Planet & Society Barometer at 6.25/10 at Q1 2013, better than the target

  • 92 Schneider Electric sites singled out by the “Great place to work – Cool site” in-house programme
  • Objective exceeded to reduce incidents requiring medical intervention (Medical Incident Rate)
  • More than 430,000 households at the Base of the Pyramid connected to the grid thanks to Schneider Electric’s BipBop solutions
  • 9.9% of recommended suppliers have embraced ISO 26000 guidelines

Schneider Electric announced today its first quarter results for 2013. Thanks to the Planet & Society Barometer, Schneider Electric is able to measure its sustainable development objectives for the next three years through 14 quarterly-reported indicators. In the first quarter of 2013, the Barometer reached a score of 6.25/10. This shows a better result than the end-of-year objective (5.5/10) despite the integration of an additional indicator (the number of sites recognised as “Great place to work – Cool site” which led to a slight fall.

The extra-financial results by indicator may be found here.

Michel Crochon, Executive Vice-President Strategy at Schneider Electric, comments: “The Planet & Society Barometer has exceeded our annual objectives, achieving a score of 6.25/10 during the first quarter of 2013. After an exceptional year in 2012, the Barometer saw a slight dip in performance during the first quarter of 2013. The two previous versions of the Barometer (2005-2008 and 2009-2011) saw a similar rapid start before a slowing in performance. In Q1 2013, a new indicator was reported, measuring the number of “Cool sites” in the Group, and some indicators saw a dip in performance due to their volatility – not that this does not jeopardise the end-of-year objective at 5.5/10. As explained in recent quarters, we are very confident in the good performance of Sustainable Development within the Group and the commitment of all teams to meeting our three-year objective of 8/10″.

During the first quarter of 2013,  five indicators boosted our performance:

    – CO2 savings relating to transportation, still better than their target, at 14.80%
   – Confirmed energy efficiency performance on the Group’s sites, with a reduction of 5.8% in our energy consumption since the end of 2011
    – A significant drop in the Medical Incident Rate, exceeding its three-year objective
   – A consistently high score in relation to the target number of women in our talent pool, at 27%
   – The Base of the Pyramid programme offering training in electrical professions is making good progress, with more than 14,000 people trained

A new indicator is reported this quarter, for Schneider Electric sites recognised as “Great place to work – Cool site”. Starting with 92 sites, our objective is to achieve 300 sites by the end of 2014.

Two indicators saw a dip in their performance during the first quarter due to their volatility:

    – Energy savings on Group sites, nonetheless still performing extremely well
   – Growth in revenue made through our EcoXpert partners who have been trained in green business solutions, more than 3.9 points higher than Group revenue

In Q1 2013, two indicators reported the same value as in Q4 2012:

    – Reduction of CO2 emissions relating to transportation; in fact, there is a time lag of one quarter in the reporting of this indicator, except for the annual results, due to a quality review undertaken with suppliers after each quarterly reporting.
    – The Employee Engagement Index; from 2013, the employee satisfaction survey will be conducted twice-yearly, in May (reported in Q2) and November (incorporated in the annual results).

One indicator, “1 day of training for each employee every year”, is still being rolled out and will be reported in the second quarter of 2013¹ for France, North America, China and India.

Visible full-scale engagement
During the first quarter of 2013, Schneider Electric has continued to put a lot of effort into driving forward the issues around sustainable development:

    – On 13 February 2013, in the presence of Cécile Duflot, the French Minister for Territorial Equality and Housing, Schneider Electric hosted the closing ceremony for the HOMES research programme. This programme, initiated in 2008 and run by Schneider Electric, brought 13 industrial and academic partners together with the objective of proposing operational solutions on a large scale to help every building achieve the best possible energy performance. The conclusions of this programme highlight the positive repercussions of creating an active energy efficiency economic sector which can play its part in producing solutions to four major challenges: the reduction of CO2 emissions, the creation of non-relocatable jobs, the contribution to energy self-sufficiency, and control of countries’ sovereign debt.

    – During the first quarter of 2013, Schneider Electric climbed up to 13th place in the Global 100 Most Sustainable Corporations in the world, and is once again listed as one of the 100 most ethical companies according to Ethisphere. Schneider Electric also received the 2013 CSR Prize from the Mexican Philanthropy Centre (CEMEFI) for the 2nd year running. Finally, the HIVE, Schneider Electric’s head office at Rueil-Malmaison, is the first building in the world to be certified “Exceptional” (six stars) under the BREEAM In-Use programme, the most advanced environmental assessment system for buildings in the world.

   – On 26 April 2013, Schneider Electric published its corporate brochure Creating Shared Value – The essentials: 2012-2013 strategy and sustainable development, which presents the Group’s vision, mission and commitments to its stakeholders, also available in an interactive version for iPad (http://sdreport.schneider-electric.com).

Results by indicators category

Planet, measuring Schneider Electric’s environmental performance

The Planet indicators point to an excellent overall performance, mainly driven by the Carbon and Energy indicators.

> There is a time lag of one quarter in the reporting of the Carbon indicator; the Q1 2013 results, sent back by our suppliers, are subjected to a quality review by our teams using the carbon footprint methodology, and will be published in Q2. Since the end of 2011, transportation-related CO2 emissions decreased by 14.80%, against a three-year objective of 10%. These results mainly come from a 28% reduction in CO2  emissions for long-distance freight (air and sea). In 2012, the air freight tonnage represented 13.3% of the total air and sea freight tonnages as against 17.9% in 2011 and 20% in 2010.

> The Products and Solutions indicator has improved slightly, with 65.8% of our product revenue achieved with Green Premium™ products in the first quarter of 2013. The REACH information for Green Premium products complies with the list of substances published in June 2012. A new list was published in December 2012; it is currently being taken into account in Green Premium products.

> The Energy indicator achieved 5.8% of energy savings in the first quarter of 2013 compared to the end of 2011. Despite a slight fall since the end of 2012, due to its volatility, the indicator is maintaining a consistently high performance in relation to its three-year objective of 10%. In Q1 2013, 299 sites were connected to StruxureWare™ Energy Operations, 212 sites to StruxureWare™ Resource Advisor, and 37 sites were certified ISO 50001. Energy Operation and Resource Advisor are software suites on Schneider Electric’s StruxureWare platform, which helps customers, in all market segments across the globe, to maximise their business performance while conserving their resources, including energy. Energy Operation applies to the scale of operations and Resource Advisor to the company. Energy savings are corrected for variations in production and climate; a mathematical correction model has been drawn up for each Schneider Electric site.

Profit, measuring Schneider Electric’s ability to ensure steady, responsible economic growth while offering products and services that have minimal impact on the environment

The Profit indicators point to a good overall performance.

> The growth in sales made through our EcoXperts is 3.9 points above the Group’s growth. Performance this quarter has been tempered by the results from southern European countries, which have been hit by the economic crisis. Future measurements of the indicator in 2013 will allow the Group to consolidate the data over a longer period and provide a more stable basis for analysis. Feedback from partners involved in the programme has been very positive in a context where numerous average-size buildings, targeted by the programme, still lack active energy efficiency solutions.

> The Access to energy indicator points to a continuously improving performance with 432,707 households at the Base of the Pyramid connected to the grid thanks to Schneider Electric’s BipBop solutions. This quarter, a new rural electrification project has been inaugurated at Pitti Gare in Cameroon.

> Schneider Electric is included in all three ethical stock market indices targeted by the Barometer, the Dow Jones Sustainability (DJSI) European and World indices and the ASPI Eurozone index. The next DJSI results will be announced in September 2013.

> The Suppliers indicator, which was instigated in the last quarter of 2012, has risen to 9.9% of “recommended” suppliers who have embraced an improvement approach in line with ISO 26000. Schneider Electric launched the 2013 assessment campaign of recommended suppliers, drawing on the lessons learned during the pilot phase in 2012. The major challenge for this programme is to involve both Schneider Electric’s buyers and our suppliers. To do this, training has been made available to the Purchasing teams: one on ISO 26000 aimed at all buyers, and a more advanced one on how to challenge and encourage recommended suppliers to progress in line with ISO 26000, during business reviews. Training sessions also aim to train the central Purchasing teams on how to convince suppliers to engage with the process and set up progress plans. Finally, some recommended suppliers have been trained in the programme and in the basics of the ISO 26000 standard.

> The “Great place to work – Cool site” indicator, reported for the first time this quarter, counts the number of Schneider Electric sites recognised internally as places which are good to work at. This indicator has made a promising start with around 92 sites identified as “Cool sites” in some 28 countries. The programme consists of instigating a number of social and environmental good practices, including: services to make life easier for employees, shows and events, notably aimed at local communities, and Schneider Electric’s energy management solutions. The objective is to achieve 300 “Cool sites” by the end of 2014.

People, measuring Schneider Electric’s main commitments to its employees’ well-being and support for local communities in countries where the Group operates.

This quarter, the People indicator’s performance is mainly driven by the Safety and Access to energy indicators.

> The Medical Incident Rate decreased by 42% compared to the end of 2011. A new information system has been rolled out. Up and running since the start of 2013, it covers the management of environmental and safety data for the whole Group. This tool can be used to track and analyse incidents (accidents, chemical product spills, commuting incidents, etc.), as well as to implement corrective measures. In addition, the programme for rolling out OHSAS 18001 to all Group sites continues to expand, as do the on-site annual safety assessments designed to identify and correct any risks.

> The Employee Engagement Index is still at 55%, 2 points higher than the sector average (53% – source: Aon Hewitt). From 2013, the employee satisfaction survey, called “OneVoice”, will be conducted twice-yearly and reported in the second and fourth quarters. It will continue to cover all Group employees.

> The Diversity indicator has maintained a consistently high level, with 27% women in the talent pool. A “Women in leadership” session was organised in Germany this quarter, where around 30 women in the Group were invited in order to develop their leadership skills and support their career progression within Schneider Electric.

> The Access to energy training programme indicator again improved strongly during the first quarter of 2013, with 14,165 people at the Base of the Pyramid trained in energy management. This performance is mainly due to the excellent results from Brazil (with 1221 people trained), Colombia (722), Lebanon (672) and India (602).

> The Communities indicator recorded 11 additional missions this quarter, bringing the total to 77 missions achieved with the Schneider Electric Teachers NGO. These results are slightly below the target, but do not compromise it; several requests have been recorded in-house and the number of missions confirmed and scheduled over the course of the year is in line with our objective.

Initially planned for the first quarter of 2013, this indicator will be reported from the second quarter.

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