Net Zero Plan Review: Schindler

Executive Summary

In the elevator and escalator industry, Schindler's commitment to a 2030 absolute reduction in greenhouse gas (GHG) emissions for scope 1 & 2 and a 42% reduction across scope 3 from a 2020 baseline demonstrates a more aggressive approach compared to competitors like Otis Elevator Company. Otis aims to reduce absolute Scope 1 and 2 GHG emissions by 50% and Scope 3 emissions by 15% by 2030 using a 2019 baseline. Schindler can more easily move up the ranks of climate leadership with their targets, which has already been validated by the SBTI. However, there’s a significant lack of details (or at least a defense of its rigor) of Schindler’s initiatives, from the company’s calculation of its GHG emissions reduction to its approach to carbon removals and overall climate communications.

Carbon Calculation

Schindler has a published total carbon emissions number, but it takes more digging to find it. It’s buried in their TCFD report, which is linked in their annual nonfinancial report, rather than posted on their more readily accessible sustainability page.

The sustainability page presents a general breakdown of the carbon emissions and enumerates the sources for each scope. However, aside from getting data from suppliers (and procurement forms only 27% of their GHG emissions), Schindler provides little information on its data collection processes.

This is important because Schindler has claimed to have achieved a 35% reduction to their Scope 3 emissions against a 42% goal, which shows they are ahead of pace and relatively close to their 2030 goal. However, there are no details on how this progress was calculated, which puts the company at risk of greenwashing.

Renewables and Process Transformation

There are no information on how much carbon emissions reductions are to be expected from each of Schindler’s initiatives. A carbon waterfall chart could help visualize this.

Schindler’s initiatives, on the surface, seem simple. The company focuses on local sourcing, circular economy through waste reduction and refurbishment hubs, fleet electrification, and continuous improvement of products. The complexity of this decarbonization pathway lies in the fact that the company is present in over 100 countries. This presents challenges and an opportunity for Schindler to clarify and communicate how they are faring against such difficulties, considering its work with tens and thousands of suppliers and subcontractors.

Additionally, Schindler has achieved 99% renewable energy sourcing in 2024, but there are no more details on leased buildings in the countries they operate, aside from prioritizing buildings with high energy efficiency standards. Is Schindler offsetting energy use in these buildings?

Schindler has also engaged 80% of its suppliers through EcoVadis, but more information needs to be reported on the specifics of this engagement. How is Schindler incentivizing its suppliers to decarbonize? Are they putting in place specific supplier criteria, and procuring only from those suppliers who meet standards of environmental responsibility? How is Schindler measuring the progress of their suppliers? Schindler should exploit the high engagement rate and specify how they are working with suppliers. 

On the end-of-life treatment of their products, local refurbishment hubs are excellent, considering the nature of the materials that go into Schindler’s elevators, walkways, etc. Schindler should provide more details on these refurbishment hubs, map their locations, and explain how much waste is being diverted from landfills.

Finally, the use of their sold products is the biggest source of their GHG emissions (70%), and their solution continuous development of their A-class energy rating modular elevator product line, optimizing the energy consumption, and improving transparency by providing environmental product declarations (EPDs). However, there is no information as to the timeline of when these initiatives would achieve their targets, how much reduction can be exactly expected from this, and what specific technologies they are investing. 

Carbon Offsets and Removal Strategy

Schindler states that up to 10% remaining emissions that have to be neutralized through carbon removals, but there are no further details to elaborate. Carbon offsets are also not included in their decarbonization pathway. While it’s praiseworthy to not rely on carbon offsets and invest in innovation and development, Schindler should provide information on how they would approach the challenge of removal. Is the company keeping abreast of the latest removal technologies and investing in them? What’s the approach to that remaining 10%?

Conclusion

The company claims to be ahead of pace, having reported a 35% reduction in scope 3 emissions, for instance. But which initiatives are exactly contributing to these reductions, and by how much? Eighty percent of its suppliers are engaged and supplying Schindler with sustainability-related date, but what else are there in these engagements? How are their suppliers and customers cooperating on the reductions, and what incentives have they put into place? What is Schindler’s approach to carbon removals, on which they state ten percent of their emissions depend on? More importantly, how does Schindler’s decarbonization pathway play out according to specific regional contexts, considering the company’s presence in over 100 countries? What challenges does this scale present, and how is Schindler approaching them?

When these have been laid out more, all of this should be packaged in a more well-developed climate communications strategy. Its dedicated sustainability webpage, for instance, should present the number of total GHG emissions, and visualize the expected carbon emissions reduction from its strategies, or map their refurbishment hubs, etc. And finally, Schindler should defend the rigor of their initiatives with more conscise, clear communications.

Schindler’s investment in sustainability is already apparent. The Swiss company is keeping abreast of the European Union’s ever-evolving regulations, their goals are SBTI-validated, they are engaging third party companies like EcoVadis to reach 80% of their suppliers and more, they follow the TCFD reporting framework, and have put in place an ambitious goal. When Schindler solidifies the architecture of its whole decarbonization pathway, the company will more easily position itself as a climate leader in the industry with its comprehensive net-zero strategies.