Schneider Electric finds more than half its sites are at risk from climate

Firm’s scenario analysis reveals most locations face ‘high likelihood’ of natural hazards by 2050. 

Schneider Electric has revealed that more than half its sites will be exposed to physical climate risks by 2050 under current policies. 

In its latest sustainability statement, the French multinational shared details of scenario analysis it undertook last year with sustainability consultant Risilience. 

It found that, of the 521 sites it assessed, 269 faced a “high likelihood” of being exposed to “natural hazards” by 2050 if current policies don’t change and Schneider doesn’t implement additional resilience measures.

The assets range from factories to third-party distribution centres, and the risks include damage to local infrastructure that Schneider relies on, such as power plants and transport links.

The scenario was based on one developed by the green central banking group NGFS, which assumes emissions continue to grow until 2080 and result in 3°C of warming. 

Schneider considered four others in the assessment, including a 1.5°C pathway and one reflecting a 4°C world by 2100. 

The project was undertaken to help it “identify and price the materiality” of physical and transition risks that might impact its business in the future.  

Carbon removals

Schneider Electric also outlined plans to start investing in carbon removals in 2025, in a bid to become what it described as “net zero ready”. 

“[T]he Group aims to invest and contribute to carbon removal stored in coming years in the geosphere to progressively match, by 2030, the volume of residual emissions in our operations,” it wrote in the report. 

Its efforts will initially focus on a “mix of nature-based and engineered solutions”, but shift towards just engineered solutions over time, it said.