Schneider Electric – Schneider Electric continues to lead the way in external ESG ratings, 13th year in a row in DJSI and Global 100

EMR Analysis

More information on Schneider Electric: See the full profile on EMR Executive Services

More information on Peter Herweck (Chief Executive Officer, Schneider Electric): See the full profile on EMR Executive Services

More information on the Sustainability Report by Schneider Electric: See the full profile on EMR Executive Services

More information on the Schneider Electric Sustainability Impact 2021-2025 Program: See the full profile on EMR Executive Services + https://download.schneider-electric.com/files?p_Doc_Ref=SSI_2021_25  

More information on S&P Global + S&P Dow Jones Indices: https://www.spglobal.com/en/ + S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence.

More information on S&P Dow Jones Sustainability World Index (DJSI): https://www.spglobal.com/spdji/en/indices/esg/dow-jones-sustainability-world-index/#overview + The Dow Jones Sustainability™ World Index comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA). It represents the top 10% of the largest 2,500 companies in the S&P Global BMI based on long-term economic, environmental and social criteria.

More information on Douglas L. Peterson (President and Chief Executive Officer, S&P Global): https://www.spglobal.com/en/who-we-are/our-people/operating-committee/douglas-peterson + https://www.linkedin.com/in/douglas-peterson-1254245/ 

More information on Corporate Knights: https://www.corporateknights.com/ + Corporate Knights Inc. is a leading sustainable-economy media and research B Corp. Founded in 2002 by Toby A. Heaps, Paul Fengler and Peter Diplaros, Corporate Knights is committed to advancing an economic system in which both people and the planet can thrive.  

Our award-winning magazine, Corporate Knights, is a magazine of choice among business leaders, policy-makers and investment decision-makers. Published quarterly, Corporate Knights maintains an editorial focus on climate change, responsible investing, and the ideas, actions and innovations that shape a sustainable economy. With a circulation of 126,000+, our magazine is distributed in The Globe and Mail, The Washington Post and The Wall Street Journal.  

Corporate Knights’ research division produces global sustainability rankings, research reports and financial product ratings based on corporate sustainability performance. Our flagship ranking is the Global 100 Most Sustainable Corporations in the World, released each year during the World Economic Forum. 

More information on Toby Heaps (Chief Executive Officer, Corporate Knights): https://www.corporateknights.com/about-us/ + https://www.linkedin.com/in/toby-heaps-98079a/ 

More information on the Corporate Knights’ 2024 Global 100 list of Most Sustainable Corporations in the World: https://www.corporateknights.com/rankings/global-100-rankings/2024-global-100-rankings/ + Corporate Knights’ 20th annual ranking of the world’s 100 most sustainable corporations is based on a rigorous assessment of publicly traded companies with revenue over US$1 billion.

EMR Additional Notes:

• ESG (Environmental, Social and Governance):
  • Refers to the three key factors when measuring the sustainability and ethical impact of an investment in a business or company. Most socially responsible investors check companies out using ESG criteria to screen investments.
  • ESG metrics are not commonly part of mandatory financial reporting, though companies are increasingly making disclosures in their annual report or in a standalone sustainability report.
  • There is not a standardized approach to the calculation or presentation of different ESG metrics.
    • Environmental: Conservation of the natural world
      • Climate change and carbon emissions
      • Air and water pollution
      • Biodiversity
      • Deforestation
      • Energy efficiency
      • Waste management
      • Water scarcity
      • …
    • Social: Consideration of people & relationships
      • Customer satisfaction
      • Data protection and privacy
      • Gender and diversity
      • Employee engagement
      • Community relations
      • Human rights
      • Labor standards
      • …
    • Governance: Standards for running a company
      • Board composition
      • Audit committee structure
      • Bribery and corruption
      • Executive compensation
      • Lobbying
      • Political contributions
      • Whistleblower schemes
      • …
         
  • Criteria are of increasing interest to companies, their investors and other stakeholders. With growing concern about he ethical status of quoted companies, these standards are the central factors that measure the ethical impact and sustainability of investment in a company.
  • Consequently, ESG analysis considers how companies serve society and how this impacts their current and future performance.
• CSR (Corporate Social Responsibility):
  • Framework or business model that helps a company be socially accountable to itself, its stakeholders, and the public.
  • The purpose of CSR is to give back to the community, take part in philanthropic causes, and provide positive social value. Businesses are increasingly turning to CSR to make a difference and build a positive brand around their company.
  • CSR tends to target opinion formers – politicians, pressure groups, media. Sustainability targets here the whole value chain – from suppliers to operations to partners to end-consumers.
• CSR vs. ESG:
  • CSR is a company’s framework of sustainability plans and responsible cultural influence, whereas ESG is the assessable outcome concerning a company’s overall sustainability performance.
  • The major difference between them is that CSR is a business model used by individual companies, while ESG is a criteria that investors use to assess a company and determine if they are worth investing in.