SCH2017_DRF_EN_Livre.indb

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Sustainable development Committed to and on behalf of employees

Due diligence and results Schneider Electric values the safety of its employees, customers and contractors and has implemented an intensive action plan for improvement based on the 2020 strategy, which includes the following in 2017: E Development of golden rules targeted for each of the top 5 hazards identified. These golden rules offer a commitment by the company and employees to prevent injuries due to these hazards; E Revision of the annual safety & environmental assessment tool to a new comprehensive environmental, health & safety (EHS) assessment tool focused on the elements of the 2020 strategy. The EHS assessment tool aligns with our Schneider Production System (SPS) and evaluates sites based on the 5 safety guiding principles and top 5 hazards; E Global field services’ events analyzed for 3 primary causes that contributed to the majority of employee and subcontractor serious and potentially serious events, including: incomplete risk assessments at point of work, incomplete lockout/tagout checklist, not practicing stop work authority; E Global field service focus areas established: field services representatives’ electrical qualifications and competency mentoring program; operational discipline; global disciplinary policy; leading as role models; customer worksite visits by top management; E The evaluation of serious events (those workplace events that causes serious injuries to employees) through the Serious Incident Investigation Process (SIIP). The process includes a deep analysis of serious events and the communication of practices and corrective actions to prevent future events; E Global safety alerts are issued when serious events require further communication of corrective actions to the global occupational health & safety community. Fourteen global safety alerts with learnings and action plans were issued in 2017; E Establishment of a global proactive leading indicator, “safety opportunities”, a combination of near miss and safety observation reporting; E Deployment of 4 safety standardization initiatives including biometric entry, arc flash risk assessment, non-routine point of work risk assessment and hazardous equipment MMRs (minimum mandatory requirements) inspection; E Release of digital safety mobile application to facilitate quick and easy reporting of employee incidents, especially useful in the field; E Continued evolution of the global Integrated Management System (IMS – Includes ISO 9001, ISO 14001 and OHSAS 18001). The global IMS has successfully transitioned to the 2015 versions of ISO 9001 and ISO 14001. It began the certification process in 2014 and renewed their certification in 2017.

E Establishment and deployment of 2017 communication plan including: quarterly safety campaigns – ergonomics, 2020 safety strategy, electrical safety & road safety – 23 Edison experts (internal specialists) engaged in global and regional continuous improvement projects, and 6 th Annual Global Safety Day “#arrivealive” with 4,000+ internal social media posts and 2,500+ personal employee pledges to arrive alive. Schneider Electric uses 3 primary indicators to measure Occupational Health & Safety performance. The first of these indicators is the Medical Incident Rate (MIR) which measures the number of medical incidents per million hours worked. This measure allows for an in-depth evaluation of workplace hazards, and the resulting corrective actions assist in the elimination of recurring incidents and the prevention of injury. The Group has used the MIR as a key performance indicator on a global basis since 2010. 2017 is the final year of a current target to reduce the MIR over a 3-year period (2015-2017) by 30% compared to the 2014 MIR result. The second and third indicators are the Lost-time Incident Rate (LTIR) and the Lost-time Day Rate (LTDR). The LTIR measures the number of medical incidents that incur lost-time work days per million hours worked. These lost-time cases are indicators of a more serious type of medical incident. The severity of these cases is indicated by the LTDR which measures the number of days lost due to lost-time medical incidents per million hours worked. Schneider Electric has used the LTIR and LTDR as key performance indicators on a global basis since 2012, replacing similar indicators at that time. Going forward, annual reduction goals are -5% for the MIR, -5% for the LTIR and -10% for the LTDR. The 2017 results are as follows: E MIR 2014 = 1.85; MIR 2015 = 1.53; MIR 2016 = 1.24; MIR 2017 = 1.15; annual reduction (2017 vs . 2016) is 7%; Planet & Society Barometer reduction (2017 vs. 2014) is 38%; E LTIR 2016 = 0.75; LTIR 2017 = 0.62; annual reduction is 17%; E LTDR 2016 = 17.88; LTDR 2017 = 20.67; annual increase is 16%. As a result of our continuous improvement efforts, we’ve experienced 30 fewer workplace injuries (requiring medical treatment) in 2017 versus the results in 2016. In addition, we’ve experienced approximately a 50% reduction in MIR since 2013 resulting in approximately 300 fewer workplace injuries. While incident frequency and serious incident occurrence trends down, and our safety culture continues to strengthen (with the addition of our 2020 safety strategy), we cannot be completely satisfied until we reach our ultimate goal of zero fatal and zero serious injuries worldwide. Well-Being in our DNA For Schneider Electric, well-being isn’t just another employee project; it’s a strategic priority. It contributes to our core sustainability mission by driving well-being for our employees so they can have a positive impact on their families, community, society, and the planet. Our ambition is to help individuals and teams unleash their potential and make the most of their energy.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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