Circular Economy in Practice: Corporate Adoption Amy Haddon, Schneider Electric Energy & Sustainability Services Confidential Property of Schneider Electric
The circular revolution Circularity dominates the 2019 global sustainability headlines Confidential Property of Schneider Electric | Page 2
5 drivers of corporate circularity adoption Increasing Operational Natural resources stakeholder sustainability & depletion & security pressure resilience Business Financial & opportunity & environmental costs innovation Confidential Property of Schneider Electric | Page 3
Components of circular business models Two predominant approaches to replace take-make-waste industrial model Biological Cycles Consumption of biologically-based materials designed to feedback into the ecosystem through composting, anaerobic digestion, etc. Emphasis on regeneration and renewability of systems and resources. Technical Cycles Recover and restore products, components, and materials through reuse, repair, remanufacture, or recycle. Confidential Property of Schneider Electric | Page 4
Real-world examples What companies are doing to practice circularity: biologic, technical, or digital Re-Use Programs Sharing/As-a-Service Modularity Circular Design Take-back/buy-back/trade Programs Confidential Property of Schneider Electric | Page 5
Schneider Electric, leading the digital transformation of Energy Management and Automation €24.7 billion ~5% 142,000+ FY 2017 revenues of FY revenues devoted to R&D people in 100+ countries Our Products & Solutions Balanced geographies – FY 2017 revenues – FY 2017 revenues 27% 27% Medium Low Secure Industrial Western Europe Voltage Voltage Power Automation North America 28% 18% 43% 15% 24% ' Asia Pacific 18% Rest of World Confidential Property of Schneider Electric | Page 6
Circularity at Schneider Electric: Why it matters Planet Customer Government Business • Planet Compatibility; • Longer asset lifespan, • ‘Relationships-for-life’ • Local jobs creation Earth Overshoot Day lower total cost of with customers 1 st Aug 2018 ownership • Local capture of value- • New ‘Circular’ business add on 2 nd , 3 rd , end-of- • Climate Compatibility: • Peace of mind opportunities: intimacy life services Target below +2°C Focus on ‘core’ through IoT activities • Targets for efficient • Life preservation • Efficiency Bottom- resource consumption compatibility: chemicals • Capex to Opex: EaaS line impact A winning approach for all stakeholders Confidential Property of Schneider Electric | Page 7
75% of product sales under our Our public new Green Premium program 200 sites labeled towards zero 2020 Circular waste to landfill Economy 100% cardboard / pallets from recycled or certified sources targets 120,000 metric tons of primary resource consumption avoided through Ecofit, recycling, and take- back programs Confidential Property of Schneider Electric | Page 8
4 domains of circular innovation at Schneider Resources Circularity Product Circularity Value Prop Circularity • ecoDesign • Total cost of ownership • Energy-as-a-Service • Materials + packaging • Continuity of operations • Connected objects + • End-of-life instructions • Longer lifespan cloud services (like recycling, WEEE, • Repairability/upgrade- • Energy Performance etc.) ability Contracting Supply Chain Circularity Raw Packaging material Scrap Efficient & waste-free Manufacturing, Logistics & Procurement minimization selection & recycling & reuse optimization Confidential Property of Schneider Electric | Page 9
| Circular business models: Schneider Electric’s actions & commitments …and opportunities to be more Circular Current Level of Circularity ● Circularity dimensions while designing new offers I. Resources circularity ● Using responsible / recycled / bio-sourced materials ● Retrofit Services to upgrade functions & increase lifespan II. Product circularity ● Other circular services for product 2 nd life, repair, refurbish ● Energy Management as-a-service, leasing, take-back offers III. Value proposition circularity ● Predictive maintenance & remote management leveraging IoT ● Waste & packaging minimization, re-use, recycling IV. Supply chain circularity ● Re-use of obsolete stock, returns, spare parts Confidential Property of Schneider Electric | Page 10
Recognition: 2019 Circulars Award Schneider honored in the Multinational category Confidential Property of Schneider Electric | Page 11
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