Enterprises should embrace sustainability as a core business growth strategy rather than merely a corporate social responsibility initiative, Schneider Electric emphasized at a recent roundtable discussion with the Makati Business Club.
Schneider Electric's chief marketing officer and one of Forbes' 2024 most influential CMOs in the world, Chris Leong, stated that sustainability is no longer optional but essential for long-term business success. "At Schneider Electric, sustainability should be at the heart of business strategy, driving growth, innovation, and value creation. We empower industries to achieve this transformation through electrification, automation, and digitalization."
He added that as the world confronts the challenges of climate change, rising energy costs, and the current Marcos administration's prioritization of sustainable development, Schneider Electric emphasizes the importance of integrating sustainability into all aspects of its operations to maintain competitiveness and future readiness.
Schneider Electric's approach to sustainability is built on three-pronged strategies: Strategize, Digitize, and Decarbonize.
Strategize involves setting measurable and strategic sustainability ambitions. For Schneider Electric, all brand research and development is centered on its sustainability goals. The Schneider Electric Sustainability Impact Program (SSI), a concrete and measurable roadmap, tracks the company's progress toward its environmental, societal, and governance (ESG) targets. The report is published quarterly through the company website.
Digitize focuses on using digital tools to capture energy usage and carbon footprint in real-time. All Schneider Electric distribution hubs and manufacturing facilities worldwide are equipped with digital solutions, allowing facilities to harness data analytics to measure operational efficiency.
Decarbonize refers to the action plan. Schneider Electric's end-to-end portfolio of technologies brings electrification to reality. Leveraging these solutions enables real-time energy usage and carbon impact monitoring, which can contribute to business profitability goals.
Megatrends Shaping the Future
Schneider Electric has identified five pivotal megatrends shaping industries:
Customer Needs: Digitization and Artificial Intelligence (AI), brought about by the global digital transformation, are significantly scaling up power usage.
Climate Change: The urgent need for concrete solutions to fight against climate change.
Energy Transition: Through electrification, industries are shifting to renewable energy sources.
Evolution of Wealth: Increased demand in electrification and data offers fresh opportunities to emerging economies as countries and companies rethink how they operate.
New Global Equilibrium: A shift in paradigm due to supply chain evolutions.
Leong highlighted that these megatrends offer opportunities for businesses in various industries to innovate. "Digitization and AI are transforming energy management. Climate change drives the shift to renewables, reshaping industries and markets," she said.
A heightened focus on Environmental, Social, and Governance (ESG) can catalyze innovation, efficiency, cost reduction, and business growth. It presents opportunities to tap into new markets, attract conscious consumers, and enhance long-term resilience.
For instance, research conducted with WSP Global Inc., a design and engineering consulting firm, found that digital building and power management solutions can reduce operational carbon emissions in existing office buildings by up to 42 percent, and a return on these investments can be expected in around three years.
Leong concluded, "We are more than a technology provider. As sustainability practitioners, we empower our partners to achieve their ESG goals through innovative digital solutions. Our recommendation is not to shy away from action but to make environmental claims that are clear, credible, and can be verified because sustainability is our passport to operate in the future."
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