Connect - Schneider Electric

2 SUSTAINABLE DEVELOPMENT
GREEN AND RESPONSIBLE GROWTH DRIVING ECONOMIC PERFORMANCE
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At the end of 2011, 8 countries had implemented a recovery
process with a local service manager, a recovery solution
(Schneider Electric or partner), customer communication and
effective recovery: Australia and France (since 2009), Sweden
(since 2010), Germany, Austria, Belgium, Spain and the United
Kingdom (since 2011). A considerable effort was made during the
second half of 2011 to restructure the recovery offer already in place
within the countries and to report the information and evidence to
the Company executives.
2.3 Relations with subcontractors and suppliers
Approach
As a Global Compact signatory, Schneider Electric has been
involved in an ambitious approach to include sustainable
development challenges in the supplier selection and working
processes. This approach is all the more important as Schneider
Electric’s purchases volume exceeds EUR 11 billion.
Schneider Electric has published a charter for its suppliers,
called the Supplier Guide Book, which includes a large section
on expectations with regard to sustainable development in the
following four areas: health and safety, human rights, ethics and
the environment.
Since 2004, the Group has been supporting its suppliers so that they
can publically commit and directly adhere to the Global Compact.
This initiative is part of the foundation of Schneider Electric’s
approach. A key performance indicator was defi ned in the Planet
& Society Barometer regarding the duration of the 2009-2011 One
program: at the end of 2011, more than 50% of Schneider Electric
purchases were from suppliers who had signed the 10 Principles
of the Global Compact or the EICC. This represents an increase of
8 points in 2011.
Action plans
Schneider Electric’s approach to its suppliers in the area of
sustainable development centres around three main action plans.
1. Integration of the sustainable purchases approach into the
selection of new suppliers
Schneider Electric uses a qualifi cation process called Schneider
Supplier Quality Management to select new suppliers. It is based
on an evaluation questionnaire combined with on-site audits by
Schneider Electric quality specialists.
This process includes a specifi c section on the environment and
sustainable development and aims to assess supplier suitability
with regard to the Group’s aims in 3 areas:
• social responsibility linked to the Global Compact principles;
• environment: ISO 14001, ISO 14062 on eco-design, REACH and
RoHS;
• safety: health, safety standards, accidents and severity rate.
REGISTRATION DOCUMENT 2011 SCHNEIDER ELECTRIC
In several other countries, specifi c recovery actions have been
implemented: Hungary, Israel, Switzerland, Italy, Japan, Colombia,
Costa Rica, Estonia, Ukraine, Ireland, South Africa, Turkey, Vietnam,
Saudi Arabia, etc. However, these countries do not have a dedicated
local system.
In Norway, a recovery process was implemented by the country. SF6 recycling is a legal obligation and Schneider Electric’s customers
work with the organisations in charge of electrical and electronic
waste recycling . This country is not included in the indicator.
Sustainable development criteria account for nearly 15% of supplier
evaluation. In addition, all these criteria have a minimum level, below
which a supplier will not be retained to work with Schneider Electric.
Schneider Electric carried out more than 260 audits of this type
in 2011.
This qualifi cation process applies to all new suppliers and to
existing suppliers in certain cases. It is strengthened by the General
Purchasing Conditions to which all suppliers must conform: OECD
directives on sustainable development, ten principles of the United
Nations Global Compact and regulations defi ned in the ISO 14001
standard. Suppliers also commit to respect all national legislation
and regulations, the REACH regulation and the RoHS directives,
and, more generally, the laws and regulations relating to prohibition
or restriction of use of certain products or substances.
2. Support for suppliers adhering to the Global Compact
A statement on the importance of joining the Global Compact
is made by the Group purchasing pilot to each major supplier
of Schneider Electric after the supplier has been trained in
the approach. The purchasing pilot also helps the supplier by
supporting them in this approach and giving them the benefi t of
Schneider Electric’s experience.
The sustainable development goals have become one of the
7 pillars used to measure supplier performance since 2011; this
has the particular advantage of allowing the highest-performing
suppliers to become a ‘Preferred’ Group supplier. Adhesion to the
Global Compact is a key point in this evaluation.
3. Rollout of eco-responsible initiatives
Schneider Electric is rolling out several eco-responsible initiatives
with its suppliers.
For example, Schneider Electric has chosen to go further than the
European REACH and RoHS regulations. The approach is therefore
rolled out in the Group over the whole product portfolio and all
suppliers, regardless of their geographic origin.
Furthermore, Schneider Electric launched an update in 2011 to
the carbon impact analysis of company purchases in terms of its
carbon footprint. Schneider Electric has used this approach to raise
awareness of the importance of this subject among purchasers and
certain suppliers in the most relevant purchasing sectors.