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.
Driving business performance through sustainability: From strategy to implementation and beyond
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Driving Business Performance Through Sustainability:
From Strategy to Implementation and Beyond
Rose Shaver, LEED, AP
Manager, Sustainability Services
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2. Schneider Electric Sustainability Services 2
The Global Specialist in Energy Management
24
billion € sales
(last twelve months ... $31.5b USD)
41%
of sales in new economies
140 000
people in 100+ countries
4 – 5%
of sales devoted to R&D
Residential 9%
Utilities & Infrastructure 25%
Industrial & machines 22%
Data centres 15%
Non-residential buildings 29%
Diversified end markets – FY 2012 sales
North
America
25%
Asia
Pacific
27%
Rest of
World
18%
Western
Europe
30%
Balanced geographies – FY 2011sales
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Schneider Electric Sustainability
Click the link to view the Schneider Electric Strategy and Sustainability Report
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Quick Facts: Sustainability Services
100+ Countries
active management
300,000+
client sites
900+
dedicated employees
$40/ 24€ Billion
managed spend
35 Years
experience
40+ Million Tons
carbon managed
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No other company
can deliver the end-to-end sustainability solutions that
Schneider Electric can provide.
Our Sustainability Approach
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Common 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
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Sustainability 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?
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Sustainability 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
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Sustainability Roadmap Helps Brown-Forman
Achieve Leadership Recognition
● Situation
● Global 500 beverage manufacturer
● Increased pressure to elevate sustainability program
● Needed to develop a next generation strategy
● Investors/shareholders insisted on transparent,
detailed sustainability risk management plans
● Leadership
● Conducted a Sustainability Exchange
● Engaged stakeholders from across organization
● Consensus on how sustainability would be
leveraged across the entire company
● Created actionable Sustainability Roadmap
● Results
● Roadmap highlighted in company’s annual report
● Improved CDP ranking put company in top 10 on
global CDP Leadership Index for consumer-staples
sector
“Schneider Electric led us in the
creation of an executable
roadmap that allowed us to set
new sustainability goals and chart
a path to get there.”
Tim Nall
Director, Environmental Performance
& Governmental Compliance
Brown-Forman
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Data Needs
Customers expect
greener products that
reduce their own
impacts, OEM
pressures for data
Investors &
shareholders expect
continuity, low risk,
innovation, and
disclosure
Regulatory agencies
are requiring
disclosure; e.g., SEC
requires conflict
mineral disclosure,
GHG emissions
Companies want to be
perceived as good
citizens; competitive
differentiation
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Schneider Electric Sustainability Services 19
EnviroMap™ - Program Strategy
●Management and accounting system
for metrics
● Inventory Management System
●Sets boundaries, control methods, &
methodology for emissions
●Defines roles, responsibilities, and
processes for comprehensive
reporting
●Largely required for emissions
reporting to third party agencies
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Struxureware
Leverage open standards to deliver flexible and scalable solutions for
“shop floor to top floor” efficiency
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●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-Sites
Resource Advisor
800 companies | 18,000 users | Standard of Excellence “WebAward”
Bringing Your Data to Life
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Use 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
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Projects and Scenarios
• Manage projects
• Energy efficiency
• Water
• Waste
• Emissions
• Build a business case to get projects
approved
• Benchmark project success
• Share best practices 24/7 to all sites
Driving Cost & Resource Reductions
Customer / Competitive
Investor / Shareholder
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Comprehensive Resources View Allows
Blackstone to Increase Competitive Position
● Situation
● One of the worlds largest private equity firms
● Lacked way to quickly view and analyze sustainability
metrics across its portfolio of companies
● This inability limited company’s ability to make strategic
decisions of where to focus efforts on eliminating
unnecessary 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 of
achieving $100 million cost reduction in resource
consumption
“We chose Resource Advisor to
serve as our sustainability
dashboard because it’s a ‘one-
stop’ platform for managing
company costs and environmental
performance.”
Don Anderson
Chief Sustainability Officer
Blackstone
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Portfolio 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
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Resource Efficiency
Resource
Diagnostic
Sustainability
Site Assessment
Consumption
Workshop
Energy Site
Assessment
Breadth of resources
Energy Energy
Water
Waste
Carbon
Raw Materials
Social Impacts
Breadth of
facilities
One
~Multiple
facilities
Baseline Site Visit Analysis Performance
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Schneider Electric Helps Gildan Identify Savings
and 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 across
global portfolio of facilities
● Leadership
● Focused on largest manufacturing site: Honduras
● Findings would apply to other facilities
● Identified resource conservation measures that would
deliver 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 examined
every aspect of our largest facility
and proposed an actionable plan
that resulted in immediate and
considerable savings.”
Julie Cournoyer
Corporate Responsibility Manager
Gildan Activewear
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Schneider Electric Sustainability Services 33
Supplier 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
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 costs
Increase marketshare, valuation , reputation
Mitigate risks
You 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 provide
Or 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 minerals
Supply chain transparency
Water
Waste
Social scorecarding
Life cycle analysis of products
Carbon footprint
Carbon cap and trade requirements
Community engagement
I am confident the list will continue to grow
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 outcome
You have to capture the data and turn it into information
Use the information to identify opportunities – reduce resources, costs, improve safety situation, supplier performance
Implement activities to support the strategy – desired outcome
Continue benchmarking the results, communicate for broader adoption
Go back to step one and retest the strategy
Our company has dividied the roadmap into three areas of focus
Strategy
Technology
Implementation
Schneider 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 reputation
Reduce costs
Mitigate 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 sustainabillity
Or..developing the first sustainability report
Or 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 industry
By competitors,
What data points their clients are seeking
What data points are important to investors, regulators and non-governmental organizations
Once 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;
Energy
Water
Waste
Emissions
Social metrics
EHS metrics
Supply chain information
Schneider 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 providers
Onsite metering systems
Financial systems – SAP , Oracle
EHS sytems
ERP 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 building
Capture, track, benchmark all projects globally in one platform
Quickly share best practices and lessons learned across sites
Amplify savings at one site to others quickly
Build what if scenarios to select projects
Build a business case that includes incentives and rebates for ROI calculation
The last area of implementation is engagement –
Engaging with individual locations within an organization
or
Engaging with the global supply chain
Our 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 platform
A way to turn the data into diagnostic charts and graphs to identify outliers
Project management tools to implement projects, include incentive & rebates in the ROI, then track the progress of the projects for external reporting
Blackstone and their portfolio companies use Resource Advisor daily to drive business vlaue through their organization
The last area is implementation.
You have the strategy set
The data is being managed centrally
Through 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 organization
or
Engaging with the global supply chain
Our 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.