In a world where sustainability is no longer optional, Schneider Electric is leading the charge in transforming procurement into a powerful lever to drive positive environmental and social impact. As a global leader in energy management and automation, the company is embedding environmental, social, and governance (ESG) principles into every layer of its €18 billion procurement operation – setting a new standard for responsible sourcing.
With a supply chain that supports 153 factories and 79 distribution centers worldwide, Schneider Electric’s scale is formidable. But what truly sets the company apart is how it’s using that scale to drive systemic change – partnering with suppliers, leveraging digital tools, and rethinking traditional procurement models to build a more sustainable future.
Christophe Quiquempoix, Vice President of Sustainable Procurement, emphasizes that sustainability is not a trend at Schneider Electric – it’s a core value. The company’s procurement mission is built on three foundational pillars: enabling growth, creating competitive advantage, and sourcing sustainably. These principles are embedded in daily operations and supported by a structured Sustainable Procurement Framework that guides risk mitigation, regulatory compliance, and long-term transformation.
One of Schneider Electric’s most ambitious initiatives is The Zero Carbon Project (TZCP), which aims to halve the operational carbon emissions of its top 1,000 suppliers by 2025. This effort goes beyond setting expectations; suppliers are equipped with digital tools, training, and expert guidance to help them meet these goals. It’s a clear demonstration of how supplier relationships can be leveraged to create positive environmental impact.
Sustainability is also deeply integrated into performance management. Supplier scorecards include sustainability as 20% of the total evaluation, placing it on equal footing with cost, quality, and delivery. This is reinforced by the Schneider Sustainability Impact framework, which tracks progress on key indicators such as emissions, circularity, and decent work. These metrics are tied to team incentives, ensuring that sustainability is not just a goal but a shared responsibility across the organization.
Choosing the right partners is critical to Schneider Electric’s approach. The company uses tools and 3rd parties like EcoVadis and RBA to assess supplier ESG performance and conducts on-site audits for those in high-risk categories. Monthly reviews ensure that sustainability remains a dynamic and evolving part of supplier relationships. The company’s approach is both rigorous and collaborative, working closely with suppliers to help them improve and innovate.
Implementing responsible sourcing at scale comes with challenges. Schneider Electric has had to overcome perceptions that sustainability is costly or disconnected from core business goals. The complexity of ESG language can also create barriers between theory and practice. To address these issues, the company has built a robust support system tailored to local realities. This includes hands-on training, digital emissions tracking tools, and regionalized operations that enhance agility in the face of global disruptions.
Impact measurement is a key part of Schneider Electric’s strategy. The company doesn’t just talk about sustainability – it tracks it its effective implementation on ground. Metrics are tied to performance reviews, and feedback from suppliers, customers, and communities provides valuable insights that go beyond the numbers. This dual approach helps Schneider Electric stay accountable and continuously improve.
Perhaps the most distinctive aspect of Schneider Electric’s approach is its emphasis on supplier empowerment. The company provides not just expectations, but the tools and support needed to meet them. From technical consultations to on-site mentoring, Schneider Electric helps suppliers raise their sustainability maturity – not just for its own benefit, but for the broader industry. This collaborative model is already yielding results, with COâ‚‚ reductions often leading to lower energy costs and improved operational efficiency.
As climate risks intensify and stakeholder expectations rise, Schneider Electric views responsible sourcing not just as a moral imperative, but as a strategic advantage. The company is preparing for a future where sustainability is the baseline, not the differentiator.
