www.se.com Schneider Electric 62 2021 Sustainable Development Report 2 Driving responsible conduct of business with the Trust Charter Schneider Electric’s sustainable procurement strategy When it comes to procurement, Sustainability is at the very heart of our mission. To streamline global action, we have implemented a Sustainable Procurement Strategy, which was the result of a multi-stakeholder consultation process. This strategy is focused on a vision of collaboration with our global supplier network to build an inclusive and carbon neutral world, where ecosystems and resources are preserved, and people get access to economic opportunities and decent lives. The strategy rests on the foundation of robust procurement processes, that embed sustainability criteria at various stages and de-risk the operations by adhering to the relevant legal and prevailing norms. Net zero CO 2 emissions Circular supply chain Environment friendly Decent working conditions & human rights Holistic approach Strategic Goals and Programs Sustainable Procurement Vision Collaborate with global supplier network for an inclusive and carbon neutral world, where ecosystems and resources are preserved, and people get access to economic opportunities and decent lives The Zero Carbon Project Supplier code of Conduct Summarizes the most fundamental requirements from Schneider Electric towards its Suppliers. We expect these principles illustrated in this document to be applied by all suppliers. Sustainable Procurement Business Procedures • Schneider Electric Supplier Quality Management (SSQM)/ Supplier Approval Module (SAM) • Business Review • Sustainable Development, Environment, Ethics And Compliance Terms and conditions Green Materials Reach/RoHS ISO 26000 Sustainable Packaging Conflict Minerals/Cobalt Duty of Vigilance Decent Work SSI #3: Reduce CO 2 emissions from top 1,000 suppliers’ operations by 50% SSI #4: Increase green material content in our products to 50% SSI #5: 100% packaging uses recycled cardboard & no single-use plastic Continued adherence and compliance to regulations governing hazardous materials and conflict minerals SSI #6: 100% strategic suppliers provide decent work to their employees Improve sustainability profile of strategic suppliers SSE #17: 4,000 suppliers assessed under Vigilance Program 2.11.5 Promotion of a continuous improvement process based on the ISO 26000 standard for strategic suppliers Sustainable development is one of the seven pillars used to measure supplier performance, allowing the highest-performing suppliers to become “strategic” suppliers. Performance resulting from the EcoVadis evaluation is an important element of the sustainable development pillar. The ISO26000 evaluation by EcoVadis remains one of the key aspects of Schneider Electric’s supply chain and procurement-led sustainable development strategy. The elements of the assessment are an integral part of the business reviews scheduled between buyers and suppliers, on a quarterly to yearly basis, depending on the suppliers. This monitoring supposes an improvement from the supplier. The Group has set out to engage all its strategic suppliers in a process of continuous improvement on this pillar. At the end of 2021, strategic suppliers represented c. 60% of Schneider Electric’s purchases volume. Strategic suppliers who have passed the third-party evaluation process cover 70%+ of total strategic purchasing volume. In 2018, the Group took on the ambitious target of achieving +5 points out of 100 in the average ISO 26000 assessment score of its strategic suppliers between 2018 and 2020 as part of the SSI. In 2019, this target was raised to +5.5 points. At the end of 2020, +6.3 points were achieved, with an average of 57.4 points. 2021 target was set at +1 point minimum, and the end of year result was +1.3 points with an average of 58.7 points. The new ambition for 2021 – 2025 is to raise the bar even higher to achieve an average of 65 points within 5 years.