Schneider Electric’s Sustainable Procurement Journey: Driving Carbon Reduction in Industrial Automation

Building a Framework for Sustainable Procurement

Schneider Electric has redefined procurement by embedding sustainability into its industrial automation supply chain. The company manages over 50,000 suppliers through a structured framework that sets clear expectations, eliminates risk, and drives transformation. This approach goes beyond compliance, covering 20 topics from low-carbon steel to advanced social standards. For businesses operating with PLCs, DCS, and factory automation systems, such a framework demonstrates how sustainability can be integrated into complex control system supply chains.

Mobilising 1,000 Suppliers for Scope 3 Collaboration

The bold target was clear: reduce greenhouse gas emissions from the top 1,000 suppliers by 50%. Schneider launched the programme in 2021 with a large-scale virtual summit, ensuring suppliers were supported rather than isolated. Two-thirds of these partners were SMEs, and 70% had no prior decarbonisation experience. Schneider addressed this gap with digital training tools and maturity assessments, enabling even small automation component suppliers to participate in the sustainability journey.

Action-First Approach with Practical Tools

Schneider prioritised speed over perfection. The company shared a 150-page playbook based on practices from its 160 factories, focusing on energy efficiency and renewable adoption. Regional workshops and cohort training accelerated progress. Importantly, suppliers contributed their own techniques, which Schneider replicated across the network. This collaborative model resonates strongly in industrial automation, where knowledge-sharing often drives innovation in control systems and factory optimisation.

Extending Sustainability to Social Excellence

Beyond carbon reduction, Schneider introduced the Decent Work Programme. Suppliers were asked to adopt policies on living wages, gender equity, and equal parental leave. This aspirational approach reflects a growing trend in industrial automation procurement: sustainability is not only about materials and emissions but also about workforce standards across global supply chains.

Results Achieved Through Collaboration

By December 2025, Schneider had engaged 1,004 suppliers and trained over 3,000 professionals. The outcome was a 56% average reduction in carbon intensity. The success came from incremental commitments rather than imposed targets. This demonstrates a valuable lesson for industrial automation procurement: collaborative ambition, supported by practical tools, delivers measurable results in both sustainability and operational efficiency.

Application Scenario: Sustainable Factory Automation

Consider a factory automation project integrating Schneider PLCs, ABB DCS modules, and Emerson sensors. By applying Schneider’s procurement framework:

• Suppliers of low-carbon steel housings reduce embedded emissions.

• SMEs providing vibration sensors adopt renewable energy in production.

• Control system integrators implement living wage policies, strengthening workforce stability.

This scenario illustrates how sustainability principles can be embedded directly into industrial automation projects, creating measurable impact across both technology and society.