SCH2017_DRF_EN_Livre.indb

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Sustainable development Schneider Electric’s commitment to environmental performance

E identification of opportunities to reduce energy consumption in all sites as a result of the Energy Action audits; E promotion of renewable energy adoption on our own sites (mainly solar), integrating Schneider Electric solutions, and purchasing renewable energy when it is available locally. At the end of 2017, this program enabled the following achievements: E 10.3% reduction in energy consumption compared to 2014 was achieved (climate and level of production standardized) for the 218 sites with the highest consumption, covering 83% of the total energy consumption published by the Group; this result exceeded the overall objective to reduce energy consumption by 10% end of 2017 compared to 2014; E 130 sites are ISO 50001 certified, close to the 2017 aspiration of 150; E about EUR8.5 million and 115 million kWh were saved in 2017 compared to 2014 baseline, thanks to the 10.3% energy savings; E about EUR12 million was invested, of which EUR11.6 million in capital costs and EUR0.4 million in operating costs. Freight and Logistics CO 2 reduction Schneider Electric is a worldwide company located in more than 100 countries. Thus, a robust transport plan has been set up to connect our factories and distribution centers as well as to deliver to our customers. In 2017 we shipped 2,400 kilo tons of goods, including 74% by road freight, 23% by ocean freight, and 3% by air freight ( e.g. for non-local time-sensitive shipping and for some electronic products that are sensitive to ocean weather conditions). The related CO 2 emissions are part of our scope 3 of the GHG protocol as this activity is performed by transport suppliers. From 2015 to end-2017, as part of the company program and the Planet & Society Barometer, we set up a new CO 2 transport emissions reduction program, with the ambition to achieve a reduction of 10% over 3 years. At the end of 2017, we reached the target by reducing our transport CO 2 emission on average by 10.3% over the 3 years. 2017 being the last year of the 2015-2017 plan, the methodology for calculating this indicator in 2017 has been supplemented to reflect the average reduction in tons of CO 2 over the period. Annual performances compared to 2014 were: -10.6% in 2015, -13.5% in 2016, and -7.3% in 2017. The 2017 result is a bit behind the average reduction due to significant air shipment activity in Q3 and Q4 to support growth. Regarding intercontinental freight, in 2017, the CO 2 emissions of air and sea transport decreased by 4.5% (-16% in 2015 and -18% in 2016). 2017 performance is still good but was impacted by the increase in air shipments at the end of the year, which is an major contributor to CO 2 emissions. On the other hand, the container load factor is still a major contributor and mitigates the air increase impact. Regarding continental freight, in 2017, the CO 2 emissions of road transport reached a very good performance, decreasing by 18%. We are reaping the benefits of the Lead Transport Providers strategy and the implementation of a Transport Management System in several regions which optimizes the truck load factor and reduces the number of trucks.

To continually improve the CO 2 emissions performance and the quality of the reporting, Schneider Electric is currently negotiating a partnership to standardize CO 2 emissions reporting. The methodology has been certified by Bureau Veritas. We will continue the collaborative work with our forwarders to reduce CO 2 emissions mainly by: use of low carbon transport means, optimization of our transport means, and piloting advance low carbon transportation technologies e.g. electric vehicles. ISO 14001 certification of industrial and tertiary sites As soon as the ISO 14001 environmental management standard was published in 1996, Schneider Electric decided to certify its sites. For several years, the Group has demanded that all industrial and logistic sites comprised of more than 50 employees be ISO 14001 certified within 2 years of their acquisition or creation. The extension of this internal directive to large tertiary sites with more than 500 employees was launched in 2010. For instance, the Group’s headquarters in Rueil-Malmaison, France was certified in 2010. 263 sites are certified ISO 14001 as of the end of 2017. All these sites contribute to environmental reporting and therefore to the Group’s environmental targets. The ISO 14001 certification helps implement continuous improvement actions and processes to reduce the main environmental impacts of sites, as shown in the table on pages 139-141: E energy consumption; E scope 1 and 2 CO 2 emissions (generated by energy consumption and SF 6 emissions); E amount of waste produced, percentage of waste recovered and number of sites achieving “Towards Zero Waste to Landfill”; E consumption of water; E VOC emissions (Volatile Organic Compounds). The challenge for the coming years is to maintain this performance level by certifying all new industrial and large tertiary sites. Water consumption Water is not generally a critical resource in Schneider Electric’s industrial processes. The topic was considered not very material by both internal and external stakeholders during the materiality analysis. The Group provides a detailed breakdown of water consumption per source, with details on water consumed from the public network, groundwater, surface water (lakes, rivers, etc.) and other sources of water (rain, recycled water, etc.). Water drawn for the sole purpose of cooling and immediately released without alteration is also monitored in a separate reporting. As Schneider Electric industrial production is mainly based on manual or automatic assembly processes for electrical components and subsets, it has low water consumption and a negligible impact on water quality. Water is essentially used for cooling purposes, sometimes for sanitary and, in certain sites, for processes such as surface treatment. In the latter case, industrial water discharge is subject to appropriate treatments to reduce pollutant potential and subject to a monitoring plan.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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