BOSTON–(BUSINESS WIRE)–Schneider Electric, the global leader in the digital transformation of energy management and automation, Schneider Electric, the leader in the digital transformation of energy management and automation, and recognized by the Corporate Knights Global 100 Index as the world’s most sustainable corporation in 2021, has announced the acceleration of its global sustainability consulting business to meet the increasing demand of organizations making meaningful progress on their energy transition and decarbonization goals.
The division expansion will double the company’s existing consulting practice and include new services and digital solutions across sustainability strategy, climate action and risk management, ESG reporting and materiality, circularity, and traceability, among others, bolstered by enhanced growth in Europe, APAC, and the Americas.
An established leader
The announcement builds on Schneider Electric’s track-record as a sustainability leader and its own raised commitments and ambitious 2021-2025 Schneider Sustainability Impact targets (SSI), inclusive of a goal to save or avoid up to 800 million metric tons of emissions on behalf of its customers.
The accelerated growth in consulting will supplement the company’s 10-year track record of success in energy and sustainability services. Today, the company is the world’s leader in energy efficiency, energy management, renewable energy procurement, carbon reporting, climate risk, and supply chain decarbonization, providing end-to-end software and services to more than 30% of the Fortune 500, across more than 100 countries on six continents.
Schneider Electric is already one of the largest energy managers in the world by volume, managing, on average, more than USD$30B in global energy spend every year on behalf of its customers. The company is also the leading advisor on corporate renewable energy purchasing, having advised clients on the execution of more than 150 bilateral PPA agreements, for a total of more than 11,000 megawatts of renewable power, since 2014. The company’s clients include Johnson & Johnson, Walmart, Faurecia, Kellogg, Takeda, Velux Group, and T-Mobile, among others.
Decarbonization reaches new urgency
The urgency to rapidly decarbonize was again reinforced by the release of the 6th report from the Intergovernmental Panel on Climate Change (IPCC) in August. The report found that climate change has begun to affect every natural system to some degree, but that “strong and sustained” emissions reduction may yet limit the worst impacts of these planetary changes.
Businesses have increasingly recognized the importance of proactively managing energy and emissions to manage and mitigate climate risk. The disruptive effects of the COVID-19 pandemic heightened this awareness, with some calling the pandemic a “trial run” for how business and the economy may be impacted by climate change.
Further, as companies grapple with the impacts of climate-driven extreme weather events such as droughts, flooding, and hurricanes, investor sensitivity to climate-related investment risks has also grown. To date, more than 10,000 companies are disclosing their emissions to CDP on an annual basis, while more than 1,000 businesses have set science-based carbon reduction goals. A recent study by Pimco found that mentions of environment, society, and governance (ESG) on corporate earning calls have increased from 0%-1% from 2005-2018 to 19% in May 2021.
Pressure to decarbonize has particularly intensified for companies with significant disruption/climate risk exposure or activist investors, including oil & gas, financial services, commercial real estate, food & beverage, cloud & service provider, and those in hard-to-abate sectors such as heavy industry and manufacturing. Many companies report feeling these pressures…