SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Schneider Electric’s commitment to environmental performance

Conditions of use and release into the soil Virtually all Schneider Electric sites are located in urban or industrial areas and do not affect any notable biotopes. None of the Group’s businesses involve extraction or land farming. In 2017, Schneider Electric manufacturing sites conducted their annual review of pollution risks as part of ISO 14001 monitoring. No new issues were reported in 2017. Hazardous materials are systematically stored, handled and used in compliance with regulations and with appropriate pollution protection mechanisms. As part of the Towards Zero Waste to Landfill program, additional focus was made on hazardous waste. Proper disposal of this waste was part of the metal and non-metal requirements. Efforts to eliminate, substitute, or improve treatment of hazardous waste are embedded into the Towards Zero Waste to Landfill program. Discharge into the water and air Because Schneider Electric is mainly an assembler, its discharge into the air and water is very limited. Mechanical component production workshops are carefully monitored, as part of ISO 14001 certification. Discharges are tracked locally as required by current legislation. No spills or discharges were reported in 2017. Emissions of NOx and SOx and particles into the air are monitored at the site level according to their heating activity; monitoring of these emissions is verified via ISO 14001 audits. Emissions are monitored by site managers with respect to the thresholds defined in local legislation. These emissions are not consolidated at Group level. VOC (Volatile Organic Compounds) emissions have been identified as material at Group level and are therefore included in the Group’s reporting. VOC emissions are primarily linked to production and have increased with increased production. As such, the VOC kg/ person have also increased, from 6.0 kg/p in 2016 to 6.2 kg/p in 2017, because of a similar headcount compared to 2016. However, efforts are still being made to eliminate or substitute materials/processes that emit VOC. Finally, CFC and HCFC emissions are monitored locally, in accordance with national regulations. These emissions are due to the operation of air conditioning systems, and are not directly linked to our industrial activities. They are not consolidated at Group level. Noise, odors and light All Schneider Electric sites comply with noise and odor regulations wherever they are located. Given the nature of our activities and distribution model, we do not have any light pollution externality.

The Group has initiated an analysis of industrial site positions relative to water stress in different regions throughout the world using the WBCSD (World Business Council for Sustainable Development) tool. The “EverBlue” project was launched in 2012 and designed to better understand the uses of water within the Group, and therefore its exposure to water-related risks, and to reduce consumption. Particular attention is paid to the highest-consumption sites and those located in areas of water stress. Water consumption is monitored quarterly, with detailed analysis of the different water usages (process, HVAC/Heating Ventilation and Air Conditioning, sanitary, canteen and gardening). The diagram below presents the breakdown of the Group’s water consumption per usage:

3%

6%

Gardening

Other usage

27%

Process

30%

Sanitary and canteen

34% HVAC

Notes: other usage includes exceptional water usage such as water used for construction of new buildings. HVAC = Heating, Ventilation, Air Conditioning. Sanitary, canteen, and gardening usage represents 70% of the total. Industrial processes represent 27%. This information can be used to improve the targeting of action plans dedicated to water consumption reduction efforts. It also helps to standardize information for more accurate performance management: for instance, water used in sanitary facilities and canteens will be impacted by headcount changes and water used for processes will be impacted by changes in production levels. The Group also monitors the per capita consumption of water on a like-for-like basis in order to evaluate the improvement in performance from one year to the next. Following the success of EverBlue, the company program 2015-2017 has set the goal of continuing to reduce global water consumption by 5% per capita by 2017 compared to 2014 (at constant scope). The global EverBlue program has become regional with the aim of implementing best practices and increasing the innovation dynamics of the sites in their specific water contexts. The Group maintained a 22.8 m 3 /person rate in 2017 compared to 2016. The Group was unable to meet its goal of 18.8 m 3 /p. Several factors contributed to this performance. The Group has an increased headcount since 2014, but only 30% of the Group’s water consumption is linked directly to headcount (sanitary and canteen). 27% of the water is linked to production, which is independent of headcount, especially with automation efforts continuing to reduce headcount while increasing production. HVAC also accounts for 34% of the Group’s usage, which is dependent on a facility’s square meters and external temperature, not headcount.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

101