www.se.com Schneider Electric 6 2021 Climate Report 2 Roadmap towards a 1.5°C cl imate trajectory 2.1 Climate impact commitments In its Trust Charter, Schneider Electric adopts an unequivocal position regarding impact on climate change and CO 2 emissions. The Group has been a leading contributor to the fight against climate change for the past 15 years by implementing its own energy management and industrial automation solutions across operations, by supporting its clients in achieving their low-carbon and efficiency objectives, and by allowing more than 30 million people to gain access to electricity. Schneider also takes an active role in a variety of multi-stakeholder organizations to promote solutions to climate change, call for a price to CO 2 , and strengthen CO 2 governance globally. Since 2011, the Group has also been contributing to the Livelihoods Funds, which proposes innovative investment models to simultaneously address environmental degradation, climate change, and rural poverty. The Group aims to be a role model in the fight against climate change, by sharply decarbonizing its own operations and by delivering services and solutions that allow its customers to reduce more CO 2 emissions than those produced by the Group’s activities. Ultimately Schneider aims to reduce the end-to-end emissions of its offers, by engaging suppliers and eco-designing offers for lifecycle climate and circular performance. Short to medium-term targets • Before 2025, demonstrate that Schneider Electric is carbon p ositive together with its customers and partners, thanks to CO 2 savings delivered by EcoStruxure ™ . • On t he Group’s operations (scope 1&2): be carbon neutral by 2025 and net-zero CO 2 emissions by 2030. • On i ndirect emissions (scope 3) in its supply chain and with customers: reduce emissions by 35% by 2030 (vs 2017), by actively engaging suppliers to accelerate their climate strategy, by sourcing greener materials, and by proposing more efficient solutions to its customers. The Group’s 2030 targets (net-zero CO 2 emissions on scope 1 and 2, and -35% on scope 3) have been validated 1.5°C-aligned by the Science-Based Target initiative in 2019. Long-term targets • Become carbon neutral on the Group’s full end-to-end footprint by 2 040 (scopes 1, 2 and 3), 10 years ahead of 1.5°C trajectory. This means that all Schneider’s products will be carbon neutral in 2040. • Eng age with suppliers towards a net-zero CO 2 supply chain by 2050. In 2040, the Group commits that all Schneider Electric products will be carbon neutral. By connecting technology, business, and collaboration, Schneider joins the likes of global partners, such as Amazon, Infosys, and Daimler to help deliver carbon neutrality by 2040 as part of the Climate Pledge, a jointly created initiative between Global Optimism and Amazon. The Climate Pledge was founded on the conviction that global businesses are responsible and accountable for acting on the climate crisis, together. This milestone is set 10 years earlier than the pledge made in 2015 by all United Nations country members at Paris COP21, showing the Group’s eagerness to accelerate the world economy decarbonization to respect the 1.5°C targets. By 2050, achieving net-zero CO 2 emissions in its supply chain will require Schneider Electric to work transversally with all stakeholders, from product design, to sourcing, manufacturing and shipping. 2.2 Concrete actions in our ecosystem 2.2.1 Net-zero CO 2 emissions in operations by 2030 To deliver its Scope 1 and 2 targets, the Group has launched several transformations under the Climate and Resources pillars of Schneider Sustainability Impact: • R each 150 Zero-CO 2 sites by 2025 (SSE #1), • Propose SF 6 -free alternatives for all medium voltage technologies b y 2025 (SSE #2), • Source 90% of electricity from renewables by 2025 (SSE #3), and 1 00% by 2030, • Increase energy efficiency in our sites by 15% by 2025 (SSE #5) and double energy productivity by 2030 (vs 2005), • Shift one third of corporate vehicle fleet to electric vehicles by 2025 (SSE #7), and 100% by 2030. The Group leverages its Power and Building EcoStruxure ™ IoT architectures to deliver these ambitions, monitor and optimize energy consumption, manage assets and grid infrastructure, manage distributed renewable energy resources and electricity load, monitor energy quality, and power electric vehicles. This strategy has delivered an absolute reduction of 405,028 tonnes of CO 2 e emissions on Scope 1 and 2 (from 699,079 tCO 2 e in 2017), which is a 58% decrease. 2.2.2 End-to-end carbon neutrality by 2040 Schneider Electric is already taking concrete actions to engage its suppliers to decarbonize: • Eng age 1,000 top suppliers to reduce their operational CO 2 em issions by 50% with The Zero Carbon project (SSI #3). • Re duce purchase-related CO 2 emissions with EcoDesign Way ™ to improve the end-to-end lifecycle environmental footprint of its offers, notably by reducing and substituting materials and components in products. The Group aims to source 50% green materials by 2025, favoring bio-sourced, recycled, and sustainable options (SSI #4). • Ha ve 100% of its primary and secondary packaging free from single-use plastics and made from recycled cardboard (SSI #5). • Red uce CO 2 emissions from freight and logistics activities, by shifting from air to sea freight and optimizing fill rates and travel routes (SSE #4). • Red uce CO 2 emissions from waste management, with its “Waste as Worth” program. In 2021, 126 sites achieved the “Waste to Resources” designation as part of SSE #9. • Red uce CO 2 emissions from capital goods by optimizing real estate space occupancy as saved surfaces translate directly into lower CO 2 emissions, as well as spared natural habitats and agricultural land.