Schneider National

Schneider aims to reduce its emissions intensity by 7.5% by 2025 and by 60% by 2035, however, the boundaries of the emissions reduction targets are unclear . Around a third of the company’s operations take place via its subcontracted transport fleet, thus, the company’s targets should cover scope 3 emissions. Schneider’s longest emissions intensity target runs until 2035 and it is unclear whether the target includes carbon offsets. Its targets are not detailed enough to hold management to account to reduce emissions. The targets do not look out beyond the average lifetime of the company’s vehicles and are not set at frequent enough intervals. Schneider should set long-term targets with regularly spaced intermediate targets to incentivise near-term action.

Schneider aims to reduce its emissions intensity through growing its fleet of electric vehicles and increasing its intermodal capacity (road to rail). However, its transition plan lacks financial commitment to increase the proportion of low-carbon vehicles in its fleet. Schneider did not conduct a climate scenario analysis to inform its transition plan and ensure the plan’s ambition is sufficient for a 1.5°C pathway. Schneider does not incentivise low-carbon performance through executive compensation. It can improve the likelihood of a successful low-carbon transition by aligning its incentives with its decarbonisation commitments.

In 2021 the company’s intermodal segment produced 22% of the company’s revenues. Intermodal operations consist of door-to-door container delivery services, using a combination of rail and truck transportation. All of the company’s rail operations and some its road activities are subcontracted . in 2021, 18% of the company’s drivers were owner-operators. Despite this, the company does not disclose any activity or emissions intensity data on its subcontractors. Schneider lacks data on the future emissions intensity of subcontracted transport services, information which will allow Schneider to align to its 1.5°C pathway more easily.

Since 2020, the company has offered a platform solution for logistics operations to its customers. This platform gives customers access to efficient multimodal options to manage their carbon footprint and encourages reductions through some promotional initiatives. Additionally, Schneider gathers feedback through quarterly calls and surveys and educates its customers on ways to reduce shipping-related emissions. Despite these actions it has no clear strategy or financial incentives to influence customer demand for low-carbon transport alternatives.

The company started to report its scope 1 emissions data in 2021. Schneider’s has emissions intensity targets for 2025 and mid-term to 2035. However, the company’s target could not be assessed because it is unclear whether the target include carbon offsets and base emissions data is not available

The company has not disclosed sufficient detail about how it plans to achieve its targets. 25% of Schneider’s revenues are generated via its subcontracted fleet but the company does not track emissions from its subcontractors. The company did not conduct scenario analysis to inform its transition plan.

Schneider launched a logistics platform in 2020 which enables route and multimodal optimisation to reduce fuel use. The company is expanding its intermodal capacity, currently providing 22% of its revenues. In 2021, Schneider deployed 330 rear wing systems on its trailers to increase fuel efficiency.

The company does not disclose sufficient activity data to assess its past emissions intensity. There is no evidence that the company has significantly reduced its emissions in the recent past.

Schneider has set near and mid-term targets but these could be undermined by its lack of a comprehensive low-carbon transition plan, which lacks a detailed set of actions, oversight of its subcontracted suppliers and financial commitment to increase the proportion of low-carbon vehicles in its fleet at the scale required.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company has a grievance mechanism available to workers and external stakeholders. However, no other policies or commitments of the company related to human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company commits to respecting the health and safety of its workers, and discloses some indicators of workforce diversity, including the gender of its workforce by employee category. However, the company can strengthen its disclosure on these subjects and other key decent work issues that ensure the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.

The company has a policy prohibiting bribery and corruption and has a grievance mechanism where issues on this topic can be reported. The company can strengthen its disclosure on this topic and other key ethical business topics including, personal data protection, tax, and lobbying and political engagement.