323 Life Is On | Schneider Electric www.se.com Chapter 4 – Corporate Governance Report Corporate Governance 4. 4.2.2.4 Pay Equity ratio Employees experience at Schneider Electric Delivery of the strategy, both short term and long term, depends upon Schneider Electric’s success in attracting and engaging a highly talented workforce, and on equipping people with the skills for the future. The Group is committed to fair pay, which is at the forefront of the Group’s and executives’ agenda, ensuring that all Schneider Electric employees are appropriately and fairly rewarded for their contribution. The progress is monitored via the Schneider Sustainability Impact Indicators. More information can be found in the Sustainable Development (chapter 2) of the Universal Registration Document. Pay Equity Living wage Recognition Well-being Engagement Fair and equitable pay is a core component of the Group’s compensation philosophy. Since 2015, the Company has adopted a Global Pay Equity Framework. With the help of this Framework, Schneider Electric has committed to reaching <1% pay gap for both females and males by 2025. Furthermore, the pay equity adjustment is fully integrated into the annual global salary review and its principles leveraged during the promotion and hiring processes. Schneider Electric believes earning a decent wage is a basic human right and a key element to decent work. The Group is committed to paying employees in the lower salary ranges at or above the living wage to meet their family’s basic needs. By basic needs, the Group considers food, housing, sanitation, education, and healthcare, plus discretionary income for a given local standard of living. Schneider Electric is committed to creating a culture where employees receive regular feedback and coaching from their managers and colleagues, celebrating people who constantly demonstrate the Company’s Core Values and go above and beyond – using global recognition portal “Step Up” and encouraging the recognition of small and big achievements by simply saying “Thank you”. Health and well- being are embedded in the Schneider Electric strategic people priorities and contribute to its core sustainability mission. The Company has a commitment to comprehensive well-being at work program translated into dual standard of access to healthcare and well-being training programs. The Group listens to employees through a number of different channels, both formally and informally. Two of the Board directors are employees of the Company, appointed through a formal designation process. the Group runs OneVoice internal survey designed to measure employee satisfaction and engagement; the Group also recognizes the importance of dialog and engages with the local work councils on compensation matters on a regular basis. Pay Equity Ratio Equity pay ratio measures the ratio between the level of compensation of the Chairman and CEO and the average and median compensation of the employees, as required by Article L.22-10-9-3 6° and 7° of the French Commercial Code. Calculation methodology The compensation comparisons and pay ratios set out below were calculated based on the fixed and variable compensation paid and relevant benefits during the fiscal years indicated, and Performance Shares granted during the same periods valued at their fair value (IFRS) on the grant date. The calculation includes employees who were continously employed during the financial years concerned. For part-time employees, compensation was established on a full-time equivalent basis. Scope France perimeter: The legal scope, the issuer, comprises of only one employee, therefore, an alternate “relevant scope” was defined to reflect a larger representative employee population in France as prescribed by article 26.2 of AFEP-MEDEF Code. It is based on the French holding entity Schneider Electric Société Européenne (SESE) (the issuer) as well as all employees in France of the operational company Schneider Electric Industries (SAS). This group of employees is employed on comparable terms to the Corporate Officer and represents more than 4,000 employees in France on a full time equivalent basis. Global perimeter: In addition, from 2021 the Board of Directors, upon recommendation of the Governance & Remunerations Committee and of the Human Resources & CSR Committee, decided to voluntarily report the evolution of the pay ratio between the Chairman and CEO and the average and median compensation of the employees on a broader scope which includes approximately 117,000 Schneider Electric employees across the top 30 countries (“Global Scope”). This represents circa 84% of all Schneider Electric employees globally. There is no historical data for this ratio as the HR Information System was not ready before to report on this extended scope.