www.se.com Schneider Electric 104 2021 Sustainable Development Report 4 Being efficient with Resources 4.3.6 Green packaging Packaging is the first visible asset seen by customers and is associated with major environmental challenges such as resource depletion, CO 2 emissions, waste generation, and marine pollution. Globally, a strengthening of the regulatory framework requires the development of new packaging alternatives to enhance recyclability and minimize the current and upcoming Polluter-Pays packaging taxes. By 2025, Schneider has committed to make sure that: • 100% of primary and secondary packaging uses recycled cardboard. • 100% of our primary and secondary packaging is free of single-use plastic. In 2021, Schneider Electric Green Packaging Experts released a new sustainable packaging guideline to define Schneider’s requirements and best practices to foster improved environmental performance of packaging by minimizing waste generation and improving recyclability to make it an integrated part of a more circular economy. In 2022, the focus will be put on: • Setting up partnerships with key suppliers to secure greener packaging options; • Building up traceability in the supply chain by collecting suppliers’ declarations and strengthening procurement systems to better track single-use plastic packaging; • Accelerating the implementation of the “green packaging” definition in the business projects portfolio to ensure new and legacy products switch to more sustainable packaging options. 100% of our primary and secondary packaging is free from single-use plastic and uses recycled cardboard The newly launched Wiser IP Camera is delivered without any plastics in the box and a cardboard made with 70% of recycled content. In addition, the in box user guide contains mandatory information only and remaining content is fully accessible online through a QR Code. Resources SSI #5 100% 13% Baseline 2025 target 2021 Progress 21% 4.3.7 Product Environmental Footprint More and more customers, green building standards, distributors, and electricians prefer offers with green credentials and request environmental data. Many building standards and local regulations, demand or promote offers providing Environmental Product Declarations. There is clearly a growing premium assigned to transparency. An environmental footprint is a product or solution-related content that provides quantitative information based on Life Cycle Assessment (LCA, according to ISO 14040-44 standard). Environmental footprint enables the assessment of multiple environmental impact indicators, including the carbon footprint, for all product or solution lifecycle stages. The scope of this assessment is also referred as ‘cradle-to-grave’. Environmental footprint is a mandatory requirement in the Green Premium ™ program. Schneider Electric relies on Product Environmental Profiles (PEP) to fulfill this requirement. A PEP is defined as a product-oriented “summarized” version of a full LCA. It relies on Product Category Rules (PCR) or Product Specific Rules (PSR). At Schneider, there are two types of PEP available: • Certified – a type III Environmental Declaration in compliance with ISO 14025. The certified PEP is externally reviewed by an accredited verifier and published by a program operator according to the rules provided by this operator (e.g., PEP Ecopassport). In 2021, 182 certified PEPs were published on the PEP Ecopassport association website. • Internal – the internal PEP follows the exact same rules as the certified one. However, an internal PEP is reviewed internally and therefore, cannot be registered through an independent program operator. A process of accreditation for internal verifiers guarantees the adequate level of internal PEP verifications. Verifiers check PEPs from other lines of business than their own, thus ensuring independence. Internal PEPs comply with the ISO 14021 self-completed declaration. In 2019, 77.3% of Schneider’s product revenue was covered by a PEP, including 33.9% of ISO 14025 type III declarations and 43.4% of ISO 14021 type II self-completed declarations. Environmental configurators Beyond PEPs, Schneider Electric also relies on some offers’ environmental configurators which are better suited to assess the environmental footprint of systems and solutions. A configurator makes it possible to assess a dynamic environmental footprint that better reflects the specific situation of customers or end- users. In 2021, a web configurator was developed to leverage the environmental benefits of the ECOFIT ™ service. Schneider aims at supporting the creation and use of such configurators since they allow the Group to provide better environmental inputs to customers, facilitate the discussion around the environmental footprint of offers, and therefore ease the identification of meaningful eco-designed solutions. In 2021, Schneider accelerated the digitization of the PEP process in order to encourage the use of the configurator.