Sustainability glossary

Air acidification

The acid substances present in the atmosphere are carried by rain. A high level of acidity in the rain can cause damage to forests. The contribution of acidification is calculated using the acidification potentials of the substances concerned and is expressed in the H+ mode equivalent.

Air toxicity

This indicator represents the air toxicity in a human environment. It considers the usually accepted concentrations for several gases in the air and the quantity of gas released over the lifecycle. The indication given corresponds to the air volume needed to dilute these gases down to acceptable concentrations.

Anthropogenic climate change

Anthropogenic climate change refers to the changes in the Earth's climate that are caused by human activities. This includes the release of greenhouse gases, such as carbon dioxide, into the atmosphere through the burning of fossil fuels, deforestation, and other industrial processes. The term “anthropogenic” means “caused by humans,” so anthropogenic climate change refers to changes that are caused by human activities.

Baseline year

A baseline year is a reference point or starting point used to measure changes or progress over time. It is often used in environmental or economic contexts to track changes in emissions, energy consumption, or other indicators. The baseline year is used as a benchmark against which future years are compared to measure progress or changes over time.

Benefit Corporation (B Corp)

A designation governed by B Lab that a business is meeting high standards of verified performance, accountability, and transparency on environmental, social, and corporate governance (ESG) factors. B Corps make a commitment to change their legal governance structure to be accountable to all stakeholders, not just shareholders.

Le Bilan des Emissions de Gaz à Effet de Serre (BEGES)

"Le Bilan des Émissions de Gaz à Effet de Serre" ("The Greenhouse Gas Emissions Balance") is a document that provides information on the emissions of GHGs in a particular region or country. The bilan des emissions document is used to track the progress of a country in the fight against climate change. The country reports their emissions to the UNFCCC.

Biodiversity

“‘Biological diversity’ means the variability among living organisms from all sources including, inter alia, terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species, and of ecosystems.” Source

Schneider Electric wishes to align its "Biodiversity strategy" following the issues of the negotiations that will take place during the COP15 Biodiversity Summit. We expect the target to be articulated around the achievement of “no net loss of biodiversity,” which would be a trajectory for us to follow,  like our carbon neutrality goals which are aligned with a +1.5 °C trajectory for the climate.

Biogas/biomethane

Biogas is a type of renewable energy usually consumed in gaseous forms to replace conventional fossil-based gas (fossil-based is sometimes called “natural gas,” which is not to be confused with biogas). It’s generated by the breakdown of organic matter, such as agricultural waste, food waste, and sewage, through a process called anaerobic digestion. The process takes place in sealed equipment, known as a digester, where microorganisms break down the organic matter in the absence of oxygen, producing methane (CH₄) and carbon dioxide (CO₂) as well as other trace gases. If it’s purified, biogas could be converted into biomethane and injected into gas networks.

Building Research Establishment Environmental Assessment Method (BREEAM)

A method of assessing, rating, and certifying the sustainability of buildings, communities, and infrastructure projects.

BVB

Byggvarubedömningen, or BVB, is a building materials assessment tool owned by a business association consisting of Sweden’s major property owners and building contractors. It’s an important label for Schneider Electric because all the companies affiliated with BVB insist on the use of environmentally approved products in their construction and management projects. Being published in their database gives our products preferential status with association members.

Carbon capture

Carbon capture is the process of capturing greenhouse gas (GHG) emissions, mainly from industrial and power generation sources before they are released into the atmosphere. The captured emissions can then be stored in geological formations or used in industrial processes.

Carbon credit

“Offsets or carbon credits represent greenhouse gases emissions that have been reduced, avoided, or captured through projects that are verified according to credible standards.” Source: UNFCCC, “Climate Neutral Now: Guidelines for Participation,” Mar. 2021

Carbon dioxide equivalent (CO₂e)

Carbon dioxide equivalent (CO₂e) is a metric used to compare the emissions of different greenhouse gases in terms of their global warming potential. It’s used to convert the emissions of other greenhouse gases, such as methane and nitrous oxide, into the equivalent amount of carbon dioxide. This allows for comparing and aggregating the total warming effect of different greenhouse gases. It’s measured in units of mass (e.g., metric tons) and is commonly used in climate change mitigation policy to track emissions from different sources.

Carbon footprint of an organization (e.g., a company)

Similar to a GHG inventory of a company, as per the GHG Protocol Standard: “A quantified list of an organization’s GHG emissions and sources.” Source: GHG Protocol, A Corporate Accounting and Reporting Standard, revised edition.

Carbon neutrality of an organization (e.g., a company)

“A state in which the GHG emissions released into the atmosphere have been reduced or avoided and the remaining ones are compensated with carbon credits. To achieve carbon neutrality, carbon credits from projects that reduce, avoid, or temporarily capture GHGs are accepted.” Source: UNFCCC, “Climate Neutral Now: Guidelines for Participation,” March 2021.

CDP (formerly the Carbon Disclosure Project)

The CDP is an international non-profit organization based in the United Kingdom, Japan, India, China, Germany, and the United States that helps companies and cities disclose their environmental impact. It aims to make environmental reporting and risk management a business norm, driving disclosure, insight, and action towards a sustainable economy. In 2022, nearly 20,000 organizations disclosed their environmental information through CDP.

China Green Design Product

The China Green Design Product logo is authorized by the Ministry of Industry and Information Technology (MIIT). To obtain the label, products must comply with the assessment indicators of the product's technical specifications and provide a product lifecycle assessment report. The Green Design Product label is only granted to 10,000 products.

China RoHS

In China, it’s legally required that low voltage electrical electronic equipment (EEE) must be compliant with the Restriction of Hazardous Substances China Directive (RoHS). As those substances are also targeted by many local or other RoHS-like regulations, applying RoHS China restrictions outside China is key to aligning with other local regulations.

If the product is RoHS China compliant, then relevant logos need to be displayed to show whether the substance is below or above the threshold.  

Circular economy

“An economy where waste and pollution are designed out, products and materials are kept in use, and natural systems are regenerated.” Source

Climate neutrality

“The same concept as carbon neutrality but rather than solely focusing on CO₂ emissions, it extends to zero net anthropogenic greenhouse gas emissions (i.e., including emissions beyond carbon dioxide).” Source

Climate change

“Climate change refers to a change in the state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer. Climate change may be due to natural internal processes or external forcings such as modulations of the solar cycles, volcanic eruptions, and persistent anthropogenic changes in the composition of the atmosphere or land use. Note that the Framework Convention on Climate Change (UNFCCC), in its Article 1, defines climate change as ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods.’ The UNFCCC thus makes a distinction between climate change attributable to human activities altering the atmospheric composition and climate variability attributable to natural causes.” Source

Climate risks (physical)

Physical climate risks refer to the direct and immediate consequences of climate change, such as heatwaves, droughts, floods, storms, and sea level rise. These risks can have a significant impact on the natural and built environment, as well as on human health and well-being.

Climate risks (transitional)

Transitional climate risks, on the other hand, refer to the indirect and long-term consequences of climate change, such as changes in economic conditions, social and political instability, and shifts in global supply chains.

CMR

Carcinogenic, mutagenic, and reprotoxic chemicals, abbreviated as CMR chemicals, make up the first and most toxic category of the toxicity classes into which hazardous chemicals can be subdivided, according to EU legislation. Carcinogenic chemicals can cause or promote cancers. Mutagenic chemicals can cause genetic mutations. Reprotoxic chemicals can damage the reproductive process. Source

Committee of Sponsoring Organizations of the Treadway Commission guide to Enterprise Risk Management (COSO ERM)

Developed in tandem with the World Business Council for Sustainable Development (WBCSD), this governance-focused guidance is designed to apply COSO’s enterprise risk management framework to help companies integrate ESG risks into ERM processes.

Convention on Biological Diversity (CBD)

The Convention on Biological Diversity (CBD) is a legally binding international treaty that was adopted in 1992 and came into effect in 1993. The Convention was developed by the United Nations to address the increasing loss of biodiversity, which is the variety of life on Earth and the natural systems that support it.

The Conference of Parties (COP) on climate

The Conference of Parties (COP) is the supreme body of the United Nations Framework Convention on Climate Change (UNFCCC) made up of representatives from all Parties to the Convention. The COP meets annually to review progress towards climate change mitigation and adaptation, to negotiate and agree on actions to address climate change and its social and economic impacts, and to make decisions on how the Convention will be implemented.

Corporate Knights

Media outlet with a research division producing corporate rankings based on sustainability performance, the most notable of which is the Global 100 Most Sustainable Corporations.

Corporate Sustainability Reporting Directive (CSRD)

Requires certain large companies to disclose information on the way they operate and manage social and environmental challenges.

Cradle to Cradle

The Cradle to Cradle certification is a product standard that assesses the safety, circularity, and responsibility of materials and products across five categories of sustainability performance: material health, product circularity, clean air and climate protection, water and soil stewardship, and social fairness.

CSRHub

A web-based tool that provides access to ESG ratings on most major companies in North America, Europe, and Asia.

Decarbonization

Decarbonization refers to the actions and projects that aim at reducing a company’s carbon footprint, and/or the outcome of such actions.

Declare

Declare is a nutrition label for building products. It’s designed to help specifiers quickly identify products that meet their project requirements. Declare labels disclose all intentionally added ingredients and residuals at or above 100 ppm (0.01%) present in the final product by weight.

Dow Jones Sustainability Indices (DJSI)

A family of indices evaluating ESG performance of publicly traded companies.

Durability

Durability refers to the ability of a product to maintain its performance and functionality over an extended period, without significant deterioration in quality or value. It also implies that the manufacturer will offer replacement parts and maintenance services for the life of the product. Durability results must be based on sound scientific evidence, testing, and simulation. It is also important to include reliable and verifiable data, such as the expected life of the product, the conditions in which it is designed to operate, and any warranties offered. Durability assessment is based on standards such as European Standard CSN EN 45552 and the General method for the assessment of the durability of energy-related products.

ecoDesign

ecoDesign Way^TM is Schneider Electric’s process to ensure environmental performance is embedded into our Offer Creation Process (OCP). The ecoDesign Way scorecard helps project teams define key environmental aspects to be considered from the earliest stage of development based on the customers' expectations and product specificities. ecoDesign Way fully aligns with the Green Premium program since it embeds all available claims.

EcoVadis

Global provider of business sustainability ratings, focused on helping companies collect information from their suppliers, enabling greater and more efficient visibility into supply chain sustainability performance.

Endocrine disruptors 

Chemicals that may interfere with the hormonal system and produce harmful effects in both humans and wildlife through chemical communication disturbance.

Electrification

Electrification refers to actions and projects that aim at replacing non-electric forms of energy, and specifically fossil fuels, with electricity in the energy consumption of a site, a company, or a sector. This can also refer to the outcome of such actions.

Embodied carbon

Embodied carbon refers to the carbon emissions associated with the production, transportation, and disposal of building materials, as well as the energy used in the construction of a building.

Emission factor/emissions intensity

A coefficient that quantifies the emissions or removals of a gas per unit activity. Emission factors are often based on a sample of measurement data, averaged to develop a representative rate of emission for a given activity level under a given set of operating conditions. Source

Emission factor for electricity

The rate of carbon emissions per MWh of electricity generated. Multiplying this factor (kg CO₂e/MWh) by the energy used (MWh) results in the total CO₂e emissions.

End-of-life

End-of-life instructions are complete guidance on the responsible disposal and recycling of a product. It enables customers to optimize recycling and recovery when specific treatment is needed and to reduce health and safety risks after the useful life of their product. Additionally, it can guide product circularity performance and related value propositions for the customer (maintenance and repair services, durability, etc.)

Energy Attribute Certificates (EACs)

Energy Attribute Certificates (EACs), also known as Renewable Energy Certificates (RECs) or Guarantees of Origin (GOs), are certificates that represent the environmental attributes of renewable energy generation. They are used to track and verify the production of renewable energy and support the development of renewable energy markets. Each EAC represents proof that a specific amount of energy has been generated from a renewable energy source, such as solar, wind, or hydropower.

Energy-as-a-Service (EaaS)

Energy-as-a-Service (EaaS) refers to the delivery of energy to customers in the form of a service rather than as a physical product. This approach aims to provide customers with a more flexible, reliable, and cost-effective way to access energy while also enabling greater control and management of energy consumption.

Energy depletion

This indicator gives the quantity of energy consumed, whether it be from fossil, hydroelectric, nuclear, or other sources. This indicator considers the energy from the material produced during combustion. It’s expressed in MJ.

Energy efficiency

Energy efficiency refers to the ability to use less energy to perform the same task with the same level of functionality while maintaining or improving its performance. By providing our customers with highly energy-efficient products or with enablers to reduce the energy consumption of their installation or processes, we help them achieve their sustainability goals, saving energy costs and reducing their environmental footprint.

Energy Efficiency Directive EED (Article 8)

Requires large enterprises in all EU member states to comply with the energy audit obligation every four years.

Energy management

Energy management is the process of monitoring, controlling, and optimizing the use of energy to achieve specific goals, and it involves both energy supply management and energy demand management. Energy supply management involves the procurement, distribution, and management of energy sources, while energy demand management pertains to the ways in which energy is used and consumed.

ENERGY STAR

ENERGY STAR identifies products sold in great quantity in the U.S. with at least 10% better energy efficiency than standard versions. Though ENERGY STAR is a U.S. program, Canada, Australia, Japan, New Zealand, Switzerland, and Taiwan can label their products ENERGY STAR if those products meet certain efficiency criteria.

Environmental justice

Environmental justice refers to the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. It also includes the idea that all communities have the right to be protected from environmental hazards and to have access to clean air, water, and land.

EP100

EP100 is a global initiative led by the international non-profit Climate Group, bringing together over 120 energy smart-businesses committed to measuring and reporting on energy efficiency improvements.

EPD

Environmental Product Declaration (EPD) provides quantified data based on environmental indicators and, when relevant, additional environmental information. EPD is a standardized format and methodology defined in ISO 14025:2006.

ESG

ESG stands for Environmental, Social, and Governance and is a policy framework that organizations use to set and evaluate their progress across all three areas. Environmental criteria consider factors such as a company's carbon footprint and resource use. Social criteria evaluate how a company treats its employees and interacts with its communities. Governance criteria assess a company's leadership structure and decision-making mechanisms. It’s best practice for organizations to be as transparent as possible across all three dimensions of ESG.

EU Emissions Trading System (EU ETS)

A cap-and-trade scheme for emissions management, capping the total volume of GHG emissions from installations and aircraft operators (who are responsible for around 50% of EU GHG Emissions).

EU green taxonomy

The EU green taxonomy is a set of criteria and technical screening factors established by the EU to classify environmentally sustainable economic activities. The taxonomy is intended to provide a common language for investors, companies, and policymakers to identify and assess the sustainability of economic activities.

EV100

EV100 is a global initiative bringing together companies committed to switching their owned and contracted fleets (up to 7.5 tons) to electric vehicles and installing charging infrastructure for employees and customers by 2030. 

French ELAN law and the Tertiary Decree (Décret Tertiaire)

A law that aims to reduce the energy consumption of French tertiary sector buildings. Affected buildings will have to declare their energy consumption on a yearly basis and ensure they reduce it by 60% by 2050, compared to a 2010 baseline.

FTSE4Good

Global index series of the top companies in ESG performance.

Fuel switching

Fuel switching refers to the process of changing the fuel used for energy production or transportation from one type of fuel to another. It's typically done to reduce emissions, improve efficiency, or take advantage of lower-cost or more readily available fuels.

Geothermal energy

Geothermal energy is a form of renewable energy that harnesses the heat from the Earth's core to generate electricity. There are two main types of geothermal power plants: dry steam and flash steam, and it can also be used for heating and cooling buildings, and industrial processes through geothermal heat pump (GHP) systems.

GHG emissions

Greenhouse gas (GHG) means “any of the various gaseous compounds that absorb infrared radiation, trap heat in the atmosphere, and contribute to the greenhouse effect”. According to the “Framework Convention on Climate Change” and “Kyoto Protocol”, there are six main greenhouse gases: Carbon dioxide (CO₂); Methane (CH₄); Perfluorocarbons (PFCs); Hydrofluorocarbons (HFCs); Nitrous oxide (N₂O); Sulfur hexafluoride (SF₆).

According to the GHG Protocol and ISO 14064, there are three GHG emission categories including Scope 1, Scope 2, and Scope 3.

Other sources: White Paper 67, Guide to Environmental Sustainability Metrics for Data Centers, p. 16, and Merriam Webster dictionary

Global Reporting Initiative (GRI)

GRI is an independent, international organization that helps businesses and other organizations take responsibility for their impacts on the environment, economy, and people by providing them with a global common language to communicate those impacts.

Global warming

The estimated increase in global mean surface temperature (GMST) averaged over a 30-year period, or the 30-year period centered on a particular year or decade, expressed relative to pre-industrial levels unless otherwise specified. For 30-year periods that span past and future years, the current multi-decadal warming trend is assumed to continue. Source: https://www.ipcc.ch/sr15/chapter/glossary/

Green bonds

Green bonds are a type of fixed-income security issued to raise capital for environmental projects and initiatives. They’re like traditional bonds in terms of their structure and function, but the income from green bonds are specifically earmarked for projects that have environmental benefits, such as renewable energy, energy efficiency, clean transportation, and sustainable water management.

Green Premium

Green Premium is the Schneider Electric eco-mark that brings more value to our customers and more growth to our company. The Green Premium label stands for complete, transparent, and easily available information about products. Schneider Electric is committed to delivering 75% of its product revenue with Green Premium products.

Our Green Premium eco-mark encompasses a broad range of environmental criteria, meeting and exceeding international regulations and industry standards:

• REACH declaration;
• RoHS compliance declaration;
• PEP a Product Lifecycle Analysis, with carbon footprint assessment;
• End of Lifecycle Instruction if applicable.

Thanks to comprehensive information about Green Premium products, our customers can make more sustainable, environmentally conscious decisions.

Greenhouse gas Protocol (GHG Protocol)

The GHG Protocol is a 20-year partnership between World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). GHG Protocol establishes comprehensive global standardized frameworks to measure and manage GHG emissions from private and public sector operations, value chains, and mitigation actions. In practice, this is the international referential for reporting the carbon footprint of a company.

GRESB (formerly Global Real Estate Sustainability Benchmark)

Investor-led organization providing standardized and validated ESG data to capital markets.

GWP

Global warming potential “describes the relative potency, molecule for molecule, of a greenhouse gas, taking account of how long it remains active in the atmosphere.” Source

Halogen

The halogens are a group in the periodic table consisting of six chemically related elements: fluorine (F), chlorine (Cl), bromine (Br), iodine (I), astatine (At), and tennessine (Ts). Chlorine, bromine, and fluorine are the most common halogens potentially present in our technologies. Organohalogen substances are mainly present in plastic materials as additives (flame retardants, pigments) or as polymer matrices (polyvinyl chloride, polytetrafluoroethylene, polyvinylidene fluoride ). It can also be present in lubricants (fluorinated grease or oil) or as halogenated gas (HFC, SF₆). The issue with halogenated compounds is related to their toxicity as such or when degraded (Br, Cl) and/or their persistent/bio-accumulable properties. Those chemicals are increasingly targeted by environmental regulations through complete bans or taxes. Because there’s currently no clear “halogen-free” definition at the complex product level, we defined our own Schneider Electric “halogen-free” definition based on different existing standards. Sources: internal report , https://www.britannica.com/science/halogen.

There are three possible halogen-free claims in our Green Premium product line:

• Halogen-free plastic parts product: halogen-free plastic and elastomer part + no SF;

• Halogen-free plastic parts and cables product: h+ halogen-free cables + no SF₆ or halogenated gas;

• Halogen-free product: halogen-free plastic and elastomer part + halogen-free cables + low-halogen content PCB + halogen-free consumables for electronics + halogen-free electronic components + no SF₆ or halogenated gas

Hazardous waste production

This indicator calculates the quantity of specially treated waste created during all the life cycle phases (manufacturing, distribution, and utilization). For example, special industrial waste in the manufacturing phase, waste associated with the production of electrical power, etc. It’s expressed in kg.

Hydrogen

Hydrogen is the simplest chemical element that is composed of only one proton. The most abundant element in the universe, hydrogen allows the storage of energy in chemical form, which can then be converted to electricity via a full cell. Source

Hydropower

Hydropower is a form of renewable energy that uses the kinetic energy of falling or flowing water to generate electricity. It’s one of the oldest forms of energy generation and is still widely used today.

Institutional Shareholder Services (ISS)

Comprehensive sector-specific research and data to identify ESG risks and seize investment opportunities.

The Intergovernmental Panel on Climate Change (IPCC)

IPCC is an international body established by the United Nations in 1988. Its purpose is to provide scientific assessments of the current state of knowledge on climate change, its potential impacts, and options for adaptation and mitigation. The IPCC's assessments are widely considered to be the most authoritative and comprehensive source of information on climate change.

International Integrated Reporting Council (IIRC)

IIRC is an independent global organization that aims to promote integrated reporting as a way for companies to provide a more complete and accurate picture of their performance and their ability to create and sustain value over time. Integrated reporting brings together financial, environmental, social, and governance information in a single report to provide stakeholders with a more holistic view of a company's performance and prospects.

International Organization for Standardization (ISO)

ISO is an independent non-governmental organization (NGO) with a membership of 167 national standards bodies. Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market-relevant International Standards that support innovation and provide solutions to global challenges.

ISO 14001

ISO 14001 is an international standard for environmental management systems (EMS) developed by the ISO. The standard provides a framework for organizations to identify, control, and reduce the environmental impact of their activities, products, or services.

ISO 50001

ISO 50001 is based on the management system model of continual improvement also used for other well-known standards such as ISO 9001 or ISO 14001. This makes it easier for organizations to integrate energy management into their overall efforts to improve quality and environmental management.

Kilowatt-hour (kWh)

A kilowatt-hour (kWh) is a unit of energy measurement that’s commonly used to measure the amount of electricity consumed or produced by an appliance, device, or building. It’s equivalent to one kilowatt (1 kW) of power used for one hour.

Lead (Pb)

Lead is a soft, silvery white or grayish metal in Group 14 (IVa) of the periodic table. Lead and its compounds are toxic and bioaccumulate. The toxicity of lead compounds increases as their solubility increases. Lead and lead compounds are restricted through RoHS and REACH regulations in Europe and through many other regulations around the world. It can be found in multiple applications (metal alloys, electronic components, and batteries, for which time-limited exemptions are granted). Lead and lead compounds are increasingly placed under regulatory pressure and must be substituted each time alternative solutions are available. A dedicated claim is defined for Schneider Electric products (lead-free claim) when a product doesn’t contain more than 0.1% Lead at the homogenous material level.

Leadership in Energy & Environmental Design (LEED)

Green building certification program and guidance framework run by the U.S. Green Building Council

Life cycle assessment (LCA)

LCA is a systematic and quantitative method used to evaluate the environmental impacts of a product, service, or process, from the extraction of raw materials, through production, use, and disposal or recycling.

Life cycle inventory (LCI)

LCI as “analysis phase (LCI phase) is the second phase of LCA. It’s an inventory of input/output data regarding the system being studied. It involves the collection of the data necessary to meet the goals of the defined study.” Source

Location-based emissions

Location-based emissions are a way to measure and report GHG emissions that are associated with a specific location or geography rather than a specific organization or entity. This approach is also known as "geo-referenced" or "spatially explicit" emissions.

Long-lived climate forcers (LLCFs)

LLCFs are pollutants that have a long atmospheric lifetime and contribute to global warming and climate change. LLCFs include greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and chlorofluorocarbons (CFCs), and persistent organic pollutants (POPs). They’re called "long-lived" because once they’re emitted into the atmosphere, they can remain there for centuries.

Lower impact material

Products that reduce environmental impact and promote resource preservation by using, for example, recycled materials.

Market-based emissions

Market-based emissions are a way of measuring and reporting GHG emissions that are associated with the market or economy, rather than a specific organization or entity. This approach is also known as "economy-wide" or "sectoral" emissions.

Materiality assessment

A materiality assessment is an assay of an organization's most critical areas of impact across ESG. Conducting a materiality assessment helps the organization identify where to focus its efforts and resources to best meet the expectations of stakeholders and to make the most positive impact on its environment and society. It also helps organizations report on their sustainability performance in a more relevant and meaningful way by focusing on the most significant issues that they’re managing.

Mercury (Hg)

Mercury, also called quicksilver, is a chemical element that turns into liquid metal at room temperature. Mercury and mercury compounds are very toxic substances restricted in Europe through RoHS and REACH regulations, as well as through many other regulations around the world per the Minamata Convention on Mercury. Our strategy is to ban mercury from our products. A dedicated claim is defined for Schneider Electric products (mercury-free claim) when a product does not contain more than 0.1% mercury at the homogenous material level. This claim must be strictly restricted to products/technologies known for using mercury in the past and for which substitution actions were implemented.

Megawatt-hour (MWh)

A megawatt-hour is a unit of energy measurement equivalent to one million watts (1,000 kW) of power used for one hour. It’s commonly used to measure the output of power plants and the consumption of electricity by businesses and homes. 1 MWh is equal to 1000kWh.

Morgan Stanley Capital International (MSCI)

ESG rating designed to measure a company’s resilience to long-term, industry-material ESG risks.

Nationally Determined Contributions (NDCs)

NDCs are the climate action plans that countries submit to the UNFCCC under the Paris Agreement. These plans outline the actions that each country will take to reduce its GHG emissions and adapt to the impacts of climate change.

Nature-based climate solutions (NBCS)

NBCS refers to the use of natural systems, such as forests, wetlands, and coastal ecosystems, to help reduce the impacts of climate change. These solutions can include activities such as reforestation, conservation of natural habitats, and restoration of degraded ecosystems. NBCS can also include the use of traditional knowledge and practices that have been developed by Indigenous peoples to manage natural resources in a sustainable way.

Net zero GHG emissions for a company

As per the “Corporate Net-zero Standard” from the Science Based Targets initiative, this means reducing emissions at a pace consistent with the latest climate science and balancing any remaining residual emissions through carbon removal credits, i.e., measures that companies take to remove carbon from the atmosphere and permanently store it within or beyond the value chain.

Non-financial Reporting Directive (NFRD)

Establishes the rules on disclosure of non-financial and diversity information.

Ozone depletion

This environmental indicator defines the contribution to the phenomenon of the disappearance of the stratospheric ozone layer due to the emission of certain specific gases. The effect is expressed in gram equivalent of CFC-11.

The Paris Agreement

The Paris Agreement is a legally binding international treaty on climate change that was adopted by the UNFCCC in December 2015. The agreement aims to limit the increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius.

Phenolic resins

Phenolic resins were historically used for their isolating properties but those resins are manufactured from formaldehyde, which is carcinogenic in the IARC list and part of the SIN list and CORAP list, with a high potential for restriction in the coming years. Processing phenolics has a high energy demand and scrap material can’t be recycled during processing; phenolics are therefore difficult to manage at the end of their lifecycle. For those reasons, phenolic resins are prohibited for new parts. A dedicated claim is defined for Schneider Electric products (phenolic-free claim) when a product does not contain phenolic resins.

Photochemical ozone creation

An environmental indicator that quantifies the contribution to the "smog" phenomenon (the photochemical oxidation of certain gases which generates ozone) and is expressed in gram equivalent of ethylene (C₂H₄).

Polyvinyl chloride (PVC)

PVC is a thermoplastic that can be rigid or flexible, so it’s used in a variety of applications (particularly in construction). As a halogenated polymer, PVC shows good flame retardancy but degrades at high temperatures, which releases highly toxic chemicals. This, along with the potential presence of additives in its formulation that make recyclability difficult, drives us to limit the use of PVC in our applications. A dedicated claim is defined for Schneider Electric products (PVC-free claim) when a product does not contain PVC parts including cables and electronic components.

Power purchase agreement (PPA)

PPA is a legally binding contract between an electricity generator (such as a utility, independent power producer, or renewable energy developer) and an electricity “off-taker” (such as a utility, company, or government entity) that outlines the terms and conditions under which the generator will sell the electricity that it generates to the off-taker. Corporations may sign PPAs to acquire long-term renewable electricity and secure emissions reduction claims. PPAs are typically either physical, where the power generated under the PPA is physically delivered to the off-taker’s operations, or synthetic, where the PPA is struck as a financial contract for differences between the PPA price and the settled market price for power. (These structures are also referred to as direct or virtual PPAs).

Product category rules (PCR)

PCRs are a “set of specific rules, requirements, and guidelines for developing Type III environmental declarations for one or more product categories.” Source

Product environmental profiles (PEP)

PEP is a type of EPD used by the program operator, P.E.P. Association, which is the international reference program for environmental declarations of products from electric, electronic, and heating and cooling industries.

Product Specific Rules (PSR)

PSRs define rules for specific products within a product category.

Raw material depletion

This indicator quantifies the consumption of raw materials during the life cycle of the product. It’s expressed as the fraction of natural resources that disappear each year, with respect to all the annual reserves of the material.

RE100

RE100 is a global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.

Registration, Evaluation, and Authorization of Chemicals (REACH)

REACH is a European regulation that imposes a full awareness of chemical usage, a ban on the most hazardous substances, and a tracking of substances of very high concern (SVHC) used in processes and products. REACH requires any manufacturer or importer in the EU market to provide information for the presence of SVHC above the 0.1% threshold at part level.

Our strategy is to follow REACH restrictions and to provide SVHC information worldwide. As those substances are also targeted by many local regulations, providing information outside Europe is key to being aligned with local regulations and requirements. Our policy is also to remove SVHC after the sunset date, meaning that our Green Premium products do not expose our customers to the most hazardous substances.

Recyclability

Recyclability refers to the ability of waste materials or products to be collected, reprocessed, and reused in the form of raw materials or new products, either for the original purpose or for others, excluding energy recovery.

Recyclability is one of the most widely spread material efficiency indicators. It’s often targeted by NGOs and regulations (especially for consumer products) to reduce waste generated by manufactured devices and losses of critical raw materials. Recyclability can be integrated into eco-label criteria or tenders’ requirements.

Reducing Emissions from Deforestation and Forest Degradation (REDD+)

REDD+ is a mechanism designed to create financial value for the carbon stored in forests and to incentivize the reduction of greenhouse gas emissions from deforestation and forest degradation. The goal of REDD+ is to slow, halt, and eventually reverse the loss of forests while also protecting the rights of local communities and Indigenous peoples.

Refinitiv

Online database collecting public and company-submitted ESG data and generating ESG scores designed to measure a company’s commitment to emissions reduction, environmental product innovation, human rights, shareholders, and more.

Renewable electricity

In 2017, Schneider Electric joined RE100 and committed to sourcing 100% of its electricity from renewables by 2030, with an intermediary target of 90% by 2025. This program measures the share of renewable electricity in our electricity supply, on the scope of environmental reporting (industrial sites >50 employees and tertiary sites >500 employees certified ISO 14001). Four different types of renewable sourcing are considered: Renewable electricity produced and consumed onsite, renewable PPAs, green tariffs, and renewable certificates.

Repairability

Repairability refers to the ease of fixing a product and applies to any item that has been identified as faulty and needs to be repaired to fulfill its intended use (EN 45554). It covers any spare part/component that is replaced, removed, or serviced outside of the product's regular maintenance schedule. For example, in the case of switchgear, repairability is significantly improved with modular components. Other examples include the use of software to alert the user of which sub-system has failed; the use of standardized parts and fasteners; and the ease of access to the most frequently replaced parts. Repairability is covered by European standard CSN EN45554, “General methods for the assessment of the ability to repair, reuse and upgrade energy-related products”.

Representative Concentration Pathways (RCPs)

RCPs are scenarios of future greenhouse gas concentrations and their resulting radiative forcing, used in climate change research and modeling. They are used to explore the potential range of global temperature increases and other climate impacts that may occur under different emissions scenarios.

Restriction of Hazardous Substances (RoHS)

RoHS is a European Directive restricting the use of hazardous substances (e.g., lead, cadmium, mercury, chromium VI, PBB, PBDE, DEHP, BBP, DBP, DIBP, etc.) in electronic and electrical equipment. In addition, our strategy is to apply RoHS restrictions worldwide. As those substances are also targeted by many local or RoHS-like regulations, applying RoHS restrictions outside Europe is key to be aligned with local regulations requirements. RoHS compliance means that our Green Premium products do not expose our customers to the most hazardous substances.

Science-based targets (SBTs)

Science-based targets (SBTs) are emissions reduction targets that are set in line with the level of decarbonization required to keep global temperature increase below 1.5 degrees Celsius, as per the Paris Agreement. These targets are based on the latest climate science and are intended to align a company or organization's emissions reduction efforts with what is required to meet the goals of the Paris Agreement.

Science Based Targets initiative (SBTi)

The initiative, established in 2015, is a collaboration between CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wildlife Fund (WWF), as well as one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practices in a science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.

Scope 1 emissions

Direct GHG emissions within the operational control of an organization. This includes emissions from the combustion of fossil fuels in boilers, vehicles, and other equipment. Scope 1 emissions are the most straightforward to calculate.

Scope 2 emissions

Indirect emissions generated from purchased electricity, heat, steam, or cooling that the organization or entity purchases from other sources. These emissions occur at the facility where the energy is produced and not under the direct control of the reporting entity.

Scope 3 emissions

All other indirect emissions that are not included in Scope 1 and 2. For example, the emissions from the extraction and production of purchased materials, waste disposal, employee commuting (cars, buses, etc.), business travel (flight, train, rental cars, hotels, etc.), and an organization’s value chain activities. Scope 3 data is the most difficult to attain.

SEC climate-related disclosures rule

The U.S. Securities and Exchange Commission's (SEC) proposed rule that will require all companies that appear on the US stock exchange to disclose their climate-related risk and emissions, covering Scope 1 and 2 emissions and Scope 3 if material to the business’s operations.

SF₆-free

Sulfur hexafluoride (SF₆) is a gas with excellent insulating properties that have historically helped ensure the safety and quality of certain Schneider Electric products. However, SF₆ has a Global Warming Potential (GWP) 25,200 times higher than CO₂, which makes it one of the highest GWP gases. As such, we’re working to eliminate the use of SF₆ in our products by 2025.

Silicone

Silicone is a synthetic polymer that’s generally a liquid or a flexible, rubberlike plastic with low toxicity, high heat resistance, and good electrical insulation. Some silicone precursors are listed as substances of very high concern by REACH regulation, but the main issue is related to automotive industry requirements that ban silicone compounds for painting process-related issues.

A dedicated claim is defined for Schneider products (silicone-free claim) when a product does not contain silicone parts.

Solar power (photovoltaic)

Photovoltaic (PV) solar power is the process of generating electricity directly from the light energy of the sun using photovoltaic cells. These cells are made of semiconductor materials, such as silicon, which convert the energy from sunlight into direct current (DC) electricity. The DC electricity is then converted into alternating current (AC) electricity using an inverter, which can then be used to power homes, buildings, and other systems, or stored in batteries for later use.

Solar power (thermal)

Thermal solar power is the process of generating electricity from the heat energy of the sun. This is typically done by using solar thermal collectors, which are devices that absorb the sun's energy and convert it into heat. The heat is then used to create steam, which powers a turbine connected to a generator to produce electricity.

Standard & Poor’s Corporate Sustainability Assessment (S&P’s CSA)

An annual evaluation of companies’ industry-specific and financially material sustainability practices.

Streamlined Energy and Carbon Reporting (SECR)

Designed to increase awareness of energy costs within UK organizations, it provides them with data to inform the adoption of energy efficiency measures, and to help them reduce their impact on climate change.

Substance of Very High Concern (SVHC)

This is a list of substances, targeted by EU REACH regulation for their CMR (carcinogenic, Mutagenic, Reprotoxic), PBT (Persistent, Bioaccumulable, and Toxic), or equivalent of concern (endocrine disruptor) properties. In Europe, the presence above 0.1% in a product at part level must be at least declared. The list of SVHC is published on the ECHA website.

SundaHus

SundaHus is a consulting company based in Sweden that focuses on supplying the construction and real estate industries with environmental material data. The SundaHus ecolabel conveys to property owners in the Nordics that conscious choices were made in selecting their building’s materials.

Sustainability

What is Sustainability? Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It’s a holistic approach that considers the economic, social, and environmental aspects of development.

Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board (SASB) is an independent non-profit, whose mission is to develop and disseminate sustainability accounting standards that help public corporations disclose material, decision-useful information to investors.

Sustainable Finance Disclosure Regulation (SFDR)

Establishes EU sustainability disclosure obligations for manufacturers of financial products and financial advisers toward end investors.

Sustainable packaging

By 2025, we’ll ensure that all our primary and secondary packaging uses 100% recycled and recyclable cardboard and is free from single-use plastics. This initiative also seeks to avoid resource usage in the first place by digitizing a greater portion of the customer experience, like using QR codes for product information and instructions. Sustainable packaging is a key part of our Green Premium label.

Sustainalytics

A globally recognized organization that provides ESG risk ratings, research, and data. It’s part of Morningstar, a financial services firm.

Take-back

Take-back in Schneider Electric is a process that goes beyond local regulatory requirements. We sponsored a take-back program that collects products for further 5Rs management (repair, refurbish, remanufacture, reuse, and recycle). The sustainability value of take-back provides a clear, defined process to move an end-of-life product to the next step in its lifecycle. Our program includes upgrading and exchanging offers for a new offer regardless of the brand.

Taskforce on Climate-related Financial Disclosures (TCFD)

The Taskforce on Climate-related Financial Disclosures provides information to investors about what companies are doing to mitigate the risks of climate change, as well as being transparent about the way in which they are governed.

Traceability

In the context of sustainability, traceability refers to the ability to track and understand the environmental, social, and economic impacts of products, materials, or services through the entire supply chain or lifecycle. It helps to identify areas where improvements can be made and to assess the overall sustainability of a product or service.

Transparency

Providing robust information on the environmental impacts of our products and solutions throughout the lifecycle enables our customers to assess their own environmental performance more accurately. Some markets (e.g., buildings, utilities) require Product Environmental Profiles (PEP) compliant with standards and certified by an external verifier. Other customers may look for simple derived data to assess their CO₂ footprint.

UK Emissions Trading System (UK ETS)

A cap-and-trade scheme like the EU ETS; replaced the UK’s participation in the EU ETS on January 1^st, 2021.

UNFCCC (United Nations Framework Convention on Climate Change)

The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty adopted in 1992 as a response to the growing concern about the potential negative impacts of climate change. The treaty aims to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.

United Nations Global Compact (UNGC)

The United Nations Global Compact is a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation.

United Nations Principles for Responsible Investment (UN PRI)

Principles for Responsible Investment is a United Nations-supported international network of financial institutions working together to implement its six aspirational principles, often referenced as "the Principles."

United Nations Sustainable Development Goals (UN SDGs)

The Sustainable Development Goals or Global Goals are a collection of 17 interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future."

Upgradeability

Upgradeability refers to the ability to enhance the functionality, performance, or capacity of a product. It can involve both hardware and software improvements. For software, this means a product can be upgraded through downloadable digital modules that improve its functionality, performance, or capacity. For hardware, components can be physically added or replaced to yield improvements.

Vigeo Eiris (V.E.)

Part of Moody’s ESG solutions providing ESG and climate insights, scores, climate data, and sustainability ratings.

Water depletion

An environmental indicator that calculates the volume of water consumed, including drinking water and water from industrial sources. It is expressed in cubic decimeters (dm³). 1 dm³ is equivalent to 1 liter.

Water eutrophication

“Nutrients are essential for plant growth, but the overabundance of nutrients in water can have many harmful health and environmental effects. An overabundance of nutrients — primarily nitrogen and phosphorus — in water starts a process called eutrophication. Algae feed on the nutrients, growing, spreading, and turning the water green. Algae blooms can smell bad, block sunlight, and even release toxins in some cases. When the algae die, they are decomposed by bacteria — this process consumes the oxygen dissolved in the water and needed by fish and other aquatic life to ‘breathe.’ If enough oxygen is removed, the water can become hypoxic, where there is not enough oxygen to sustain life, creating a 'dead zone.’” Source.

Water toxicity

An environmental indicator that measures the usually accepted concentrations for several substances in water and the quantity of substances released over the lifecycle. The indication given corresponds to the water volume needed to dilute these substances down to acceptable concentrations.

Watt-hour (Wh)

A watt-hour (Wh) is a unit of energy equivalent to one watt (1W) of power used for one hour (1h). It’s commonly used to express the amount of energy consumed by electrical devices or generated by power sources.

WEEE

The Waste Electrical and Electronic Equipment (WEEE) Directive deals with the waste management of electrical and electronic equipment in Europe. It prescribes separate collection of WEEE, systemic treatment and recovery of collected WEEE, giving priority to the reuse and recycling of appliances.

Wind power

Wind power refers to the process of generating electricity by harnessing the kinetic energy of wind. It is a form of renewable energy that does not produce any emissions and does not deplete natural resources.