AI Content Chat (Beta) logo

11 Life Is On | Schneider Electric www.se.com 2021 Sustainable Development Report Annual external verification Each year, Schneider Electric obtains a “limited” level of assurance from an independent third party verifier for all of the SSI and SSE indicators, in accordance with ISAE 3000 assurance standard (see Independent verifier’s report on page 168). Rewarding employees for performance Since 2011, the SSI score is included in the variable compensation of global functions and Company leaders. In France, since 2012, the SSI has also been included in the profit-sharing incentive plan for the French entities, Schneider Electric Industries and Schneider Electric France. From 2019, the weight of the SSI criteria has increased from 6% to 20% in the collective part of the annual short- term incentive highlighting further the importance of sustainability on Schneider Electric’s business agenda. Further details are provided in section “Compensation and benefits” on page 126. In 2021, the SSI performance impacts short-term incentive plans for 64,000 managers (20% of collective share). Active communication of sustainability performance The results of each SSI are released through the main channels below: • Quarterly conference calls on the Group’s financial and extra-financial results to investors and the business press; • The Group’s website (quarterly press releases, presentation of integrated quarterly results); • The intranet (including a quarterly internal video featuring the CEO and the CFO on the quarter’s results – these videos have strong internal visibility); • Communications with the Board of Directors via its Human Resources & CSR Committee and the Executive Committee; • The Group’s annual reports (Universal Registration Document including the statutory auditors’ report, Schneider Sustainability Report, integrated report); • The quarterly internal rating for managers on monitoring the level of achievement of objectives related to variable compensation; • Customers or investors events. Overview of the five barometers since 2005, and example achievements 2005-2008 2009-2011 2012-2014 2015-2017 2018-2020 2021-2025 Number of KPIs 10 KPIs in program 13 KPIs in program 14 KPIs in program 16 KPIs in program 21 KPIs in program 11+1 KPIs in program Score out of 10 8/10 2008 overall performance 9.38/10 2011 overall performance 9.52/10 2014 overall performance 9.58/10 2017 overall performance 9.32/10 2020 overall performance 3.92/10 2021 overall performance Highlights -20% Number of lost days from work accidents per employee per year >120 Products with an environmental profile 1,291,768 Households at the Base of the Pyramid got access to energy thanks to Schneider Electric solutions 70.4% of employees worked on ISO 14001 certified sites 460 Missions with the “Schneider Electric Teachers” NGO 16% CO 2 savings on transportation 98.4% of our entities passed our internal Ethics & Responsibility assessment 100% of products in R&D designed with Schneider EcoDesign Way ™ 9 Indicators with increased objectives in 2019 100% of employees are working in countries that have fully deployed our Family Leave Policy New tool Schneider Sustainability Essentials with 25 objectives Local dimension with 200 commitments taken by Zone and Country Presidents

SE Sustainable Development Report - Page 13 SE Sustainable Development Report Page 12 Page 14