Addressing climate change and protecting finite resources are two of the most pressing issues the planet currently faces. And Companies that are focused on short-term profits at the expense of long-term sustainability will not survive. Emmanuel Lagarrigue shares how Schneider Electric does it right.
June 18th, 2018
World Environment Day: An annual time to bring awareness to and spur action for the protection of our ecosystem. ‘Beat Plastic Pollution’ is the theme for 2018 and all companies should be looking at how they can reduce plastic pollution. For the business community and world at large, conservation and sustainability are more than a one-day concern.
Despite scientific evidence that shows we are destabilising our climate and polluting the environment, many corporations continue to pursue unsustainable economic models. These behaviours pose an ecological threat, as well as untold risk to human and economic health. For example, extreme weather events are becoming more common. See the recent hurricane in Puerto Rico, which inflicted an estimated $10 billion in productivity losses, and found residents without homes, power and critical services. The area has still not recovered.
Companies that are focused on short-term profits at the expense of long-term sustainability will not survive. Research has found that companies that operate in true forward-looking fashion have consistently outperformed their industry peers since 2001 across almost every financial measure that matters.
Earlier this year, Larry Fink, CEO of BlackRock, issued a manifesto to CEOs calling on companies to act responsibly. In his letter, Fink says,
Fink is not alone in his sentiments. In 2015, the G20 Financial Stability Board recognised a growing need for financial markets to have clarity on climate change risks. The result is the Task Force on Climate-Related Financial Disclosures (TCFD). TCFD’s purpose is to develop consistent, reliable recommendations for climate change-related financial risks. While other forms of reporting have sought to disclose this information in the past, none have been as sweeping as the TCFD, which are now correlated with CDP’s climate change and supply chain disclosure questionnaires.
In addition, the return on investment for companies engaging in sustainable practices has never been better. Rapidly falling prices of distributed energy resources like renewables and energy storage, combined with enterprise energy efficiency, are enabling companies to respond to these new investor demands while saving money.
To overcome these obstacles, companies and the people who direct and manage them should focus on what’s within their direct sphere of influence.
Here are some examples of actions corporations can take:
Companies just starting out on their sustainability journey should partner with NGOs, which have the necessary skills, connections and assets, and understand community needs and policy implications. For example, Coca-Cola works with WWF to help conserve freshwater resources, non-profit Ceres works with Apple, Citigroup and Nike to develop sustainable business practices, and Schneider Electric partners with Sustainable Energy for All to further our Access to Energy . Look for NGOs that share similar interests and take the opportunity to learn from each other.
A circular economy “entails gradually decoupling economic activity from the consumption of finite resources” and is based on three principles: design out waste and pollution, keep products and materials in use, and regenerate natural systems. Schneider Electric is part of the Ellen MacArthur Foundation’s CE100 and has a goal to achieve 75 per cent of sales under our Green Premium program.
More and more companies are setting ambitious sustainability goals, including transitioning to renewable energy. More than 130 companies, including Schneider Electric, have joined RE100 which means making a global, public commitment to 100 per cent renewable electricity. The United Nations recommends focusing on where you can make the most impact, making goals ambitious, connecting goals to revenue generation or risk management, and ensuring support across the organisation.
As a global corporate citizen, awareness and action for Schneider Electric means asking ourselves if we are doing the right thing for society and challenging ourselves and others to improve — every day.
Learn more about the many strides we are making across the company in the Schneider Sustainability Report 2017 – 2018 or read the report Living by Principles: Business resiliency through increased circularity .
A searchable and comprehensive guide for specifying leading products and their suppliers
Keep up to date with the latest and greatest from our industry BFF's!
The Sub-Zero Wolf showrooms in Sydney and Melbourne provide a creative experience unlike any other. Now showcasing all-new product ranges, the showrooms present a unique perspective on the future of kitchens, homes and lifestyles.
Channelling the enchanting ambience of the Caffè Greco in Rome, Budapest’s historic Gerbeaud, and Grossi Florentino in Melbourne, Ross Didier’s new collection evokes the designer’s affinity for café experience, while delivering refined seating for contemporary hospitality interiors.
Sub-Zero and Wolf’s prestigious Kitchen Design Contest (KDC) has celebrated the very best in kitchen innovation and aesthetics for three decades now. Recognising premier kitchen design professionals from around the globe, the KDC facilitates innovation, style and functionality that pushes boundaries.
When iconic brands wield their influence, the ripples extend far beyond aesthetics. And so when the MillerKnoll collective formed, the very concept of design shifted, supercharging the industry’s aspiration to create a better world into an unwavering sense of responsibility to do so.
Available now across Australia, Eden TPO is setting new standards in terms of not just sustainability, but also style.
The internet never sleeps! Here's the stuff you might have missed
Overcoming pandemic hurdles to redefine guest experiences amidst Sydney’s bustling entertainment precinct, The Darling has undergone a two-year restoration that melds Art Deco interiors with the necessities of hotel living.
Wood Marsh’s 40-year legacy shines through landmark infrastructure projects. Recently completing stunning stations at Coburg and Moreland, their designs blend modernity with community needs.
2024’s theme, “Reawaken,” calls for a journey through reinvention and sustainability.
Welcome to the year of the Design Effect. This year’s theme aims to showcase the profound ripple effects that exceptional design can have on people, place and planet. Join in shaping this narrative by contributing your perspective before May 3, 2024, and become a part of the Design Effect movement.