image

Exciting Time for Businesses with Fast-Moving World, Digitization & Sustainability

By: Aurelie Bergugnat, Chief Financial Officer, International Operations, Schneider Electric | Thursday, 19 September 2024

Carrying nearly two decades of experience, Aurelie began her professional journey in the automotive industry. Having been associated with Schneider Electric for almost 18 years till date, she has spent her career majorly in the US and Europe, working internationally across hubs in the US, Europe, Dubai, Singapore, the Philippines and India. In addition to her strong background in finance, Aurelie has expertise in supply chain, governance, commercial support, R&D and treasury; among others. She has also led digital transformation initiatives during her time as Global Chief Data Officer for Schneider Electric.

In a conversation with The Global Woman Leader Magazine, Aurelie speaks about cash flow management and long-term profitability. but also risk management strategies in emerging markets, proactive risk management, building investor relationships and the role of CSR in business success. Drawing from her experience, Aurelie shares her perspective on how the CFO’s role has evolved lately and expresses her excitement about being a business leader in the current business landscape.

Read the article to know more…

In navigating complex international markets, what strategic financial approaches have you found most effective in optimizing cash flow and ensuring financial stability across diverse geographies?

The management of cash flow varies depending on market maturity and country-specific regulations, such as import-export and currency policies, which can affect profitability. At Schneider Electric, we focus on our core strategies of digitization, electrification, and sustainability, partnering closely with customers to ensure balanced cash management. Our emphasis remains on growth, cost, and a cash-focused mindset.

With sustainability becoming a critical agenda item, how do you integrate environmental, social, and governance (ESG) factors into your financial strategies to enhance long-term profitability and stakeholder value?

Schneider Electric has been committed to sustainability for many years. We closely align our investments with our sustainability agenda, ensuring CAPEX and OPEX allocations support both our customers and ourselves. We prioritize our impact on communities and make commitments to the boards of directors across our operating entities, which are closely monitored through our performance management system.

At Schneider Electric, we have a dedicated performance management system specifically for sustainability, consistent with the company's overall performance. We track and communicate our sustainability commitments monthly, and all operations, including factories, adhere to these commitments. This progress is also reported to the boards of directors of our various entities and regions.

Emerging markets pose unique financial risks. Could you share a pivotal experience where your proactive risk management strategies mitigated financial volatility and ensured sustainable growth in challenging regions?

When working in emerging markets, it's crucial to be agile and thoroughly understand the unique characteristics of each market. There's no one-size-fits-all approach, and scalability is limited. Each geography presents its own constraints and opportunities. We focus on key markets like India and the Middle East, carefully assessing both constraints and opportunities.

We prioritize close partnerships with key customers and pursue strategic projects with a mid-to-long-term approach. Our efforts also involve diversifying our portfolio to manage risk effectively. Working in emerging markets requires close attention to regulatory constraints, risk management, governance, and compliance, ensuring safety, export control, and sanctions are meticulously handled.

We are able to do all this thanks to Schneider Electric’s unique multi-hub model, that ensures the company is multi-local. With our headquarters split among four primary regional markets (India – Bangalore, Asia – Hong Kong, Europe - France, and North America – Boston), collaborators are empowered to make decisions that benefit the local environment.

In fostering strong investor relations, what innovative approaches have you employed to effectively communicate financial performance, strategic initiatives, and ESG commitments to diverse stakeholders?

At Schneider Electric, we strive to be transparent with our investors about our goals. We provide clear commitments on financials, sustainability, and productivity, and we consistently communicate our progress. Our Schneider Sustainability Impact(SSI) includes 17 measures, covering social, environmental, and governance aspects, which we use to evaluate the company. We ensure that our financial statements, sustainability commitments, and overall strategy are consistently integrated, both in our external communications and internal operations.

Amidst technological advancements, how do you envision leveraging digital transformation and automation within corporate finance to drive operational efficiencies and enhance decision-making processes?

To reach our audience, we use various digital tools. You can monitor Schneider Electric's results and publications in any country, which is highly investor-focused. We leverage technologies like RPAs and AI across efficiency streams, including forecasting, cost optimization, and supply chain and commercial interlocks, such as pipeline and order management. Technology is embedded in everything we do and is crucial to Schneider Electric's agenda. For example, over 50% of our offerings have an AI component. AI is mainstream at the company level, applied both in our products and internal processes. Additionally, Schneider invests in an AI hub to enhance our internal AI competencies, ensuring we stay at the forefront of digital technologies for our offerings and internal operations.

How do you believe CSR initiatives and promoting diverse business practices contribute to financial resilience and operational excellence within the automation machinery sector?

I believe CSR commitments are essential for good business, focusing on company resilience, community impact, and portfolio stability. It's about balancing sustainable long-term business, which requires structure and data. Finance plays a central role as it oversees communication of results and ensures the quality of reporting and monitoring. The skills needed for CSR closely align with those in finance, making it a natural extension of the finance function. We also collaborate with the strategy and sustainability group at Schneider Electric to achieve these goals.

What trends do you foresee reshaping the role of CFOs in the automation machinery industry, particularly concerning financial stewardship, risk management, and sustainable growth?

The scope of CFOs has evolved significantly with integrated reporting. It now moves beyond accounting to include performance management, digitization, and sustainability. Being a CFO has become increasingly interesting, requiring a deep understanding of digital transformation drivers for a successful company. CFOs must be attentive to governance, compliance, and regulation, expanding their role further. They also need to navigate new business models, like subscriptions, and manage resource allocation and governance in long-established companies like Schneider Electric. The evolution of the CFO role involves three key areas: financial statements, end-to-end strategy execution, and embracing technology and digital transformation to understand and enable the company’s digital business.

Message for Readers

I'm very excited to work in the current times. The world is evolving rapidly, with both uncertainty and opportunities. Emerging markets are extremely promising. The combination of a fast-moving world, digitization, and sustainability makes this an exciting time, and we should all embrace these changes.

🍪 Do you like Cookies?

We use cookies to ensure you get the best experience on our website. Read more...