www.se.com Schneider Electric 130 2021 Sustainable Development Report 5 Great People making Schneider Electric a great company 5.5.3 Governance Social dialog is managed at country level by the HR leaders with the employee representative bodies and unions, and at transnational level with the European Works Council (EWC) which covers most of geographical Europe. Social dialog is also taken into consideration by the Group’s social reporting system, where local HR teams report on the presence of trade unions, works councils, and the Health and Safety Committee every year. In 2014, while changing the corporate form of its parent company, Schneider Electric SA, into a European company (Société européenne), Schneider Electric negotiated an agreement with employee representatives of European countries about the involvement of these countries’ employees in the Company’s decision-making processes, thus reaffirming its commitment to promoting social dialog at international level. Labor relations within Schneider Electric are based on respect and dialog. In this spirit, management, and employee representatives meet regularly to exchanges views, negotiate, sign agreements, and ensure that agreements are being implemented. 5.5.4 European Works Council (EWC) The changes that were made in 2014 to the EWC in the framework of Schneider Electric SA’s transformation into a European company significantly enhanced the intensity and the impact of social dialog at European level. This European channel for dialog aims at enabling management to make more efficient decisions by giving employee representatives the opportunity to be informed of such decisions and to understand their reasons, as well as to put forward proposals to supplement or improve them. It has also fostered the emergence of a strong identity, combining different cultures and having the common aim of working towards social and economic progress within the companies in the Group at European level. The EWC covers all European Economic Area countries (hence all EU member states) and Switzerland, for a total of 43,000 employees. In 2017, Schneider Electric and IndustriAll Europe signed an innovative Europe-wide agreement, the European agreement on the anticipation and development of competencies and employment with respect to the Schneider business strategy. This agreement is a great opportunity to create a governance for jobs and skills at the Company by anticipating impact and evolution in business in line with current market trends and the Company’s ambition. It sets clear objectives for boosting employees’ employability, and for enriching the workforce by diversity and digital generation recruitment and reinforces constructive social dialog at European and local level within the Company. Since the beginning of COVID-19 pandemic crisis, Schneider Electric has constantly increased its interactions with its employees and its representatives in order to contribute to helping create a stimulating work environment and participate in decisions aimed at improving the way we work and the need to adapt to our environment, all of which go hand in hand. For example, a new discussion space with EWC members has been set up to propose a collective improvement of the whistleblowing process. The digital June plenary session hosted presentations and discussions on the Company’s strategy with Executive Committee members including Schneider Electric’s Chairman & CEO. 5.5.5 Group Works Council, France Schneider Electric is organized in France through more than 28 legal entities. However, with a coverage of 80% of employees, Schneider Electric Industries and Schneider Electric France SAS set the tone for social dialog in France mainly through the Group Works Council. In 2021, we continued to limit the impact of the COVID-19 pandemic on the business through our proven practice of social dialog, such as negotiations about the flexible working hours agreement. Several collective agreements were concluded with an objective to keep resiliency, strengthen Company performance, and at the same time maintain investments and employability of the workforce. To anticipate and manage the consequences of the evolution of Schneider Electric’s strategy over the next three years, a strategic workforce planning agreement was negotiated with the trade unions. Every year, Schneider Electric will discuss with its employee representatives the evolution of skills and workforce, including the opportunity to enhance its commitment on apprenticeship programs and others disruptive actions. 5.5.6 Social dialog in the United States In the US, and more generally in North America, regular communication takes place with both union and non-union employees on key business topics and trends affecting their jobs. Company officials meet with key international union leaders and local union leadership on an ongoing basis, and formally on an annual basis, to advise and discuss competitive issues impacting the Company’s business, and to ensure alignment with the Company’s business strategies and challenges. In 2021, contract negotiations took place both locally and nationally resulting in successful contract ratification. Company officials have continued to partner with union representatives to discuss COVID-19 and ensure safety protocols are in place for employees, customers, and vendors. Recently, impact bargaining took place in November with union leaders regarding the Company’s “COVID-19 US Vaccination Policy” aligned with the federal mandate, Executive Order 14042. 5.5.7 Social dialog in Mexico In Mexico, Schneider Electric leaders conduct regular communication with employees on topics related to their jobs; this communication takes place in different ways, including large communication meetings and small group conversations. There is also continuous communication with the union leaders and delegates of four national unions which represent unionized employees. Schneider Electric informs them of internal and external issues impacting the Company’s results, listens to their concerns, and looks for alignment with the Company strategy and challenges. Moreover, Schneider and the unions review the collective contract every year. Social dialog has been a critical factor reinforced during the pandemic to ensure collaboration and optimal relations between Schneider and its unionized employees. Each site is empowered to lead its social actions according to local needs. For over the past 10 years, Schneider Electric Mexico has been certified annually by the CEMEFI (Mexican Center for Philanthropy) as a Socially Responsible Company, recognizing the Group’s actions focused on labor relations, ethics and governance, human rights, community impact, and sustainability.