www.se.com Schneider Electric 150 2021 Sustainable Development Report 7 Methodology and audit of indicators In this section 7.1 Methodology elements on the published indicators 150 7. 2 Methodology elements on EU taxonomy indicator 160 7. 3 Sustainability Accounting Standard (SASB) Correspondence table 162 7. 4 Task-force for Climate Related Financial Disclosure (TCFD) correspondence table 164 7. 5 Independent third party’s report on the consolidated non-financial statement presented in the management report 168 7.1 Methodology elements on the published indicators Schneider Electric has drawn up a frame of reference with reporting methods for Schneider Sustainability Impact (SSI), Schneider Sustainability Essentials (SSE) indicators and for Human Resources, safety and environmental data. This frame of reference includes the scope, collection and consolidation procedures and definitions of this information. As it is engaged in a process of constant improvement, Schneider Electric is gradually supplementing this work to adapt its frame of reference for sustainable development indicators to changes in the Group. This document is updated every year. In keeping with its commitment to continuous improvement, Schneider Electric asked Ernst & Young to conduct a review in order to obtain a “limited” level of assurance for certain Human Resources, safety and environmental data indicators, and all of the key performance indicators from the SSI and SSE (see Independent verifier’s report on page 168). The audit work builds on that conducted since 2006. As a general rule and subject to any particular exception to be set out in the universal registered document: (i) Schneider Electric reports extra-financial data at Group level for all entities over which it has operational control, within 2 years of acquisition; (ii) Data is consolidated over all fully integrated companies within the scope of financial consolidation; (iii) Companies accounted for by the equity method are not included in the reporting. (iv) Within the above scope, small entities may exceptionally be excluded if their collective exclusion does not exceed 5% of consolidated revenues or total number of employees, in agreement with external auditors. Notable exclusions in 2021 (except for SSI #1): • AVEVA and OSIsoft. AVEVA remains a listed company and publishes its financial and extra-financial statements on regular basis. It acquired OSIsoft in March 2021. • Companies acquired in 2020 and 2021: Larsen & Toubro; RIB software; ETAP. 7.1.1 Human Resources, safety and environment indicators The Human Resources (HR), safety and environmental data come from our HR Analytics for the HR data, Resource Advisor for Environmental data and GlobES (Global Environment and Safety) for the safety data. Its consolidation is placed respectively under the Global Human Resources, the Global Environment and the Global Supply Chain functions. Data reliability checks are conducted at the time of consolidation (review of variations, inter- site comparison, etc.). Details for data coverage are specified in tables page 176 for each topic and are generally well above 80%. The safety data of the sites are included in the Group metrics after one complete calendar year following their creation or acquisition. A site joining the Group in year n will be included in the metrics on January 1, n+2, except in exceptional circumstances when an agreement stipulates that the safety data will not be included for two years. The scope of environmental reporting is that of ISO 14001-certified sites, and certain non-certified sites on a voluntary basis and without interruption in time. All production and logistics sites with 50 or more FTE employees must obtain ISO 14001 certification before the end of the third full calendar year of operation or membership of the Group. Administrative, R&D and sales sites with 500 FTE employees or more also have to obtain ISO 14001 certification. Other sites may seek certification and/or report on a voluntary basis. A difference can be thus recorded with respect to the scope of financial consolidation.