What You Need To Know
Schneider Electric (OTC: SBGSF), a leader in the energy management and automation industry, emphasizes the urgent need for greater deployment of existing technologies to combat climate change. With energy accounting for 80% of carbon emissions, CEO Peter Herweck highlights that renewable energy generation and digital tools can significantly reduce emissions now without waiting for future solutions.
Private sector action is crucial in lowering emissions, and over 4,200 companies worldwide have set emissions-reduction targets validated by the Science Based Targets initiative. Energy efficiency is gaining recognition, with a recent report from the World Economic Forum estimating that energy savings and efficiency measures could unlock up to $2 trillion in savings and avoid building 3,000 additional power stations.
Schneider Electric's research also shows that implementing digital building and power management solutions in existing buildings can substantially reduce operational carbon emissions with a quick payback period. Tackling indirect emissions in the supply chains, known as "Scope 3" emissions, is another key focus area, as these account for the largest part of a company's carbon emissions.
Regulatory pressure and investor demands are driving businesses to initiate decarbonization planning with supply chain partners and prioritize energy efficiency and clean energy procurement throughout the value chain.
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Why This Is Important for Retail Investors
Investment Opportunities: Greater deployment of existing technologies in the energy management and automation industry presents attractive investment opportunities for retail investors. Companies like Schneider Electric (SBGSF) that are leading the way in sustainability and decarbonization efforts can provide potential growth and returns.
Risk Management: Addressing climate change and reducing emissions is becoming increasingly important for companies' long-term sustainability and resilience. By investing in companies that prioritize environmental sustainability, retail investors can reduce their exposure to climate-related risks and potential regulatory pressures.
Market Demand: There is a growing demand for sustainable products and services in the market. Companies that prioritize energy efficiency, cleaner energy procurement, and supply chain decarbonization are likely to gain a competitive edge and capture a larger market share. Retail investors can benefit from this trend by investing in companies that are aligned with sustainability goals.
Positive Impact: Investing in companies that are actively working towards reducing emissions and promoting energy efficiency allows retail investors to support environmentally responsible practices. By aligning their investment portfolio with their values, retail investors can make a positive impact on climate change mitigation.
Financial Performance: Companies that prioritize sustainability and decarbonization strategies often demonstrate better financial performance over the long term. These companies are better equipped to adapt to regulatory changes, reduce operating costs through energy efficiency measures, and attract environmentally conscious consumers. Retail investors who prioritize sustainable investments may potentially benefit from these companies' financial success.
