AI & IoT Powered Electrification Can Help Transform Power Grids, Says Schneider Electric CSO

Our 2030 target is a 25% absolute carbon reduction across our entire value chain and to be “Net-Zero ready” in operations. In the long run, our target is to have net-zero CO2 emissions across our entire value chain by 2050. To achieve these ambitious targets, validated by SBTi, in 2021, we also established the Schneider Sustainability Impact 2021-2025 (SSI) program – our sustainability roadmap related to climate, resources, equal opportunities, trust, all generations, and local communities. The SSI enable us to drive action and impact through our operations, partners, customers, and communities.  

By the end of this year, one of our goals includes making 100% of Schneider’s primary and secondary packaging free from single-use plastic and instead using recycled materials like cardboard. By the 2024 year-end, the progress of our transition to sustainable packaging reached 74%. We also prioritise using renewable resources, such as sustainably sourced wood and biobased materials, to reduce our environmental impact and support long-term sustainability goals. 

We also implement continuous improvement actions designed to ensure that our sustainability strategy is integrated at every level of the company, from business strategy to operations and governance. These actions complement our SSI program and enable us to track and report regularly. By 2025, we aim to source 90% of electricity from renewables. By the end of 2024, we had already surpassed that ambition, and Schneider Electric sites were supplied with 96% renewable electricity.  

More than 99% of our carbon footprint is under shared influence with our ecosystem. With a network of over 53,000 suppliers globally, we support our partners to achieve more sustainable, social and environmental practices. 

Keeping that in mind, we also launched The Zero Carbon Project in 2021 with an aim to cut 50% of operational carbon emissions from our top 1,000 suppliers by 2025, and as of the end of 2024, we have reached 40% of the 50% target. Through The Zero Carbon Project, we leverage our influence as a sustainability leader to magnify impact, leveraging the expertise of our Schneider Sustainability Business consultants to advise on sustainability targets, compliance, roadmaps, deployment, reporting, and creating a community to exchange on best practices among our suppliers with experts and solution providers for tailored and targeted support. We also provide resources to our suppliers, like a carbon calculator and online learning opportunities, and in just one year, the number of suppliers computing and declaring their GHG emissions increased by almost 7x.  

We have also been involved in several large-scale initiatives aimed at decarbonising supply chains across key industries. One such initiative is Energise, a collaborative effort that brings together 24 major pharmaceutical companies—including Pfizer, Novartis, Johnson & Johnson, GSK, and AstraZeneca—to improve access to renewable electricity across their global supply networks. Recently, four members of the program jointly committed to an aggregated purchase of 245 GWh of renewable energy annually for the next decade. This is estimated to avoid around 41,748 metric tons of CO₂ emissions each year, roughly equivalent to the average annual electricity use of over 90,000 Indian households. 

We firmly think that the key to unlocking a more sustainable future lies in the power of electrification combined with digital technologies. Electricity is the most versatile and efficient form of energy, and it is also the best vector for decarbonisation. By electrifying across sectors, industries, and communities, we can dramatically reduce GHG emissions. The International Energy Agency (IEA) reports that by 2050, electrification could account for up to 60% of the total reductions needed to achieve net-zero emissions. Combining electrification with digital technologies, like the internet of things and AI, we have tools at our disposal to optimise consumption, transform power grids, and seamlessly integrate renewable energy sources. The good news is that most of the energy and digital automation technology already exists to enable us to do so. 

We have something called an EcoStruxure platform, which is an IoT-enabled architecture designed to enhance energy efficiency, safety, and sustainability across sectors such as buildings, data centres, and industrial infrastructure. It integrates connected devices, edge control, and advisory tools to monitor and optimise energy use in real time. A notable application is Capgemini’s Energy Command Centre, built in collaboration with Schneider. The platform uses AI, IoT, and advanced analytics to manage energy consumption and performance across 70+ buildings on 23 campuses in India, and this has led to a reported 29% reduction in energy use and a shift to 100% renewable electricity, with excess power returned to the grid.  

At the community level, Schneider also partnered with PRADAN to implement a Climate Smart Village initiative in Gumla, Jharkhand. Solar-powered, IoT-managed systems now supply energy to 110 families, supporting agricultural machinery and transport. The program has helped boost incomes, reduce emissions, and curb migration in the area. 

We do apply Schneider technologies to our operations for enhanced efficiency and resiliency. For instance, our Hyderabad factory operates with an advanced, cloud-based manufacturing system powered by IoT-enabled devices, leveraging real-time data and predictive analytics for innovative decision-making processes. The factory manufactures mission-critical electrical equipment. 

To improve energy efficiency, the IoT-enabled, Equaliser 4.0 device was installed to regulate the compressors, thereby enhancing their efficiency. To the chillers, a data-driven energy management system with closed-loop control was fitted to constantly monitor and adjust energy consumption in real-time, further optimising energy efficiency. Within four years, the plant reduced its energy consumption by 59%, improved waste optimisation by 64%, decreased CO2 emissions by 61%, and reduced water consumption by 57%.  

For the past two decades, sustainability has been at the core of everything we do at Schneider Electric, embedding it into our purpose, culture, and business. More than just a responsibility, at Schneider, we see sustainability as a key driver of business success. Since first monitoring our environmental and societal impact back in 2005, we have seen first-hand how these efforts lead to innovation, new revenue streams, improved operational efficiency, risk management, stakeholder trust, and high employee satisfaction – all of which are critical for long-term success. The SSI, which I introduced earlier, has truly allowed us to remain true to our sustainability commitments while ensuring it adds value to our business operations. Every quarter, alongside our financial results, we disclose our progress for transparency, holding ourselves accountable to our commitments, actions, and impact.  

We continue to exemplify our circular economy approach, designing products to use longer, use better, use again – reducing the need for raw materials and minimising waste, ultimately leading to cost savings.