Certainly that's what

I got when I got one is already on me.

Thank you.

Well I have a couple things of
confession here to start with

first of all I understand that.

The guy that was here last week gave
away like coupons the Waffle House.

I don't have anything I get
anything I get I'm going

to get over the commercial here a little
bit quickly in terms of what do we as

a company what we do and I want to kind of
get to the subject at hand which I hope is

the principal reason why you're here and
what I want to do really quite frankly

is kind of challenge you all a little bit
in terms of as you enter the workforce.

Some of the decisions that I make today
you're going to have to live with and

quite frankly I will offer up to you right
now my generation has not had a great

track record in being responsible
on this particular topic.

So I start with an apology.

And we'll talk about a few problems and
potentially some ways ways out of that.

So with that backdrop.

OK So here's the company right so

this company is actually got
a heritage of almost two hundred years.

However what the origin
of the company is and

what it is today is entirely different.

OK so today we are basically focused
on the equation of efficiency

in this case we will talk about his energy
the modern company I would say was born

in the late eighty's and we just
a little bit after two thousand and

crossed eight billion euro in sales will
probably finish this year we actually

announced publicly our results next week
so I can't kind of tell you too much but

we'll cross about twenty
five billion euro.

In sales.

We do business in one hundred thirty
countries in North America we do about

twenty six percent of the group's sales in
North America are and customers are homes.

OK commercial and

industrial buildings large infrastructure
like utilities etc We do a very big.

Business and data centers themselves and

then a lot of I would say overall software
solutions for the efficiency of cities

transportation systems and
that kind of public infrastructure that.

So that's really what we're focused on.

We live in this middle world here in
the sense that we think about energy.

We're not anybody that produces it.

We essentially make it
efficient make it safe help

people utilize it help you control it and
hopefully help you use less of it.

So we're kind of right in between
the producers in the machines in the in

the capacity that uses it.

This is what I want to
pause on a little bit.

This is the principle equation that
anybody who works in our company wakes up

and tries to solve and actually
the equation while it's mathematically is

not much of a challenge for

you guys in terms of the implications
of it are extremely difficult.

So the current path that we're on
today essentially the demand for

energy just by sheer progress as a race
to capitalism extensions of middle class

bringing power to countries that don't
have it is basically going to double what

the energy capacity is today by two
thousand and thirty at the same time

we've got to figure out and this is
the part is the paradox are going to

figure out how to cut the carbon
footprint in half from today's base.

OK So those two things don't
necessarily kind of go together and

essentially this is what we're really
the business problem that our country our

company scuse me is trying to say this
is what's going to make us relevant in

the future and why we see ourselves as
a relevant and sustainable business now.

The challenge at hand here and

I want to as we get to keep in mind
you know we're going to have a Q.

and A session which is your traditional
approach to this and what makes sure that

you have an opportunity to kind of get
your own voice out so I'm going to

try to go through this is efficiently
as I can this map is essentially

the basis of what you see from a carbon
footprint of C O two emissions today.

Now not part of the introduction but
perhaps if you know any.

Think about this.

I not only my responsible for
North America but up until last December.

I was also responsible for
a couple businesses globally.

So as a result of that I had a chance to
kind of travel the world see different

types of economies
China India Europe etc and

I would tell you on
the topic of sustainability.

We've done a terrific job in this
country of avoiding taking a position.

Right.

We never signed up to Kyoto never sign
up to any kind of requirements in any of

the subsequent meetings that took place
whether it's Copenhagen exciter up and

essentially we are one of the bigger
problems in this business equation

in terms of carbon footprint with another
bigger problem also being China and

that's much more I would say driven by you
know you've got a commie that on average

of the most recent years is going to grow
about eight percent per year they induce

about twenty five million workers
into into their workforce every year

in order to keep up with the production
that they have in their economy.

They are starting to emerge a middle
class as a result of that and

they've got a very big problem which
is even if you're not motivated by

the social logical and
economic impact of it.

The problem is that they won't have
any healthy workers to feed that

eighty percent G.D.P.
because the air quality so

bad because their primary use of
utilities is coal is generated by coal.

OK this is this is the path we're on today
as forecasted by what's the energy mix.

This is not very inspiring at all and
fact what it basically says

to you if you want to translated in
short sentences it says The Times two.

Divided by two equation doesn't happen
because essentially what you see here and

this is basic essential I believe it's
Department of Energy projection really not

much happens we trade off three points
of our overall capacity of coal for

a point of natural gas increase four
points renewals go down three points and

in nuclear.

And add up one point in virtual which
can be considered micro goods and

things that nature.

So essentially it's a status quo.

So the other part of what
our business equation is

is to quite frankly be a rather
nuisance to government industry and

anybody who will pay attention to is
how do we effect a different outcome

than what this is currently projected
because this is not a good outcome.

And this is part of that initial part
of the apology I'm going to make

this is what I'm handing you over.

In my part of my message your message
number one is we've got to have

a different outcome
than what you see here.

And it's rather interesting and

I think to some degree this
is caused by a couple things.

And we'll talk about it in a second
one is if you've tried to find

in all your studies if you ran into a car
course that made you do this to say let's

go find an energy policy that is guiding
what this country does in terms of its

energy mix its approach to wherever you
can't find it because it doesn't exist.

So we have no kind of master plan
that's going to take us anywhere.

So essentially this is why we get
out of that we get the status quo

kind of energy mix versus On the contrary.

For example you can sit and take like take
a Germany which has got an incredible

cooperation between industry education and
the government.

And as a result of Fukushima For example
banks makes a commitment with inside

two weeks and says we will be out of
nuclear by two thousand and twenty five.

They don't really know how they're
going to do that but they've

also made a commitment essentially that's
exactly what they're going to go do as

a result of that and what that really was
was not a creation of an energy policy.

It was an adaptation of
a policy they already had.

We already know about what
the population growth is

going to be in this particular state I was
mentioning China before so China's policy.

China's population scuse me
is essentially going to fly.

OK and actually starting in two thousand
and sixteen that it starts to decrease.

Ours is not essential
because of immigration and

other needs like that because we have
a basically an open society as a result of

that which is a good thing
that's a good thing.

OK don't have enough engineers in this
country certainly need a lot more which is

obviously a very relevant topic when
you're sitting in Georgia Tech.

Back to this point about you know
which countries I would say provide

the inspiration about efficiency.

When it comes to the topic of energy and
in every instance it's always

everybody's kind of dialed in
business is involved governments

involved their education system is
trying to cooperate and support

both those entities and everybody kind of
moves in the kind of same same direction.

I will tell you as a global businessman
when I when I kind of go to Denmark.

And understand how they've come
accomplish things or go to Sweden and

understand how they complicate
things are go to Germany.

Like I just mentioned and
then I come back here.

It's somewhat embarrassing
on this particular topic.

Because we really have.

I mean we're number nine and
in terms of energy efficiency and

how is this calculated and
here's how to think about this.

Let's imagine you have zero interest in
the societal impact of this topic and

all it all you want to think about is is
this country industrially competitive.

OK what this equation is what this ranking
is it's how much energy does it take

to output a dollar of G.D.P.

And if you think about the economic
system that this country created and

how effective We've been over time
we have no reason being Number nine

in anything versus you look at for
example look at Germany.

All the things that consume right and
you know incredible it for

structure just got completely wiped out.

They have very little
domestically generated

energy at all which scarcity
Sometimes I think brings creativity.

And ultimately they have to basically
import in just about all the capacity

that they have OK and
they essentially can be this this is a.

Industrially competitive
advantage that they have so

while somebody might sit there and
say my gosh they have very expensive labor

versus the rest of the world centrally
their official C. and productivity in this

space overcomes what they might have in
the labor in the labor disadvantages.

So it's very very impressive even U.K.
to some people is quite a surprise and

it came out again out of
somewhat of a crisis but

certainly out of cooperation between all
the stakeholders that were involved and

as I say we have no reason in the world.

Given the technology that exists given
the things you're talking about in this

very campus.

We have no reason in the world.

To be number nine in anything which I hope
you and I can affect in a great deal.

So you know our first premise here
we talk about OK what is a potential

solution to first fuel for
the first opportunity.

Is the energy that you don't use

it doesn't require regulation which
in the country has tremendous amount

of regulatory problems I
mean it's a little bit.

One of the interesting things about
taking something that's so strategic.

And the fact that we allow fifty
states to regulate it is a little bit

kind of planned insanity.

But whatever you say from an efficiency
standpoint you don't have to

ask anybody to do it.

You know you all to meet you.

You get to avoid the additional capacity
that has to be created you get to

avoid the additional transmission
lines that have to come with that.

So essentially what we look at from
a policy standpoint is the very first

fuel or the very first element or

principle of any kind of policy it's got
to be built around efficiency itself.

And there's tremendous savings to
be gained and we can share some

examples with you about where we
literally you know near and dear to you.

Guys here sitting you
know saved Duke Energy.

The necessity to go build additional
capacity of a power plant just

by virtue of managing the efficiency
of their distribution systems.

Those are the opportunities that are out
there that quite frankly regulation is

somewhat in the way.

Of actually making making them happen.

So what do we believe a policy must
kind of focus on a couple principles one

it just said already talked about we've
got to make a car policy to begin with.

That's really something that's been I
would say politically on the back burner.

To a great degree.

It's a complex problem because of
the regulatory environment itself.

There's really no central authority
essentially that you can go kind of

negotiate with we we've got to incentivize
I would say energy efficiency but

I'm a little bit cautious there I think
that's somewhat of a short term problem

because what I don't want to do is
a policy that essentially is reliant upon

government incentives and or tax breaks to
be the basic motivator of because what you

often find out is that subsidize
industries typically fail

because political parties change hands
subsidies fall out of favor and companies

like myself who basically make commitments
to subsidize industries get creamed.

Because when the incentives go away.

You have to make it economically viable
to begin with and quite frankly I think

private enterprise can drive that
is much is what our government.

But what government can do
is mandate residential and

commercial buildings to be labeled
on the basis of efficiency.

So if you think about the best picture
I can give you is think about you know

the white goods industry refrigerators
washers and driers whatever it was about

twenty fifteen years ago when Energy Star
basically started labeling white goods.

Why would we treat
buildings any different.

OK you'll hear things like and

we and I'll get in a little bit
of a controversial zone here.

You'll hear things like people talk about
LEED certified Silver or Lead certify gold

as a standard of efficiency the principle
problem of that is it is it.

It's better.
The nothing but

it doesn't guarantee an outcome.

OK.

Why is that matter.

So ninety percent of the buildings in this
country were built before one thousand

nine hundred it were never
built with efficiency in mind.

So essentially there
are a huge opportunity for

retrofits to bring efficiency
into the equation.

Now the problem is that
the financial case to bring

private money off the sidelines and

have them be motivated to be the people
that finance these retrofit projects.

It's sitting on the sidelines because
there's no policy that creates an outcome.

And what are financial people basically
what's their biggest problem they're

trying to manage risk.

So until they get guaranteed something
that brings a source of certainty

to what a potential project is the private
money will stay on the sidelines will

continue to be depend upon government
incentives or tax codes or Except.

And that's that's really I would
say restricting the opportunity to

a great degree.

We're going to we're going to get

I would say some kind of legislation
on carbon in some fashion.

Now the problem is the way it's headed
right now it's going to create another

regulatory a problem and I can't blame the
regulators because quite frankly business

has been irresponsible in terms of how
it's regulated itself in many ways we've

created a lot of problem we've invited
a lot of regulation as a result of not

acting so I'd rather proactively go work
on this than reactively wait to some

other department gets even bigger in the
government essentially but business again

has a bad bad history of working in this
regard under state level because this is

a federal question sometimes there's also
a state level where we're looking at you

know let's let's liberate the electricity
cost in terms of the market itself.

Let's be more aggressive in
terms of renewable targets

renewables a perfect example is again.

Subsidies that kind of come and
go tax credits that kind of come and

go there in favor one year
they're gone the next this.

This is can't run that way you know if I
have to go put capacity in place to go

take a business opportunity it's rarely
something that you make the decision and

everything gets executed
when the same calendar year.

So the reality is you going to make
us all risk adverse as a result

of our pushing that way.

We've got we have to talk
both at the federal level

as well as the state level in terms
of really initiating a smart grid.

Having a smart grid essentially
to me is going to be an absolute

essential in terms of our
place in the world as well.

Ultimately what we have to do is secure
the base in the security of the power

itself and utilization of power
itself go to any business today that

their power went down or their services
went down and all you see is much people

sitting around waiting for the power
to come back on they can't do anything

because just ultimately everything about
their job requires provision of power.

So another great example that we can
pressure some people on is the federal

government itself it is the largest
consumer of energy in this country by far

and away should be the example for
what is the most progressive

type of utilization of facilities where
the army bases themselves whether

they're other government buildings G.S.A.
you name it right.

Great opportunity in terms if you think
about army bases themselves they should

not be subjected to what might
be some limitations of the grid.

This is our defense mechanism.

Perhaps they should be isolated from the
grid by using local generated power micro

goods things of that nature.

So if anything happens to
have happen unfortunately.

We're not compromised
as a result of that and

there are some very interesting things
that you can go do to kind of get yourself

disconnected from the grid itself and
just use locally generated kind of power.

So you know we see we see themselves

saying we've got a mandate a couple of
things in terms of the government standing

as an example there's a vehicle that
you can use which essentially says I've

always looked at my energy bills
a liability where I could turn around.

If I think differently and
think about it as an asset.

What's that mean.

We can do a project today based
upon energy savings going into

a couple pick a base right.

Fort Stewart or whatever it is and

we can go modernize one hundred
buildings on that base.

Essentially all you have to do is
understand the engineering equation

that says how do I go get ten percent
efficiency fifteen percent efficiency and

ultimately that gap that
savings gap is what finances

the the efficiency upgrade
of that particular project

should by by no means be limited
to the government the government

should be the first example first
utilize or of the it calls like that.

What do we have today in this city and
many other cities cities.

Absolutely.

Strapped for cash budgets
limitations except yet all of you.

Most of you you're going to change the
demographic craze in this country a big

deal because what happens in about twenty
thirty about eighty two percent of all

the population of this country is going
to live in a suburban urban environment.

And I will tell you right now
the cities aren't ready for

that they're not ready for
that they don't know how

to fund the infrastructure that has
to be built to make that happen.

You can't possibly pour any more
asphalt in this city than what you've

already done right.

So you've got to figure out how to
move all that traffic around in a much

more it's you know taking advantage
of technology not taking advantage

of how much more concrete
Can I go pour right.

They don't know how to solve
those problems because they're

not to have the money to go do that.

Well if you start to do things like for

example forty percent of the water
generated in this city is lost every day.

It's lost every day.

So if you add it technologies that would
ultimately help you cap that problem.

You can turn.

There's a bill savings case.

As a result of that and I will tell you.

Water is going to be the next
oil by far and away.

So we ought to be just as conscious
about utilization of water as we

are conscious of any
commodity that's involved in.

Private sector a month
before we have a target.

Trucker record as a all industries
involved terrible track record

in terms of regulating ourselves being
as socially responsible is we should be

being as engaged in the sustainability
game as we need to be and somebody

is going to have to get out there and
kind of lead with their chin a little bit.

It's not going to be popular people
like the Chamber of Commerce are not

going to love you but it's going
to take some companies to Ultimate

go do that we're committed
to certainly do that.

I'm personally committed to go.

Kind of make that happen and it's a
difficult conversation because you've got

politics involved you get you know
you potentially alienated a customer

base to me kind of happen
as a result of that but

if you follow the trend of
how this equation to go see I

actually don't think it's a risky
proposition it might feel that way today.

But I certainly don't feel that way.

Ten years from now and the other aspect in
investors are finally waking up to this

and they're recognizing that a company
sustainability record if it's

positive is a good thing if it's negative.

It's a risk because they might
have a best especially this in

their plants they might have other
issues that are ultimately to emerge

themselves financially as a potential
risk to the investors themselves.

So you're going to start to be
judged by the investor community.

You're not going to necessarily get
great credit for being sustainable but

we're not going to do is get a discount
on your share price as a result of not

being sustainable.

We all talked about.

You know in terms of business.

You know not only do I sell this stuff
we own over twenty million square feet

of real estate ourselves so we have to
kind of do to ourselves what we ultimately

are out there preaching the marketplace
in terms of making it visible.

I mean we make a joke in our company about
five years ago I could go to any C.E.O..

In this country and

if I asked him what your computing
cost as a percentage of revenue.

He absolutely know the answer
that question if I asked him

what his energy costs were
as a percentage of revenue.

He wouldn't have a clue
why it's not visible.

So the first you know.

The first part of the twelve step program
you get over right is make it visible and

essentially So people have to kind of
make the asset very visible by monitoring

collecting data doing all the things that
many think those things are taking place

in this in this university right now in
other places you know really take it and

understand the different types of energy
uses and how do you meter that you know

there are standards that are emerging from
I so in the sense that fifty thousand and

one for fact if you ever see a picture
of our corporate headquarters.

It's one of the first buildings that were
ever labeled by so fifty thousand and

one and essentially what that's built upon
is how much K.W.H. they use per square

foot which if you remember my earlier
comments about building labeling

that's what the aim should be it
should really be a round the outcome.

Not necessarily what the input is which is
I did this I did this I did this it really

should labeling should be based upon
what's the outcome of the outcome needs to

be defined by how much K H To
use per square foot and

the other areas which you can kind of see
here in terms of Carbon Disclosure etc

like we have I'm the corporate
sustainability sponsor globally and

part of my initiatives is to drive
the reduction of our carbon footprint

through our supply base not
just what we do internally but

through our supply base for
example transportation.

I mean we have some ridiculous number of

five hundred thousand product references
in this company on a global basis so

we've got a lot of packages that we put
on a truck a plane etc boat every day.

So all to me how do I make that
supply base essentially reduce

our carbon footprint.

We do we do the same thing to us in
working with somebody like a Wal-Mart.

We've probably one of the more progressive
companies at least in this country in

terms of how they think
about sustainability.

So you've got you've got to in our
opinion I would say move this out of kind

of a program at it kind of view it's not
in our mind and a lot of corporations are.

Run into programs come and go and

essentially you've got to make this kind
of a principle that guides the business so

it's not something that the opted in and
out based upon business conditions.

What can you do in
universities it's a lot.

Unlike what I was talking about for
business.

If you think of a university
particular one the size what are you.

You're basically a little city right
you've got transportation you've got

buildings you've got police you've
got traffic etc and essentially a lot

of the things that we might be thinking of
to manage the efficiency of a large scale

city apply here just in a scaled
down version of that and

a big part of it is education of all of
you about what kind of impact can not only

can the physical systems that run your
buildings make but what your own behavior

could do differently not uncommon
right when you look at night you

see you know a building that's incredibly
well lit up just like a Christmas tree and

it's probably ten percent occupied goes on
every every day as far as that goes push

it on people like myself push it on
the the people that supply services and

goods to the university to be sustainable
is what the university's objectives are.

And really I would say the other aspect of
things is I see a huge opportunity just

because of what I believe as a pretty
progressive nature in the city of Atlanta.

I think there's a great partnership
opportunity between Georgia Tech and

city of Atlanta to go work on
problems going forward in terms

of how efficient cities in the future
operate and work on a very efficient basis

students we put programs together for
example we have a program called

go green in the city which is where two
students get together and submit ideas.

As a potential energy saving opportunity
which then leads them to winners

get internships in our company sight
unseen as a result of participating in and

winning categories being able
to do more things like that.

Universities and what you can actually do
in your own behavior own contributions

to the university as part of
the overall sustainability.

The issue.

You're the biggest
population that's here and

they've got to involve you in their
sustainability strategy in order for

it to be effective and you know in final I
mean I'm saying a couple things here one.

We're handing you a rather difficult
problem to go solve this times two divided

by two two we as a country.

I would say have been VERY am
Bill of ambivalent to some

degree to put up a stake in the ground
in terms of where we're going three.

I I don't necessarily
believe that anybody can

argue the science anymore about global
warming and the impact of carbon but

if you do in fact want to at least
you know give me the benefit of

the doubt of saying putting bad stuff
into the air isn't all that cool and

least the you can start to lower
the impact of that we would have you know

less asthma less worker less worker
days lost as a result of the air quality

even if you're just only economically
motivated as a result of that and

I gave you the problem before about China
will not be able to field a workforce.

If it doesn't change its
air quality stop period.

OK forget.

Forget the the goodness of the world

social citizenship attach
it cannot fuel a workforce.

If they don't fix their issues that
they've got today we can potentially

suffer some of that same problem we
don't have the density of population we

don't have the density of
the air quality issues but

we have many cities that have
extremely difficult issues so

you can make you can make a biggest a very
very big difference as you go forward.

But the other big piece of this was to
get back to government policies hold

any representative that you've
got accountable for this change.

And from our company point of view we
ultimately believe that we've got to kind

of stick our neck out is going to make
some of the organizations that we

participate in uncomfortable.

We kind of know that you know we drop.

Pictures and you've got to think
back to the old days right.

Pioneers got shot but
you know what you got over the hill.

You also had the potential benefits
that come with being first.

You know and I'd rather lead from the
front and get kicked in the butt trying to

react to it so that that's the story of
what you know that's the opportunity so

I think you know we all kind of
got to get committed to this.

I am I'm very very optimistic about what
this particular generation can do and

how you can shape a future that's
that's you're going to change a trend

that unfortunately we reversed
which is our history is always been

the generation before did something better
and set up the next generation better.

Unfortunately I interrupted
that as a generation but

I think you guys can kind
of get it back on track.

If in fact you get really get told
into this and make a big difference.

So thank you very much for
the opportunity to talk to you.

Glad to take your questions.

Thank you

very go by the way I didn't
introduce myself and

there's there's one thing that you'll
always see is you have speakers here is.

Which you mention I have fifteen years
I actually in the introduction I kind

of stuck that number at fifteen.

It's never going to change again.

OK.

The other thing is what we typically do
is when we have a bio in there we use

a picture that's usually anywhere
from ten to twenty years old and

it's an interesting tactic
that we continue to maintain.

Yes.

You spoke about the government in
particular Army installations for

example and I think military uses
somewhere over seventy five percent of

the mill of the Federal Government's
energy probably to me and

by twenty twenty five you've already
passed regulations to mandate

my group grids to a certain extent on
military solutions in certain amount of

produced energy do you think that
is not aggressive enough and

what should we do differently
than what's already been passed.

I think the policy is aggressive enough.

Unfortunately it's policies
not being followed.

OK So for example if you look at last
year when I made the explanation about

performance contracting as
a medium to go do micro-grid

medium you go to interview energy
efficiency in federal installations

the federal energy
efficiency market last year.

Shrunk sixty six percent.

OK The legislation was there

the means to do it in fact there's very
specific Preacherman vehicles that

are already been approved for somebody
that utilize a procurement vehicle they

don't have to go out to some authorization
except or but it's just stuck.

Absolutely.

Stuck so that they put I think
other appropriate regulatory

environment there some other things in
terms of some legislation we would like

to see passed but the potentials there
it's just not being followed through.

You know Chris thanks for

coming today and my question is really
related more to what Snyder actually

does as a business because
I know that your Lord and

you generalize to revenues in
your number of countries but.

Can you tell us what your business
actually does to help your customers

your clients be more efficient
in their in the community.

OK good question.

I would look at I mean starting
the simplest explanation we do we do

basically two things we're making
products that we sell through others and

we do services directly ourselves.

OK Well you know actually
the products we do is we manage

the flow in the control of
electricity which can be in the home

can be in a building can be in a data
center can be in a large scale utility.

Except we do the same thing with
those technologies where we had

services to them.

So for
example we would come into this campus.

You would have a building that
ultimately said OK I want to go upgrade

the efficiency of this building
we would provide the audit.

What the engineering design would be and
actually manage the retrofit of that.

Of that particular building.

We do about probably about sixty
five percent of our business.

I would say are products and technologies
that we market through channels and

about thirty five percent of
our business is systems and

services that we provide
directly to customers.

In North America because we get probably
more one of the more mature businesses

in terms of within Schneider on a country
basis we actually do more services

than the average of what so
will do you know.

Large scale college campuses hospitals.

We do a tremendous amount of data
center I mean data centers and

cells use two percent of
the energy of this country today.

And that's a number that's not getting
any smaller not getting any smaller and

thank God all of us who you know are
slaves to Apple and we all have five or

ten devices or whatever it is and all the
video is just going to basically increase

the data in for search and so one of
the things we're working on with your very

team here is how to think about
how the efficiency of a data

center operates in the future because
it's a very particular problem

has to has to be kind of dealt with we're
active in one hundred thirty countries.

We you know our parent
is in fact French but

we're a very very global company in
the sense that the way we're structured we

have an executive committee which I'm
part of we have four executive committee

members in Europe three here in
North America and four in Asia.

My boss who is in fact a Frenchman but
he spent his first twenty

two years in Snyder recent twenty of them
outside of France lived in South America.

Lived in South Africa live in Italy lived
in China speaks five languages very

very international guy is
a utility of questions as well to.

Thanks a lot for coming in to be with us.

I like what he said the issue
as a principle and not a pro.

So just from a student's point
of view going into the globe.

If I would associate myself as
an employee and it was sort of values.

Would I have when I worked for Schneider.

In the GOING TO COST of being
accountable for energy.

I mean it really starts with you can get
centered around the simple equation I said

before simple equation to state very
incredibly difficult to go deal with.

You know when we look as a Company Number
one we're looking for global citizens who

want to be stewards who want to be focused
on solving this particular problem.

Sustainability becomes a core value.

OK in not only what we market externally
but in terms of what we do internally.

We recognize that one is No one problem
that can be solved by one function so

we ultimately how well we collaborate
has to be a principle in our particular

company so how you work with
your coworkers how you do it

either on a local basis how you could
potentially do it on a global basis.

The third thing I would say is we build we
build our careers based upon which Pastor

people want to take you can have a very
global career in our company but

now also recognize that ninety nine
percent of our police always work and

live in the same country of their origin.

So we have one percent
of us that are nomads.

We're going all over the world in changing
the we're ex-pats and all that nature but

we also have a huge percent of our part.

And we've got to be relevant to both
to both groups as far as that goes.

So it's really the principle saying
OK what we do extremely We have to do

internally.

OK The the power of our company is built
upon the collective knowledge of how we

nurture our diversity and then ultimately
as a result of nurturing that diversity.

That's what's going to really kind of
bring up the capability in the managerial

opportunities that might come along for
people from a performance in.

Yeah.

You talked a lot about
the United Kingdom and

Germany have emerged on
the front of energy efficiency.

And that was through I guess
a situation of crisis or scarcity.

Do you think that the United States
will be able to change our policies and

industry in time or we're going to
need some kind of external motive and

choice a great we have a true riff
if history is a company rising

up out of credit as a country of
rising up out of crisis the and

we've done some terrific things out of
crisis but I sit back and ask myself.

Can.

When a crisis happens.

It's a little bit too late and
the problem is our former history

the problems that we've faced
the definition of the outcome of a crisis.

Doesn't have such dire consequences
attached to it as the one we're

talking about here.

So you're going to get to a point where
you can't put the toothpaste back in

the tube so

I don't know how to answer that question
with it with a very concrete answer other

than say boy I hope you motivate yourself
in your peer group to change our

historical pattern because ultimately
once you get to a certain point path.

You can't undo what's happened.

But yes true Germany U.K.

other places have I would say motivated
themselves much more out of scarcity which

to some degree breeds a lot of
creativity in a lot of ingenuity.

We've got a great history in doing that.

And it is unfortunate that we can't
be I would say more preemptive

in what we're what we're consecrated
which I think is one of the one

of the challenges that you know I
mean I got three kids your age right.

And that's what you know I feel kind of
a lousy about passing this particular

perspective on and
hopefully changing things change

over some of the countries that you
talked about there in the past producers.

Have you noticed that the companies
are reluctant to change

because they'll lose money by
going green or is it ignorance and

kind of how do you influence
change with these.

Compassed there's two different.

Well there's more than one
answer that if you go to Europe.

What you see.

And again it could be motivated of
scarcity it could be motivated what

you see a much more progressive attitude
about efficiency in this regard.

So it it's it's in their D.N.A.
to begin with.

So I want to you know if you're
in the Nordic countries for

example they are very very progressive
on sustainability somewhat

motivated because of scarcity but
that's actually not the case with nor

with Norway who has more oil and
know what to do with right.

But.

There's I think a greater appreciation for

the fact that resources are limited and

something that you know some of what
you want to challenge me on and

some other people on I take for day we
were talking about an element that doesn't

come up in sustainability is the whole
idea of just waste and waste management.

You guys are going to inherit this
model that says The basic approach we

have today is we assume we've got enough
real estate out there to go make and

continue to add landfills.

That's absolute false assumptions
absolute false assumptions so

the reality of just kind of porn stuff in
and then being you know patting ourselves

on the back twenty years later because
we're producing methane gas as a result I

haven't landfill and we think that's cool
is ridiculous is absolutely ridiculous.

So one of the science questions
that you guys can start to ask and

start to really change behavior is how do
I start to recover material all sorts of

material in a very efficient fashion and

just kind of reuse it rather than produce
new which creates new forms a landfill.

How are you going to motivate
change on that I'm going to

give you a really really
stupid simple example.

OK.

You know who stopped most adults
smoking in this country kids

you know got most of the adults to
put their freakin seat belt on.

Kids.

OK so if you guys continue that pattern.

That's why I'm so optimistic that you can
change the behavior that goes on right now

it sounds like I'm speaking a little bit
to the audience but those are two very

concrete examples because most of those
adults didn't want to stop smoking.

Most of those adults didn't
want to put their seat belt on.

And I'm giving it two very crude examples
but there's all everybody sit in this room

that's of the same generation I know it
knows exactly what I'm talking about.

Actual actually had a very similar
question to what you were talking about

you talked about how in
in your people are more

focused toward sustainable energy like
if you go in Germany or in a train.

You'll see how in consumer
houses have solar panels and

other things in their houses.

Even in Asia where electricity is
a very scarce resource people try and

conserve it as much as possible so and you
talked about how Schneider is working with

the federal government or trying to
instill energy converses conservation.

But how would you say you know you
would motivate the consumer as against

the consumer in Europe to try and
save energy.

I think it's a little bit the same
answer though I mean the reason

you know why do we spend so
much time on universities.

As a C.E.O. I mean there's a lot of
stuff I could do believe me it doesn't.

My problem is not finding stuff to do.

OK.

Why do I allocate my time towards It's for

two reasons one is because you
know ultimately I'm trying to it.

Attack and get higher human capital.

OK And I think the human capital that
sits in universities today are much more

relevant in solving the problems
that our company's going to face

in the next five to ten years.

So this is why I'm not out hiring
more people from a generation

that's part of the problem.

Hard thing to say.

But that's the truth.

The second reason why I
do this is because I have

a lot of faith that this particular
generation is going to change the outcome.

That's the second reason why I do it
because I have quite frankly very little

faith in my own generation to change the
outcome because we have two things that

we've become conditioned to particularly
as leaders one is investor community

an incredibly short term focus.

OK As a result of tremendous pressure and
by the way guys in all my job

you know what our average tenure
is it's five point two years.

That's the average right which
means a hell of a lot less than

guys that last long.

I'm sitting there thinking
God May first is my fifth year.

So point two puts me
a basically June eighteenth.

OK.

So I better throw a party
on June seventeenth but but

I'm sincere That sounds rather
philosophical or whatever but you know I

am so connected to this generation because
I fundamentally believe you can change

that your ject or e that we're on and
that that's why I spend the time doing it.

So a little bit of the same answer but
different variable maybe.

Yeah.

You talked about data center usage
is not to let you do anything on

the cloud computing front to help them
about that as far as these as well.

I mean what you.

OK so.

So a cloud is just a big
data center that's not here.

OK so all to me it's just a different
equation that we're trying to

solve in the sense that what you'll see
it's in effect it's going to be a very

interesting business to be in
because what's happening is a lot

of companies are basically saying I
don't want to own the assets attached

to the data center I just want to kind
of use it the same way I use a utility

which is I don't own the transmission I
don't own the distribution I just like it.

Use it you know I think you're
actually going to see computing

almost turn into a utility.

OK so what that what the cloud is
essentially is a corporate data center or

several corporate data centers on
steroids that same complexity problem.

So what it's doing to our business is now
saying what we may have been dealing in

before.

Fifty thousand square feet
of raised floor was that

was the problem we were trying to resolve
and that basically square footage and

that computing power is now five and
ten X. that.

So the cloud what centrally what it's
doing to us is just making our problem

the equation we're trying to solve from an
efficiency standpoint just kind of I would

say exponentially more complex but it's
still the same basic problem which says

how do you fission they get cooling in

to make sure that all these semiconductors
don't blow up as a result of the heat.

Now what you're starting to
see a couple different things.

Emerge.

One is the idea that since
servers are actually cheaper

than electrical infrastructure and
battery backup power so

what do we do we just run
servers into the ground.

So the basic theory of how data centers
got constructed up to this point is you've

built all the redundancy in
the infrastructure that took care of

the servers.

OK now it's essentially same with servers
are kind of like a dime a dozen So

what we'll do is just kind of
run them on the ground and

basically we'll build to be done and see
in the computing power and maybe have and

have to spend less money on the electrical
infrastructure as a result of that.

So you get into virtualization of things
that nature as it relates to service

the we gaining certain
amount of the fish and

sea as it relates that So you're
starting to see a weird stuff right.

But I think put data centers in in Iceland
right because you get centrally or

a bigger area where they're
constructing data centers right now

which I've been that person
is cold Hales Finland right.

But it's free.

Right so.

You know.

And I'm going in you know it's it's crazy.

Their biggest problem is they've got to
cut ice in the ocean to make sure they get

the water out right so but that's that's
their technical problem they have to solve

which is not that difficult of a deal but
I mean that's the kind of things

that they're ultimately
all to be trying to go do.

He thanks are coming.

Yeah.

I'm just curious have
you heard any talk or.

Is there any kind of discussion about like
blackouts or anything like that in this

country whether voluntary or involuntary
and it's they've been sort of Lent.

It's kind of opportunity about
fasting even maybe from electricity.

You never hear because we're so

at two and whatever our electrical
stuff is plugged into that.

You know essentially the only time

you ever hear it is when
we have a blackout right.

So I mean the world was up in arms when
we had the seventy percent blackout

the northeast.

OK what year it was two thousand and
three or two thousand for whatever it was.

And you know we were going to go fix the
electrical infrastructure it spawn a lot

of discussion about smart grid but
we got bored in six months it was done.

You know.

But you bring up a very good point.

I mean for example if you're
sitting in Sao Paulo Brazil.

You are absolutely conditioned to rolling

Bratton's now the place where this
is going to start is California.

Because California is
basic issue right now and

what the primary utilities there P.G. and
E. and Southern California Edison would

tell you is they really can't take
anymore customers because they really

don't have the transmission capacity
regardless of what they've got on in terms

of increasing the generation capacity
they're only more transmission capacity.

So the only way they can take
on new customers essentially

is have locally generated power.

So they're starting in many
instances particularly in summer.

They're starting to actually face rolling
blackouts as a result of it not by choice.

Not by choice and
people getting really upset about

that which again we're What do we do we
waited for a crisis to go happen the force

of the prices in California which
is a state that has zero money.

As a result of that.

So that's why they're driving.

You know you'll still see.

The standards in California
are actually pretty close to Europe

in terms of expectation and
again a somewhat by necessity.

I don't think you know I think we could
personally kind of avoid the problem

as a result of that you think of
today what basically happens in

the utility system we have
a one way till the system.

Right.
We produce it and

it's gone whether you use or not.

So essentially just think of your house.

I turn the faucet on I just left it
on all day and when it come back I'm

going to fill my glass of water up
at least my glass of water is full.

That's essentially our utility system.

They start to use technology to start to
think of it in a two way means which by

the way we have many buildings today that
can probably produce as much electricity

as they use and
this problem can be completely avoided.

Completely avoided so I would much
rather go about it that way and

we are an incredibly innovative
country I meet you spend a week in

Silicon Valley and I will guarantee
you if you are at all pessimistic

you will be optimistic as a result of
the of the innovation that you see.

If you spend a week in places like Boston.

And you see some of the technology
companies that are going on there some of

the solutions and you will be in fact.

Optimistic so I am what I'm the other
aspect of the other great advantage

that I think you guys are going to be
facing here is you're going to get some

technology that's going to be incredibly
powerful in terms of what its utility

is in terms of the problems that can
solve machine to machine communications.

I would say the limitations of human
intervention are going to be going to be

taken away and you know what you can

do with analytics how you can find
patterns find sources of efficiency.

The amount of innovation that we've done
in terms of how infrastructure operates is

absolutely first grade compared to
what you guys are going to face in.

You guys are going to be in
the graduate school generation

of what computing is ultimately going to
be able to start to start to go do so

I'm I'm more optimistic that technology
can alleviate the problem and

I am humans waiting for
the crisis to hit them in the face.

Now.

Act the conversations are college
students in this generation.

What's the one piece of advice that
you would give to the students

as they are the future business leaders.

The one piece.

One piece of advice as business
leaders they're going to be the future

business leaders or if so what's the one
piece of advice that she would give

to these students so that most of the
people in the room that actually work for

me know that I'm probably the worst
getting answer this question.

And you know I would say this in it's
difficult to get to get it done.

The one thing the.

I think the most successful
people are inherently curious.

And I think they bring home
an attitude every day that

they want to feel really good
about what they did that day.

But they also recognize that what I did
today is not good enough for tomorrow.

And those are two
ingredients I think you have

to take with you because I
will tell you right now and

there's there's different diversity
sitting in this room today.

The biggest realization I've had I see
myself I see what my kid is is the.

You know today in this country.

I think thirty five percent of the M.B.A.

students are the masters
students are foreign born.

Fifty five percent of the Ph D.
students are foreign born and

the fact that they are here I say
thank God because they are motivating

the kids that were born here to be a hell
of a lot more competitive in a global

economy than what they were would have
been on their own right and to me but

also recognize this is
going to be an incredibly.

Much more can.

Head of the world in the future
than it's been to this point

pace of change is going to be
exponential not additive exponential.

So you better be inherently curious and

you better be highly motivated
to say Man I really good

glad about what I did today but I also
recognize that's not enough or more.

OK that's it.

Chris we want to thank you so
much for your time.

Enjoy your enthusiasm.

Thank you.
I thank.