2019 Sustainability strategy overview

Overview of our sustainability strategy

2019

Investor Relations - Schneider Electric |

Schneider Electric, leader in digital transformation, energy management and automation

North America

28%

A world-wide presence and well-balanced exposure,

with a strong commitment in new economies

2018 revenues

Western Europe

27%

Rest of the World

16%

AsiaPacific

29%

Key figures for 2018

c.5%

26 billion €2018 revenues

137 000+Employees in over 100 countries

Revenues invested in R&D

42 %2018 revenues in new economies

Our unique positioning: Energy and automation digital solutions for efficiency and sustainability

Investor Relations - Schneider Electric

significant customer benefits…

Up to

~65%(Average 30%)

Energy efficiency

Up to

-50%CapEx (integration)

Productivity

Up to

50%Fewer incidents

Reliability and Safety Sustainability

Aiming at

0Carbon emissions

Energy Management

Industrial Automation

Buildings Datacenters Infrastructure Industry

Serving 4 end-markets:

Energy transition

Energy management

Energy efficiency

Industry 4.0

Industrial automation

Process efficiency

35% 15% 20% 30%% of revenues(estimate)

when life is…

10X more

30bnconnected things by 2020 (IHS, March 2016)

X2 Worldwide power capacity by 2040 (BNEF, 2017)

Global investment in electricity overtakes Oil & Gas for the first time in 2016 (IEA 2017)

Power leads

of capacity to be renewable by 2040 (BNEF, 2017)2/3

POWERED DIGITAL

incremental connected devices than incremental

connected people by 2020(IHS, March 2016; UN population stats)


Our Mission

Investor Relations – Schneider Electric

Culture and

values

Customer

& publicRegulation

& ratings

vs

Billion people have no

access to electricity

Million people live in

fuel poverty in Europe

Energy demand

The facts

x1.5CO2 emissions

The need

2

1 63

While using less of our resources

The right to achieve more

Pioneering the transformation of the

world on the digital edge

Energy efficiency and resources efficiency are a

must for the planet ... and the bottom-line

Power and digitize life of everyone in the World, enable innovative ideas collaborating with public and private actors

ESG: make it a competitive advantage and a transformation driver

through the extended enterprise ecosystem

Life is OnWe empower all to

do more with less,ensuring Life is On everywhere,

for everyone, at every moment.

We provide energy and automation digital solutions

for efficiency and sustainability.

Investor Relations - Schneider Electric

Driving transformation - Schneider Sustainability Impact

Climate

Circular Economy

Health & Equity

Ethics

Development

For 15 years,

1 Tool to drive sustainability

performance, included in

compensation for 50,000+

employees

5 megatrends identified

with our materiality matrix

21 indicators in the 2018-

2020 program, covering

our entire ecosystem

Quarterly publication with

financial results

by CEO or CFO

& annual external audit

Customers

Employees

Suppliers

Communities

From R&D

to end-of-life


Q2 2019 Result 2020 Target

1. Renewable electricity 40% ↑ 80%

2. CO2 efficiency in transportation 11%↑ 10%

3. Million metric tons CO2 saved on our customers’ end thanks to EcoStruxure offers 70 ↑ 120

4. Increase in turnover for our EcoStruxure Energy and Sustainability Services 18.4% ↑ 25%

5. Sales under our new Green Premium program 49.7% ↑ 75%

6. Sites labeled towards zero waste to landfill 185 ↑ 200

7. Cardboard and pallets for transport packing from recycled or certified sources 88% ↑ 100%

8. Metric tons of avoided primary resource consumption through ecoFit, recycling, and take-back programs 65,570 ↑ 120,000

9. Scored in our Employee Engagement Index 67% → 70%

10. Medical incidents per million hours worked 0.74 ↑ 0.88

11. Employees have access to a comprehensive well-being at work program 20% → 90%

12. Employees are working in countries that have fully deployed our Family Leave policy 75% ↑ 100%

13. Workers received 15 hours of learning in the year with 30% digital learning 44% ↓ 100%

14. White-collar workers have individual development plans 72% ↓ 90%

15. Employees are working in a country with commitment and process in place to achieve gender pay equity 92% ↑ 95%

16. Increase in average score of ISO 26000 assessment for our strategic suppliers +2.30 ↑ 5.5 pts / 100

17. Suppliers under Human Rights & Environment vigilance received specific on-site assessment 196 ↑ 350

18. Sales, procurement, and finance employees trained every year on anti-corruption 14% ↓ 100%

19. Turnover of our Access to Energy program x1.42 ↑ x4

20. Underprivileged people trained in energy management 220,739 ↑ 400,000

21. Volunteering days thanks to our VolunteerIn global platform 8,012 ↑ 15,000

CLIMATE

Our 2018 achievements toward our 2020 goals

CIRCULAR ECONOMY

HEALTH & EQUITY

ETHICS

DEVELOPMENT

The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter.

The color shows if the indicator is above or below the objective of 5/10. UP = Unpublished.


2025

• Train 1 million

underprivileged people

• Phase out SF6

• Provide access to energy

to 50 million people

• Support 10,000

entrepreneurs

• Invest 10bn€ in green R&D

(2015-2025)

• Achieve carbon neutrality

in our ecosystemformer 2030 commitment, brought forward by 5 years

From short-term impact to long-term vision

• Engage actively with

sustainable business

initiatives such as the

UN Global Compact

2050

2020

Reach the 21 objectives of

the Schneider

Sustainability Impact on:

• Climate

• Circular Economy

• Ethics

• Health & Equity

• Development

2030

• Net-zero operational

emissions, as part of

validated SBT target

De-risk - Differentiate - Contribute to the solution

• Engage with suppliers on

net zero-CO2 supply

chain


GovernanceIntegrated and transverse governance


Investor Relations -Schneider Electric |

• Short-Term Incentive Plans The Schneider Sustainability Impact score accounts in short-term incentives for Global functions and Leaders of the Group

- 50,000+ people.+ other personnel have sustainability criteria in their individual stip if relevant and decided, e.g. all plant & logistic centers’ managers have

safety-related incentives, personnel working on the barometer’s progress plans usually have the related KPIs in their incentives.

• Long-Term Incentive Plans

The Schneider Sustainability Impact score accounts for 20% of shares subject to performance conditions.

• Starting 2019, Schneider Sustainability External & Relative index will replace SSI and account for 30% of shares.

The plans include over 2,300 beneficiaries every year.

• Profit-Sharing Incentive PlanThe Schneider Sustainability Impact score accounts in the profit-sharing plan of 32 French entities of the Group (incl. 2

largest French entities: SEI and SEF) – over 17,000 people.

+ the reduction in the occupational accidents severity rate is also considered in the profit-sharing plans of 26 French entities.

Overview of sustainability criteria in compensation


Schneider Electric – A Recognized Sustainability Champion2018 Overview

Ratings & Indices Recognitions Commitments

2019 Sustainability strategy overview

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