9 Life Is On | Schneider Electric www.se.com 2021 Social Impact Report 2.7 Co ntributing to decarbonize the world with the Livelihoods Funds Schneider Electric is a founder member of the Livelihoods Carbon Fund: the first sustainable carbon fund with high social impact created in 2011, managed by an independent team based in Paris. In 2021, Schneider Electric invested EUR 25 million in Livelihoods Carbon Fund #3, in addition to the EUR 10 million invested in Livelihoods Carbon Funds #1 and #2 (EUR 5 million each). A total of EUR 250 million, invested by private companies and financial investors, is dedicated to investing in high potential carbon clusters to generate positive impact for people and the planet. As at the end of 2021, three million tons of CO 2 have been avoided or sequestrated and 1.5 million people have been positively impacted. The Livelihoods Funds support three types of projects: reforestation, agroforestry, and agricultural practices, and rural energy (improved cookstoves). The Livelihoods Carbon Funds #1 and #2 have contributed to three mangrove reforestation projects in Senegal, India, and Indonesia. These projects have enabled local communities to improve their living conditions thanks to the restoration of the ecosystem (fish, crabs, etc.). Furthermore, the mangrove has provided efficient protection to the villages and crops during the last tornadoes that struck Asia recently. Livelihoods Agroforestry projects enable farming communities to increase their revenues thanks to improved conditions for cash crops such as coffee or cocoa and the plantation of fruit trees such as mangoes. Furthermore, Livelihoods Funds contributes to the creation of new downstream activities such as food processing and commercialization. Rural energy projects contribute strongly to improving women’s lives and create jobs thanks to the construction and the distribution of the cookstoves. The carbon credits from the Hifadi project in Kenya, supported by Schneider Electric, are used to offset all the carbon emissions generated by the Schneider Electric Marathon de Paris; the race has been carbon-neutral since 2019. All these projects are an integral part of Schneider Electric’s Carbon Pledge, ensuring that the compensation part has a real effect both on climate and on social development. Senegal: the largest mangrove restoration program in the world – Artisanal fishing © Hellio & Van Ingen/Livelihoods Funds 3 Empowering new ge nerations w ith t he Schneider E lectric F oundation 3.1 Risks and opportunities Today’s young people are forward-thinking, creative and one of the l argest dem ographics. T hey ne ed t o be empowered w ith t he necessary skills and supported to build a life aligned with their dreams and aspirations. New s ocial a nd en vironmental c hallenges ha ve w eakened s ocial cohesion and blurred opportunities for the future, especially for the youth. They are going to be the first generation to feel the sting of issues such as climate change, and the last generation that can do s omething a bout it . Skilling a nd em powering t he y outh ena bles them t o ac tively de fine t heir f uture a nd f ind t heir place i n a complex and fast-paced wo rld. 3.2 Group p olicy In a world where ecological and social ch allenge s are mo re widespread and more urgen t than ever, the Schneid er Electric Foundation, under the aegis of Fondation de France , supports innovative and forward-looking initiatives to empower youth with the ener gy t hey ne ed t o succeed. Optimistically, the Foundation’s aim is to help build a fairer, lower-carbon society to give future generations the keys to transform our world. 3.3 Governance 3.3 .1 The Foundation fully in line with the Sustainable D evelopment G oals For m ore t h an 2 0 y ears, t he S chneider E lectric F oundation ha s been deplo ying t he G roup’s ph ilanthropic ac tivities i n coh erence with its sustainability commitments. It contribut es directly to the achievement o f t he Un ited N ations S ustainable D evelopment G oals (SDGs), and more specifically SDGs 1, 4, 7, 8, 10, 11, 13, and 1 7. In 2021, there were more than 100 projects, 46,817 young people receiving support, through 9,512 days of volunt eering. With an annual b udget o f EUR 4 m illion, t he S chneider E lectric F oundation contributes to the partnerships that are complet ed by more than EUR 1 5 m illion i n s upport f rom S chneider E lectric’s en tities. Group employees are also involved in these partnerships. In total, more than EUR 19.5 million has been invest ed to help local c ommunities w orldwide. 3.3.2 A foundation under the aegis of Fondation d e France Fondation de France is a non-profit organization that, since its creation i n 1969, ha s been t he br idge b etween d onors, founders, and field structures in order to support projects in a range of general interest areas. It supports other foundations (916 in 2021) whose operations are governed separately, but who are legally part of Fondation de France . It is responsible for ensuring that their actions comply with its by-laws and the legal framework of the s pon sorship. T he S chneider E lectric F oundation’s E xecutive Committee determines the major focuses of its actions and the projects it supports. It then informs Fondation de France of its decisions, and the latter verifies the projects’ compliance and implements t h em.