www.se.com Schneider Electric 12 2021 Sustainable Development Report 1 Sustainability at the heart of our strategy 1.3 Measuring our contribution to a more sustainable world Schneider Electric has been an early adopter of transparent disclosures on sustainable revenues, and created its own methodology of “Impact revenues” (1) in 2019, covering offers that bring environmental efficiency to its customers, while not generating any significant harmful impact to the environment, and excluding revenues from carbon intensive segments. Recently, the European Union (EU) has shown international leadership by being the first to develop a Regulation and Taxonomy aiming at driving investments towards environmentally sustainable activities, which the Group applauds. Both methodologies are somewhat aligned but currently differ in the scope of eligible activities, and in end- segments exclusions. The Group is supportive of a better alignment over the next years to provide its multinational stakeholders with standardized metrics and empower them to shape a more sustainable future for all. 1.3.1 A purpose-led, Impact Company Schneider Electric’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. The Group’s differentiation lies in its complementary actions to demonstrate outstanding environmental, social, and ethical performance, and to support its customers in their Net-zero CO 2 journey. Schneider is the digital partner of its customers for sustainability and efficiency. The Group proposes an integrated offering of technologies and market-leading solutions tailored to customer needs, promoting the transition towards more electric, digital, decarbonized, and decentralized energy. Those active energy efficiency solutions - which consist of optimizing the entire energy cycle using energy control products, systems, services, and software – help mitigate, adapt, and improve humanity’s resilience to climate change. Schneider Electric quantifies this climate impact as part of Schneider Sustainability Impact (SSI) and is committed to help its customers save and avoid 800 million tonnes of CO 2 by 2025 (cumulated since 2018). As of end 2021, the Group delivered 347 million tonnes of CO 2 e of this commitment. The methodology and results of this indicator are audited every year as part of the extra-financial audit. 1.3.2 Early-adopter of transparent disclosures on sustainable revenues For more than fifteen years, Schneider Electric has led by example and transparently presented its sustainability performance to its stakeholders, across all environmental, social and governance topics and tried to develop new market practices, such as its saved and avoided CO 2 methodology or biodiversity footprint. In 2019, the Group was one of the first companies to proactively disclose information on the share of its revenue coming from offers that bring energy, climate, or resource efficiency to its customers, while not generating any significant harmful impact to the environment. Originally called “Green Revenues” to match market standards, such sales were renamed “Schneider Impact revenues” (1) to avoid any confusion with the new European (1) Schneider Impact revenues are calculated using Schneider’s own consistent methodology and are distinct from turnover eligible under the EU Taxonomy Taxonomy coming into force. In 2021, the Group took a step further by committing that Schneider Impact revenues reach 80% of Group sales by 2025 as part of its SSI. It is worth noting that each year the performance of the SSI impacts short-term incentive plans for 64,000 employees. Grow our Schneider Impact revenues to 80% The Group supported the Hong Kong University of Science and Technology (HKUST) as part of its plan to deploy an integrated data center solution to provide effective operation and management, ensuring high reliability and 24/7 availability, as well as full visibility for day-to-day monitoring of all systems and processes. Schneider proposed EcoStruxure ™ for Data Center, an open, interoperable, IoT-enabled system architecture and platform. It leverages advancements in IoT, mobility, sensing, cloud and big data analytics technologies to bring unprecedented insight into data center operations through our connected products, edge control, apps, analytics and services. As a result, HKUST achieve significant energy saving and their power usage effectiveness (PUE) rating more than doubled. Climate SSI #1 80% 70% Baseline 2025 target 2021 Progress 71% Schneider Impact revenues can be split into four categories: 1. Energy efficiency architectures bringing energy and/or resource efficiency to customers. 2. Grid reinforcement and smart grid architectures contributing to electrification and decarbonization. 3. Products with differentiating green performance , flagged thanks to our Green Premium ™ program. 4. Services that bring benefits for circularity (prolonged asset lifetime and uptime, optimized maintenance operations, repair, and refurbish) and energy efficiency (maintenance to maintain the operational performance of equipment and avoid a decrease of energy efficiency over time). Additionally, revenues derived from activities with fossil sectors and others are systematically excluded, including Oil & Gas, coal mining, and fossil-power generation, in line with prevailing corporate responsibility reporting and sustainable finance practices, even though Schneider Electric’s technologies deliver resource and carbon efficiency in such sectors as well. In line with Schneider Electric’s strategy to phase out SF 6 from offers by 2025, SF 6 -containing switchgear for medium voltage applications are also excluded. In addition, neutral technologies such as signaling, racks and enclosures, access control, or emergency lighting are excluded.