211 Life Is On | Schneider Electric www.se.com Chapter 2 – Sustainable development Strategic Report 2. goes as follow: KPIs are validated by zone/ country presidents, and a local SSI lead is designated and communicated to the Sustainability Team. This local Lead is in charge of consolidating KPI performance on an annual basis. This indicator was not audited by Ernst & Young and is not included in the SSI score. 2.7.1.3 Indicators from the Schneider Sustainability Essentials SSE #1: 150 Zero-CO 2 sites A site achieves Zero CO 2 site status if it emits zero greenhouse gas emissions related to energy consumption and has in place Digital Energy Monitoring. Additionally, the site must have no SF 6 leaks. Exclusions for energy-related greenhouse gas emissions are considered for small sources (<3%) of a site’s total energy where no feasible fossil-free solution exists today. Digital Energy Monitoring is defined as having energy data connected to a Schneider Electric solution (such as Power Monitoring Expert, EcoStruxure ™ Building Operation, Resource Advisor, etc.). For larger sites, this requires a significant proportion of the site’s energy to be measured and monitored through real-time connected meters. For smaller sites, this requires energy invoices to be available in Schneider Electric’s Resource Advisor solution. This indicator relates to all sites within the Group’s full real estate footprint. This indicator was audited by Ernst & Young. SSE #2: 100% substitution with SF 6 -Free medium voltage technologies This indicator measures the ability of Schneider Electric to offer to the market (i.e. SELL gate of our Offer Creation Process) industrialized SF 6 -Free solutions for all geographies. The range considered for the calculation of this KPI are Primary & Secondary switchgears up to 40.5 kV, Indoor only: A SF 6 free ranges ready in 2020: Vaccuum components, Premset, primary AIS with vaccum CB, HVL, Masterclad... B SF 6 ranges in 2020: RM6, FBX, Ringmaster, DVCAS, Flusarc, SM6, RN2C, GMA, GMAe GHA, WS, WSG, CGBS-0, CGBS-1, HVL-CC, Mcset, F400 C SF 6 free offers to be launched from 2021-2025: SM AirSeT, Air PacT, RM AirSeT, RingmasterX, GM AirSeT, HVLCCX, ... Products above 40.5kV (WI, CBGS-2, Kite), Outdoor Equipment such as Pole mounted, Reclosers, Sectionalizers, Instrument transformers, as well as ranges manufactured by JVs and local offers adaptation are excluded. The performance is measured as the percentage of the quantity of SF 6 free offer range available for order ( A+C above) compared to the total quantity of the current ranges sold in the 2019 reference base (for both MV switchgears and components). The current range for 2019 reference base is defined as the sum of the current SF 6 and non-SF 6 (Air, Vaccum) ranges sold in quantities ( A+B above). For the calculation, as an example, 1 RMairSet =1 RM6. Calculation: KPI % = ( A + C ) / ( A + B ). Reference Base: total quantities by range sold in 2019. This indicator was audited by Ernst & Young. SSE #3: 90% of electricity sourced from renewables This program measures the share of renewable electricity in Schneider Electric electricity supply, on the scope of environmental reporting (industrial sites >50 employees and tertiary sites >500 employees certified ISO 14001). Four different types of renewable sourcing are taken into account: • Renewable electricity produced onsite and consumed onsite; • Renewable power purchase agreements (PPAs); • Green tariffs; and • Renewable certificates (depending on the country: REC, iREC, GO, EAC, etc.). Electricity purchased with no specific renewable electricity claim is not taken into account, even if the electricity mix of the supplier includes a share of renewable power. This indicator was audited by Ernst & Young. SSE #4: 15% CO 2 efficiency in transportation Transport within Schneider Electric is a significant generator of CO 2 due to dependence on fossil-fuels. To achieve its net-zero target, the Group must engage with its transport providers on both efficiency opportunities as well as technical advancements in transport assets. This KPI measures the Group progress against an annual 3% CO 2 emissions for its paid transportation footprint for each of the next 5 years, or 15% total reduction from 2020 to 2025. The scope of the program covers all shipments globally with all transportation providers and modes where the freight is paid by the Group. This equates to approximately two-thirds of the total freight CO 2 impact to the Group. The base calculation for CO 2 efficiency uses an activity-based method of weight multiplied by distance and by mode/equipment CO 2 factors. Progress is measured using CO 2 emissions per tonne shipped as unit. This indicator was audited by Ernst & Young. SSE #5: 15% energy efficiency in our sites This program measures the normalized energy reduction of the Group’s largest energy-consuming sites against a baseline. The objective is to reduce energy consumption by ~3% each year, for a total reduction of 15% over the whole duration of the company program (2021-2025) using Schneider Electric solutions and services. The program focuses on Schneider sites within the scope of environmental reporting that consume >3 GWh of total energy, along with other sites the Group considers strategic (213 sites in 2021). Energy savings are calculated versus a baseline year (2019) for the whole duration of the company program. In order to ensure a fair calculation of the savings, the actual consumption of a site is normalized versus the baseline year. This normalization is based upon a site-specific linear regression model enabling climate and changes in production levels to be taken into account. All energy consumption that can be modelled is taken into account and converted into MWh. This indicator was audited by Ernst & Young. SSE #6: 80% of product revenues covered by Green Premium ™ Schneider Electric provides environmentally conscious products to customers that support their sustainability goals and ambitions. The