Schneider Electric SWOT & PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Evolution in Energy & Industrial Sectors: In the next 5 years, the number of connected and controlled industrial assets would be greater than the number of people on the planet by a factor of 3x. From automobiles, drones, and manufacturing robots to solar inverters and wind turbines, the need for cleaner energy solutions are quickly increasing. Industrial customers have started realizing the immediate value from operational data. Transition to “edge computing” has enabled real- time action, especially in industries requiring constant up- time. Edge computing limits the need for data “round trips” to and from the cloud. Organizations that build “horizontal solutions” that can be used in multiple industries would be able to acquire a larger market base. Schneider Electric drives the energy transition by launching products and solutions for active energy management of homes, buildings, data centres, infrastructures, industries, and throughout remote communities. Their advanced digital solutions and services enable all actors of the electricity value chain, from producers, to consumers to efficiently operate in a decentralized environment.

2. Focus on Energy Demand Side: Schneider is leading the transformation to a more electric world with decentralized and demand-driven power solutions. Schneider Electric, has focused greater than 90 per cent of their business on the Energy Demand side, with strong global leadership positions across 4 end markets. especially When produced from renewable energies electricity brings massive efficiency opportunities in demand side consumption. Digitization is the key enabler of this transformation. Schneider Electric, with its partners, will deliver a first-of-its-kind solar photovoltaic (PV) and battery microgrid project in northern Adelaide, Australia. The microgrid can harness the full potential of renewable energy by dealing with the intermittent nature of solar power, facilitated by the integration of Schneider Electric’s market-leading EcoStruxure digital platform, which can optimize the site’s solar PV and battery storage.

3. Long-term growth in urbanization: The world is transforming and this transformation is driven by megatrends such as urbanisation, that are accompanied by industrialization of new economies along with their digitization. Industrialization in New Economies will drive up energy consumption by 80% in the Industry sector. Schneider Electric has developed the widest network of distribution and partners in the industry by providing a unique platform with multiple accesses. ‘Smart- City Projects’ coming up across the globe especially where Schneider has a dominance, they provide for a huge opportunity for the Schneider Electric to expand and capitalize on the long-term growth of urbanisation.

4. The increasing need for automation of Schneider Electric’s customers: The power distribution segment is undergoing a transformation to provide 24x7 power to all and improve the reliability and quality. Further, campaigns in developing economies such as ‘Make in India’ as well as rising standard of power reliability and safety have created significant opportunities for growth. Coupled with this, governmental organisations look to improve operational efficiency across the whole enterprise, while at the same time improve security and safety of operators and the environment. Schneider Electric offers advanced automation solutions to establish self-healing grids, unmanned stations and asset management solutions.

Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Climate Commitments by the Group: Schneider Electric announced at the Climate Week in New York City its 3 new climate action commitments, first, demonstrate carbon neutrality in its extended ecosystem by 2025, second, achieve net-zero operational emissions by 2030 as part of its validated SBT target and the last, engage with suppliers towards a net- zero supply chain by 2050.Schneider Electric’s sites and products meet the applicable regulatory environmental requirements. Relying mainly on internal and external auditors, a continuous assessment system to ensure compliance with regulations is in place. Their plants and logistics centres, with more than 50 employees, are ISO 14001 (environment) certified, and almost half of these sites have also received ISO 50001 (energy efficiency) certification. They implement an integrated management system that also covers Quality (ISO 9001) and Health and Safety (OHSAS 18001). Schneider Electric continued implementing its Environmental and Health & Safety strategies. These place increasing importance on eco-design, making it systematic and exhaustive, in their efforts to reduce CO2 emissions, on circular economy goals for the offers and for the resources used, and on their ever-increasing energy efficiency objectives. Products’ environmental profile, information transparency and access, and even end-of-life product management are key focus of the company to reach customer expectations.

2. Reducing Carbon footprint: Global Energy consumption would increase by 25%, by 2040 and the world’s population is expected to rise to 9.8 billion people. The UN has suggested that global CO2 emissions must be reduced by 45 percent to avoid a rise of 1.5-degree Celsius. Businesses across the world must find ways to bring energy-poor populations access to energy while fighting climate change. One- eighth of the population today lacks access to electricity. By 2040, 700 million people would still lack access to electricity. Almost 2.7 billion people lack access to clean cooking fuel. Schneider Electric works to resolve this paradox by developing technological solutions to close this energy gap.

3. Improved environmental performance of its plants: Plants and products in electric and electrical manufacturing are subject to extensive and increasingly stringent environmental laws and regulations in all countries in which they operate. The Schneider Electric Group started a process to continuously improve the environmental performance of its plants and industrial activities, that limit risks related to the environment, as well as a process to review and monitor possible environmental risks. This program is known as CLEARR (Company-wide Look at Environmental Assessment and Risk Review) that included 221 sites in 2017, each giving rise to the identification and review of historical or current potential risks that the company poses to the environment.