The Planet & Society Barometer Letter

Transcription

1 The Planet & Society Barometer Letter Schneider Electric sustainable development performance. nd quarter 11.8, /1 7.5 Special edition Objective achieved in nd quarter 11! Contents Change in performance 1 Dashboard -8 Q1 Q Q Q4 Q1 Q Q 9 1 Q4 Q1 Q Q Q4 Scores Objectives Editorial - Gilles Vermot Desroches Senior Vice President, Sustainable Development, Schneider Electric The issues surrounding sustainable development have never been as pressing as now, and that situation is set to intensify. Although attaining our 8/1 objective six months before the end of the current barometer is not an end in itself, that performance is evidence of our ability to anticipate the sustainable development issues facing this company: from cutting carbon emissions to green design, from access to energy to ethics, to employee training and commitment. In a year when the introduction of the ISO 6 standard bolsters the need for companies to turn in a sound extra-financial performance, our results, attested by our listing in the DJSI World sustainability index, encourage us to renewed efforts, with the energy input of our staff and the always constructive opinions of all our stakeholders. 11 Information Website: Contact: fr-barometer-mail@ schneider-electric.com 1

2 Performance for the nd quarter 11 Dashboard The Planet & Society Barometer (objectives at the end of 11) Overall Barometer performance (out of 1) Planet 1., tons annual reduction of our CO equivalent emissions. / of our products revenues achieved with Green Premium products. / of our employees work in ISO 141 certified sites* Profit 4. 7 points above the Group s organic growth gained by our energy efficiency activities 5. 1 countries set up a recovery process for SF 6 gas* 6. 1 million households at the base of the pyramid have access to energy thanks to Schneider Electric s solutions 7. 6% of our purchases from suppliers who support the Global Compact 8. 4 major ethical stock market indexes select Schneider Electric** People 9. 1% annual reduction of the frequency rate of occupational accidents points increase in the company s employee recommendation score 11., employees trained on energy management solutions 1. 1, young people at the base of the pyramid trained in energy management trades 1. 5 entrepreneurs at the base of the pyramid set up their activities in the field of energy management* Start 1/1/9-4% + 6,799 9 The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter. The colour shows if the indicator is above or below the objective. *Indicator calculated every half year **Indicator calculated every year, 58.8% % Results Q1 11 7,88-1, % 69.% ,74,517 4% Results Q ,9. % 67.1% ,169,89 45% -5% + 5 8,74 19 How is performance measured? At Schneider Electric, we measure progress in sustainable development using all actions carried out as a yardstick. A score out of 1, which is an average of all the indicator results, is the way in which we monitor the overall progress achieved. The results for each of our key performance indicators - expressed in tons of CO emissions, growth points, employee numbers, or percentages - are converted into a score out of 1 (not shown here). The average of these scores gives the Barometer's overall performance level. Why have a Planet & Society Barometer? The Planet & Society Barometer has driven and measured progress in sustainable development made by Schneider Electric since 5. Communicated to our stakeholders, the Barometer presents Group objectives for years over the period 9-11 and quarterly results of our key performance indicators. Initial score: /1 (on 1/1/9) Target score: 8/1 (on 1/1/11)

3 Performance for the nd quarter 11 Planet Schneider Electric's commitment to environmental protection The 'Planet' section contains the indicators relating to Schneider Electric's endeavours to limit its environmental impact and thus preserve natural resources, biodiversity and the health of those who produce and use the company's products. The Group has set itself the following objectives: Limiting greenhouse gas emissions generated in particular by its own energy consumption and the use of SF 6, a powerful greenhouse gas (1kg of SF 6 = tons equivalent CO ). Rolling out ISO 141 environmental certification to all its industrial sites and major tertiary sites. Building a green product for its customers via the Green Premium eco-label. These products are defined by: life cycle analysis available online, identification and elimination of hazardous substances (RoHS and REACH) and instructions on recycling. In the first half of 11, Schneider Electric's environmental performance was boosted by a reduction in CO equivalent emissions and also by the number of staff working at ISO 141 certified sites, which remains in phase with the / objective despite steep external Group personnel growth in the six months. Meanwhile, Green Premium indicator growth has speeded up since the end of 1. This year, Green Premium management has been placed directly under the responsibility of the Environment SVP, who reports to the Global Supply Chain EVP. Focus on: Indicator 1 - Reducing CO emissions More than 1, tons saved since January 9 These savings have mainly been achieved by reducing SF 6 gas leaks at the Schneider Electric industrial sites that use this gas to manufacture medium voltage equipment. The indicator passed the 9, tons final objective in the third quarter of 1. This achievement is due to the introduction of monthly carbon reporting in 1, systematic risk assessment at all European sites, and improvements to industrial processes at some high-emission sites. Notably, SF 6 leaks have been reduced to less than 1% of all gas consumed, as against 4.4% in early 9. Schneider Electric headquarters becomes the first building to gain the new ISO 51 certification The Hive, Schneider Electric's company headquarters in Rueil-Malmaison (9), France, was awarded the entirely new ISO 51 certification for energy management systems on 15 June this year. Schneider Electric thus continues to constantly improve the energy efficiency of its buildings by using its own client solutions, reducing the buildings' environmental impacts, and considering the comfort of those who work there. ¹The Hive ('Hall de l Innovation et Vitrine de l Energie') is a 5, m² building where more than 1,8 staff work Click here to find out more Alain Digeon Senior Vice President, Environment projects Our challenge is to increase our productivity while at the same time limiting our impact on the planet. As an energy management specialist operating industrial sites around the world, we want to set the example by reducing our carbon footprint, and our energy consumption in particular. Since January 9, more than 1, tons CO equivalent have been saved. We are also trying to manage the environmental impact of our sites efficiently, with ISO 141 certification and, just recently, ISO 51 at Schneider Electric's headquarters (cf. ''), and also the environmental impact of our products, via Green Premium which gives our customers transparent environmental information about our products. Leader: Global Supply Chain

4 4 Performance for the nd quarter 11 Profit Schneider Electric's commitment to green and responsible business The 'Profit' section covers the indicators associated with Schneider Electric's main commitments to provide low environmental impact products and services while ensuring steady, responsible economic growth. To that end the company has established the following key performance indicators: Growing energy efficiency activities faster than Group organic growth. Limiting the impact of end-of-life products, notably by putting in place recovery processes for SF 6 gas, one of the six greenhouse gases targeted by the Kyoto Protocol, which occurs in some of its equipment. Developing access to a reliable, affordable, clean energy source for the 1.4 billion people who have no access to electricity, via the BipBop programme (Business, Innovation, People at the Base of the Pyramid), launched in 9. With purchases making up 6% of Group turnover, ensuring that suppliers share the same ethical values and sense of responsibility as Schneider Electric. This endeavour is based on the United Nations Global Compact, which the Group wants as many of its suppliers as possible to sign up to. Achieving listing on the benchmark international ethical stock market indexes, to demonstrate the professionalism and genuineness of this initiative in a defensible and comparable way. The Group's economic performance in the first half of 11 was buoyed up in particular by the energy access programme, with the objective of electrifying one million households at the base of the pyramid being surpassed, together with growth in energy efficiency activities which considerably exceeded organic growth. Focus on: Indicator 7 Supplier responsibility commitment 45% of purchasing from suppliers who have signed up to the Global Compact: a steady rise That's a 15 point increase since the indicator was launched on 1st January 9. That reflects a steady increase in the number of suppliers signing up, even if the target of 6% by end 11 remains hard to achieve (see quotation below). The Global Supplier Day held recently in Paris gave Purchasing teams an opportunity to reconsider their priorities, one of which is sustainable development. (cf. ''). Jérôme Richard Vice President, Purchasing effectiveness The objective is to have 6% of suppliers sign up to the Global Compact by the end of 11. There has been a steady rise since 9, but it is still unlikely to be enough to reach the target. This shortfall is attributable to rationalisation of the number of suppliers and some countries' unwillingness to take on board the Global Compact principles because of specific regulations or practices. Nevertheless, for its next barometer the Group is looking to put in place a more qualitative progress indicator in order to increase not only the number of responsible suppliers but also their level of responsibility. Schneider Electric holds the first Global Supplier Day in Paris Schneider Electric held its first Global Supplier Day in Paris on June 11. More than managers and heads of enterprises, selected from Schneider Electric's most efficient suppliers, attended the event. At the Global Supplier Day the company was represented by Jean-Pascal Tricoire, President & CEO, Annette Clayton, Executive Vice President Global Supply Chain, and René Orlandi, Chief Purchasing Officer. In particular, the need for preferred suppliers to comply with a set of criteria specific to sustainable development issues was restated. Leader : Purchasing Department

5 Performance for the nd quarter 11 People Schneider Electric's commitment to the well-being of its employees and support for the communities where the Group operates The 'People' section contains 5 indicators linked to Schneider Electric's principal commitments to its people and to communities. The Group has undertaken to: Provide staff with a safe, clean, healthy working environment and, in particular, reduce the occupational accident frequency rate. Measure the satisfaction of all its employees worldwide by means of a quarterly survey measuring employees' commitment and how likely they are to recommend Schneider Electric as an employer. Develop training in energy management solutions for Schneider Electric employees. Help young people at the base of the pyramid to acquire the skills to enable them to sell and maintain energy management products and potentially to set up their own business, through dedicated training. Support entrepreneurs at the base of the pyramid who have no access to the banking system and traditional sources of lending to help them set up in business. In the first six months of 11 the Group's performance under the heading of People' has been carried by three of the five indicators: a reduction in the frequency rate of occupational accidents, the company's employee recommendation score, and training young people at the base of the pyramid in energy management trades. The other two People' indicators have grown more slowly since 9. Focus on: Indicator 9 - Frequency rate of occupational accidents Confirmation of net progress since the beginning of 9 In the second quarter of 11, the occupational accident frequency rate fell by 5% compared with 9, thus surpassing the initial objective of 1% per annum. The frequency rate in the second quarter of 11 is. and has been decreasing steadily since 9 as the result of steps taken to reduce occupational safety risks and improve training and communication in this area. Back to school at Schneider Electric's Energy Trades Training College The Paul-Louis Merlin Energy Trades Training College in Grenoble has opened its doors again for the 11-1 academic year. Founded in 199 by Paul-Louis Merlin, an industrialist from the Dauphiné, the Schneider Electric Energy Trades Training College ( trains young people for a career in energy management, from fifth year through to the advanced vocational training certificate. For more than 8 years the academic and professional success of its students has been based on innovative teaching with a strong business emphasis. Rich Widdowson Vice President, Safety, Environment and Real Estate, North America As regards safety, Schneider Electric's prime concern is to provide its employees with a safe, clean and healthy working environment. Our aim for end 11 is to maintain and where possible improve the current occupational accident frequency rate to surpass our objective of 1% per year over three years. To do that we need to continue with the site audits and improve the safety of our organisations and services through employee training. Leader: Global Supply Chain 5

6 Performance for the nd quarter 11 People Focus on Indicator 1 - Access to Energy programme 8,74 young people at the base of the pyramid trained since early 9 As at the second quarter of 11, 8,74 young people at the base of the pyramid have been trained in energy management trades since the indicator was launched. During the quarter nearly, more young people have completed their training, with three countries reporting significant results: Lebanon with 779 young people newly trained, Brazil (48) and India (47). Five new training projects are due to be launched in September 11, in South Africa, Chile, Tanzania, Cameroon and Cambodia. Haïti: Opening of the first two construction trades training centres after the January 1 earthquake This follows on from the Haïti reconstruction agreement signed by Schneider Electric a year ago (July 1) with the French Ministry for Education, the Haïtian Ministry for Education and Training, the Aid and Action Association and the University of Quisqueya. It confirms the Schneider Electric Foundation's support for vocational training, in the context of the BipBop programme, and its participation in post-natural disaster reconstruction initiatives. Click here to find out more 6 François Milioni Training Director, BipBop Access to Energy programme Back in early 9 the objective of training 1, people over years might have seemed unrealistic or indeed utopian. However, thanks to the very active commitment of many Schneider Electric countries to the initiative and the mobilisation of many of our employees around the world, we can now be confident of attaining that objective. For all the young people trained, that success opens the door to employment, and also and above all, for all the families it is a first step out of the poverty that prevails at the base of the pyramid. What we now have to do is develop synergies with the other two components of the BipBop programme and create the conditions to greatly increase ambitions for coming years. Leader: Sustainable Development Department