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Sustainable development Schneider Electric’s commitment to environmental performance

in spending less money, using fewer natural resources, causing less process disruption, and increasing the resilience of the business or operation. Resource circularity relates to our efforts to use fewer, recycled and bio-sourced materials whenever possible. If we look at the resource circularity opportunity, we use more than a million metric tons of natural resources each year, and generate around 160,000 metric tons of manufacturing waste, of which 94% is recovered to be recycled or re-used. In addition, we also recycle some obsolete products and parts, and collect a number of products and equipment through our Field Services activities. To further improve resource productivity, we have launched several initiatives such as eco-design, waste minimization at industrialization stage, waste re-use in our own plants, waste resale, parts reuse, products refurbishing, recycling including mapping of valuable resources’ end of life, and efficient & responsible packaging. take-back services Schneider Electric has more than 12,000 professionals in its Field Services business, many of those being Field Services Representatives (FSRs) visiting our customers’ operations each day and throughout the year. Besides these teams, Schneider Electric has a number of industrial resources dedicated to repairing and servicing its products (and those from other brands, in some locations), the purpose being to prolong products’ lifespan and avoid any short- term obsolescence. Such centers enjoy specific reverse logistics capabilities, as much as dedicated industrial processes. They are located in the US, Europe, or Asia. Since 2009, Schneider Electric has been looking to create SF 6 gas recovery processes for end-of-life products around the world. SF 6 is a gas used as an insulator and/or breaker in medium voltage devices. SF 6 is a powerful greenhouse gas (1 kg of SF 6 is equivalent to 23,500 kg of CO 2 ) and therefore requires special treatment to prevent atmospheric emissions. Since the beginning of the 2000s, the first devices containing SF 6 gas sold by Schneider Electric are starting to reach their end-of-life. The objective is to develop commercial offers that allow customers to dispose of their end-of-life devices containing SF 6 , to completely extract the gas and recycle it. Schneider Electric has structured and reinforced its commercial offers around the “EOL (End-Of-Life)” program through partnerships with hazardous waste management licensed holders, and other recycling companies. EOL is a service offer that can meet the need for timely or planned recycling of old appliances (standalone mode) or be grouped with an Due diligence and results Circularity services – example of SF 6 end-of-life

offer to upgrade EcoFit ™ -type installations (replacing old appliances with new, higher performance appliances). As part of its new commitments to sustainable development, on the eve of the Paris Conference on Climate Change (COP21), Schneider Electric committed to proposing alternatives to the use of SF 6 gas by the year 2020 and to phase out the use of SF 6 gas in its new products by 2025. Every year, more than 3,000 obsolete medium-voltage items of equipment are safely processed by the EOL service, which is now available in 19 countries across the globe. Metals and plastics are recycled, while the SF 6 gas is filtered and reused, giving it a second life. It is estimated that 98% of the mass of the equipment is actually recycled. The Planet & Society Barometer 2015-2017 objective of avoiding 120,000 metric tons of CO 2 “through maintenance, retrofit and end-of-life services” has been surpassed by a large margin, with a final value of 168,400 tons of CO 2 avoided. Waste as worth – “Towards Zero Waste to Landfill” sites Because waste is a major source of pollution but also a potential source of rawmaterials, waste management is a priority of our circular economy strategy. At Schneider Electric, waste is considered as a resource. In 2015, a new environmental strategy was put in place, notably focused on a step up in waste management through the “Waste as Worth” program. This program, rolled out throughout the period of the 2015-2017 company program, includes: E the goal of achieving 100 industrial sites sending “Towards Zero (1) Waste to Landfill” by 2017; this indicator is published in the Group’s Planet & Society Barometer; We are proud to mention we reached 130 sites by end-2017; (1) Towards Zero in this case means over 99% of metallic waste and over 97% of non-metallic waste recovered at site level E the implementation of specific actions to reduce and reuse a maximum of thermoplastic, metal and transport packaging waste; E the implementation of an initiative to maximize value recovery from metal waste, focusing on sites generating the largest volumes. In order to deliver our commitments, a waste pyramid has been defined as part of our Waste as Worth program. Priority is put on reducing waste volume, through better product and industrial process design. Waste is then reused in our own industrial processes when possible, or recycled through third parties. Finally, waste is recovered through energy conversion. The Waste as Worth program aims at drastically reducing waste left over from this virtuous circle and sent to landfill.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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