Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report

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Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
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                                                 Our contributions to accelerate
                                                 sustainability for all
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview     Climate        Resources     Trust      Equal    Generations          Local

                                              commitments
                   We support the:

                                                                                                    by continuously investing in and developing innovative solutions that
                                                          Act for a climate-positive world          deliver immediate and lasting decarbonization in line with our carbon pledge

                                                          Be efficient with resources               by behaving responsibly and making the most of digital technology
                                                                                                    to preserve our planet

                                                          Live up to our principles of trust
                                                                                                    by upholding ourselves and all around us to high social, governance,
                                                                                                    and ethical standards

                                                          Create equal opportunities                by ensuring all employees are uniquely valued and work in an inclusive
                                                                                                    environment to develop and contribute their best

                                                                                                    by fostering learning, upskilling, and development for each generation,
                                                          Harness the power of all generations      paving the way for the next

                                                          Empower local communities
                                                                                                    by promoting local initiatives and enabling individuals and partners
                                                                                                    to make sustainability a reality for all

Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
2022
                                                                                                                                                                                                           Q1             Q2             Q3              Q4              Target
                                                                                               Q3 2022 results                                                                             Score1                                        4.54                              4.70

                 6 long-term commitments                        11+1 targets for 2021 – 25                                                                                                         Baseline                         Q3 2022                                    2025 Target

                 CLIMATE                                        1 Grow Schneider Impact revenues*2                                                                                                         70%                                71%                              80%
                                                                2 Help our customers save and avoid millions of tonnes of CO2 emissions3                                                               263M                               407M                                 800M
                                                                3 Reduce CO2 emissions from top 1,000 suppliers’ operations                                                                                 0%                                                                 50%
                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100
                                                                                                                                                                                                                                              5%
                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                 RESOURCES                                      4 Increase green material content in our products                                                                                           7%
                                                                                                                                                                                                                      0   10   20   30   40   50
                                                                                                                                                                                                                                              16%
                                                                                                                                                                                                                                                   60   70   80       90 100
                                                                                                                                                                                                                                                                               50%
                                                                5 Primary and secondary packaging free from single-use plastic and using recycled cardboard                                                13%                                41%                              100%
                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                 TRUST                                          6 Strategic suppliers who provide decent work to their employees4                                                                           —                       In progress                                100%
                                                                7 Level of confidence of our employees to report unethical conduct5                                                                        81%                            +1pts                                +10pts

                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                 EQUAL                                          8 Increase gender diversity in hiring (50%), front-line management (40%), and leadership teams (30%)                               41/23/24                              41/27/27                              50/40/30
                                                                9 Provide access to green electricity to 50M people6                                                                                       30M                            +7.5M                                50M
                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                 GENERATIONS                                   10 Double hiring opportunities for interns, apprentices, and fresh graduates               2
                                                                                                                                                                                                       4,939
                                                                                                                                                                                                                      0   10   20   30   40   50

                                                                                                                                                                                                                                          x1.30
                                                                                                                                                                                                                                                   60   70   80       90 100

                                                                                                                                                                                                                                                                               x2.00
                                                               11 Train people in energy management7                                                                                                281,737                              364,857                               1M
                                                                                                                                                                                                                      0   10   20   30   40   50   60   70   80       90 100

                 LOCAL                                                                                                                                                                                                0   10   20   30   40   50   60   70   80       90 100

                                                               + 1 Country and Zone Presidents with local commitments that impact their communities                                                         0%                           100%                                  100%

       *
           Per Schneider Electric definition and methodology       1
                                                                       2021 baseline 3/10, 2025 target 10/10   2
                                                                                                                   2019 baseline   Cumulated since 2018
                                                                                                                                   3                      4
                                                                                                                                                              Program in development   5
                                                                                                                                                                                           2021 baseline        6
                                                                                                                                                                                                                    Cumulated since 2008                          7
                                                                                                                                                                                                                                                                      Cumulated since 2009

Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate      Resources        Trust              Equal            Generations            Local

  highlights                                                           Schneider and AVEVA
                                                                       partner with Shell to
                                                                       accelerate net-
                                                                       zero transition
                                                                       in hard-to-abate
                                                                       sectors

                                                                                                 RM AirSet recognized as Most                  Double win for The Zero
                                                                                                                                                                    Carbon Project
                                                                                                 Climate-Positive Carbon                       awarded “Overall Winner” and “Best
                                                                                                 Handprint Product at Climate                  Sustainability Project of the Year” at CIPS
                                                                                                 Week NYC 2022                                 Excellence in Procurement Awards 2022

                                                Top PPA Marketplace Solution                     Reinforcing our commitment to being           Enabled Landsec to create the world’s
                                                                                                                                                                          first net-zero
                                                Provider by Guidehouse                           Net-Zero across our value-                    carbon commercial development, The Forge, in
                                                                                                 chain by 2050, validated by SBTi              London’s cultural hub of Bankside

Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate           Resources        Trust   Equal             Generations             Local

  highlights

                                                Ranked #1 for third consecutive year      Winner of Railsponsible Award 2022 for our
                                                in Gartner Supply Chain Top 25            ambitious work on the circular economy with the industry

                                                                                                                                                     Partnered with The Copper Mark to promote
                                                                                                                                                     sustainable and responsible
                                                                                                                                                     material sourcing in the copper
                                                                                                                                                     industry

                                                Awarded Best Value Chain Engagement       Our Wiser products are packaged with 100%
                                                at EcoVadis Leadership Awards 2022        materials free from single use plastics
                                                                                          and using recycled cardboard
Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate   Resources             Trust            Equal              Generations     Local

  highlights                                               32%                of our
                                                           strategic suppliers committed
                                                                                                                                          Ranked 1st in our sector by the principal
                                                                                                                                          European ESG rating’s agency, Vigeo Eiris

                                                           to the Decent Work program,
                                                           which is based on the key
                                                           tenets of the International
                                                           Labour Organization’s (ILO’s)
                                                           definition
                                                                                           Schneider Electric rated Gold for our Cyber
                                                                                           Disclosure by CyberVadis

                                                                                                                                          Top 10 in the Grand Prix de la
                                                           Most Honored Company in Europe per 2022 The Institutional Investor’s Awards    Transparence 2022
Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate           Resources              Trust             Equal     Generations          Local

  highlights                                                                                                                                 Doremi, a key player and pioneer
                                                                                                                                             in home-efficient renovation in
                                                                                                                                             France, receives support
                                                                                                                                             from Schneider Electric
                                                                                                                                             Energy Access to continue
                                                                                                                                             its development and propose
                                                                                                                                             innovative solutions

                                                 One of France’s most attractive
                                                 companies for executives
                                                 according to Universum

                                                 Connected 525 students at three Indian schools to Schneider     New partnership with Fair Wage Network to conduct Living Wage   gap-analysis
                                                 Solar Power Backup solutions with the help of Tushar Mahajan    and obtain Living Wage certification for all employees
Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate   Resources   Trust             Equal              Generations                 Local

  highlights

                                                                                                 Imagining renewable                         Empowering 4,000+ Peruvian students by 2026
                                                                                                 energy electrification                      with Industry 4.0 skills and training in partnership with SENATI
                                                                                                 systems at training centers
                                                                                                 in Africa with the launch of the
                                                                                                 10KVA Challenge

                                                                                                                                             Equipped St Kizito Vocational Training institute in Nairobi with
                                                                       The Sustainability School continues to grow                           our solutions to enable community participation
Schneider Sustainability Impact 2021 – 2025                            with the deployment of new modules for all of our employees           in the energy market
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate            Resources                 Trust           Equal            Generations            Local

  highlights                                                                                                                                                Thought leadership at every
                                                                                                                                                            level as Sustainability
                                                                                                                                                            Ambassadors at SE
                                                                                                                                                            Japan participate in
                                                                                                                                                            public speaking and
                                                                                                                                                            media events

                                                 Accelerating to net-zero in Canada with
                                                 40% of our sites connected to
                                                 Power Monitoring Expert

                                                 Offering scholarships in Serbia to assist university              Visualizing our impact across geographies with a dynamic
                                                                                                                                                                map of great local
                                                 students gaining practical experience under the guidance of       sustainability initiatives undertaken by Schneider’s Country Presidents
                                                 our mentors
Schneider Sustainability Impact 2021 – 2025
Sustainability Impact - Our contributions to accelerate sustainability for all Q3 2022 Report
Commitments                        Overview   Climate   Resources           Trust               Equal               Generations              Local

                                                        note
                                                               Schneider Sustainability Impact (SSI) is Schneider Electric’s continuous improvement process to deliver
                                                               outstanding sustainability performance, in line with its business strategy. Progress is measured against a
                                                               2020 baseline, except for two programs measured against a 2019 baseline to mitigate COVID-19 impacts
                                                               (#1 Impact revenues and #10 opportunities for the next generation), and one program measured against
                                                               a 2021 baseline (#7 Level of confidence to report unethical conduct).
                                                               The SSI provides, on a scoring scale of 10, an overall measure of the Group’s progress on its
                                                               sustainability goals. This is done by converting each KPI’s performance on a 10-point scale, considering
                                                               that base year performance receives a 3/10 score, and the 2025 objective translates to a 10/10 score.
                                                               For each KPI, the relevant score is obtained by linear interpolation, and rounded down to the second
                                                               decimal. By construction, the score of an indicator cannot exceed 10/10, and cannot be lower than 0/10.
                                                               The overall score of the tool is the average of each KPI’s score with equal weight, excluding the Local
                                                               commitment (SSI #+1). SSI #6 performance is also excluded as the program is still in development (see
                                                               note on Q2 results below). An external auditor provides a limited assurance on the KPIs of the SSI once
                                                               a year – including the review of the methodologies and processes used to consolidate the different KPIs.
                                                               Each year, the SSI performance impacts short-term incentives for the Group’s executives and about
                                                               64,000 eligible employees, for 20% of the collective share.

                                                               *Note on Q3 2022 results
                                                               Regarding the SSI #6, Schneider Electric has built in 2021 its decent work framework and as of Q3 2022
                                                               about 30% of its strategic suppliers committed to the program.
                                                               Calculation methodology for SSI #8 has been expanded in Q2 2022 to include blue collar managers in
                                                               the scope of front line managers. Due to this methodological change, the 2020 baseline for front line
                                                               managers has been re-calculated (23% instead of 25%).

Schneider Sustainability Impact 2021 – 2025
Commitments         Overview        Climate        Resources         Trust     Equal   Generations   Local
   se.com/sustainability

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