www.se.com Schneider Electric Universal Registration Document 2021 248 Chapter 3 – How we manage risk at Schneider Electric Within the Global Finance department, the Tax team oversees tax affairs to provide comprehensive management of these risks. The Financing and Treasury department is responsible for: • centralized management of cash and long-term Group financing; • centralized management of currency risk and non-ferrous metals risk; • monitoring of Group trade accounts receivable risk and the definition of the credit policy to be implemented; • the distribution of rules for financial risk management and the security of payments: − define guidelines and contribute to the definition of Key Internal Control indicators relating to treasury and credit management, − review the related risks of complex projects as a subject matter expert, − select Group tools for credit, trade, and cash management; and • the annual financial review meetings with the Group companies to assess the financial structures, financial risk management, as well as capital allocation. Procedures for managing financial risk are described in “Key risks” on page 254. Global Functions and Operating Divisions In addition to specific processes or bodies such as the Group Acquisitions Committee for making and implementing strategic decisions and centralization of certain functions within the Global Finance department (see above), Schneider Electric centralizes certain matters through dedicated Global Functions, thus combining decision making and risk management at the corporate level. A Technology Community, namely the Chief Technology Officers (CTO) community, grouping all Divisional and Business Unit Chief Technology Officers as well as key Corporate Technology Functions involved in Offer Creation & Research, meets on a regular basis to ensure cross-divisional co-ordination in setting the strategic direction for innovation and driving end-to-end architectures, and defining next generation platforms and systems. Additionally, this community partners closely with the senior business leaders. This has been done to ensure a simple structure so that technology can be close to business and to maintain consistency across all divisions of Schneider Electric. The Human Resources department is responsible for deploying and ensuring the application of procedures and compliance with HR regulations concerning employee development, promoting diversity, and well-being. The department is also responsible for establishing guidelines on rewards and compensation, hiring, on and off boarding, and learning, amongst other human resources-related duties. The Procurement department within the Supply Chain Function is responsible for establishing guidelines concerning the procurement organization and procedures, relationships between buyers and vendors, and procedures governing product quality, level of service, and compliance with environmental and safety standards. Global Functions and Operating Divisions also issue, adapt, and distribute policies, target procedures, and instructions to Business Units and individuals assigned to handle their specific duties. Global Functions have correspondents who work with the Internal Control department to establish and update the Key Internal Controls deployed across the Group. 3.2 Organization and Management