CO2 Impact Methodology: Saved and Avoided Emissions

This document presents the comprehensive CO2 Impact Methodology developed by Schneider Electric. Published as Version 2 in September 2022, this guide outlines a robust framework for quantifying the saved and avoided greenhouse gas (GHG) emissions attributable to Schneider Electric's diverse range of offers, including products, software, and services.

The methodology is designed to provide transparency and consistency in climate impact disclosure, addressing the growing need for standardized quantification in the capital goods and consumer durables sectors. It emphasizes the distinction between 'saved' emissions (from upgrading existing systems) and 'avoided' emissions (from new infrastructure compared to a business-as-usual scenario).

Key Principles and Scope

The guide details the accounting and reporting principles, ensuring alignment with international standards such as the GHG Protocol and ISO 14064. Key guiding principles include:

• Rigorous and Detailed: Developed with expert consulting, featuring detailed calculation rules and forward-looking emission factors.
• Conservative and Realistic: Applied assumptions to avoid 'greenwashing' and ensure credible climate claims.
• Transparent: Full disclosure of calculation rules and data sources to build trust and enable peer alignment.
• Compliant and Verified: Aligned with GHG Protocol principles and independently reviewed by EY for consistency, accuracy, and relevance.
• Pragmatic, Flexible, and Widely Applicable: Designed for broad adoption across various industries and activities.

The methodology covers the full lifecycle of offers, incorporating scope 1, 2, and 3 emissions as defined by the GHG Protocol Standard.

Applicability and Ambition

This methodology is applicable to companies selling long-lasting tangible assets, software, and services used by businesses and final consumers. Schneider Electric aims for this methodology to become a shared industry standard, fostering consistent disclosure of CO2e impact across the consumer durables and capital goods sectors. The company's target is to enable its customers to save and avoid 800 million tonnes of CO2 from 2018 to 2025.