195 Life Is On | Schneider Electric www.se.com Chapter 2 – Sustainable development Strategic Report 2. 2.6.2.7 Contributing 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 2.6.3 Empowering new generations with the Schneider Electric Foundation 2.6.3.1 Risks and opportunities Today’s young people are forward-thinking, creative and one of the largest demographics. They need to be empowered with the necessary skills and supported to build a life aligned with their dreams and aspirations. New social and environmental challenges have weakened social 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 something about it. Skilling and empowering the youth enables them to actively define their future and find their place in a complex and fast-paced world. 2.6.3.2 Group policy In a world where ecological and social challenges are more widespread and more urgent than ever, the Schneider Electric Foundation, under the aegis of Fondation de France , supports innovative and forward-looking initiatives to empower youth with the energy they need to 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. 2.6.3.3 Governance 2.6.3.3.1 The Foundation fully in line with the Sustainable Development Goals For more than 20 years, the Schneider Electric Foundation has been deploying the Group’s philanthropic activities in coherence with its sustainability commitments. It contributes directly to the achievement of the United Nations Sustainable Development Goals (SDGs), and more specifically SDGs 1, 4, 7, 8, 10, 11, 13, and 17. In 2021, there were more than 100 projects, 46,817 young people receiving support, through 9,512 days of volunteering. With an annual budget of EUR 4 million, the Schneider Electric Foundation contributes to the partnerships that are completed by more than EUR 15 million in support from Schneider Electric’s entities. Group employees are also involved in these partnerships. In total, more than EUR 19.5 million has been invested to help local communities worldwide. 2.6.3.3.2 A foundation under the aegis of Fondation de France Fondation de France is a non-profit organization that, since its creation in 1969, has been the bridge between donors, 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 sponsorship. The Schneider Electric Foundation’s Executive 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 them.