www.se.com Schneider Electric 10 2021 Climate Report 3 D elivering a climate positive impact with EcoStruxure ™ 3.1 Sa ve and avoid 800 million tonnes of CO 2 emissions on customers’ end With EcoStruxure ™ , the IoT-enabled architecture, Schneider Electric helps companies become more efficient and reduce their CO 2 emissions. To demonstrate this positive impact, a new indicator was launched in 2018 to quantify CO 2 savings delivered to customers using Schneider’s offers. New technologies were added to expand the methodology coverage in 2021: SF 6 recovery services, SF 6 AirSet solutions, Field Services, Energy Management Systems (EMS for electrical network) and data center design. Overall, from 2018 to 2021, Schneider Electric helped customers save and avoid 347 million tonnes of CO 2 e. From 2021 onwards, Schneider is committed to extend the methodology to progressively include all relevant offers, to report both saved and avoided CO 2 emissions with customers and partners, and to help customers save and avoid 800 million tonnes of CO 2 by 2025, cumulatively since 2018 (SSI #2). This commitment is one of the three performance indicators of the first ever convertible Sustainability-Linked Bond launched by the Group at the end of 2020. The innovative CO 2 accounting methodology to quantify CO 2 savings delivered to customers, created by Schneider, allows for the quantification of CO 2 induced and saved by the Group’s solutions at its customers’ premises. Detailed calculation rules are defined per offer, leveraging sales data, market expertise, and technical knowledge. The methodology is designed to become a shared industry standard, its principles are applicable across the capital goods and consumer durables sectors. Attention was given to define rigorous calculations, with conservative assumptions. The methodology is public and was developed with Carbone 4, an expert CO 2 accounting consulting company. Saved emissions are net emissions (savings are netted from use-phase induced emissions) and consider savings delivered on brownfield (retrofit) projects. Avoided emissions are defined with respect to greenfield sales (new infrastructures); they are defined as a limitation of emissions increase versus a reference scenario. Avoided emissions are net emissions. They represent the difference between emissions of a reference scenario and emissions with the implementation of Schneider Electric’s offer. Schneider’s methodology, “Saved and avoided CO 2 : decarbonization creates value” is available for download on se.com; as well as the detailed methodology (and hypothesis) for all Schneider’s solutions 3.2 D eliver access to energy products and solutions Today, 25% of the world’s population still has no or reduced access to energy, and only 17% of the total global energy consumption was renewable in 2017. Schneider Electric’s products and solutions aim to address this “energy paradox”, balancing the need to reduce the planet’s carbon footprint while ensuring the inalienable human right to quality energy and digital access. In line with its carbon pledge towards net-zero CO 2 emissions, Schneider has committed to provide access to green electricity to 100 million people in underserved areas by 2030, both as a fundamental right and a means for social and economic development. Schneider’s Access to Energy program bridges the energy gap by focusing on offerings and business models for village electrification and domestic energy needs, as well as investing in and supporting companies providing affordable, clean, and renewable energy. Products and solutions address individual and collective needs across the energy chain, from solar lanterns and solar home systems to decentralized small power plants, water pumping systems, and street lighting. A great example of Schneider’s products is the portable Mobiya solar powered lamp providing individual lighting and mobile charge for 48 hours. In emerging markets, this type of device helps extend the number of hours of activities and livelihoods, but also limits the use of kerosene lamps that have a significant environmental impact. Villaya is another great example of decarbonized energy solutions available for businesses and communities to ensure electrification in remote sites, either 100% solar or hybrid. All of these social impact products and solutions complement the Group’s offerings for its customers to be the digital partner for sustainability and efficiency.