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Sustainable development Schneider Electric’s commitment to environmental performance

Environmental risk management and prevention The Group takes a proactive approach to managing environmental liabilities. Environmental regulatory compliance, environmental management systems and continuous improvement are the foundation of the Group’s environmental risk management and prevention program for current, former and prospective operations. On this topic, we have a number of initiatives in place, and we can throw light on major ones which were again executed in 2017: E our Integrated Management System (IMS) covers all our supply chain sites (plants, distribution centers, large offices) and hosts our ISO 14001, ISO 50001, ISO 9001, and OSHAS 18000 compliance management systems. Each site is audited periodically, either externally by Bureau Veritas (every 3 years), or internally. Such a program is a key pillar towards robust environmental governance; E our CLEARR program (Company-wide Look at Environmental Assessment and Risk Review) was successfully rolled-out in 2017 again, mapping more than 250 industrial sites and their historical and current potential environmental risks, addressing those in a systematic manner; E a number of other initiatives aim at identifying, reviewing, preventing, removing identified issues or risks: E periodical environmental risk and provisions reviews are done locally with Finance and Legal function, E annual presentations are made to the board’s Audit Committee on this matter, E our company-wide risk repository reflects our biggest environmental risks (on suppliers, products, sites, customer projects fronts), E as part of mergers, acquisitions and disposals, we conduct thorough environmental due diligence of sites where chemicals are or have been used. Any environmental risks or liabilities identified are addressed through proper risk management activities, E in addition, we use third-party services to assess each of our key sites “risk profile”, in relation with a certain number of external risks such as fire, earthquake, flooding and other meteorological events. Through this process and our Business Continuity Planning efforts, we endeavor to gauge related risks and anticipate possible steps which would be required. With 200+ plants globally, we believe our footprint is balanced

geographically. The nature of our manufacturing processes (mainly assembly) allows rebalancing of manufacturing lines in a fairly prompt manner, if needed. Through our ISO 14001 program, the Group actively manages the potential for impacts to the natural environment at our industrial facilities. ISO 14001 certified sites have thoroughly evaluated environmental risks and potential impacts and identified mitigation strategies as part of an overall environmental management system. The combination of preventive and corrective action plans required under the standard ensures that environmental risks are well managed. Emergency preparedness and response, also an element of ISO 14001, ensures sites have considered an array of potential risks and have practiced, through regular drills, established procedures applicable to their specific site operations and risk profile. Finally, certified sites have demonstrated systems for monitoring, measurement and corrective action in the event non-conformances are identified. We manage historical environmental liabilities on a regional level to ensure local expertise, regulatory knowledge and cultural awareness is applied. Using external consultants, known environmental issues are thoroughly investigated, and if appropriate, remediated or otherwise managed through engineered or institutional controls to reduce potential risks to non-significant levels and in compliance with local regulations. During 2017, no new material environmental impacts were identified. Furthermore, no Schneider Electric sites are Seveso classified. Implementing smart energy management for smart factories As part of Schneider Electric’s supply chain transformation named “Tailored Sustainable Connected supply chain 4.0” (TSC 4.0), we worked in 2017 to ensure our sites fully leverage the full potential of energy management technologies and the power of our own EcoStruxure ™ architecture, to sustain our energy efficiency trajectory, and use our own industrial and tertiary sites as showcases for our customers and business partners. Our 3-layer EcoStruxure ™ architecture for Power and Building has been implemented in multiple sites in India, China, the US, Mexico, Europe, and leverage physical assets such as energy meters and sensors, then an “Edge control” layer (PME for Power Monitoring Expert) which in each site aggregates and helps analyze the energy and power profile, and lastly a cloud and analytics layer with Resource Advisor as the overall cloud software platform to help monitor and analyze.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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