www.se.com Schneider Electric Integrated Report 2021 14 Integrated report Business Market trends – All electric, all digital At Schneider Electric, we believe a more electric and digital world is key to reaching the 1.5°C increase trajectory needed to slow climate change and enable a resilient future. The disruption caused by the events of the past two years highlight how we need to build a more sustainable and resilient world. Solutions to increase sustainability and resilience exist and are available today. Three megatrends highlight the shift to a world becoming all-electric and all-digital: • Electricity makes energy greener : electricity is the most efficient energy and offers the best path for decarbonization. • Digitization builds a smart future: digital tools make the invisible visible, enabling more effective waste reduction and efficiency improvements. • Digitization creates resilience: data analytics and insights enable more agile operations and continuity. All electric Decarbonization of power supply by increasing electricity in the energy mix from 25% in 2018 to 80% by 2050 Increased electrification in mobility, industrial processes, homes and buildings All digital Growing need to aggregate exponential amount of data Expansion of Internet of Things (IoT) in industrial processes driving abundance of data New business models with artificial intelligence (AI), algorithms and digital platforms We need to save 3x more CO 2 emissions by 2030 Source: Schneider Electric ™ Research Institute Scenario: Back to 2050 4 Gt CO 2 saved/yr Current pledged savings, post COP26, by 2030 leading to ~2.7º rise Minimum required savings by 2030 to limit to 1.5º rise 10 -15 Gt CO 2 saved/yr