7 Life Is On | Schneider Electric www.se.com 2021 Social Impact Report 2 Investing for high social impact A pioneer in the corporate social investor space, Schneider Electric has been investing for impact since 2009: • 2009 – Launch of Schneider Electric Energy Access (SEEA) • 2011 – Investment in Livelihoods Carbon Fund #1 • 2015 – Launch of Energy Access Ventures (EAV) • 2017 – Investment in Livelihoods Carbon Fund #2 • 2020 – Launch of Schneider Electric Energy Access Asia (SEEA A) • 2021 – Investment in Livelihoods Carbon Fund #3 Schneider Electric Impact Investing activities catalyze and facilitate multiple coalitions with different stakeholders (Schneider Electric Foundation, employees, DFIs, NGOs, social businesses, impact investors, asset management companies) to leverage Schneider Electric competencies towards a fair and inclusive transition. 2.1 Risks and opportunities Schneider Electric’s Impact Investing strategy aims to address the fundamental needs of underserved communities and minorities around the world. By investing in and supporting companies with high social and environmental impact, Schneider Electric contributes to bridging the energy gap, supporting local economies to get access to green energy and to reduce energy poverty. It also promotes digital and financial inclusion and the transition to a decarbonized world. 2.2 Group policy The goal of Schneider Electric’s Impact Investing is to generate high social impact while protecting the assets under management. Accordingly, it has adopted strict management rules, such as: • Always invest in partnerships with recognized players; • Never take a majority stake; • Always provide efficient company support (help develop a business plan, provide technical advice, etc.) to deliver the optimum social impact while minimizing risk; and • Ensure that ethical business practices and rules are respected. 2.3 Governance Each investment vehicle has its own governance structure generally composed of at least two bodies. The first one is a Board of Directors or a Supervisory Board in charge of ensuring compliance with all legal and ethical regulations. In most cases investors are represented in this board. The second one is a Management Investment Committee which can be either totally independent or composed by investors according to the legal structure. All Management Investment Committee members bring specific competencies and knowledge to assess investment decisions. In some cases, they can also rely on external experts. They are responsible for ensuring compliance with investment policies and are regularly updated on investment performance, both in terms of impact and finance. In some cases, an investment vehicle can also rely on Advisory Committee or Strategic Committee to help them setting up and managing their investment strategies and policies. All investment vehicles are supervised by independent auditors. 2.4 Tackling energy poverty in Europe with Schneider Electric Energy Access (SEEA) In July 2009, Schneider Electric created an Impact Investing structure in the form of a variable-capital SAS (simplified joint-stock company), Schneider Electric Energy Access (SEEA), certified as a social and solidarity investment company (ESUS certification) and open to French employee savings through the Group’s Employee Savings Plan (Schneider Energie Solidaire Fund) . With a dedicated Schneider management team based in Rueil-Malmaison (France), SEEA invests primarily in equity and quasi-equity in start-ups that: • Fight against energy poverty by promoting efficient affordable housing and energy efficiency solutions: − Six invested companies for a total of EUR 2.3 million (Foncière Chênelet, Foncière du Possible, LVD Energie/ HomeBlok, Soliha BLI, Dorémi, Réseau Eco-Habitat) • Promote digital and financial inclusion: − Two invested companies for a total of EUR 644,000 (Sunfunder, SIDI) • Provide access to affordable, clean and sustainable energy: − Two invested companies for a total of EUR 940,000 (Okra Solar, Amped Innovations) • Promote job creation and income generation: − Three invested companies for a total of EUR 400,000 (Bretagne Ateliers, Incubethic, Envie Rhônes Alpes ) SEEA has invested in 21 companies and has exited eight. As of December 2021, SEEA had 13 companies in its portfolio: 10 in France, two operating in sub-Saharan Africa, and one operating in South-East Asia, and managed the following amounts: • EUR 3,000,000 in capital invested by Schneider Electric; • EUR 3,200,000 invested by Schneider Energie SICAV Solidaire (including EUR 500,000 in capital), a mutual fund managing the employee savings scheme for Schneider Electric employees in France; • EUR 200,000 of capital invested by Phitrust Impact Investors; • EUR 500,000 of capital invested by Mutuelle d’Entreprises Schneider Electric (MESE). SEEA brings together different stakeholders by encouraging Schneider Electric’s employees and business partners around the world to play an active role in this commitment. At the end of August 2021, 6,576 (past or present) Group employees in France have invested EUR 57 million in the Schneider Energie SICAV Solidaire fund.