www.se.com Schneider Electric 64 2021 Sustainable Development Report 2 Driving responsible conduct of business with the Trust Charter Remediation and mitigation actions As of end of 2021, Schneider Electric has closed 97% of 2020 and 3% of 2021 non-conformances (all types). Schneider Electric’s approach is to help suppliers remediate the issues by sharing good practices and providing them with guidance and training. When non-conformances are not remediated (mainly top priorities), escalation to the Chief Procurement Officer may lead to an end of the business relationship. In 2021, one relationship with a supplier has been terminated. In order to reinforce the co-ordination between Schneider Electric teams and suppliers on vigilance topics, a specific training program has been implemented. The primary target audience is the Schneider Electric Procurement team, and the training modules aim to increase their knowledge on the nature of risks, so they can integrate these topics early in the discussions with suppliers. At the end of 2021, ~580 employees have taken this training. These trainings combine in-class experience with e-learning sessions. To raise suppliers’ awareness, improve their ability to identify risks earlier, and implement mitigation solutions, Schneider Electric organized face-to-face workshops dedicated to vigilance subjects. At the end of 2021, ~500 supplier team members have attended these events. These sessions include in-class face-to-face workshops and digital webinars. 56% 39% 4% 0% 1% 0% 0 20 40 60 80 100 EAJP* EMEA** North America South America India China 36% 29% 20% 13% 10% 5% 0 20 40 60 80 100 Management Environment Ethics Labor Health & Safety 46% 23% 5% 18% 7% 1% 0 20 40 60 80 100 EAJP* EMEA** North America South America India China 55% 24% 6% 4% 8% 3% 0 20 40 60 80 100 EAJP* EMEA** North America South America India China % Risky suppliers identified in 2021 by geography – Graph 1 % Audits carried out in 2021 by geography – Graph 2 % Non-conformances in 2021 by topic – Graph 3 % Non-conformances in 2021 by geography – Graph 4 * EAJP: East Asia Japan Pacific ** EMEA: Europe Middle East Africa Impact From the beginning of the program in 2017 to the end of 2021, 579 suppliers have been audited on site, and 7,000+ non- conformances were raised, and subsequently remediated. 37% were related to health and safety issues, and 25% were related to labor issues. Among the most serious ones are issues of fire safety, protection of workers from accidents and injuries, respect of a decent working time including proper resting periods and payment of overtime. Overall, the resolution of these non-conformities has allowed to improve the working conditions for the employees of these suppliers. Although this is a rough estimate, we estimate that 185,000 employees have seen their working conditions positively impacted by the Supplier Vigilance program.