Schneider Electric: Leading the Way in Sustainable Sourcing

The two-part case on Schneider Electric (SE) provides an opportunity to study the challenges involved in reducing Scope 3 emissions by working toward reducing its supply chain emissions.

Case A narrates the sustainability journey of SE, a multinational corporation with 15 years of experience in internal decarbonization. SE had set a Net Zero target for its entire value chain by 2050, with an intermediate objective to reduce the emissions of its top 1000 suppliers to 50% by 2025. The two-part case conducts an in-depth analysis of SE’s approach, examining how it evolved over two to three years based on the challenges faced during the process. Case (A) mainly focuses on the initial journey of upstream supplier decarbonization between April 2021 and July 2022 through SE’s ‘The Zero Carbon Project’. Despite substantial efforts to educate suppliers via awareness campaigns and training programs, several challenges emerge. Case B then explores the next steps taken by SE’s Sustainable Procurement (SP) team, through the Accelerate Zero Carbon Day program, which targeted Indian suppliers, eventually yielding better than expected results.

The case highlights the importance of continuous learning, problem-solving, and knowledge generation, especially when organizational goals are not entirely under the organization’s direct control. The teaching note applies a process improvement lens to various aspects of decarbonization and supplier engagement, demonstrating how established process improvement frameworks can also support sustainability objectives.

Click here  for Case-A

Click here for Case-A