Build a green value chain to promote “Scope 3” emission reduction

JANCD-FC260  Estimates by the Centre for Global Environmental Information (CDP) show that, on average, supply chains emit more than five times as much carbon as companies do directly. In the case of Schneider Electric, carbon emissions from its own factories account for only 10% of the total supply chain, while 90% of carbon emissions come from upstream and downstream. Therefore, in addition to focusing on their own business, it is also important for companies to push upstream and downstream partners to reduce carbon. Olivier Blum, chief strategy and sustainability Officer at Schneider Electric, said: “Companies need to take a broader, long-term view and look beyond their own business to help their partners accelerate the low-carbon transition and move the entire value chain to zero carbon.” The report, “Decarbonizing Supply Chains: The Path to Net Zero Carbon Emissions,” published jointly by Schneider Electric and the Women’s Action for Sustainable Development (WAS), also shows that more than two-thirds of companies surveyed are working with their supply chain partners to reduce carbon emissions under regulatory pressure, while a growing number of investors and financial entities are increasing their requirements for supply chain carbon disclosure.

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In order to strengthen the upstream and downstream of the value chain, that is, “Scope 3” carbon reduction, Schneider Electric has long been committed to empowering upstream and downstream partners to reduce carbon by providing technical guidance and consulting services. In order to further promote the overall supply chain transformation, Schneider Electric also recently released the IMPACT supply chain program, which covers the circular economy model and supply chain design, from the four aspects of employees, earth, customers, performance actions: for employees, Schneider Electric will better help customers reduce carbon through enabling talent innovation; For the ecology of the planet, Schneider Electric will build a sustainable, responsible, net-zero emission supply chain and contribute to emissions reduction; For customers, Schneider Electric will rely on reliable supply chain partners to maintain production quality in the industry; In terms of performance, Schneider Electric will help improve the performance of the whole value chain through advanced technology, intelligence, standardized procedures, and collaboration with a strong ecosystem.

JANCD-FC260  Peter Herweck said: “New energy, digitalization and other technologies, and the sustainable development model represented by the concept of circular economy, are the secret of our win-win economic and social benefits, while enabling ecological sustainable development.” Our designation as a ‘circular beacon’ in the built environment is not only an honor, but also allows us to explore new opportunities for green development with our partners on a broader platform of communication. In the future, we will continue to actively leverage the advantages and experience of pioneers and work with more partners to promote sustainable development of the whole society.”