table of Strategic Report Integrated report Our purpose and mission 2 At a glance 4 A statement from Chairman and CEO, Jean-Pascal Tricoire 6 An interview with Chief Financial Officer, Hilary Maxson 8 2021 Financial Performance Highlights 9 Key Achievements of 2021 10 Proud of 2021’s Sustainability Achievements 12 Market trends – All electric, all digital 14 What we do 15 Our Business Model 20 A future worth investing in 22 A changemaker for sustainability 24 2022 outlook and target 26 2022-2024 targets and long-term ambitions 27 Governance 28 Our Stakeholders 32 Chapter 1 – Group strategy & sustainability 1.1 Trends and opportunities 44 1.2 Schneider Electric’s unique operating model 46 1.3 Schneider Electric’s priorities for sustainable growth 50 1.4 Customer focus 56 Chapter 2 – Sustainable development An introduction by Chief Strategy & Sustainability Officer, Olivier Blum 60 2.1 Sustainability at the heart of our strategy 61 2.2 Driving responsible business with Trust 92 2.3 Acting for a Climate positive world 126 2.4 Being efficient with Resources 144 2.5 Great People making Schneider Electric a great company 164 2.6 Delivering Social Impact for a just transition 188 2.7 Methodology and audit of indicators 206 2.8 Indicators 226 Chapter 3 – How we manage risk at Schneider Electric RFA 3.1 Definition and objectives of internal control and risk management 244 3.2 Organization and management 244 3.3 Risk management mechanism 249 3.4 Key risks 254 3.5 Insurance 265 Corporate Governance Report Chapter 4 – Corporate governance report RFA 4.1 Governance Report 268 4.2 Compensation Report 311 Financial Statements Chapter 5 – Consolidated financial statements RFA 5.1 Consolidated statement of income 344 5.2 Consolidated statement of cash flows 346 5.3 Consolidated balance sheet 347 5.4 Consolidated statement of changes in equity 349 5.5 Notes to the consolidated financial statements 350 5.6 Statutory Auditors’ report on the consolidated financial statements 397 5.7 Extract of the management report for the year ended December 31, 2021 402 RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.