Schneider Challenge - Business Game Challenge

Schneider Challenge

1. General
Sustainability
HEC Business Game
Social Excellence Program –
Client Value proposition
April 2024
TABLE 9

2. TRASPARENCY
SOCIAL and ETHICAL
CONSCIOUSNESS
SOCIETY SPILLOVERS
REGULATIONS PRIMACY
LEGITIMACY
SYSTEMIC RISK
General
Market potential
Customers side
Social labels require transparency throughout
the supply chain. This transparency allows to give
customers more value and justify the increased
price.
Working with sustainable suppliers reinforces
this perception and enhances the support and
credibility of the label. But also social
consumerism is on the rise.
The idea of having a positive outcome on the
society is shaping more and more the world
nowadays.This will produce a positive effect on
certain segment of customers.
Market potential
Institutional side
Governments around the world are increasily focusing
on regulating and enforcing good practices. On this
matter, it is worth mentioning the Corporate
Sustainability Due Diligence Directive
Companies that do not keep the pace with social
concerns are become less relevant and are experiencing
substantial brand erosion.
Lack of focus on social impact will create issues such as:
employee churn, difficulty finding financing and loss of market
access to developing countries.

3. General
Who are we targeting?
Commercial Residential
Focusing on companies with a high interest on
IDE (Inclusion, diversity and equity) issues.
There are two reasons for this approach:
This aligns with the social objective of
environmentally conscious companies.
1.
Ensure the highest convertion rate on our
sales efforts.
2.
Our strategy should be divided in two steps:
Focus on affluent and “socially consciuos”
individuals that will as early adopters who will
popularize our product
1.
Promote our voluntary reporting in active
environmental lobby groups to push for more
transparency in the overall market.
2.

4. Businesses purchasing
products with a social
label can leverage this
attribute in their own
marketing and CSR
reporting, gaining a
competitive edge by
showcasing their
commitment to ethical
sourcing.
General
Value Proposition for Clients
B2B Competitive
Advantage
Risk
Mitigation
Assurance
and Trust
By purchasing
products that are
socially certified,
customers mitigate the
risk of association with
labor abuses and other
unethical practices in
their supply chain.
By purchasing
products with a social
label, customers
receive assurance that
they are supporting
ethical business
practices. This
enhances trust and
aligns with the growing
consumer demand for
transparency in how
products are sourced
and manufactured.
Customers can
align with global
sustainability
goals, such as the
United Nations
Sustainable
Development Goals
(SDGs), through
their purchasing
decisions.
SDG Goals
While products with
a social label might
come with a
premium, they can
lead to long-term
cost savings by pre-
empting future
regulatory changes
that would require
costly compliance
measures.
Long Term
Savings
Commercial
Residential

5. WHY?
It is important to analyse to
confirm ethical sourcing
practices by Schneider
Electric
HOW?
Potential mapping of
suppliers
Continue enhancing the
traceability to Tier 2 and Tier
3 suppliers:
Identifying Tier 1-X
suppliers and perform
human rights
assessment
Working on risk management
for the supply chain
General
Crieteria for the Social Label
Traceability
Origin & Risks Compliance with
Legislation
Social Impact
Scorecard
Origin and Risks Compliance
WHY?
Analyse risk associated with
human right standards as
millions of people lack living
and working standards.
HOW?
Focus on elements used in
Unica) such as Zinc and
Copper as they are the most
dangerous metals for human
right abuses.
Try to diversify the countries
that the company gets its
material from in the future.
WHY?
It is necessary to cater to the
laws implemented in various
geographies to be safe from
legal procedures.
HOW?
Adhere to new global
standards that enforce due
diligence on human rights
based on Reporting, Due
diligence, and Product bans.
Examples: EU CSRD,
Taxonomy, EU CS3D, Aus
Modern Slavery, and US
FLPA
WHY?
Quantify the social impacts
of the products on Climate,
Resources, Trust, Equal,
Generations and Local.
HOW?
Schneider could potentially
focus on 4 goals in which it is
lagging at the moment:
CO2 efficiency in
Transportation
Enhancing the usage of
Waste
Reduce total safety
recalls
Employee driven
development interactions
Social Impact
Scorecard

6. General
Implementation Strategies
Pilot
Setup
Partnership
Strategy
Considered
Scope
Focus Groups: We feel a diverse set of focus groups of people from our primary sales demographics like Spain, France, Egypt
would give us the most representative and usable perspective for our Eco-label.
The value of having an independent label is relatively low because of its lack of credibility. Given the widespread prevalence of
Greenwashing concerns even if people enjoy going through the details they would be very sceptical to take it at face value.
Collaborate with peer group:
We suggest Schneider collaborates with industry peers to develop a unified label for the electrical appliances industry. This
tailored label would address supply chain intricacies, meeting rising reporting standards, and put Schneider in the lime light for
being the forerunner of this effort.
Rollout in Paris:
Paris, being Schneider's HQ, is the logical choice for the initial product rollout due to its proximity and the ability to closely oversee
implementation. Its status as a large metropolitan city with a strong focus on sustainability makes it an ideal launch location.
Subsequent updates will expand the rollout to other major regions.
Additional
Strategies
Product Label Feedback QR code: A very specific set of customer read into the Eco-Labels mentioned on products and they
would generally have a formed opinion about the label. Giving them access to an easy to access QR code where they could suggest
further updates or implementation ideas on our label would help us stay updated with our goals.
Social Initiatives: We feel that a modestly sized welfare program for Tier - X suppliers in the developing countries could be a great
segway into getting more government compliance. For instance, India is really pushing for apprenticeship programs and creating a
scheme to create more growth opportunities with suppliers would not only incentivise better reporting but also improve our
targeting on various SDGs.

7. General
Expansion to other programs
Evaluate the success and challenges of the pilot.
Consider the adaptability of the label criteria and implementation strategies to different products or markets
Adjust the program based on feedback and results.
Plan a phased rollout to additional product lines, potentially starting with those most susceptible to human rights risks or
those where consumer demand for ethical products is strongest.

8. General
se.com