Conflict Minerals Statement

2020

Schneider Electric Industries SAS Postal address / Adresse postale : 35, Rue Joseph Monier 92500 Rueil-Malmaison Legal information / Mentions légales Société par actions simplifiée au capital de 928.29 8.512 euros 954 503 439 rcs Nanterre – code APE : 2712Z Siret : 954 503 439 01719 n° ident. TVA : FR 04 954 503 439 Siège social : 35 rue Joseph Monier F – 92500 Rueil-Malmaison Conflict Minerals Statement Schneider Electric is committed to support all the efforts of human rights organizations around the wo rld. It is believed that mining and trade of ‘Conflict Minerals’ help finance armed groups respo nsible for committing human rights abuses in many p arts of the world. On August 22, 2012, the U.S. Securities and Exchang e Commission (“SEC”) approved the Final Rule regard ing sourcing of Conflict Minerals under Section 1502 of the Dodd-Frank Wall Street Re form and Consumer Protection Act (“the Dodd-Frank A ct”). Conflict Minerals currently are Tantalum, Tin, Tungsten, Gold and/or their derivati ves. The rule enforces reporting requirements on pu blicly traded companies subject to the SEC to annually disclose the occurrence of Conflict Min erals originating in the Democratic Republic of the Congo (“DRC”) or surrounding countries in the products they manufacture or contract to manufa cture whereby the Conflict Minerals are necessary t o the functionality or production of a product. Similarly, Regulation 2017/821 of the European Parl iament and of the Council of 17 May 2017, which out lines the supply chain due diligence obligations for importers of Tin, Tantalum and Tung sten, their ores and Gold originating from Conflict -Affected and High-Risk Areas (Conflict Minerals Regulation) was published in the Official Journal on 19 May 2017. The regulation requires imp orters to report due diligence activities and the origins of the minerals they use in their produ ct manufacturing . As a rule, we refuse to use any products, or raw ma terials, which either directly or indirectly, fund these groups. As part of this commitment, we have implemented an on-going policy to buy from res ponsible, trusted sources, to take reasonable steps to understand supply chains, and when necessary, influence suppliers towards responsible sourcing, and to not contract with suppliers identi fied to be sourcing from or relating to people violating fundamental human rights. Some Schneider Electric products require lithium-io n batteries that contain Cobalt. DRC is the world’s largest producer of Cobalt and holds more than 50 % of the global Cobalt reserves. Multiple r eports have highlighted concerns over social and en vironmental impacts of Cobalt extraction, including child labor and unsafe working conditions in artisanal cobalt mining. While there isn’t any current legislation that governs Cobalt reporting, Schneider Electric is adding Cobalt to the list of Conflict Minerals actively addressed by our on-goin g policy to achieve Conflict-Free status for raw materials purchased. Schneider Electric has adopted standards in line wi th the RMI and OECD Standard of Diligence, regardin g our process to obtain chain of custody declarations from all relevant suppliers ensuring t ransparency in our supply chain. In addition: • Schneider Electric expects its suppliers to source materials from socially responsible suppliers. • Schneider Electric is requesting its suppliers to f ollow the Code of Conduct available on our website. (https://www.se.com/ww/en/download/document/Supplie r-code-of-conduct/) • Schneider Electric expects all of its suppliers to comply with our procurement Terms and Conditions wh ich require suppliers to disclose any Conflict Minerals and their countries of origin , in accordance with the requirements of the US Dod d-Frank Act of 2010 and/or any other legislation with the same purpose. • Schneider Electric expects its suppliers to follow the Organization for Economic Cooperation and Devel opment’s (OECD) Due Diligence Guidelines. • Schneider Electric expects its suppliers to exercis e due diligence on the source and chain of custody of these minerals and make their due diligence measures available to us upon request . • Schneider Electric expects its suppliers to take ac tions to reduce risk within their networks by sourc ing these minerals through Conflict- Free supply chains. • Suppliers must pass this requirement through their own supply chain and determine the source of specif ied minerals. • Suppliers who fail to source from socially responsi ble suppliers shall be reviewed by our Procurement Organization for future business. Schneider Electric is a leader in energy management and sustainability and has long maintained a commi tment to corporate social responsibility. Our approach to Conflict Minerals and Cobalt sourci ng is no different, as we have implemented the nece ssary processes and controls to ensure a safe, sustainable and competitive material supply for our customers, following strong ethical, socia l and environmental principles. To Know more: https://www.se.com/ww/en/download/document/principl es_of_responsibility/ and https://www.se.com/ww/en/about- us/sustainability/