17 Life Is On | Schneider Electric www.se.com 2021 Climate Report 5.2 CO 2 efficiency in transportation Schneider Electric uses a robust transport network to connect its factories and distribution centers, and to deliver to its customers. The related CO 2 emissions are part of the scope 3 emissions of the Group’s carbon footprint, as this activity is performed by transport suppliers. From 2015 to 2017, CO 2 emissions intensity from transportation was reduced by 10%. The 2018-2020 Company program aimed to further reduce CO 2 intensity in transportation by 10% in 2020 compared to 2017. By the end of 2020, performance compared to 2017 regarding transport-related CO 2 emissions had decreased by 8.4%. With Schneider Sustainability Essentials 2021-2025, the Group aims to further reduce CO 2 intensity in transportation by 15% compared to 2020, or a 3% reduction year on year (SSE #4). For 2021, unprecedented shortage in materials and components sourcing, coupled with lower reliability and availability of transportation means, led to an absolute CO 2 emissions increase in freight paid by the Group of 24% (compared to 2020), yet a 1% increase in CO 2 intensity only. Building on the work done in prior years, Schneider will be further enhancing its CO 2 reporting capability in 2022 to not only report on freight CO 2 footprint but to facilitate engagement with transport suppliers on continuous improvement. Collaborative engagement with the Group’s transportation suppliers will continue, focusing on the pillars of optimizing existing transport footprint, as well as supporting and piloting advanced low carbon transportation technologies across all transport modes – air, sea and road freight. 15% CO 2 efficiency in transportation As part of its efforts to reduce the CO 2 intensity of transportation, Schneider Electric is piloting low-carbon transportation technologies such as electric and hybrid vehicles. For instance, on the East Coast of the USA, electric terminal trucks are used by a final mile transport partner to move containers between the Distribution Center and the Port’s Terminal. Climate SSE #4 15% 0% Baseline 2025 target 2021 Progress 0 100 -1% Some evidence of Schneider initiatives to mitigate the impact of transport-related CO 2 emissions include: • I mplementation of container freight stations (CFS) in Schneider’s sea shipping network to allow for origin consolidation and destination deconsolidation of ocean containers resulting in a reduction of the number of containers shipped. • I mplementation in various South American countries of final customer delivery utilizing electric vehicles and bicycles. Additionally, piloting rail shipments from the regional ports to Schneider’s facilities. • I n North America, a strong focus on our trucking asset utilization with the implementation of multi-deck trailers on the Mexico- USA lane, significantly increasing fill-rate and reducing the number of trips required. • E xploring the use of smaller, faster, zero carbon sea transport options to connect our shorter, high-frequency lanes to potentially replace air freight and reduce traditional sea shipments. 5.3 Gr een materials Purchases are responsible for the largest share of Schneider Electric upstream Scope 3 CO 2 emissions. Schneider has committed to increase green materials in products to 50% by 2025, and tracks progress quarterly under Schneider Sustainability Impact (SSI #4). While this program does not focus on CO 2 only, but also mitigates other environmental impacts such as resources, biodiversity or toxicity, this initiative will contribute to reduce the Group’s Scope 3 supply chain emissions, in line with its 1.5°C carbon pledge. To achieve this ambition, Schneider will participate actively with industry leaders in dedicated working groups to become a change agent of the low-carbon economy while enhancing the traceability of materials. At the end of 2021, 11% of materials in scope where qualified as “Green”.