www.se.com Schneider Electric Universal Registration Document 2021 148 Chapter 2 – Sustainable development 2.4 Being efficient with Resources 2.4.1.2 Biodiversity footprint To drive change, companies need quantitative metrics to estimate, monitor, and pilot the impacts of their activities on biodiversity loss or demonstrate their contribution to biodiversity restoration. Creating aggregated and standardized biodiversity metrics and protocols is a much-needed step to ensure nature is truly placed at the heart of the business strategy. In 2020, Schneider Electric was the first company to publish the end-to-end biodiversity footprint of its activities, using the “Global Biodiversity Score” (GBS) tool developed by CDC Biodiversité. By sharing its experience with other companies and choosing to publish results transparently, the Group aims to demonstrate that measuring biodiversity footprints is a key first step to help companies define relevant and impactful biodiversity strategies, across their entire value chain. The GBS gives detailed and modular results which can be split by input line (for example, by raw materials such as metal, plastic, or timber); by pressures on biodiversity (such as land use, climate change, fragmentation, or encroachment); or it can be presented by scopes in Mean Species Abundance per square kilometer (MSA.km²) like a carbon footprint. The end-to-end assessment allowed Schneider to identify hotspots around which it is most effective to develop a biodiversity strategy and actions. 1 Septem ber 2020 The bar chart below illustrates Schneider Electric’s dynamic terrestrial impact, with detail by pressure. The pie chart highlights the weight of greenhouse gas (GHG) emissions which represent almost 70% of Schneider Electric’s pressure on biodiversity. Land use accounts for almost 30% of “cradle-to-gate” impacts. Schneider Electric’s biodiversity industrial footprint (in MSA.km²) Scope 1, Scope 2 Scope 3 S c o p e 1 S c o p e 2 S c o p e 3 U p s t r e a m Impacts terrestres dynamiques ( M S A k m ) 2 GHG emission Land use of wood Land use of metal mining Other Cradle to gate terrestrial dynamic pressures on biodiversity 69.3% 28.4% 2.1% 0.1% 0.1% Climate Change Land use Encroachment Fragmentation Atmospheric Nitrogen Deposition The biodiversity footprint results are expressed in MSA.km², a metric that has all the ingredients it needs to become the international standard: synthetic, easy to understand, and widely applicable. In 2018, the world average terrestrial MSA was only 66%, meaning that a significant part of the species abundance of ecosystem integrity has already been lost. Under a business- as-usual scenario, this number would fall below 60% MSA by 2050. That is far beyond the safe operating zone that respects the planetary boundary, which is estimated at 70% MSA (CDC Biodiversité). Such a high biodiversity loss undermines nature’s ability to provide its contribution to people, which is vital for human existence and a good quality of life. 2.4.1.3 Taking action towards no net biodiversity loss Climate change is one of the major pressures on biodiversity globally and is the main Group’s biodiversity impact. Therefore, Schneider’s carbon pledge will have a significant impact on reducing the Group’s pressure on biodiversity. Five main levers of actions have been identified and will be addressed through specific actions. Quantify and regularly publish the assessment of impacts on biodiversity (MSA. km²) As per the first step of the Group’s main commitments, the ambition will be validated thanks to the results of the Biodiversity Footprint Assessment performed with the Global Biodiversity Score (GBS). Consequently, the Group is committed to updating it regularly. Commit to reduce our impacts and align biodiversity objectives with science Schneider Electric recognizes the importance of nature and biodiversity for humankind to thrive; we are all dependent on natural resources and ecosystem services. The Group’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. That is why, in 2021, Schneider stepped up its ambition and publicly committed, through act4nature international, to achieving no net biodiversity loss in its direct operations by 2030 (Scope 1) and to aligning with the recommendations of international bodies (Convention on Biological Diversity by the Science Based Targets Network).