Schneider Electric has committed to sourcing 100% renewable electricity and the doubling of its energy productivity by 2030.
The company is aiming to become carbon neutral by 2030 and has decided to join two global, collaborative initiatives, led by The Climate Group.
These initiatives bring together influential businesses committed to accelerating climate action:
• RE100: to use 100% renewable electricity by 2030 with an intermediary objective of 80% by 2020.
• EP100: to double energy productivity by 2030, against a 2005 baseline, setting an ambitious target to doubling the economic output from every unit of energy consumed.
In order to deliver on its new promises and its sustained energy efficiency efforts, Schneider Electric will leverage its own technical solutions (EcoStruxure Power, EcoStruxure Grid). Using these solutions, the Group has been able to reduce its energy consumption by 10% every three years for the past 10 years.
These commitments will cover more than 1,000 electricity consuming sites around the globe, including 200 factories. Schneider Electric will leverage a broad range of renewable energy sources, including but not limited to solar, wind, geothermal and biomass.
Schneider Electric will drive its transition to 100% renewable electricity through three levers, with an interim goal of achieving 80% renewable electricity use by 2020 to 100% in 2030:
• Schneider Electric will install on-site renewable energy projects to help achieve its 2030 target. While on-site projects are expected to deliver a portion of Schneider Electric's renewable electricity needs only, they will add to the company's renewable energy capabilities, and act as a showcase for other organisations contemplating such options, together with energy efficiency enabling technologies;
• Offsite long-term procurement through Power Purchase Agreements (PPAs): a PPA is a long-term (12-20 year) contract between a renewable energy developer and a dedicated, creditworthy buyer. PPAs enable developers to secure financing for new wind, solar or other renewable electricity projects and allow buyers to enjoy predictable pricing from clean energy sources;
• Energy Attribute Certificates (EACs) and green tariffs: an EAC is a free market instrument which verifies that one megawatt hour of renewable electricity was generated and added to the grid from a green power source. Schneider Electric will use EACs as a flexible and fast way to acquire and track renewable electricity.
Emmanuel Lagarrigue, chief strategy officer and executive vice president at Schneider Electric, said: "We are in a new world of energy that is becoming more electric, more decarbonised, more decentralised, and more digital. Our mission at Schneider Electric is to supply the technologies that permit, drive and catalyse the transition to a new world of energy. The commitments we have made today in joining RE100 and EP100 to source 100% renewable electricity and reflect on the doubling of our energy productivity are a demonstration of how consumers and business can be empowered to ensure the affordability, resilience, sustainability, and security of the energy that they consume."
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