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Schneider Electric launches Materialize program for Scope 3 decarbonization of natural resources London, UK
09/04/2024
Innovation decarbonisation Energy scope 3
Materialize unites leading critical resource and materials companies to reduce supply chain emissions by guiding suppliers to understand and implement decarbonization strategies
Leveraging Schneider's Sustainability Business advisory experts, the program will help suppliers participate in utility scale, renewable power purchase agreements (PPAs)
Decarbonizing materials will offer emission-reduction opportunities to broader value chain and facilitate the transition to a low-carbon economy
Schneider Electric, the leader in the digital transformation of energy management and automation, today launched Materialize, a supply chain decarbonization program designed to support companies in the metals and minerals sector to reduce carbon emissions across their global supplier base.
As the world transitions to net-zero emissions and scales up clean energy technologies, demand for minerals and metals will grow exponentially. To meet this demand without furthering carbon emissions, it is vital that companies collaborate to decarbonize power supply, mitigate the environmental impact of the energy-intensive processes related to these critical resources, and reduce the sector's Scope 3 emissions.
Materialize is a continuation of Schneider Electric's suite of supply chain decarbonization programs from its Sustainability Business consulting division, which leverage the power of supply chain cohorts for renewable energy procurement at scale. The Materialize program will encourage the wider value chain to transition to renewable energy sources by accelerating the deployment of decarbonization projects and software, improving access for suppliers to renewable energy solutions at scale, such as power purchase agreements (PPAs).
We are 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, said Barbara Frei, Executive Vice President, Industrial Automation at Schneider Electric. Educating suppliers within the sector's wider value chain on the importance of their operational models in closing net-zero ambition gaps is vital if we are to decarbonize the sector. Materialize will drive definitive next steps for the industry to lead the way.
Lowering emissions is a challenging task due to the complexity of the value chain, data availability and reliability, and the difficulties in defining the breadth of the sector's Scope 3 emissions. Suppliers lack expertise in decarbonization and face barriers to progress, such as solution costs and availability. Through Materialize, experts from Schneider Electric's Sustainability Business will simultaneously engage hundreds of industry suppliers through digital technology platforms and guide them on removing such barriers.
Industry collaborator, Global Mining Guidelines Group (GMG), CEO Heather Ednie, said: Through collaboration and innovation, the partnership between GMG and Schneider Electric seeks to revolutionize the mining supply chain, moving it even further toward sustainability. As GMG members push the boundaries of what is possible, Materialize will be instrumental in disseminating knowledge to the industry at large, and establishing clear pathways for it to become more sustainable.
Materialize also has the potential to offer industries outside of the sector a way to decarbonize their broader supply chain ecosystems by sourcing materials suppliers who 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, said Kunal Sinha, Global Head of Recycling at Glencore.
Schneider Electric's other programs include Energize, a collaborative effort across the pharmaceutical industry with over 500 supplier companies already participating, and Catalyze for semiconductor companies. Both were created to engage thousands of suppliers simultaneously to drive swift and measurable action to reduce program sponsors' Scope 3 emissions. The portfolio builds on Schneider's foundational initiative, The Zero Carbon Project, that provides resources and guidance to program participants, encouraging ambitious decarbonization goals with a deployment action plan to achieve it.
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