Schneider Electric

We like Schneider Electric’s leading global position in industrial technology and its exposure to attractive growth themes such as cloud computing and electrification.

It is probably the world’s number one provider of energy management and automation solutions, with a broad portfolio spanning from building‑automation controllers and smart‑grid hardware to industrial‑IoT software. Its secure position in critical end‑markets—data centres, buildings, utilities and industry—gives it strong pricing power, recurring revenues and impressive customer loyalty. 

Schneider Electric regularly wins international awards for its commitment to sustainability. A blend of growth, profitability and sustainability underpins the positive investment case. 

Whilst Schneider Electrics's products improve the safety and efficiency of customers' operations, some products are sold into industries such as oil and gas, utilities, and mining.

The company supplies energy management products, including power management and electrical distribution systems, for both merchant and military vessels in the marine sector. 

We are often impressed with Schneider Electrics’ environmental performance; however, we recognise that risks associated with the company’s activities remain. These include high emissions as a result of significant energy and water usage in production processes. The manufacture of electrical and electronic equipment may also generate hazardous waste.

Separately, there are concerns about the sourcing of critical minerals, as extraction has been linked to poor or hazardous working conditions and human rights abuses.