Press Release

Schneider Electric stresses urgent need for electrification and digitalisation at World Economic Forum’s Davos meeting

Wed 24 Jan 2024

Davos WEF 2024

Schneider Electric has emphasised the urgent need for deploying existing technologies to combat climate change at the World Economic Forum’s annual meeting in Davos, Switzerland.

Senior executives from Schneider Electric attended the meeting against a backdrop of escalating climate change, geopolitical tensions, fluctuating energy prices, and mounting pressure for environmental sustainability and energy resilience.

Accelerating Decarbonisation Through Existing Technologies

Peter Herweck, CEO of Schneider Electric, said: “With energy accounting for 80% of carbon emissions, the energy transition is central to decarbonisation,”

Herweck highlights the importance of harnessing current technologies, such as renewable energy generation and digital and electrification tools, to enhance energy efficiency and significantly reduce emissions immediately, rather than waiting for future solutions.

Private Sector Action and Energy Efficiency

The private sector’s commitment to sustainability and decarbonisation is increasingly evident. As of January 2024, over 4,200 companies globally have set emissions-reduction targets validated by the Science Based Targets initiative (SBTi).

A recent report by the World Economic Forum found that actions on energy consumption could unlock up to £1.5 trillion ($2 trillion) in savings and avoid the construction of 3,000 power stations by 2030.

Schneider Electric’s research indicates that digital building and power management solutions in existing buildings can drastically cut operational carbon emissions, with a return on investment in under three years. This underscores the untapped potential in optimising existing infrastructure for energy efficiency.

Scope 3 Emissions: A Major Challenge and Opportunity

Addressing Scope 3 emissions, which emanate from a company’s upstream and downstream value chains and constitute the majority of their carbon footprint, remains a significant challenge.

Recent global supply chain disruptions have heightened the focus on this issue. A joint report by Schneider Electric and Women Action Sustainability (WAS) revealed that regulatory pressure is compelling businesses to plan decarbonisation with their supply chain partners, increasing demand for this information from investors and financial entities.

Olivier Blum, Executive Vice-President of Energy Management at Schneider Electric, said: “Businesses that are serious about decarbonisation need to look beyond their own operations and address their entire value chain.”

Blum highlighted the importance of promoting energy efficiency through electrification and digital technologies, as well as cleaner energy procurement across the entire business ecosystem.

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