www.se.com Schneider Electric Universal Registration Document 2021 302 Chapter 4 – Corporate Governance Report 4.1 Governance Report Responsibilities The Audit & Risks Committee is responsible for preparing the work of the Board of Directors by making recommendations on financial, extra-financial, accounting, internal control, internal audit, compliance, and risk management issues. Accordingly, its missions are as follows: Items Details of missions Preparation for the annual and interim financial statements to be approved by the Board • To check the appropriateness and consistency of the accounting methods used for drawing up consolidated and corporate accounts, as well as to check that significant operations on Group level have been dealt with appropriately and that rules relating to the scope of consolidation have been complied with • To examine off-balance sheet risks (including those of a social and environmental nature) and commitments as well as the cash situation • To examine the process for drawing up financial and extra-financial information • To review the Universal Registration Document as well as the reports on the interim financial statements and other main financial documents Issues related to statutory auditors • To make recommendations concerning the appointment or reappointment of the statutory auditors • To handle follow-up on legal control of consolidated and statutory accounts made by statutory auditors, notably by examining the external audit plan and results of controls made by statutory auditors • To verify the auditors’ independence, in particular by reviewing fees paid by the Group to their firm and network and by giving prior approval for assignments that are not strictly included in the scope of the statutory audit Following-up on the efficiency of internal control, risk management systems, and compliance program • To examine the organization and resources used for internal audit, as well as its annual work program; to receive a quarterly summary report on the findings of the audits carried out • To review operational risks mapping and its year-on-year evolution; to ensure procedures are implemented to prevent and reduce them • To review risk mitigation and coverage optimization • To review the rollout of the Group’s internal control system and to acknowledge the outcome of entities’ self-assessment regarding internal control; to ensure that procedures are implemented to identify and handle anomalies • To ascertain the existence of Group compliance policies notably concerning competition, anti- bribery, ethics and data protection, and the measures implemented to ensure that these policies are circulated and applied • To report to the Board on the implementation of Schneider Electric SE’s charter on related party transactions and on the relevance of the criteria to qualify related party transactions as regulated agreements or not • To examine all financial, accounting, and extra-financial questions and questions related to risk management, including those of a social and environmental nature, submitted to it by the Board of Directors Activity in 2021 The Audit & Risks Committee reported on its work at the Board’s meetings of February 10, July 29, September 2, and December 15, 2021. Items Details of missions Financial statement and financial disclosures • Review of the annual and interim financial statements and of the reports on the financial statements • Review of goodwill, the Group’s tax position, provisions and pension obligations, or similar obligations • Review of investor relations’ documents concerning the annual and interim financial statements • Review of the Group’s scope of consolidation • Review of pension commitments Internal audit, internal control, risk management, and compliance • Review of the risk mapping • Review of the 2022 audit and control missions plan • Review of the main internal audits performed in 2021 • Review of risks covered by insurance • Status report on the Enterprise Risk Management System • Review the Ethics and Compliance program • Update on the “duty of care” program and human rights-related topics • Cybersecurity risk review (jointly with the Digital Committee) • Review of the management report • Review of the main litigations Statutory auditors • Review of the fees paid to the statutory auditors and to their networks • Review of the 2022 external audit program • Selection of the external statutory auditors Corporate governance • Recommended dividend for 2021 • Review of the financial authorizations and proposition for their renewal by the Annual Shareholders’ Meeting of April 28, 2021