www.se.com Schneider Electric 148 2021 Sustainable Development Report 6 Delivering social impact for a just transition 6.4.10.2 Social integration of disadvantaged young adults Diversity of backgrounds, cultures, profiles, and experience is always a source of wealth, sharing new ideas and innovation. In priority urban areas, there is a huge amount of talent that is eager to grow. Recognizing this, Schneider Electric believes that companies have a role to play. It is their duty to act, particularly in the heart of the markets in which they operate. Convinced of the need to better support young people entering the workforce, Schneider Electric is involved in different ways: training, work/study programs for young adults from underprivileged backgrounds entering the workforce, partnerships with schools and associations, financial support for young students, and participation in technical or general training courses. Such is the scope of the initiatives implemented by Schneider Electric. These actions complement the partnerships established within the framework of the Schneider Electric Foundation. The unemployment of young people, especially those living in priority employment neighborhoods, is unacceptable and efficient actions have been put in place to reduce this scourge, regardless of the economic, social, or industrial situation. Schneider Electric is involved in three major programs. Two of them are sponsored by the French Government: paQte (priority neighborhoods under the City Policy, QPV)) and the “La France, une chance. Les Entreprises s’engagent” program. The third program, “Le Collectif pour une Économie plus Inclusive,” is sponsored by companies. This group was initiated by the CEO of Danone at the end of 2018. Schneider Electric joined the group and has developed the “inclusion focus” in France in 10 cities (Aubervilliers, Strasbourg, Rouen, Marseille, Lyon, Bordeaux, Nantes, Lille, Toulouse, and Grenoble). Within this framework and in conjunction with state employment stakeholders (the French Public Employment Service, Youth Employment Centers, and Maison de l’Emploi), it organized neighborhood-oriented forums, e-forums during the pandemic, and coaching sessions for the youth. Lastly, there is the “100 opportunities – 100 jobs” system, which takes in more than 1,000 young people primarily from priority neighborhoods (as defined in the City Policy/QPV) and helps them to find long-term employment or training. Today it represents a collective of 1,500 companies located in 45 territorial areas. The relationship between all the local companies builds a melting pot that becomes the network for young people who have no network, in order to support them and structure their future project. It is a real public/private partnership that brings two worlds together for work. The “100 opportunities – 100 jobs” system was implemented for the first time in Chalon-sur-Saône in 2005, and by the end of 2021 more than 8,600 young people had been involved, with 68% achieving positive exits, fixed-term contracts or interim contracts longer than six months, permanent contracts, or a qualification or diploma training. Schneider Electric works to help inhabitants of the disadvantaged neighborhoods identified in the City Policy (QPV) and is naturally in line with the PaQte (Pact with Neighborhoods for all Companies) with respect to the four pillars of Raise Awareness, Train, Recruit, and Buy. Schneider Electric in France includes integration clauses in contracts to encourage suppliers to become committed to an approach of vocational integration of persons who are outside the job circuit. Schneider Electric in France challenges employment agencies to put in place temporary occupational integration contracts (CIPI) and interim open-ended employment contracts (CDI-I), which accompany the unemployed toward long-term employment and encourage temporary work that integrates people. Finally, Schneider Electric has partnered with many other structures or associations: École de la Deuxième Chance, les Entreprises pour la Cité, FACE, Télémaque, Fondation de la 2 ème Chance, EPA, La Cravate Solidaire, Emmaüs Connect la Varappe, etc., and has made a commitment to double the number of its apprentices, interns, and doctoral students. 6.4.10.3 Spirit of entrepreneurship for collaborators For more than 27 years, Schneider Electric in France has supported employee projects to create businesses or business takeovers through Schneider Initiatives Entrepreneurs (SIE), through a dedicated structure (Pass Créations) demonstrating the Group’s commitment to its local labor markets: promoting actions to support local economic development and proposing and supporting volunteer employees in reliable career paths that are external to the Group. It comes resolutely within the development of a spirit of entrepreneurship. SIE provides support for Schneider Electric employees at all stages of business creation, as well as afterward, with a follow-up period of three years. Sustainability rates at three years remain above 85%. SIE’s dedicated team of seasoned managers and young work/ study participants are responsible for reviewing the financial, legal, technical, and commercial aspects of business creation or company purchase projects to ensure they are viable and sustainable. Since 2010, 1,009 projects have been supported, and 537 of them have resulted in the creation or takeover of a business: these include electricians, bakers, organic trades, consultants, asset managers, and florists, creating more than 637 jobs (employees recruited by the founders to support company growth). The SIE structure is represented directly or indirectly in local business networks and enhances the quality of services offered through partnerships with associations such as Réseaux Entreprendre, France Initiative, and other local structures.