www.se.com Schneider Electric 114 2021 Sustainable Development Report 5 G reat People making Schneider Electric a great company 5.2 D iversity, equity, inclusion, and well-being 5.2.1 R isks and opportunities In a world where change is the new norm and innovation is critical to ongoing business success, Schneider Electric places a key emphasis on attracting and retaining diverse talents and building a high performing leadership pipeline. The Group’s diversity, equity, and inclusion ambition is to offer equal opportunities to everyone everywhere. Schneider Electric wants its employees – no matter who they are, or where in the world they live – to feel uniquely valued and safe to contribute their best. The Group believes that diversity, equity, and inclusion is a moral as well as a business imperative, as a diversity of people and an environment of inclusion leads to greater engagement, performance, and innovation. Since 2015, Schneider Electric has also made well-being and mental health strategic priorities. The events of the last couple years have only confirmed that nurturing employees’ well-being and mental health is a critical business imperative, and that leaders must develop the right skills to support their teams’ well-being. Pandemic fatigue is real, as is the increase in employee burnout and mental health challenges across the globe. Companies have to accommodate these realities and strive to provide the support every individual needs. Recognizing that well-being and mental health matter is key to fostering an inclusive company culture where everyone feels safe to be their unique self. 5.2.2 Governance The Global Diversity, Equity & Inclusion (DEI) Board is a group of top leaders from all markets, sponsored by the Executive Committee, which acts as a sounding board for the global DEI strategy as well as internal and external DEI champions. Board members are nominated by the Executive Committee to serve a two to three-year term. All Schneider Electric entities develop action plans based on the feedback of employees while meeting local regulations and addressing country-specific situations. For DEI, leaders have been appointed in more than 30 countries/ zones and entities of the Group to lead these actions plans. This global network convenes bi-monthly to share progress and best practices. The well-being governance model consists of a structured network of more than 50 champions worldwide converting the global vision into customized local actions responding to the diversity and local needs of more than 100 countries. The well-being champions network convenes every six weeks to share progress, internal and external trends, as well as best practices. Beyond this governance structure, all employees at Schneider Electric are held accountable for our DEI and well-being transformation, through targets included in the Schneider Sustainability Impact (SSI) and Schneider Sustainability Essentials (SSE), the Group’s performance dashboards for sustainability. The SSI is factored into every employee’s short-term incentive plan. This ensures a high level of awareness and accountability from both employees and leaders. 5.2.3 Group p olicy Schneider E lectric’s o verall a sp iration t o i mprove t he l ives o f people everywhere in the world by developing sustaina ble energy solutions for its customers also extends to its diversity, equity, and inclusion (DEI) ambition. The DEI and Well-Be ing strategy focuses on engaging and impacting the individual, the organization, and society at large, via three pillars: • “ Sustain You”: Schneider Electric is committed to making sure all employees feel safe to be their best selves in a culture that fosters trust, respect, and flexibility. Employees are empowered to prioritize their own well-being and mental health, invest in healthy ways of working, and role-model inclusive behaviors. • “ Activate Schneider”: Schneider Electric is committed to reflecting the diversity of the communities in which it operates. The Company continues its efforts to hardwire equity and inclusion at all stages of its Total Employee Experience, ensure fairness in people processes and policies, and foster a culture of care and inclusion at all levels. • “ Impact Society & Planet”: Schneider Electric is committed to driving change within its broader ecosystem and society at large, through advocacy and role-modelling. The Company works closely with its strategic partners and suppliers and invests in local actions through the Schneider Electric Foundation, with the goal of addressing systemic inequities and becoming a leader in corporate citizenship. Schneider Electric also engages in coalitions and partnerships to influence policy and play its part in building a society that embraces diversity, equity, and inclusion. While DEI is increasingly driven by local and regional regulation, with which the Group complies, other countries where Schneider Electric operates are encouraged to tackle additional DEI and well-being challenges specifically relevant to their markets and tailored to their needs.