ISUUE TO DEAL

The energy paradox

In this 21st century, humanity is facing the most daunting challenge in its history the need to
radically transform its economic growth model in less than 30 years or face catastrophic changes to
its ecosystem. While global GHG emissions continue to grow the devastating effects of these
changes are already being felt an increase in the frequency and magnitude of extreme climate
events, melting glaciers and disappearing coral reefs. Added to this is the alarming loss of
biodiversity and growing inequalities. We continue to face an energy dilemma. While global energy
demand skyrockets, 1.2 billion people 1 worldwide still do not have basic access to electricity and
approximately 65 million 2 live in fuel poverty. Schneider Electric cares deeply about sustainable
energy and green technology, so we are determined to solve this energy paradox. On one hand, we
help many customers worldwide achieve carbon-neutral operations; on the other, we invent
technologies to support everyone’s indisputable right to modern energy. To us, access to clean, safe
energy isn’t just a technology issue; it’s a human one as well. We have seen the far-reaching benefits
of electricity:

• Reduced poverty and raised living standards

• Improved health (most significantly for women and children)

• Increased productivity

• Enhanced educational opportunities

• Strengthened environmental sustainability

• Improved security and feeling of safety

Su s t a ina b il it y d ime ns io n
Schneider Electric’s journey and phases of
sustainability transition:

Process to select and prioritize commitments toward sustainability

 Analysis of Definition Validation of Launch of the Quarterly Annual
material of key monitoring three-year performance external
challenges performance goals and program reporting verification
indicators methods
Mobilize the whole Company around sustainability goals (ethics, social, environmental and business)

Share the Group’s improvement plans with stakeholders.

KEY Performance indicator:

For each target and indicator, and this is a critical point for the operational implementation of each
barometer, the ambition is defined in consultation with the departments concerned In each new
period, the barometer update takes into account results obtained, progress still expected,the
emergence of new topics and new priorities, and the experience gained. Thus, it is a powerful tool to
move the Group forward on its major challenges.

Sustainability phase transition from year 2005 to 2020

2005-2008: 2009-2011: 2012-2014: 2015-2017: 2018-2020:

10 13 14 16 21
KPIs in program KPIs in program KPIs in program KPIs in program KPIs in program

>120 70.4% 16% 100% 7.77/10

Products with an of employees CO2 of products in 2019 overall
environmental worked savings on R&D designed performance
profile on ISO 14001 transportation with Schneider
certified Eco Design
sites WayTM

-20% 1,291,768 460 98.4% 9

Number of lost Households at Missions with of our entities Indicators with
days the Base of the the passed increased
from work Pyramid got “Schneider our internal objectives
accidents access to energy Electric Ethics &
per employee thanks to Teachers” NGO Responsibility
per year Schneider assessment
Electric solutions
Schneider electric achievement in sustainability impact
Health and Climate Circular ethics Development
equity Economy

0.88 medical 10% CO2 efficiency 200 sites labeled 350 suppliers 400,000
incident per million in transportation toward under Human underprivileged
hours worked zero waste to Rights & people
landfill Environment trained in energy
vigilance received management
specific
on-site assessment
100% of 120 million metric 100% cardboard 100% of sales, 15,000
employees worked tons and pallets procurement, volunteering
in countries that CO₂ saved on our for transport from and finance days thanks to our
have fully customers’ recycled or employees Volunteer In
deployed our end through our certified sources trained every year global platform
Global Family Leave offers on anti-corruption
policy
90% of employees 25% increased 120,000 metric
had access to a turnover tons
comprehensive for our EcoStruxure of avoided primary
well-being at work Energy & resource
program Sustainability consumption
Services through ECOFIT™,
recycling, and take-
back programs
95% of employees
covered under the
Pay Equity
framework
100% of workers
received 15 hours
of learning in the

90% of white-collar
workers had an
individual
development
program
Action taken by schneider electric in order to achieve sustainability

Human Rights Policy:

Diversity & Inclusion Policy: applies to the entire Company and covers all facets of diversity, as
Schneider wants to mirror the communities in which the Group operates. This policy is based on
respect and dignity, which are the foundations for fairness and equity.

Family Leave Policy: provides a framework so that every employee, whatever the country of
employment, can take some specific leave to enjoy some of life’s special moments with their
families;

Global Anti-harassment Policy: states Schneider’s commitments to have zero-tolerance for any kind
of harassment or offensive behaviours.

Circular economy policy

Circular business models and value propositions for customers through circular capabilities such as
local models of reuse, retrofit, repair, refurbish, take-back and by unleashing the potential of IoT,
connecting and digitizing products, (predictive maintenance, performance optimization, leasing, pay-
per-use, performance contracting);

Circular resources and product development: starting at the product design phase to minimize
resource usage and maximize reuse, recycled resources and recyclability;

Circular supply chain: zero-waste and circular excellence in operations and sites with strict targets
on waste reduction, reuse and recovery.

Environmental strategy

Our 2020 environmental strategy is clear. We have denied 15 priority initiatives and related goals
across six environmental domains:

1. Deploying low-CO2 and resource-efficient strategies for planet-compatible growth path

2. Always greener extended supply chains.

3. Waste as worth.

4. Environmental performance delivered to customers made explicit and quantified

5. Circular innovations in both value proposition and supply chain.

6. Always stronger environmental governance. These initiatives are fully aligned to our Schneider is
on company program and to the company’s.
CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY Schneider Electric
President Systems Limited

Policy Statement /Vision

Schneider Electric’s mission is to contribute to the social and economic development of the
underprivileged community. Through a series of interventions, Schneider Electric seeks to
mainstream economically, physically and socially challenged groups and to draw them into the cycle
of growth, development and empowerment. At the core of this, its commitment is to reach out to
marginalized communities through its Sustainable Livelihood Initiatives. Page 3 of 10 Schneider
Electric’s strategy is to integrate its activities in community development, social responsibility and
environmental responsibility and encourage each business unit or function to include these
considerations into its operations. In alignment with vision of the Company, Schneider Electric,
through its CSR initiatives, will continue to enhance value creation in the society through its services,
conduct & initiatives, so as to promote sustained growth for the society.