87 Life Is On | Schneider Electric www.se.com Chapter 2 – Sustainable development Strategic Report 2. Risk description and impact Policies Main actions and 2021 performance Opportunity created Human rights Conflict minerals Sourcing of conflict minerals and other similar sensitive materials • Financing directly or indirectly armed groups, fuel forced labour and other human rights abuses • Corruption and money laundering. • Reputational cost Schneider Electric encourages its suppliers to build and maintain a due diligence process to ensure conflict minerals-free sourcing The Group is an active Responsible Minerals Initiative (RMI) member • Conflict-free mineral monitoring • 87% of the smelters and refiners identified in our supply chain conformant or active in a recognized third-party validation scheme • Schneider Electric has a “conflict-free objective” • SSE #12: Deploy a ‘Social Excellence’ program through multiple tiers of suppliers (baseline to be defined in 2022) • SSE #17: 4,000 suppliers assessed under our ‘Vigilance Program’ (1,203 achieved) Increase relationship with suppliers, and improved reputation. Increase trust with customers favoring business relations Human rights Violations of human rights and fundamental freedoms • Reputation and brand image • Legal impact • Health & well-being impact for employees of Schneider, its suppliers and sub-contractors Trust Charter and Trust Line whistleblowing system for internal and external stakeholders Supplier Code of Conduct Schneider Human Rights Policy • Environmental Engineering and Health Services (EEHS) risk mapping of suppliers • On-site supplier audits with RBA protocol • EEHS in procurement process • Continuous improvement with ISO 26000 standard • SSI #6: 100% of our strategic suppliers provide decent work to their employees (pilot launched Q1 2022) • SSE #12: Deploy a ‘Social Excellence’ program through multiple tiers of suppliers (baseline to be defined in 2022) • SSE #17: 4,000 suppliers assessed under our ‘Vigilance Program’ (1,203 achieved) Increased cooperation with suppliers Increased trust with our customers Responsible workplace Health and Safety Serious or fatal employee injury or illness • Loss of, or impact to, employees • Loss of productivity • Property damage • Impact to Company image • Customer confidence • Fines Safety strategy Global safety directives Serious Incident Investigation Process (SIIP) GlobES reporting, Global Safety Alerts, EHS assessment • SSE #14: 0.38 or below Medical Incident rate (0.65 achieved) Increase confidence of current and prospective employees. Systemic MIR drives Safety continuous improvement Equity, Diversity & Inclusion Inclusive workplace Risk of not providing equal opportunities to everyone and limiting the ability to attract and retain the best talents • Cost of turnover • Loss of women in top potential pipeline • Legal issues • Company image Recruitment of women Women representation in leadership roles Gender pay equity Diversity & Inclusion Committee. • SSI #8: Increase gender diversity, from hiring (50%) to front-line managers (40%) and leadership teams (30%), (41%, 27% and 26% achieved respectively) • Financial Times, Forbes, Bloomberg, Great Place to Work in the US and Universum recognized Schneider Electric as a great place to work and a leader in Diversity, Equity and Inclusion in 2021 People attraction and retention with equal opportunities for everyone Follow contemporary trends and show support to all communities openly