www.se.com Schneider Electric Universal Registration Document 2021 54 Chapter 1 – Group strategy and sustainability 1.3.4 Global supply chain Schneider Electric’s global supply chain consists of networks covering the end-to-end value chain. In 2021, Schneider launched STRIVE, its three-year strategy to be the most agile, innovative, planet-friendly and customer-centric supply chain. STRIVE has six strategic objectives. What is next on the global supply chain transformation journey? Breakthroughs to boost customer centricity, cash efficiency, and improved productivity. STRIVE TSC 4.0 Tailored Sustainable Connected Tailored Supply Chain 2.0 Tailored Supply Chain Simplification Footprint & Lean Manufacturing 2005 - 2008 2009 - 2011 2012 - 2014 2015 - 2017 2018 - 2020 2021 - 2023 More Sustainability • Clean and safe facilities; • Engage 100% of sites in local biodiversity preservation projects; • Reduce carbon emission by 17% by 2025; • Improve energy efficiency by 15%, and renewables by 90%; • 50 Global supply chain sites net-zero CO 2 ; • Circular supply chain innovations; • 100% ecofriendly and sustainable packaging. From tailored to Trusted • Personalized customer experience, with reliable delivery and proactive communication; • Differentiated service and capabilities; • Engage with customers through end-to-end traceability; • Drive superior quality; • Be ready for e-commerce – resilient supply chain. More Resilient • Invest in IT and OT solutions to be cyber-resilient; • Cybersecure offers, sites, and suppliers; • Power of two for critical ranges, increase time to survive with tactical buffer capacity, and double sourcing for high business impact parts; • Professional business continuity plans in core factories and distribution centers; • Grow modelling capabilities, with embedded risk identification and mitigation. From connected to Intelligent • Autonomous supply chain through best-in-class data governance model and architecture, extract full value leveraging intelligent automation and advanced data analytics, and leverage our digital incubator for innovation (e.g., AI, 5G); • Smart operations powered by EcoStruxure ™ , connecting all smart sites, deploy flexible automation, self-optimization of processes and assets through a library of analytics, and deploy smart centers of excellence; • End-to-end orchestration and visibility. More Velocity and Efficiency • Shorter and simplified supply chain, regional approach with up to 90% sourced within selling region; • Strategic partnership with suppliers including co-innovation. Digital supplier interaction and world-class category management; • Agile and empowered people. In April 2021, Schneider Electric launched the Zero Carbon Project , to support its top 1,000 suppliers reduce their CO 2 emissions by 50%. More than 1,000 suppliers have now made the commitment. 1.3 Schneider Electric’s top priorities for sustainable growth 80k employees 183 factories 94 distribution centers in 50 countries 150k order lines per day