www.se.com Schneider Electric 92 2021 Sustainable Development Report 4 Being efficient with Resources 4.1.2 Biodiversity footprint To drive change, companies need quantitative metrics to estimate, monitor, a nd pi lot t he i mpacts o f their ac tivities o n bio diversity loss or demonstrate their contribution to biodiversity restoration. Creating a ggregated a nd s tandardized bio diversity me trics a nd protocols is a much-needed step to ensure nature is truly placed at the heart of the business strategy. In 2020, Schneider Electric was the first c om pa ny to publish the end-to-end biodiversi ty footprint of its activities, using the “Global Biodiversity Score” (GBS) tool developed by CDC Biodiversité. By s haring it s e xperience w ith o ther c ompanies a nd c hoosing to publish r esults t ransparently, t he G ro up a im s to dem onstrate that measuring biodiversity footprints is a key first st ep to help companies define relevant and impactful biodiversity strategies, across t heir en tire v alue c hain. The GBS gives detailed and modular results which can be split by input line (for example, by raw materials such as metal, plastic, or timber); by pressures on biodiversity (such as land use, climate change, f ragmentation, o r en croachment); o r it c an be presented by scopes in Mean Species Abundance per square kilometer (MSA.km²) like a carbon footprint. The end-to-end assessment allowed S chneider t o iden tify h otspots a round w hich it i s m ost effective to develop a biodiversity strategy and actions. 1 Septem ber 2020 The bar chart below illustrates Schneider Electric’s dynamic terrestrial impact, with detail by pressure. The pie chart highlights the weight of greenhouse gas (GHG) emissions which represent almost 70% of Schneider Electric’s pressure on biodiversity. Land use accounts for almost 30% of “cradle-to-gate” impacts. Schneider Electric’s biodiversity industrial footprint (in MSA.km²) Scope 1, S cope 2 S cope 3 Scope 1Scop e 2Scope 3 Upstream Impacts terrestres dynamiques (MSA km ) 2 G HG emission L and use of wood L and use of metal mining Other Cradle to gate terrestrial dynamic pressures on biodiversity 69.3% 28.4% 2.1% 0.1% 0.1% C limate Change L and use Encroachment Fragmentation A tmospheric Nitrogen Deposition The biodiversity footprint results are expressed in MSA.km², a metric that has all the ingredients it needs to become the international standard: synthetic, easy to understand, and widely applicable. In 2018, the world average terrestrial MSA was only 66%, meaning that a significant part of the species abundance of ecosystem integrity has already been lost. Under a business- as-usual scenario, this number would fall below 60% MSA by 2050. That is far beyond the safe operating zone that respects the planetary boundary, which is estimated at 70% MSA (CDC Biodiversité). Such a high biodiversity loss undermines nature’s ability to provide its contribution to people, which is vital for human existence and a good quality of life. 4.1.3 T aking action towards no net biodiversity loss Climate change is one of the major pressures on biodiversity globally and is the main Group’s biodiversity impact. Therefore, Schneider’s carbon pledge will have a significant impact on reducing the Group’s pressure on biodiversity. Five main levers of actions have been identified and will be addressed through specific actions. Quantify and regularly publish the assessment of impacts on biodiversity (MSA. km²) As per the first step of the Group’s main commitments, the ambition will be validated thanks to the results of the Biodiversity Footprint Assessment performed with the Global Biodiversity Score (GBS). Consequently, the Group is committed to updating it regularly. Commit to reduce our impacts and align biodiversity objectives with science Schneider Electric recognizes the importance of nature and biodiversity for humankind to thrive; we are all dependent on natural resources and ecosystem services. The Group’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. That is why, in 2021, Schneider stepped up its ambition and publicly committed, through act4nature international, to achieving no net biodiversity loss in its direct operations by 2030 (Scope 1) and to aligning with the recommendations of international bodies (Convention on Biological Diversity by the Science Based Targets Network).