Driving business performance through sustainability: From strategy to implementation and beyond


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Successful sustainability programs don’t just happen overnight. It takes a variety of factors including organizational commitment, C-Suite buy-in, resource allocation, and more. In this session, you’ll hear true client examples of how Schneider Electric’s Sustainability Services approach of Strategy, Technology, and Implementation has helped Global 500 organizations build and sustain effective sustainability programs.

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  • Schneider Electric is a global corporation diversified across manufacturing, professional services and administration activities. The processes, tools and services that our clients use, are also applied within our own company. We believe this unique situation positions us well to not only understand our client’s needs, but also to provide proven solutions.
  • Like many of our clients, sustainability is as integral to the discussion of Schneider Electric’s success as the financial performance is. What we find is that sustainability may be “defined” in different ways across the world it has the following three desired outcomes:Reduce costsIncrease marketshare, valuation , reputationMitigate risksYou can read more about Schneider Electric’s sustainability journey on our website
  • Within the global organization is the Sustainability services business unit. We have operation centers worldwide to understand specific in country cultures, regulations and requirements.
  • The services and tools I will talk about today are not only proven out within Schneider Electric, but also recognized by our clients, analysts and ranking/rate entities.An example is being recognized by AT&T for a second year around the sustainability support we provideOr the Energy Management Software annual report by Verdantix. Resource Advisor, Schneider Electric’s global data management and reporting platform was recognized as the industry leader.
  • Big Data is certainly the buzz phrase this year. Data is a vital, but often times the talent is converting significant amounts of data into usable information. The data needs have grown exponentially in the past 10 years. The initial tracking of financial, production, EHS and energy data has expanded to:Conflict mineralsSupply chain transparencyWaterWasteSocial scorecardingLife cycle analysis of productsCarbon footprintCarbon cap and trade requirementsCommunity engagementI am confident the list will continue to grow
  • Create business valueBrand, competitive advantage, sales, profitability, new revenue streams, employee satisfactionDrive cost reductionBehavioral, operational, product, process, resourcesEnable innovationOperational, product, supply chain, communicationsOffer transparencyIntegrated disclosure, shareholders, customers, NGOs, SEC, employeesMitigate riskRegulatory, brand, products, operational, supply chain, employee satisfaction
  • It is great to have the benefits noted on the previous slide. But where does an organization begin?There are many best practice models and roadmaps. All have the same key components as noted above.Set a strategy – large or small projects all require a strategy – what is the desired outcomeYou have to capture the data and turn it into informationUse the information to identify opportunities – reduce resources, costs, improve safety situation, supplier performanceImplement activities to support the strategy – desired outcomeContinue benchmarking the results, communicate for broader adoptionGo back to step one and retest the strategy
  • Our company has dividied the roadmap into three areas of focusStrategyTechnology ImplementationSchneider electric is the partner that can support clients with end-to-end sustainability solutions. We are going to look at each of these areas and discuss a case studies from our clients.
  • These are a few of the many clients that Schneider electric provides sustainability services for in the three areas of Strategy, technology and implementation. We work with companies in all aspects of a value chain from raw material through manufacturing, transportation and ultimately to the end user
  • The first element of a sound sustainability program is the strategy.What is the desired outcome of the program?More revenue,Increased reputationReduce costsMitigate risks….etc.
  • Sustainability teams are relatively new for most organizations. These teams are often comprised of individuals that do not have sustainability in their functional titles. Here are a few challenges we have found when engaging with sustainability teams. The overall theme is not having consensus on what the desired outcome should be and why
  • Schneider electric has led many organizations through a process call “The Exchange” the Exchange is a structured process to take a deep dive into the areas metioned on this slide. Each exchange is customized to the client to focus on the key areas of interest. An example of customization may be an Exchange just focused on global supply chain sustainabillityOr..developing the first sustainability reportOr developing an external scorecard for clients
  • An example of this process is with Brown-Foreman, a well recognized beverage manufacturer. You can see from this case study how the Exchange process brought leadership together, developed an agreed upon roadmap and the output was a Leadership Index rating with the CDP.
  • Once a strategy is set – data becomes critical. Without accurate, timely and complete data strategies cannot be implemented.
  • There are a variety of data streams in any organization. These data streams have visibility and use by both internal and external stakeholders. Often times the challenge is to know what data to track ?
  • Schneider Electric’s sustainaiblity team leads clients thorugh an EnviroMap process. This is the Inventory management system for data in an organization. The client is surveyed for what types of data are currently being tracked and that is compared to:What is typically tracked in their industryBy competitors,What data points their clients are seekingWhat data points are important to investors, regulators and non-governmental organizationsOnce the data sources are agreed upon a Standard Operating procedure is developed at the site level. This helps provide consistency across the organization for data collection.
  • Once you have the data identified – it is best to have a global comprehensive resource management platform. For;EnergyWaterWasteEmissionsSocial metricsEHS metricsSupply chain informationSchneider Electric has developed a suite of software solutions – StruxureWare to capture data from the site level through the global enterprise reporting level.
  • As part of a best practice to have data integrity - integrating with other systems is the best way to move data.Resource Advisor – the enterprise level of our Struxureware software suite is designed just for this task. Through a series of technology enablement Resource Advisor has the captability to receive and distribute data from a varietty of systems such as,Utility bill management providersOnsite metering systemsFinancial systems – SAP , OracleEHS sytemsERP systems
  • Resource Advisor is a cloud based global data management, analytics and reporting tool .Verdantix recognized Resource Advisor as the industry leader for Energy management software in the Green Quadrant report for 2013. Resource Advisor is designed to be tailored for each client’s needs without the expense of “custom built software solutions”Resource Advisor takes in thousands of data points for a client and turns that into useful information
  • One example of quickly turning data into informaiton is the scatter plot.This example shows GHG emissions by square feet. You can easily have energy, water, waste benchmarked to revenue, production, occupancy.The scatter plot provides a quick view to identify opporutnities for resource and cost reductions.
  • Another feature is project management and scenario buildingCapture, track, benchmark all projects globally in one platformQuickly share best practices and lessons learned across sitesAmplify savings at one site to others quicklyBuild what if scenarios to select projectsBuild a business case that includes incentives and rebates for ROI calculation
  • The last area of implementation is engagement – Engaging with individual locations within an organizationorEngaging with the global supply chainOur clients had a need for a tool and service to help gather, track and analyze information outside of sustainability data. The engagement module and service in Resource Advisor is a customzied solution for clients to communicate with multiple stakeholders at a time.
  • An example of how Resource Advisor is used daily to support cost reduction activities is The Blackstone Group.Don Anderson, CSO, will tell you how important Resoruce Advisor is to his team. Managing multiple portfolio companies across thousands of sites globally, Blackstone was seeking a way to:Have visibility of all data in one platformA way to turn the data into diagnostic charts and graphs to identify outliersProject management tools to implement projects, include incentive & rebates in the ROI, then track the progress of the projects for external reportingBlackstone and their portfolio companies use Resource Advisor daily to drive business vlaue through their organization
  • The last area is implementation.You have the strategy setThe data is being managed centrallyThrough analytic and reporting tools sites are identified for iimprovements.Schneider Electric has a global team of energy and sustainability professionals to help your organization achieve sustainability goals.
  • This is an overview of just a few of the services our clients have used.
  • Our case study for implementation is for a client that utilized our Sustainabillity Site Assessment service. Under the category of Resource Efficiency we have the right size of engagement based on what the client is wanting to achieve.
  • Gildan corporation is a global apparel manufacturing that had recently set externally published goals. The need was to validate the goals were achievable and identify activities to support goal achievement.
  • More recently our clients have been engaging with their global supply chains to understand risks and set up programs to mitigate these risks.
  • Conflict Minerals is one of the more recent regulations our clients are working on. Resource Advisor is also set up to be your global supply chain sustainability management tool.
  • The last area of implementation is engagement – Engaging with individual locations within an organizationorEngaging with the global supply chainOur clients had a need for a tool and service to help gather, track and analyze information outside of sustainability data. The engagement module and service in Resource Advisor is a customzied solution for clients to communicate with multiple stakeholders at a time.
  • Thank you for taking time to learn more about how Schneider electric is helping clients drive business performance form sustainability.
  • Driving business performance through sustainability: From strategy to implementation and beyond

    1. 1. Schneider Electric Sustainability Services 1Driving Business Performance Through Sustainability:From Strategy to Implementation and BeyondRose Shaver, LEED, APManager, Sustainability ServicesTweet Live!#SchneiderXE
    2. 2. Schneider Electric Sustainability Services 2The Global Specialist in Energy Management24billion € sales(last twelve months ... $31.5b USD)41%of sales in new economies140 000people in 100+ countries4 – 5%of sales devoted to R&DResidential 9%Utilities & Infrastructure 25%Industrial & machines 22%Data centres 15%Non-residential buildings 29%Diversified end markets – FY 2012 salesNorthAmerica25%AsiaPacific27%Rest ofWorld18%WesternEurope30%Balanced geographies – FY 2011sales
    3. 3. Schneider Electric Sustainability Services 3Schneider Electric SustainabilityClick the link to view the Schneider Electric Strategy and Sustainability Report
    4. 4. Schneider Electric Sustainability Services 4Quick Facts: Sustainability Services100+ Countriesactive management300,000+client sites900+dedicated employees$40/ 24€ Billionmanaged spend35 Yearsexperience40+ Million Tonscarbon managed
    5. 5. Schneider Electric Sustainability Services 5Sustainability Leadership2012 & 2011 SupplierSustainability Award
    6. 6. Schneider Electric Sustainability Services 6Sustainability DynamicsINTERNAL STAKEHOLDERSEXTERNAL STAKEHOLDERS
    7. 7. Schneider Electric Sustainability Services 7Sustainability Benefits● Create business value● Drive cost reduction● Enable innovation● Offer transparency● Mitigate risk
    8. 8. Schneider Electric Sustainability Services 8Evolution of a Sustainability Program1. Develop Sustainability Strategy• Determine corporate profile• Set goals & objectives• Governance structure2. Implement Reporting Program• Develop management plan• Establish measurement & reporting structure• Operations and Products / Supply Chain• Set baseline with third-party verification3. Evaluate Footprint & Prioritize Actions• Identify portfolio opportunities• Commit to targets• Create performance metrics (KPIs)4. Implement Optimization Activities• Reduce (raw material, energy, water, waste)• Renew (renewable energy, recycle, treat & reuse)• Restore (offset impact, manage credits)5. Communicate Results & Performance• Employee & stakeholder engagement / functional teamwork• Voluntary / mandatory reporting• Investor / Customer scorecards• Supplier engagement and performance
    9. 9. Schneider Electric Sustainability Services 9No other companycan deliver the end-to-end sustainability solutions thatSchneider Electric can provide.Our Sustainability Approach
    10. 10. Schneider Electric Sustainability Services 10Keeping Sustainable Company
    11. 11. Schneider Electric Sustainability Services 11Strategy | Technology | ImplementationStrategy
    12. 12. Schneider Electric Sustainability Services 12Common Challenges●Connecting vision with execution●Cost/benefit metrics for sustainable initiative decision making●Enterprise-wide environmental performance metrics●Functional awareness, ownership and empowerment●Best practices and communications across functional teams●Dynamic exchange of success stories amongst teams●Centralized strategy to guide diverse activities
    13. 13. Schneider Electric Sustainability Services 13Sustainability Exchange●Sustainability Market Review● What can we do?●Current Programs /Culture Review● Where are we now?●Competitive Benchmark● What are competitors doing?● Our customers expecting?● Leading companies doing?●GreenProfiler™● What should we be doing?
    14. 14. Schneider Electric Sustainability Services 14GreenProfiler Summary
    15. 15. Schneider Electric Sustainability Services 15Sustainability Exchange Process● Sustainability Roadmap identifies steps to execute vision● Consensus towards mission for brand and organization● Defined cost/benefit equation for decision making● Centralized solution for enterprise-wide metrics and data● Create functional awareness, ownership and empowerment● Best practices and communication across functional teams● Exchange successes between stakeholders and CSR team
    16. 16. Schneider Electric Sustainability Services 16Sustainability Roadmap Helps Brown-FormanAchieve Leadership Recognition● Situation● Global 500 beverage manufacturer● Increased pressure to elevate sustainability program● Needed to develop a next generation strategy● Investors/shareholders insisted ontransparent, detailed sustainability risk managementplans● Leadership● Conducted a Sustainability Exchange● Engaged stakeholders from across organization● Consensus on how sustainability would beleveraged across the entire company● Created actionable Sustainability Roadmap● Results● Roadmap highlighted in company‟s annual report● Improved CDP ranking put company in top 10 onglobal CDP Leadership Index for consumer-staplessector“Schneider Electric led us in thecreation of an executableroadmap that allowed us to setnew sustainability goals and charta path to get there.”Tim NallDirector, Environmental Performance& Governmental ComplianceBrown-Forman
    17. 17. Schneider Electric Sustainability Services 17Strategy | Technology | ImplementationTechnology
    18. 18. Schneider Electric Sustainability Services 18Data NeedsCustomers expectgreener products thatreduce their ownimpacts, OEMpressures for dataInvestors &shareholders expectcontinuity, low risk,innovation, anddisclosureRegulatory agenciesare requiringdisclosure; e.g., SECrequires conflictmineraldisclosure, GHGemissionsCompanies want to beperceived as goodcitizens; competitivedifferentiation
    19. 19. Schneider Electric Sustainability Services 19Schneider Electric Sustainability Services 19EnviroMap™ - Program Strategy●Management and accounting systemfor metrics● Inventory Management System●Sets boundaries, control methods, &methodology for emissions●Defines roles, responsibilities, andprocesses for comprehensivereporting●Largely required for emissionsreporting to third party agencies
    20. 20. Schneider Electric Sustainability Services 20StruxurewareLeverage open standards to deliver flexible and scalable solutions for“shop floor to top floor” efficiency
    21. 21. Schneider Electric Sustainability Services 21Data Integration
    22. 22. Schneider Electric Sustainability Services 22●Accurate, Complete and Timely Data●Customizable Homepage●Interactive Map●Localized Preferences●Cost & Usage Reporting●Carbon Emissions●Environmental Metrics●Carbon Inventories●Goals and Forecasts●Business Analytics●Sub-SitesResource Advisor800 companies | 18,000 users | Standard of Excellence “WebAward”Bringing Your Data to Life
    23. 23. Schneider Electric Sustainability Services 23Use Data to Identify Opportunities●Graph sites by intensity● Compare across the client portfolio● Flexible date period●Add custom targets and benchmarks● Find low performing sites and outliers
    24. 24. Schneider Electric Sustainability Services 24Projects and Scenarios• Manage projects• Energy efficiency• Water• Waste• Emissions• Build a business case to get projectsapproved• Benchmark project success• Share best practices 24/7 to all sitesDriving Cost & Resource ReductionsCustomer / CompetitiveInvestor / Shareholder
    25. 25. Schneider Electric Sustainability Services 25●Flexible platform togenerate:● External reports● Inventories● Scorecards● Compliance Audits● Certification Tracking● Maintenance andCommissioningtracking●Collaboration● Internal stakeholders● Supply chainEngagement Tools & Services
    26. 26. Schneider Electric Sustainability Services 26Comprehensive Resources View AllowsBlackstone to Increase Competitive Position● Situation● One of the worlds largest private equity firms● Lacked way to quickly view and analyze sustainabilitymetrics across its portfolio of companies● This inability limited company‟s ability to make strategicdecisions of where to focus efforts on eliminatingunnecessary costs.● Leadership● Implemented Resource Advisor● Consolidated data view of holding companies● Chief Sustainability Officer now has data at his fingertips● Results● Ability to benchmark across entire organization● Prioritization of sustainability initiatives● Increased efficiency allowed company to set goal ofachieving $100 million cost reduction in resourceconsumption“We chose Resource Advisor toserve as our sustainabilitydashboard because it‟s a „one-stop‟ platform for managingcompany costs and environmentalperformance.”Don AndersonChief Sustainability OfficerBlackstone
    27. 27. Schneider Electric Sustainability Services 27Strategy | Technology | ImplementationImplementation
    28. 28. Schneider Electric Sustainability Services 28Portfolio Optimization Activities●Operational efficiency and optimization● Sustainable Site Assessments (water, waste, energy/CO2)● Consumption Workshops & Metering●Cleantech / green energy solutions● On-site generation solutions (solar, wind, biomass)● Environmental credit management●Carbon management● EU ETS Support● Product and operations carbon neutrality●Enterprise sustainability management● Supply chain programs●Communications planning● Internal/External Communications Support
    29. 29. Schneider Electric Sustainability Services 29Resource EfficiencyResourceDiagnosticSustainabilitySite AssessmentConsumptionWorkshopEnergy SiteAssessmentBreadth of resourcesEnergy EnergyWaterWasteCarbonRaw MaterialsSocial ImpactsBreadth offacilitiesOne~MultiplefacilitiesBaseline Site Visit Analysis Performance
    30. 30. Schneider Electric Sustainability Services 30Schneider Electric Helps Gildan Identify Savingsand Set Corporate Sustainability Targets● Situation● The leading activewear brand in the U.S and Canada● Needed to set corporate level sustainability goals● Wanted to know what impact could be achieved acrossglobal portfolio of facilities● Leadership● Focused on largest manufacturing site: Honduras● Findings would apply to other facilities● Identified resource conservation measures that woulddeliver energy/resource savings and cost reductions● Results● Identified significant potential savings● Half of savings marked for immediate implementation● Insight into portfolio-wide savings potential● Investment paid for self multiple times over● Ongoing performance monitoring support“Schneider Electric examinedevery aspect of our largest facilityand proposed an actionable planthat resulted in immediate andconsiderable savings.”Julie CournoyerCorporate Responsibility ManagerGildan Activewear
    31. 31. Schneider Electric Sustainability Services 31Complex Issues Inside & Outside Our WallsConflictMineralsREACHRoHS
    32. 32. Schneider Electric Sustainability Services 32Disclosure + Hot Spot ApproachAssess• Devise strategy• Identify key metrics• Collect dataBenchmark• Analyze results• Rank performance• Prioritize follow-upImprove• Recommend initiatives• Empower suppliers• Support improvementsVerify• Audit programs• Collect achievements• Reward progressAwareness Partnership
    33. 33. Schneider Electric Sustainability Services 33Schneider Electric Sustainability Services 33Supplier Management●All original response forms are stored with easy access in RA● Conflict minerals● Environmental data● Customized data requests by client●Available as easy access documents in multiple locations in system
    34. 34. Schneider Electric Sustainability Services 34●Flexible platform togenerate:● External reports● Surveys● Scorecards● Compliance Audits● Certification Tracking● Maintenance andCommissioningtracking●Collaboration● Internal stakeholders● Supply chainEngagement Tools & Services
    35. 35. Schneider Electric Sustainability Services 35Strategy | Technology | Implementation