www.se.com Schneider Electric Universal Registration Document 2021 44 Chapter 1 – Group strategy and sustainability 1.1 Trends and opportunities Electric and digital is the recipe for a more sustainable and resilient world The Intergovernmental Panel on Climate Change (IPCC)’s Sixth Assessment Report issued in 2021, was described by the UN Secretary General Antonio Guterres as a “Code Red for Humanity”. It described how our climate crisis requires critical decarbonization measures to stay within a global warming trajectory of 1.5°C. Schneider Electric advocates deploying proven digital technologies for energy efficiency, and an increased focus on electrification and sustainability to urgently decarbonize buildings, transport, and industry. There is a need for sustainability. This has been further accelerated with stronger sustainability commitments from all stakeholders. First, governments have put in place unprecedented levels of green stimulus funding to build back better. More companies have set emission reduction targets aligned to the 1.5°C scenario and validated by the Science Based Targets initiative. Furthermore, investors now hold CEOs and their boards accountable for their companies’ extra-financial performance, specifically related to carbon footprints. In parallel, we have all faced enormous challenges due to the global COVID-19 pandemic. Over the past two years, lockdowns, industrial supply chain disruption, travel restrictions and ever-evolving changes to our day-to-day lives, have emphasized the need for robustness, agility and resiliency. There is a need for resilience. Being part of the solution As part of its ambition to deliver a more sustainable future, Schneider Electric uses technologies to help customers in many sectors to build net-zero pathways. Our research shows that 70% of emission reduction is achievable with existing, proven and competitive technologies. Schneider’s positioning for a sustainable future focuses on an all electric and all digital world . • Electricity for greener energy and decarbonization: electricity is the most efficient energy and the best vector of decarbonization. • Digitization builds a smart future : digital tools make the invisible visible, enabling more effective waste reduction and efficiency improvements. • Digitization creates resilience: data analytics and insights enable more agile operations and continuity.