www.se.com Schneider Electric Universal Registration Document 2021 72 Chapter 2 – Sustainable development 2.1 Sustainability at the heart of our strategy 2.1.4 Integrated and transverse governance of sustainable development At Schneider Electric, sustainability is integrated in the processes and bodies that design and execute the Group’s strategy at Board, executive, and operational levels. 2.1.4.1 Management Oversight 2.1.4.1.1 The Board of Directors In 2013, the Board of Directors decided to extend the powers of the Governance & Remunerations Committee to corporate social responsibility (CSR) issues. Since 2014, there has been a specific committee for CSR, the Human Resources & CSR Committee. The Committee meets at the initiative of its Chairperson or at the request of the Chairman & CEO. The agenda is drawn up by the Chairperson. The Committee shall meet at least three times a year (five meetings in 2021). The Committee may seek advice from any person it feels will help it with its work. Main responsibilities: • Employee shareholding schemes and share allocation plans; • Compensation of Group managers; • Succession plan for key Group Executives; • Human resources; • CSR policy and results. In 2021, the Human Resources & CSR Committee reviewed the Sustainability strategy (see Chapter 4, page 295). 2.1.4.1.2 The Group Sustainability Committee Since 2010, the three members of the Executive Committee in charge of Human Resources, Global Supply Chain, and Strategy & Sustainability have met twice per year with the Sustainability SVP to monitor and steer the Group’s action plans in this area. In 2016, the Global Marketing EVP, joined this Committee. In 2020, the Chief Governance Officer as well as the Chief Financial Officer also joined. The committee meets quarterly. In 2021, this committee met three times. The Committee may seek advice from any person it feels will help it with its work. Main responsibilities: • Decides the sustainability dynamic; • Validates the Schneider Sustainability Impact; • Monitors global sustainability performance and rankings; • Reviews alignment with United Nations Sustainable Development Goals; • Informs the Board Human Resources & CSR Committee. 2.1.4.1.3 The Stakeholder Committee In order to reinforce its sustainability governance further with solid external insights, Schneider Electric has created a new Stakeholder Committee in 2021. The Committee is composed of 8 external members, sharing the same passion for sustainability, and its mission is to oversee the delivery of long and short-term commitments undertaken by Schneider Electric in accordance with its Purpose and Sustainability strategy. The company strives at ensuring diversity of the Stakeholder Committee members, in terms of ethnicity, gender and experience. The Stakeholder Committee meets three times a year and is chaired by Jean-Pascal Tricoire, Chairman & CEO of Schneider Electric, and Olivier Blum, the Chief Strategy & Sustainability Officer of Schneider Electric, acts as its secretary. 2.1.4.2 Coordination and monitoring 2.1.4.2.1 The Group Sustainability department The Sustainability department, created in 2002, has been part of the Strategy department since 2008. It has the following responsibilities: • Schneider Electric’s sustainability strategy and rollout of action plans at Group level with relevant entities; • Schneider Electric’s innovative community projects to ensure continued improvements in the Group’s performance in this area; • Central point of contact for internal and external stakeholders regarding sustainability at Schneider Electric. It is organized around four areas: • Corporate Citizenship, specifically with the Schneider Electric Foundation as well as local economic and social development programs; • Access to energy, with responsibility for the Access to Energy program; • Environment, with responsibility for deploying Group climate and environmental policies, actions and strategies • Group performance, in particular by steering the Schneider Sustainability Impact, the Extra-Financial Performance Declaration, the Schneider Sustainability Report, and the integrated report. 2.1.4.2.2 Territory Sustainability Leaders In 2021 Schneider Electric took a commitment to empower local communities and asked its Country and Zone Presidents to take three local commitments that impact their communities under the 6 long-term commitments of the Group and adapted to the specific context in their countries, which resulted in 200 commitments taken worldwide. To manage these programs and to better answer the needs of Schneider’s local stakeholders, a new model for sustainability governance in the company was created with a network of 40 Territory Sustainability Leaders. This new network will meet every two months and will work to further instill a culture of sustainability at every level of the company, to empower every employee to act, and to innovate with disruptive sustainability actions. A Group Sustainable Communities Taskforce, chaired by the Executive Vice-President International Operations, and composed of representatives of each of Schneider’s five operational regions and the Sustainability department, has met twice in 2021 to monitor the deployment of the local programs and the creation of the Territory Leaders network. The Taskforce will meet annually going forward to review progress and opportunity for global deployment of local initiatives.