SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Schneider Electric’s commitment to environmental performance

Schneider Electric reports around 160,000 tons of waste annually, most of it being solid waste. Continuous improvement plans have been deployed to manage this waste, in line with the ISO 14001 certification. Waste data is processed to ensure local traceability and specific attention is given to ensuring that hazardous waste is sent to appropriate treatment facilities. In 2017, the Group recovered 94% of total waste reported (recovery ratio includes material and energy recovery). This recovery ratio has increased from 81% to 94% since 2009, thanks to site by site waste management and action plans. The Group also focuses on generating value for waste, with a focus on improving waste segregation. This enables the Group to ensure that waste recycling potential is maximized, both in terms of quantity and quality of recycled material. In 2017, the Group notably recovered over 99% of reported metal waste. Green IT (Information Technology) Green IT is a worldwide program to reduce the environmental footprint of Schneider Electric’s IT including the CO 2 footprint and other resources (paper, water, precious metals). Expected results include reduction in the electrical consumption of IT devices (data centers, servers, network, end-user devices), reduction in electronic waste by implementing a sustainable corporate disposal strategy globally and avoiding travel where possible. It addresses all phases of the life cycle of IT devices and services and includes the Group’s equipment and services suppliers, promoting the reduction of their environmental footprints. The main objectives of this initiative are: E to reduce our datacenters’ CO 2 footprint through cloudification, reducing the number of data centers, increasing their power usage effectiveness; E to increase sites’ IT energy efficiency by deploying and optimizing energy efficient devices, including network and end- user devices, and optimizing printing; E to ensure that our assets are disposed of in a secure and sustainable manor through a proper certified and auditable asset recovery policy;

E to ensure the continuous training of the IT teams, implementation of continuous improvement plans and best practices to reduce the use of electricity of all IT devices from the data centers to the end users. In 2017, Schneider Electric: E rationalized European datacenters by migrating from 4 datacenters in France and UK to one datacenter in France. The PUE of this datacenter has been optimized by consolidating 10% of virtual machines into a private cloud environment and removing idle servers; E deployed new collaboration solutions aiming at reducing paper, email exchanges and further leveraging cloud data storage and implemented a new communication solution, cloud based, for messaging, web audio and video conferences; E launched a program to rationalize the application landscape. In 2017, 575 applications were decommissioned and 31 archived; E defined a global asset recovery service policy for PC end users aiming at ensuring that our assets are disposed of in a secure and sustainable manner. This policy is implemented for Europe and has been piloted in 2 countries (China and India) with deployment agreed in China during 2018; E defined the move to cloud strategy and deployed a standard cloud platform both for infrastructure (IAAS) and application development (PAAS); E defined a Green IT measurement framework and KPIs based on Green IT Group input and trained a core team of technical experts and project managers to Green IT. Priorities and initiatives which will significantly contribute to optimizing the corporate IT infrastructure footprint and hence energy usage over the coming years: E continue datacenter rationalization and usage of cloud; E deployment of Green IT measurement framework to the whole Schneider Electric IT footprint (including outsourced services); E worldwide deployment of End-User Asset recovery policy and extension to mobile devices, servers, and suppliers’ activities; E optimize sites’ IT energy (network equipment and end-user devices) and paper consumption through badge printing; E include eco-design methodology in application and service design.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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