Supplier Key Expectations 5 Last revised : October 202 1 Environment Schneider Electric is committed to protecting the environment, and environmental responsibility is at the core of how we operate. We expect the s uppliers to implement appropriate management system, organizational structure and procedures to assess the environmental risks, implement adequate controls to mitigate the impact , maintain environmentally responsible business practices and have a competent person to manage. In particular we expect key focus on : • Comply to E nvironmental regulations Suppliers sha ll identify and adhere to all ap plicable legal environmental requirements, in cluding o btaining applicable permits , licenses or registrations in a valid and up to date manner , meeting the prescribed performance thresholds , discharge monitoring and timely submission of all returns and filings , as required. • Address Climate c hange & reduce g reen h ouse g as (GHG) emissions Suppliers should quantify their greenhouse gas emissions and adopt ambitious emission reduction targets to limit global warming to 1.5 - degree C. The suppliers are expected to take steps to address their own operations towards Carbon neutrality and ultimate ly Net Zero emission, while challenging their own supply chain to develop similar approach. The required policy should go beyond energy efficiency measures and encourage innovation by revisiting the raw material composition/technology use and extending the measures to their own supply chain. • Prevent e nvironmental h azards and pollution Suppliers shall implement adequate management systems or equivalent to identify, manage, communicate and reduce the risk of environmental hazards from their operations , including impact s like pollution, from a ir e missions, effluent discharge , waste disposal and use of hazard ou s substances. • Develop r esource conservation a n d circularity The suppliers shall strive to conserve and use the natural resources responsibly , including, raw materials, minerals, fossil fuels etc by revisiting the practices such as production processes / technologies, increasing recycled content in products /raw material m ix , exploring the use of alternate materials, drastic residual waste control and implementing circular business models. • Respect ethics in Material usage Suppliers will adhere to all regulato ry and customer requirements regarding the prohibition or restri ction in use of specific substances like critical raw materials, and other s prone to sourcing from conflict zones and various regulations .