www.se.com Schneider Electric 8 2021 Climate Report 2.3 CO 2 footprint Schneider Electric updates its end-to-end carbon footprint (Scope 1, 2 and 3) annually and obtains a “limited assurance” from an independent third party verifier on all figures. Scope 3 emissions represent more than 99% of the Group’s carbon footprint, of which 90% are due to the use phase and the products’ end of life, and around 10% result from the purchase of raw materials, equipment, and services. The charts below represent Schneider’s carbon footprint on Scopes 1, 2 and 3, including all greenhouse gas emissions (GHG), from the upstream activity of all its suppliers to the use and end of life of its offers sold to customers. During the use phase, emissions saved and avoided by customers thanks to energy efficiency and renewable technologies are represented as negative emissions. Coverage of reported emissions is 100% for energy, fugitive SF 6 emissions, waste, purchases, capital goods, commuting, travel, and freight (coverage is estimated using a relevant activity indicator for each source of emissions, such as spent for purchases and business travel, surface for energy and capital goods, headcount for commuting and waste). Schneider reports no GHG emissions on franchises, investments, or downstream-leased assets, because these emissions are not considered relevant for its activities. 2.4 I nternal CO 2 price To lead the global transition to a zero-carbon economy, Schneider Electric calls for policymakers to define robust and predictable carbon pricing for companies, enabling companies to integrate collaterals on climate in their strategy. A high and stable price on carbon will strengthen incentives to invest in sustainable technologies and to change behaviors. As part of its carbon pledge, Schneider is committed to take into consideration a carbon pricing of EUR 50 – 130/ton (depending on time horizons) to inform the Group’s climate strategy. In line with the vision, an internal price on carbon is already used in several cases to include the cost of CO 2 externality in decision-making and strategy. An internal CO 2 price is used to assess the performance and resiliency of operations. The cost of CO 2 is evaluated for industrial activities, taking into account CO 2 emissions from energy consumption and SF 6 leaks in industrial sites. CO 2 cost is also taken into consideration in industrial network modelling to account for future CO 2 prices in industrial decisions. This enables measurement of the potential impact of CO 2 pricing on the Group’s supply chain. Schneider views internal CO 2 pricing as a useful tool to reinforce its governance and external commitments on CO 2 . Induced: 8.2 MtCO 2 11. 9 % Induced: 0.3 MtCO 2 0.4% Induced: 60.7 MtCO 2 8 7.7 % Saved & Avoided: 83.6 MtCO 2 Suppliers Scope 3 upstream Schneider’s Operations Scope 1 & 2 Customers Scope 3 downstream Customers Saved & Avoided 10M 8M 6M 4M 2M 9M 7M 5M 3M 1M 0 2017 2018 2019 2020 2021 2030* 0.8M 0.7M 0.6M 0.5M 0.4M 0.3M 0.2M 0.1M 0 2017 2018 2019 2020 2021 2030* 80M 70M 60M 50M 40M 30M 20M 10M 0 2017 2018 2019 2020 2021 2030* 0 2018 2019 2020 2021 -25M -50M -75M -100M -125M Purchases Freight B usiness travel O ther Scope 3 upstream Target * Projection assuming that the -35% applies equally on all Scope 3 sources E lectricity & heat E nergy fuels C ompany cars SF 6 leaks Target U se of products P roduct end of life Saved Avoided Target Schneider Electric carbon footprint: 2017 to 2021 evolution