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2010Annual Report - Schneider Electric CZ, s.r.o.

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The CDP publishes a score for transparency in companies’<br />

communication regarding their strategy to combat climate change<br />

(Carbon Disclosure Leadership Index – CDLI) and, since 2010, it has<br />

included a score for the integration of climate change challenges<br />

into the Company’s strategy and activities in this area (Carbon<br />

Performance Leadership Index – CPLI).<br />

• <strong>Schneider</strong> <strong>Electric</strong>’s score on the CDLI (out of 100) has fallen<br />

continuously over the last three years. In its action plan, the Group<br />

has prioritised the signifi cant reduction of carbon emissions within<br />

a defi ned scope (scope 1 and 2 as defi ned in the GHG Protocol<br />

and a small part of scope 3), perhaps to the detriment of extensive<br />

reporting work on scope 3 of the GHG Protocol: measurement<br />

of emissions from transport and purchases, measurement of<br />

the carbon impact of our green services and products for our<br />

customers, measurement of our emissions by activity or Group<br />

entity. The requirements of the CDP increase from one year to the<br />

next, while the number of companies publishing information on<br />

their carbon programs also increases.<br />

• The Carbon Disclosure Leadership Index assesses the quality<br />

of the strategy, governance, communication with stakeholders<br />

and actions related to climate change on an A (maximum) to D<br />

(minimum) scale. Only businesses that score over 50 on the CDLI<br />

can feature on the CPLI. The B score is attributed to businesses<br />

which “are rapidly adapting”.<br />

For further information see www.cdproject.net<br />

Main Plans of Action in 2010<br />

Actions to reduce emissions at the Group’s sites (SF6 gas + energy consumption)<br />

To fulfi ll the objective of the Planet & Society Barometer to reduce<br />

our emissions of CO equivalent by 30,000 tons per year, we must<br />

2<br />

reduce industrial SF gas leaks to a rate of 1.2% of gas bought<br />

6<br />

(the objective for 2011 is to further reduce this to 1%) and energy<br />

consumption in our sites by 4% per year and per employee between<br />

2009 and 2011. To this end, the following actions were conducted<br />

in 2010:<br />

• specifi c objectives to reduce the carbon footprint for the <strong>Schneider</strong><br />

<strong>Electric</strong> industrial scope were defi ned and taken into account to<br />

calculate the variable share of the salary of all employees involved<br />

in industrial operations who received a bonus;<br />

• monthly reporting of the indicators for the reduction of the<br />

industrial carbon footprint for all sites concerned, compared with<br />

twice yearly in previous years. The carbon footprint of scopes 1<br />

and 2, as defi ned in the GHG Protocol, is calculated monthly, as<br />

is the performance of each site concerned;<br />

• since 2010, the carbon performance has been presented monthly<br />

to the Management of the Industrial Operations Management by<br />

the Group’s Environmental Director and the three SERE Directors;<br />

SUSTAINABLE DEVELOPMENT<br />

SCHNEIDER ELECTRIC’S COMMITMENT TO ENVIRONMENTAL PERFORMANCE<br />

• a Failure Modes, Effects and Criticality Analysis (FMECA) has<br />

been deployed for manufacturing processes that involve SF 6 gas;<br />

• the Energy Action program, which included the deployment of<br />

the EEM system (Energy Effi ciency Monitoring) in more energy<br />

intensive sites, was implemented in 2010 (see pages 66-67).<br />

Actions to reduce emissions linked to freight<br />

Actions were conducted in 2010 to reduce the proportion of air<br />

freight in long distance freight to 20% between 2009 and 2011 :<br />

• the scope of monitoring of tons transported by long distance<br />

freight was extended to 76% (compared to 40% in 2009).<br />

• the importance of the reduction of CO emissions was the<br />

2<br />

subject of an awareness campaign among the Group’s transport<br />

community. Work is being carried out with the suppliers to<br />

prepare a global carbon assessment of transport in 2011.<br />

• the respective proportions of air and sea freight are monitored<br />

monthly by the Global Supply Chain Management.<br />

• the key managers of the supply chain receive a share of their<br />

annual bonus based on the fulfi llment of objectives for air/sea<br />

freight ratios.<br />

Despite a 40% increase in long-distance fl ows due to localised<br />

problems of a shortage of electronic components worldwide, the<br />

share of tons transported by air remained stable at 20%.<br />

Goods transportation is the second largest source of CO emissions<br />

2<br />

at <strong>Schneider</strong> <strong>Electric</strong> (37% of CO emissions based on the<br />

2<br />

Company’s 2006 carbon assessment).<br />

In addition to the Company’s actions to fulfi ll the objective of the<br />

One program, 2010 also saw other commitments and actions to<br />

extend measurements and reduce emissions of CO linked to the<br />

2<br />

transportation of goods and prepare the next company program<br />

beyond 2011.<br />

Two signifi cant commitments were undertaken in 2010:<br />

• the systematic evaluation of the CO impact linked to transport<br />

2<br />

for all designs to modify industrial infrastructures;<br />

• the systematic evaluation of the Group’s capacity to measure CO2 emissions linked to transport when auditing our logistics sites.<br />

In addition, the constant streamlining of logistics, which helps<br />

reduce CO emissions due to goods transportation continued to<br />

2<br />

provide a focus within the <strong>Schneider</strong> <strong>Electric</strong> entities in 2010. The<br />

various actions conducted included the following: the closure of 10<br />

distribution centers, the identifi cation and constant simplifi cation of<br />

complex historical fl ows linking several levels of stock in our supply<br />

chain, the transfer of the regional distribution center for the Asia<br />

Pacifi c zone from Hong Kong to Singapore, the barycenter for our<br />

international fl ows in the zone, and the consolidation of fl ows from<br />

different activities in the same city and under the same roof when<br />

this makes sense.<br />

2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 65<br />

2

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