53 Life Is On | Schneider Electric www.se.com Chapter 1 – Group strategy and sustainability Strategic Report 1. 1.3.3 Sustainability Business In addition to leading environmental, social, and governance (ESG) strategies by example across our value chain, Schneider Electric continues to expand in Sustainability and climate change consulting services. The expertise of this global business helps define strategy and drive action for our clients on their own decarbonization journeys. Climate action is no longer optional for leading organizations: it’s imperative for business resilience. Limiting the temperature rise projected to 1.5°C by 2050 will require three times more CO 2 emissions reductions than currently pledged – but we believe this goal is still within reach if we can successfully transform our production and use of energy. First, we must decarbonize energy supply, transitioning our global energy system from carbon intensive energy sources to lower carbon ones. This transformation will allow us to achieve ~45% decarbonization. Second, we must increase electrification, achieving another ~30% decarbonization. Lastly, demand optimizations through resource efficiency, circularity, and other activities provide the remaining solution by enabling us to achieve more productivity while using less energy. Decarbonization commitments have grown rapidly in past years, as evidenced by the number of corporations that have joined the SBTi (Science Based Targets Initiative), Climate Pledge, and others. Schneider Electric is the market leader in helping companies to both set and achieve these decarbonization commitments, providing consulting and managed services coupled with leading-edge digital tools to animate both strategy and action. Our Sustainability Business is already engaged with more than 30% of the Fortune 500 who have set climate targets. Our differentiated value proposition is to support our customers on climate, from strategy setting to execution Strategize : Define climate strategy to meet client ambitions. Decarbonization starts by quantifying environmental baselines and defining organizational ambitions. Our consultants help companies measure their environmental impacts, create a decarbonization roadmap, structure their program & governance and communicate on commitments. Digitize : Create a single-source-of-truth for energy and resource data management requires monitoring of resource usage and emissions, identifying saving opportunities and reporting on benchmark progress. This is achieved with Schneider’s digital platform and services (EcoStruxure ™ Resource Advisor and Neo- Network ™ ). Decarbonize : Execute decarbonization strategy using four key levers: electrification of operations, reduction of energy use, replacing energy source and engaging the whole value chain. Ultimately, decarbonization requires action. Schneider Electric’s robust portfolio of end-to-end net-zero solutions supports clients to deliver those levers. Our global team of experts helps our customers deploy these solutions to systematically achieve their decarbonization aspirations. Destination digital For more than 15 years, our digital applications and trusted advisors have helped organizations around the world set strategy and execute action to enable their decarbonization journeys. EcoStruxure ™ Resource Advisor, Schneider Electric’s award-winning digital enterprise sustainability management application, complements the services delivered by its Sustainability Business. Underpinned by client specific data, Resource Advisor’s robust AI-supported reporting and management capabilities enable users across the C-suite, finance, sustainability, procurement, operations, and other functions to find quick answers and drive meaningful value to their organizations. NEO Network ™ , is Schneider Electric’s digital peer-to-peer community of organizations advancing reliable and cost- effective renewable energy, cleantech, and decarbonization solutions around the world. NEO Network simplifies the solution buying process by connecting members to trusted experts, viable projects and technologies, and exclusive market intelligence to enable and accelerate transaction decisions. With more than 500 corporate members, 30+ gigawatts of renewable capacity available for corporate offtake, and leading- edge digital analytics apps, NEO Network is positioned to play a crucial role in the rapidly evolving renewables market by engaging supply and demand actors in a thriving community.