www.se.com Schneider Electric 30 2021 Sustainable Development Report Risk description and impact Policies Main actions and 2021 performance Opportunity created Environment (continued) End-of-life management of products Safety risk if assets handled by non-certified third parties (repair, end-of-life): • People health and safety impact • Resource waste Circular offers: ECOFIT ™ , and takeback schemes (End-of-life, EOL, etc.) End-of-life information for our products with Green Premium ™ • SSE #10: 420,000 metric tons of avoided primary resource consumption through ‘take- back at end-of-use’ since 2017 (203,881 achieved) Market growth for Schneider Electric circular offers (repair, retrofit, takeback, EOL) Lack of product substance regulations compliance Strengthening of chemical substance regulation, market shift, and consumers preferences for eco-friendly products: • Difficulty to access market if products are forbidden or blacklisted • Multiplication of uncoordinated regional legislation Substances and Material Directive: REACh, RoHS, China RoHS, CA Proposition 65, TSCA, POP Schneider Electric Environmental Policy: Green Premium ™ EcoDesign ™ • SSE #6: 80% of product revenues covered by Green Premium ™ (78% achieved) • Substances of Concern In Products (SCIP) registration deployment and communication • Implementation of new Green Premium ™ claims to manage and promote recycled content and take back programs • Specific compliance analysis to unblock some markets Opportunity with Toxic Substances Control Act (TSCA) regulation to demonstrate robust substance and material process and transparency. Market opportunity for Green Premium ™ offers Soil, air and water pollution At Schneider Electric sites: • Non-compliance leading to fines • Health impacts on personnel and local communities • Site property pollution and environmental provisions Group Environment Policy Environmental risk analysis Environment due diligence in M&A • Integrated Management System with ISO 14001 certification (244 sites certified ISO 14001 in 2021). • Company-wide Look at Environmental Assessment and Risk Review (CLEARR) Assessment for industrial Global Supply Chain factories. • Environmental provisions Robust management system to drive environmental performance Increased stakeholder trust Product, project, system quality & offer reliability Deficient product safety Product malfunctions or failures could result in: • Liabilities for tangible or intangible damages, or personal injuries • Incurred costs related to the product recall, to new development expenditure, and use of technical and economic resources • New or more stringent standards or regulations for quality and safety controls could result in capital investment or costs of specific measures for compliance. All our sites are certified ISO 9001 Quality is one of our Trust pillars Phoenix program launched for 4 years is covering our End-To-End Supply Chain ReeD (Reliability End-To-End by Design) to cover Design practices Implement Nets on legacy offer to ensure we capture defects or potential defects internally. • Development of Agile method in Offer Creation enabling Quality and Customer Satisfaction Transformation, • Phoenix achievement in 2021 initiating move from Reactive to Predictive • ReeD program allows us in 2021 to kick off a strong learning path around Reliability Designer • Creation of the committee Offer Safety Alert Prevention, to coach all Root Causes Analysis Leaders Listening to signals from within the group and from customers Challenging innovation and R&D to seek for perpetual improvement Become a leader in products quality driving brand reputation and value 1 Sustainability at the heart of our strategy