www.se.com Schneider Electric Universal Registration Document 2021 50 Chapter 1 – Group strategy and sustainability 1.3 Schneider Electric’s priorities for sustainable growth Against a backdrop of market acceleration, the Group will achieve sustainable growth through five priorities. More Products As customer operations are increasingly digitized, our products are becoming natively connected. Coupled with Schneider’s EcoStruxure ™ advisors, they deliver incremental value and support our customers in their every day operations. Additionally, Schneider Electric strives to continuously increase quality of its products to offer the highest level of safety and reliability. We are also committed to reduce the environmental impact of our products. Our Green Premium ™ label was created to provide our customers with more sustainable products and transparency with environmental information. In 2021, more than 75% of Schneider’s product sales came from Green Premium ™ products. We expect this figure to reach 80% by 2025. Better Systems The EcoStruxure ™ platform is the foundational technology backbone to build and deliver Schneider Electric solutions. We will enrich the EcoStruxure ™ platform with more segment applications and expertise offering more value. We provide a unified customer experience through our open ecosystem and we upskill our people in digital technologies. We continue to expand our natively connected equipment portfolio with digital tools, making condition-based maintenance and connected expert service available to customers for more productivity, safety, efficiency, and collaboration. More Services Services are the incremental growth engine for the Group, delivering peace of mind to our customers along their life cycle with safety, resilience, efficiency, and sustainability. We will continue our efforts to accelerate tracking and servicing of existing assets installed at customers’ sites. • We will leverage new value-added services offerings through our suite of EcoStruxure ™ Advisors • We will ensure a seamless end-to-end digital customer experience from CapEx to OpEx. More Software Schneider Electric customers are looking for integration across phases from Design, Build to Operate and Maintain. With our software portfolio across EcoStruxure ™ , AVEVA, OSIsoft, RIB Software, ETAP, Planon, IGE+XAO, ALPI, and our partnerships, we already have outstanding coverage and a clear market-leading position when it comes to data platforms. Our approach is to standardize this software portfolio and the user experience to create unified data federation. More Sustainability The climate crisis is a significant risk to organizational continuity. In response, stakeholders are demanding urgent action from businesses. This pressure has driven more than 2,000 companies to join the Science-based Targets Initiative (SBTi), and in 2021, 13,000 companies reported their emissions to the CDP. We aspire to both achieving our own aggressive climate targets and supporting our stakeholders in their decarbonization through our solutions and influence. In 2021, we raised the ambitions of our 2021-2025 Schneider Sustainability Impact, launched new switchgear products that avoid using the potent greenhouse gas SF 6 , and we expanded our global sustainability consulting business. Over the past years, Schneider Electric has made significant investments in these strategic priorities. Services, software and sustainability continue to be high potential, incremental growth engines. Directly tied to Schneider Electric’s core business, they are expected to deliver Schneider’s indicative objectives for 2025 as the Group makes another step change on its path to becoming a hybrid digital company: • Group revenues from our digital flywheel of connectable products, edge control, software and services, will increase from ~50% today to ~60% in 2025 (+10pts). • Strong strategic focus on software and services, will increase from ~18% of Group revenues today to ~23% by 2025 (+5pts). • Recurring revenues as a percentage of software and services will step-up ~30% today to ~45% by 2025 (+15pts). Software + Digital services Edge Control From 50% to 60% of Group revenue by 2025 From 18% to 23% of Group revenue by 2025 Field Services Connectable products