Schneider Electric achieves top ESG scores from 3 different ESG rating providers
Schneider Electric S.E.
French multinational and global specialist in energy management, Schneider Electric, has emerged as a top scorer in its energy management and automation sector by three eminent and independent environmental, social and governance (ESG) rating providers. The company ranked in the top position among Electrical Components and Equipment companies in the latest 2022 Corporate Sustainability Assessment (CSA), with an impressive score of 90 out of 100, substantially above the average of 21 for the sector. The assessment, undertaken by prominent rating agency S&P Global, measured progress in the areas of Biodiversity, Operational Eco-Efficiency, Supply Chain Management, Labour Practices and Human Rights.
Notably, fellow competitor Legrand was not far behind with an ESG rating of 80 in the 2022 Corporate Sustainability Assessment (CSA). They scored well in the areas of Operational Eco-Efficiency, Innovation Management, Product Stewardship, Human Capital Development and Supply Chain Management. However, another competitor, ABB Ltd, did not perform as well in the same assessment, scoring 69, while Eaton Corporation was way behind their competitors with only 35. On the basis of this assessment, Schneider Electric was included in the prestigious list of sustainable companies by Dow Jones Sustainability Indices.
Schneider Electric was the only company in the Electrical Components and Equipment sector to be given ‘A list’ status in the 2022 list of companies acknowledged as leaders in environmental transparency, and action for the twelfth year in a row by CDP climate change. In light of Schneider Electric’s recent renewal of its short and long-term carbon reduction targets, in compliance with the Science Based Targets initiative (SBTi’s) Corporate Net-Zero Standard, CDP acknowledged Schneider Electric’s Climate Strategy and its dedication to its environmental openness.
The company achieved the first position in the Electronic Components and Equipment sector in Europe by Moody’s principal European ESG ratings agency, Vigeo Eiris. Their score of 73 was a two-point score increase compared to last year. On the basis of this assessment, the company has been included on the Euronext Vigeo World 120, Europe 120, France 20 and CAC40 ESG indices, consisting of the top-rated businesses that Moody ESG solutions have chosen. Talking about this major achievement, Gwenaelle Avice-Huet, Chief Strategy and Sustainability Officer at Schneider Electric said, “In a context of continued disruptions, we show how it is possible to stay focused on what matters most: people, planet and performance. Not only do these top ratings reflect our unwavering engagement towards the welfare of our internal and external stakeholders, and the environment, they encourage us to concentrate on action and innovation, and bring everyone along.”
Schneider Electric is one of the examples of how electrical component companies can successfully implement sustainability, and while many fellow competitor companies are steadily following suit, awareness and education of the long-term benefits of sustainability, along with effective implementation, are critical if we are to achieve net zero by 2050. Until then, and while this may represent a positive shift, there’s plenty to be done to improve corporate ESG performance, normalise a culture of reporting transparency, and fully embed ESG as the operating principle of the electrical components sector.
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