Equities
Impactful Companies in Focus – Schneider Electrics
3 min read 6 Sep 23
In 2018, we launched the M&G (Lux) Positive Impact Fund. Fund manager John William Olsen focuses on companies that make an effective contribution to solving the world's major climate and social problems. However, equities eligible for the fund must also offer the potential of attractive investment results. Therefore, the fund invests in six different impact areas - three with a social focus and three with an environmental focus.
In our series "Impactful Companies in Focus" we introduce you to one company at a time in which we are invested. It is important to emphasise that our fund is not a pure climate-change fund, which would be solely about carbon footprint, but instead has a broader view on impact investing.
Schneider Electric
Schneider Electric is a French company specialising in energy management and automation solutions, from standard plug sockets to fully automated industrial systems. The company aims to ‘empower all to make the most of our energy and resources’, and has been named in the Corporate Knights top 100 most sustainable companies in the world for 12 years in a row.
Better energy efficiency
Schneider Electric’s biggest business divisions are Buildings and Industry. According to the IEA (International Energy Agency), 38% of global CO₂ emissions come from the built environment, and a further 32% from industry, so Schneider’s products offer significant potential to reduce global emissions by improving efficiency.
The company’s flagship EcoStruxure platform enables the control, monitoring and management of buildings. It is used in homes, commercial buildings, data centres, infrastructure and industry. Integrating with Schneider’s vast array of sensors, controllers and other electrical components, the software connects with subsystems such as electrics, lighting, security, fire, power and HVAC (heating, ventilation and air conditioning), bringing real-time data streams together in a single platform. With this knowledge, energy use can be monitored, optimised and ultimately reduced.
A focus on innovation
Since its beginnings in the first Industrial Revolution, Schneider has been innovating for more than 180 years. Today, the company invests heavily into research and development (R&D), to create innovative new products and continue driving positive impacts. In 2021, Schneider’s R&D spend equated to 5.1% of sales, which is in line with the company’s long-term average.
For example, the company recently announced a new set of digital tools, which integrate with industry-leading building design software, allowing electrical engineers to plan, design and analyse efficient electrical distribution systems. Schneider has also released an eMobility system, to cater to the increasing prevalence of electric vehicles (EVs), and the need for convenient charging. The system can be installed at home or in locations such as offices and shopping centres. It comprises EV chargers and a load management system, which dynamically distributes the available power, avoiding peak hours and integrating renewable energy where available.
Impact area: Environmental solutions
Primary SDG: SDG 9: Industry, innovation and infrastructure
KPI: # CO₂ emissions avoided
KPI measurement: 83.6 million tonnes avoided by EcoStruxure customers
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