Schneider Electric: Measuring Climate Impact

The case for transparent disclosure of end-to-end impact
Sep 19, 2019 4:25 PM ET
Multimedia with summary

The Time Has Come for Climate Impact Disclosure 

Companies that embrace the climate transition increasingly appear as more likely to succeed in the long-term. The shift of markets to low-CO2 challenges the competitive landscape and triggers disruptive innovation. Energy and resource efficient companies are more resilient to volatile commodity prices and reduce their exposure to future supply chain risks. A focus on sustainability is also a must to attract talent, especially as millennials grow in the workforce. As per a recent Deloitte survey, millennials will account for two-thirds of the world population by 2020.

Transition risks

  • Market shift and disruptive innovation
  • Stranded assets (regulatory and economical stranding)
  • Liability risks
  • Exposure to scarce resources
  • Physical risks (adaptation)

Transition opportunities

  • New markets and business models
  • Brand image and customer loyalty
  • Talent attraction and retention
  • Savings and increased resiliency to volatile commodity prices

From increased profitability opportunities to lower risk, long-term growth, and a greater affiliation among the incoming generation it is clear that sustainability generates value. If you invested in a value-weighted portfolio of high-sustainability companies in 1993, your investment would have outperformed a portfolio of low-sustainability companies by 46% by 20101

Download the full Time for Climate Impact Disclosure white paper by Schneider Electric here.