How does Schneider Electric contribute to the decarbonization of buildings?
Schneider Electric plays a significant role in decarbonizing buildings, which account for a large percentage of global carbon emissions. We focus on both new and existing buildings. For new constructions, our technologies, including low- and medium-voltage systems and building management tools, are embedded early on to ensure energy efficiency. However, many existing buildings also contribute to carbon emissions, and this is where our efforts to retrofit and optimize energy usage come into play.
We offer a range of digital tools to improve building efficiency. Whether it’s a large hotel chain or data centers, we help our clients optimize their energy use. In the U.S., our technologies are widely used to build and manage data centers, which are a growing area for us. Our EcoStruxure Resource Advisor, for example, helps organizations manage energy data globally, providing insights into their carbon footprint and guiding strategies for improvement. The digital tools we provide ensure that companies can not only report accurately on their current usage but also devise action plans for the future.
What makes the EcoStruxure Resource Advisor platform innovative for ESG reporting?
The EcoStruxure Resource Advisor platform is continuously evolving to integrate the latest technology, including AI and machine learning, making it an incredibly powerful tool for Environmental, Social, and Governance (ESG) reporting. While it was initially launched several years ago, we’ve embedded new features that allow companies to better meet the ever-changing demands of ESG reporting, such as those introduced by the Corporate Sustainability Reporting Directive (CSRD) in Europe.
This platform is designed to simplify the complex task of tracking energy data and carbon footprints across multiple sites, ensuring companies have the information they need to report on their ESG performance. Many large global enterprises depend on it for staying compliant with stringent sustainability regulations. Given the increasing urgency of ESG reporting, particularly in Europe, the Resource Advisor has become essential for helping businesses navigate this landscape and meet their sustainability goals.
How is Schneider Electric supporting the renewable energy transition, especially considering the challenges posed by the Ukraine crisis?
Some may see Europe’s recent reliance on coal during the Ukraine crisis as a step back for renewable energy, but I don’t see it that way. The crisis underscored the need for energy resilience and security, which is fully compatible with the growth of renewables. In fact, increasing the share of renewable energy helps countries become more energy-independent and less reliant on fossil fuels from regions that may experience political instability.
At Schneider Electric, we continue to support the transition to renewable energy by facilitating corporate renewable energy deals globally. We handle about 60% of these transactions, securing long-term agreements for companies to meet their sustainability goals. These deals include power purchase agreements (PPAs) and other innovative solutions, leveraging new opportunities such as those presented by the U.S. Inflation Reduction Act. The demand for renewable energy, especially from industries like data centers, continues to rise, and we are deeply involved in this shift.
Has there been a lack of focus on efficiency in renewable energy, and how is Schneider addressing this?
There has been considerable attention on increasing renewable energy supply, particularly in replacing fossil fuels, but efficiency has sometimes been overlooked. At Schneider Electric, we always advocate for a balanced approach. We advise our clients not only to source renewable energy but also to increase their energy efficiency. Many of our clients, despite growing their operations, are committed to reducing energy consumption, and we help them achieve that goal through our solutions.
The recent energy challenges, such as those arising from the Russia-Ukraine conflict, have highlighted the importance of efficiency. Companies are increasingly recognizing that reducing energy use is just as critical as managing procurement. Schneider Electric offers advanced digital tools and physical technologies that help businesses consume less energy, whether through optimizing energy use or through innovative risk management in energy markets. This dual focus on sourcing and efficiency helps companies navigate volatile energy markets while reducing their overall energy footprint.
How can emerging technologies like AI and IoT help us meet carbon reduction deadlines?
The rapid advancement of technologies like AI, IoT, and digitalization is critical to achieving carbon reduction targets. These tools are enabling companies to monitor and optimize their energy use across supply chains in ways that weren’t possible even a few years ago.
For example, Schneider Electric has committed to reducing the emissions of its top 1,000 suppliers by 50% by 2025. However, many of these suppliers initially lacked the expertise to achieve such ambitious goals. To address this, we developed AI-driven tools like Zeigo Activate, which allows smaller enterprises to make quick and easy progress on their sustainability journeys.
These technologies are essential for meeting carbon reduction goals because they make complex sustainability initiatives scalable and accessible. The key to success is aggressively leveraging these advancements to reduce emissions. At Schneider, we are confident that these tools will help us meet our own sustainability goals and enable our clients to do the same.
