www.se.com Schneider Electric Universal Registration Document 2021 40 Integrated report Our Stakeholders Schneider Electric’s vigilance plan In 2017, Schneider started the implementation of a vigilance plan covering its business activities as well as those of its suppliers and subcontractors. Since then, this vigilance plan has been continuously reinforced, aiming to push further towards responsible corporate citizenship. In January 2021, the Group was awarded the Best Vigilance Plan by the Sustainable Investment Forum and A2 Consulting. Duty of vigilance Schneider’s ambition is to be an ethical company. Our values shape the way we do business with our many customers, partners, suppliers, and communities around the world. They inform the way we protect and foster human rights and guide our desire to make a positive impact on the planet and the environment. The Group’s vigilance plan reflects this ambition. It also complies with the provisions of the 2017 French law on Corporate duty of vigilance. The plan includes: • A risk analysis specific to vigilance: risks that Schneider Electric poses on the ecosystem and environment; • A review of the key actions implemented to remediate or mitigate these risks; • An alert system; • Governance specific to vigilance. The plan is governed by the Duty of Vigilance Committee, set up in 2017. The steering committee meets twice a year in normal circumstances. Overall, since its inception, 13 Committee meetings have been held (five in 2017, two in 2018, 2019, 2020 and 2021). The Committee’s objective is to provide a discussion on strategic orientation and prioritize initiatives and the resources allocated to their implementation. This Committee also reviews the actions in progress and their results and defines decisions on next steps for action. In this Registration document, Schneider Electric reviews the risk matrix analysis and some of the actions to mitigate these risks are described. When necessary, the reader will be directed to other sections of the report to get relevant and detailed information. For more comprehensive and complete information, the full vigilance plan of the Group is available as a standalone document and can be downloaded from Schneider Electric’s website at se.com. The 2021 analysis has not revealed major changes or gaps that were not identified so far. The following evolutions are to be mentioned: • Impact of the COVID-19 pandemic on Schneider Electric’s business: Actions implemented in 2020 such as working from home, increased sanitary measures, etc. were adapted in 2021 to respond to the fluctuating pandemic situation. Overall, employees have reacted positively to these measures, as demonstrated by the surveys conducted and the high level of engagement. However, the medium-term impact of the pandemic on morale is still to be monitored closely, as some signs of fatigue are visible among teams. • Ethical business conduct: This area has been under close monitoring, as the adverse business climate has put pressure on business. However, no significant deterioration has been noticed. • Cybersecurity and data protection: they are a subject of permanent focus and attention, taken very seriously by the Group. It is addressed through training programs and measures to protect employees, customers, and stakeholders against threats. • Analysis of specific risks to communities residing near Schneider sites: In 2021, a specific review has been implemented to assess Schneider’s main sites and customer projects. The assessment is still a work in progress at this point, but so far, no critical areas of concern have been detected. Read more on our vigilance plan on page 112  2021 highlights #1 Vigilance Plan awarded in 2021 to Schneider Electric by the Sustainable Investment Forum and A2 Consulting. 800+ suppliers assessed under our Vigilance program in 2021. +64% suppliers audited on-site in 2021 compared to the 2017-2020 yearly average.