Schneider Electric launched April 4 its “Materialize” supply chain decarbonization program to help metals and minerals companies reduce carbon emissions by their suppliers worldwide. To meet exponential demand for their products without further increasing carbon emissions, Schneider reports it’s crucial for end-user companies to decarbonize power supplies, mitigate environmental impacts of their energy-intensive processes related to these critical resources, and reduce the sector’s Scope 3 emissions, which are typically produced by companies they work with.
Materialize is a continuation of Schneider’s suite of the supply-chain decarbonization programs from its Sustainability Business consulting division, which employs supply-chain cohorts for renewable, scalable energy procurement. The program will encourage wider value chains to transition to renewable energy sources by accelerating deployment of decarbonization projects and software, and improving access for suppliers to renewable energy solutions at scale, such as power purchase agreements (PPAs).
“We’re delighted to launch Materialize as our latest collaborative program to reduce Scope 3 emissions. We have a strong track record of working with customers to meet their sustainability objectives, and this program will accelerate action in this sector,” says Barbara Frei, industrial automation EVP at Schneider Electric. “Educating suppliers in the sector’s wider value chain on the importance of their operational models in closing net-zero ambition gaps is vital for us to decarbonize the sector. Materialize will drive definitive next steps for the industry to lead the way.”
Reducing Scope 3 emissions is challenging due to value chain complexities, data availability and reliability, and difficulties in defining the breadth of the metals/materials sector’s emissions. Its suppliers typically lack decarbonization expertise, and face cost and availability barrier. The Materialize program will provide experts from Schneider’s sustainability business, who can engage hundreds of suppliers via digital technology platforms and guide them on removing those barriers.
“Through collaboration and innovation, the partnership between Global Mining Group (GMG) and Schneider Electric seeks to revolutionize the mining supply chain, moving it even further toward sustainability,” explains Heather Ednie, CEO at industry collaborator Global Mining Guidelines Group (GMG). “As GMG members push the boundaries of what’s possible, Materialize will be instrumental in disseminating knowledge to the industry at large, and establishing clear pathways for it to become more sustainable.”
The program can also offer industries outside of the metals/materials sector a way to decarbonize their broader supply-chain ecosystems by sourcing suppliers that prioritize sustainable and low-carbon production methods.
“Measuring Scope 3 emissions shines a spotlight on supply chains and reinforces the importance of circularity. Materialize will help to further circularity in the sector and beyond, and this is something we support,” adds Kunal Sinha, global recycling head at Glencore, a commodity trading and mining company.
Schneider Electric’s other Scope 3 programs include “Energize,” a collaborative effort across the pharmaceutical industry with over 500 supplier companies already participating, and “Catalyze” for semiconductor companies. Both engage thousands of suppliers to reduce program sponsors’ Scope 3 emissions. The portfolio builds on Schneider’s Zero Carbon Project that provides resources and guidance to program participants, encouraging ambitious decarbonization goals with a deployment action plan to achieve it.
