www.se.com Schneider Electric 156 2021 Sustainable Development Report 7 Methodology and audit of indicators 2025 target is a transformation of the existing program, for products focused on green materials, low CO 2 , circularity and digitization of data. Green Premium products provide detailed information on their regulatory compliance, material content, environmental impact and circularity attributes. They deliver market driven value propositions through third-party labels, such a Green Building and product certifications, that support our customers’ sustainability ambitions. All globally sold products are within the scope of Green Premium. The product must be identifiable by an individual commercial reference number sold under a recognized brand of Schneider Electric. The Group provides resources efficient products (energy at usage, low CO 2 , material efficiency) whose footprints are fully available through the ‘Product Environmental Profile’ relying on Life Cycle Assessment; Green Premium offers also come with ‘Circularity profiles’, providing information on a product’s Circularity through product end-of-life instructions and take-back services. Green Premium offers are regulatory compliant. Schneider is going beyond regulatory compliance with step-by-step substitution of certain materials and substances from our products. All this information is provided digitally to our customers. This indicator was audited by Ernst & Young. SSE #7: One-third of corporate vehicle fleet comprised of electric vehicles Schneider Electric has joined the EV100 initiative of Climate Group to reduce its carbon emissions by committing to electrify 100% of its fleet by 2030. The fleet reporting structures the fleet carbon emissions calculations, the calculation of EVs share in the fleet and allows to support countries in the transition. As a mid-term objective, by 2025, Schneider commits to switch a third (1/3) of its fleet to electric vehicles (EV). Schneider Electric uses the definition by the Climate Group for electric vehicles, including: • Battery Electric Vehicle (BEV), • Plug-in hybrids (PHEV): Extended Range vehicle (EREV) and Fuel Cell Electric Vehicle (FCEV) - with at least 50km of electrical autonomy Vehicles’ count is a picture at 31/12. The share of electric vehicle in fleet is calculated by dividing EV count by total vehicle count Fleet leasers are the source of information; global leasers operate the largest share of Schneider Electric’s fleet and provide data on multiple countries by region. A detailed reporting is asked to all countries to eventually correct, complete or complement the information (considering for instance vehicles under local leasers). This indicator was audited by Ernst & Young. SSE #8: 100% of sites with local biodiversity conservation and restoration programs This program measures, for each site in scope, the percentage completion of a set of biodiversity-related actions. The scope is Schneider Electric sites within full real estate footprint that have >50 people. Initiatives are defined as “eliminate single-use plastic”, and “local biodiversity action” (2 required for large ISO14001 sites, 1 for small sites). Each site reports initiatives at completion. At Group level, performance is calculated by dividing completed initiatives by total required initiatives. This indicator is audited annually by Ernst & Young. SSE #9: 200 ‘Waste-to-Resource’ sites A site achieves ‘Waste-to-Resource’ status if it recovers more than 99% (by weight) of its non-hazardous waste while leveraging waste-to-energy solutions for less than 10% of its non-hazardous waste. Additionally, if a site generates hazardous waste, it must ensure 100% proper handling and treatment of that waste. Proper handling and treatment of hazardous waste means that hazardous waste shall be handled as per Schneider Electric’s requirements and local regulations, whichever is the most restrictive. Waste is considered as recovered if it is reduced, reused, or sent to a waste provider for recycling or disposal in any manner except landfill and incineration without energy recovery. Waste composting and energy recovery systems qualify as recovered. This indicator relates to all sites within the Group’s full real estate footprint. This indicator was audited by Ernst & Young. SSE #10: 420,000 metric tons of avoided primary resource consumption through ‘take-back at end-of-use’ since 2017 The aim of this KPI is to measure Schneider Electric’s Circular Economy efforts, meaning all the industrial activities that contribute to the Circular Economy model, such as repair, reuse, refurbish and recycling, thus avoiding waste, material & energy consumption, CO 2 emissions and/or water depletion. Activities in this KPI will enrich on the basis of SE increasing focus on circularity business models, and are currently constituted of • Batteries take back and recycling; • Volume of devices refurbished and repaired in our repair centers (eg UPS, Drives); • Volume of MV, LV and Transformers refurbished or recycled in our Ecofit Centers. This indicator was audited by Ernst & Young. SSE #11: 100% of sites in water-stressed areas have a water conservation strategy and related action plan This program measures the percentage completion of a set of water conservation actions that sites in water-stressed areas must complete. The scope is Schneider Electric sites within the scope of environmental reporting that are classified as ‘high’ or ‘extremely high’ baseline water stress, as defined by World Resources Institute (WRI) Aqueduct Water Risk Atlas. Actions are defined based on the amount of water that a site consumes along with the application(s) that the site uses water for. At the Group level, performance is calculated by totaling all completed site actions and dividing by the total required actions. This indicator was audited by Ernst & Young.