www.se.com Schneider Electric 6 2021 Sustainable Development Report Re sour ce s Climat e Tr us t Genera tion s Eq ua l Lo ca l Emp ow er all to ma ke th e most of ou r e nergy an d resource s 1 Sustainability at the heart of our strategy 1.1 Our strategic vision towards long-term positive impact 1.1.1 A holistic and strategic vision of sustainability “Sustainability” is about creating system value. It encompasses continuous improvement of environmental, social, and ethical dimensions across an organizations entire value chain and stakeholders. Schneider Electric’s short-term roadmap (3 – 5 years) is built on a consultation process involving external and internal stakeholders, called a materiality assessment, as well as dedicated internal governance mechanisms involving the Strategy & Sustainability team, employees, experts in the Group, the Executive Committee, and the Board of Directors, under the leadership of the Chief Strategy & Sustainability Officer. In the medium (5 – 10 years) and long term (10 – 30 years), Schneider Electric aligns its strategy on key issues under the United Nations Sustainable Development Goals (SDGs) and global climate scenarios in coherence with its business model and global footprint. This holistic approach to sustainability allows the Group to greatly mitigate risks and also brings tangible value added through a greater attractivity to customers, new talents, and investors, while boosting innovation. The numerous awards received each year (e.g., #1 Most Sustainable Corporation, Financial Times top 50 Diversity Leaders, Gartner Supply Chain Top 25, etc.) and the Group’s leadership in the main ESG indices (e.g., Dow Jones Sustainability World Index, Euronext Vigeo Eiris World 120, etc.), confirms that Schneider Electric is headed in the right direction. 1.1.2 A unique position to fight climate change and social inequality As a global specialist in the digital transformation of energy management and automation, the Group places its expertise and solutions at the service of its customers to ensure that energy is safe, reliable, efficient, connected, and sustainable. The Group proposes an integrated offering of technologies and market-leading solutions tailored to customer needs, promoting the transition towards more electric, digital, decarbonized, and decentralized energy. These solutions balance the need to reduce the planet’s carbon footprint with the inalienable human right to quality energy and access to digital. In fact, Schneider Electric is uniquely positioned among the 1,000+ companies taking action for climate change because it acts on both sides of the same equation: • The solutions Schneider Electric brings to the market are directly linked to activities to mitigate, adapt, and improve humanity’s resilience to climate change; • At the same time, Schneider Electric acts to reduce its end-to- end CO 2 footprint, aiming for a net-zero CO 2 supply chain by 2050, with precise steps for 2025, 2030, and 2040. This positive contribution is measured as Impact revenues, which represent 71% of the Group’s total revenues in 2021. In addition, to further contribute to a new electric and digital world, 100% of Schneider Electric’s innovation projects are aligned with its purpose, more than 90% being either strictly green or neutral. On this journey for a better planet, the Group is convinced that no one should be left behind, and businesses should operate a just transition. 1.1.3 A commitment to the United Nations Sustainable Development Goals Schneider Electric is committed to taking urgent action to co- create a brighter future aligned with the United Nations Sustainable Development Goals (SDGs), consisting of 17 objectives and measuring its impact with transparency. The SDGs are about protecting the planet, alleviating poverty, and achieving worldwide peace and justice. By tracking its sustainability performance and publishing quarterly results, Schneider Electric uphold its commitments to the SDGs and industry leadership in corporate social responsibility. The Group’s sustainability roadmap 2021-2025 Progress on our Climate Pledge to reach carbon neutrality in the Group’s operations. Reach the 11 global, and one local, objectives of the Schneider Sustainability Impact (SSI) 2021 – 2025, as well as the 25 objectives of the Schneider Sustainability Essentials (SSE) under our six long term commitments (climate, equal, resources, generations, trust, and local).