Saturday Spotlight: Shining Light Company – Schneider Electric

Schneider Electric (SE) is a French corporation that specializes in producing solutions that combine energy, software and automation aspects for four distinct markets: buildings, data centers, industry and infrastructure.  The company is headquartered in Rueil-Malmaison and has offices throughout the world. A Fortune Global 500 company, Schneider Electric posted revenues of about 25 billion and has 144,000 employees in approximately 100 countries worldwide.

In 1836, during the first Industrial Revolution, brothers Adolphe and Joseph-Eugene Schneider took over an abandoned foundry in Le Creusot, France. Two years later, Schneider & Co. was created focusing primarily on the steel industry. The company grew rapidly, specializing in the production of heavy machinery and transportation equipment, and eventually became the Schneider Group. From its 19th century beginnings in steel through its 20th and 21st century moves in electricity and energy management, Schneider Electric has grown into a global leader in energy management and automation through ongoing innovation and acquisition. As of 2016, the company has 20,000 patents either active or in application worldwide

Jean-Pascal Tricoire, CEO and Chairman of Schneider Electric is a strong believer of operating the company in an ethical, sustainable and responsible manner worldwide and going beyond regulatory and legal requirements especially in the fields of business integrity and human rights.  He demonstrates an unwavering commitment to act with the highest standards of ethics. 

Schneider Electric considers their employees to be their main asset.  They are committed to up to date human resources policies, equal opportunities for all according to his/her skills without discrimination, and ensuring proper and safe working conditions.  Schneider involves employees in the life of the Company by providing regular information, especially on challenges and targets.  Each employee is expected to live up to the trust their customers and stakeholders place in them by understanding the importance of responsibility and its place at the core of the corporate governance.  Schneider has successfully integrated an exceptional professional and cultural diversity and made it one of their strengths.  They consider diversity their heritage and future and part of their identity.  Through this they have created an inclusive culture in which all forms of diversity are seen as real value for the company.

Training is a pillar of Schneider’s efforts. They want to make sure that wealth is being created locally and sustainably as access to energy closes the energy gap, community by community. They have integrated entrepreneurship in their electricity training programs. For example, see how women in Brazil are launching energy-related entrepreneurial programs.

Schneider’s mission and a core value is to help their customers meet their sustainability goals while continuing to grow their business.  They start with themselves and believe that sustainable businesses are more efficient and have more engaged employees. The company is building sustainable communities through energy knowledge and leadership thanks to the Schneider Electric Foundation. Its aim is to contribute to the development of people and societies through education, innovation, awareness-raising and vocational training related to energy. It acts anywhere in the world where the company is present.

One of the things Schneider has learned through their sustainability program is the importance of having a sustainability scorecard to know where you stand at all times.  Thiers is called the Planet and Society barometer.  One of the measures is their carbon footprint which has already exceeded their 3-year goal of 10% in carbon savings in transportation.  It also measures their commitment to people.  As of December 2016, 75% of their employees work in countries with Schneider Electric gender equality pay plan.  Their sustainability achievements have not gone unnoticed as they ranked 3rd on the Corporate Knights Carbon Clean 200 list.

At present, 1.2 billion people worldwide do not have basic access to electricity. Another billion don’t have access to reliable electricity.  Fuel poverty exists when people cannot heat their homes comfortably or affordably, whatever the cause (low income and/or high rent and energy bills). This energy gap affects developed economies, too.  It is Schneider’s mission to reduce this inequality. Approximately 4.2 million households at the base of the energy pyramid now have access to energy thanks to Schneider’s low-carbon energy solutions and Access to Energy programs. This figure continues to grow by their support of these families in partnership with the non-profit organization Ashoka by funding social innovation projects to tackle fuel poverty.

Ethics are ingrained in Schneider Electric’s company policies and culture.  More and more customers are looking for fundamentally ethics-driven companies.  Schneider Electric has earned the reputation of being a responsible employer by acting civically and responsibly at all its locations, with measured progress plans, accurate and transparent objectives and audited results which are shared openly internally and externally. Schneider is never shy about their mantra that energy is a basic human right. In the words of their CEO, “Our technologies ensure that Life Is On everywhere, for everyone and at every moment.”  We are honored to recognize Schneider Electric as a Shining Light Company.

 

DISCLOSURE: Shining Light Companies are exemplary companies who live out the Golden Rule in their business practices, demonstrate strong servant leadership and create compelling value through the products and services they offer. This is intended for general information purposes concerning only the values, corporate culture and business practices of the companies being spotlighted. It DOES NOT incorporate any analysis of the companies’ investment merit based on intrinsic value, fundamental analysis, etc. This must not be construed as investment advice or a buy/sell recommendation. These companies may or may not be included in our LightPoint Portfolios at any given time.