39 Life Is On | Schneider Electric www.se.com Integrated report With a network of more than 52,000 suppliers around the world, Schneider Electric is committed to developing lasting relationships with each of them, while at the same time helping them introduce more sustainable practices. Supply chain vision Our world-class supply chain is driven by the following principles and objectives: • Customer satisfaction and quality is our number one priority. • Sustainability is at the core of procurement actions through innovation and working with sustainable suppliers. • Competitive landed costs and optimized cash, driving high level of productivity and Schneider Electric’s top-line growth and margin. • An agile and secure supply chain that is a competitive advantage in the market throughout the product lifecycle. • World-class competencies and talents with values of accountability, collaboration, and simplification. We’re deeply concerned about social and environmental conditions in mines that could supply such “conflict minerals” for our products. When the country of origin is known to be in the conflict zone, 100% of the smelters and refiners were verified conformant. Therefore, the Group has no reason to believe that any conflict minerals the Group sourced, have directly or indirectly financed or benefitted armed conflict in the covered countries. Building a sustainable supply chain We aim to collaborate with our global supplier network for an inclusive and carbon neutral world, where ecosystems and resources are preserved, and people get access to economic opportunities and decent lives. Our ambition is to make sure that the production of our products and services are not linked to any kind of environmental or human rights abuses. Schneider Electric’s sustainable purchasing strategy ensures risk management and commits to improvements. To achieve this, we have embedded sustainability at three levels: • Provision of a Supplier Code of Conduct with fundamental requirements that all suppliers delivering goods or services to Schneider Electric are expected to adhere • Integration of sustainability criteria in the day to day, operational procurement actions. The qualification process focuses on people, social responsibility, and environmental management. Sustainability criteria account for a significant part of the evaluation. • Deployment of strategic programs in thematic areas of climate change (The Zero Carbon Project), decent working conditions & human rights (Duty of Vigilance, ISO26000, Decent Work), circularity & resource conservation (green materials, sustainable packaging). In 2021 we have begun a new five-year engagement with ambitious targets for each of the thematic areas. Sustainable relations with suppliers Conflict minerals: we support the US conflict minerals legislation and actively avoid the use of such minerals in our supply chain 2021 highlights Supplier Engagement Leader award from CDP. 1,000 Suppliers committed to the Zero Carbon Project. +5pts continuous increase of suppliers ISO2 6000 score. 21% total packaging spend attributed to sustainable packaging.