Schneider Electric is "ideally positioned" for the energy transition, according to its new CEO

The expansion of the electrification and energy efficiency markets has driven the growth of this global energy management and industrial automation giant in recent years, with records in 2022 both in terms of sales (34 billion euros) than in terms of profits (3,5 billion).

“We are at an inflection point: we need to ensure that energy supply systems are sustainable, guarantee supply and allow growth” because the needs will increase sharply in the years to come, said Peter Herweck in an interview with AFP on the eve of the General Assembly which must ratify his appointment on Thursday.

"We believe that electricity is the best form of energy (...) but on the consumption side we have to do things more efficiently. With our technologies we can substantially reduce the electricity consumption of buildings or factories", he added.

He cites in particular the electrical equipment sold by Schneider which allows energy savings to be made, but also the software developed by the French company and the data it has to optimize the electricity consumption of its customers.

Before being appointed CEO, Peter Herweck, 56, also headed Aveva, a British industrial software publisher which supports more than 20.000 companies in more than a hundred countries and whose full acquisition Schneider completed in 2022.

He had previously held various positions at Schneider Electric after having worked for more than twenty years at its German competitor Siemens.

Focus on technology and AI

A few days ago he officially became managing director, succeeding Jean-Pascal Tricoire, CEO since 2013, who will only keep the position of chairman, after more than 17 years at the head of the group.

During the first discussion between the two men, before Mr. Herweck joined the company, it was the strategy focused on digital and software that had intrigued him.

"Technology will be a key point for me", says this engineer by training, an electrician in his youth, who has climbed the ladder.

According to him, to say that "software rules the world" is a little strong but at Schneider Electric, they generate 2,6 billion euros, which places the company "thirtieth" globally for software and " in the top 5" for software dedicated to industry.

The combination of connected products, control systems and management software is therefore a winner for Schneider Electric, which sees itself "becoming an even more important player with the development of artificial intelligence", says its managing director.

The use of data collected on a large scale in the field, on the energy management of buildings, data centers, factories, makes it possible to improve software suggestions for "more efficiency and sustainability", with model "difficult to copy", rejoices Mr. Herweck, whose company regularly returns in the French rankings in terms of filing patents (11th in 2022 with 198 files filed).

Among the reasons that led him to join Schneider Electric, Peter Herweck cites its international side, with some 128.000 employees in more than a hundred countries, but above all the policy of sustainable development.

Thursday, the board of directors will submit for the first time to the vote of the shareholders its climate strategy with in particular its objectives for reducing greenhouse gas emissions as well as the means to achieve them.

According to the Forum for Responsible Investment (FIR) and Ademe (the ecological transition agency), this resolution is 68% aligned with the recommendations of the FIR and obtains the score of 14/20 according to the ACT methodology which measures the contribution to the mitigation goals of the Paris Agreement.

Schneider Electric's emission reduction targets "will not be free", says Peter Herweck. "It therefore seems reasonable to ask the shareholders what they think," he adds, welcoming the progress already made while acknowledging the work that remains to be done.