(and SF6)
15%
Logistics transportation
(from upstream
to customer delivery)
1%
Others
(including waste)
5%
Employee travel
(daily commute
and business trips)
70%
Purchases of raw
material and equipment
(1) Source: Carbon Disclosure Project 2008, Survey of the SBF120 French companies.