SCH2017_DRF_EN_Livre.indb

2 Sustainable development Committed to and on behalf of employees

European Works Council (EWC) The changes that were made in 2014 to the European Works Council in the framework of Schneider Electric SA’s transformation into a European Company significantly enhanced the intensity and the impact of social dialog at European level. This European channel for dialog aims at enabling the management to make more efficient decisions by giving employee representatives the opportunity to be informed of such decisions and to understand their reasons, as well as to put forward proposals to supplement or improve them. It has also fostered the emergence of a strong identity, combining different cultures and having the common aim of working towards social and economic progress within the companies in the Group at European level. The European Works Council covers all European Economic Area countries (hence all EU member states) and Switzerland, for a total of 44,000 employees. Moreover, in respect of the spirit of European participation, signed in 2014, and agreed by a large majority of negotiators, a new European Works Council has been set out with extended powers and resources, and the participation of European employee representatives at board of directors’ level has been introduced. It replaced the previous European Works Council. In 2017, the European Works Council met 7 times, including 6 Core Council Meetings and 1 plenary session. This allowed active social dialog at European level throughout the year, as well as in-depth discussion on key topics. The June plenary session hosted presentations and discussions on the company’s strategy with Executive Committee members including Schneider Electric’s CEO. In 2017, Schneider Electric and IndustriAll Europe signed an innovative Europe-wide agreement, the European agreement on the anticipation and development of competencies and employment with respect to the Schneider Electric business strategy (May 18). This agreement is a great opportunity to create a governance for jobs and skills at the Company by anticipating impact and evolutions in business in line with current market trends and the Company’s ambition; It sets clear objectives for boosting employees’ employability, and for enriching the workforce by diversity and digital generation recruitment; and reinforces constructive social dialog at European and local level within the Company. Group Works Council, France Schneider Electric’s French Group Works Council is a forum for economic, financial and social dialog between senior management and the representatives of employees from all French subsidiaries. A negotiation was launched in 2017 with the trade unions. The objective was to find some ways to improve the competitiveness and employment in France (flexibility, increase the work time etc.). More than 20 meetings have taken place. In 2017, the Group Works Council for France enhanced its transversal information and understanding of business stakes and strategy of Schneider Electric, through a 2-day meeting. Topics addressed included: presentation of Schneider Electric in France, strategy of Schneider Electric, missions and rights of the trade unions, working time and salary.

In order to better understand the Schneider Electric business and its perspectives, the Group Works Council also visited Schneider Automation in Poitiers and Schneider Electric Energy France in Macon, France. Social dialog in the United States In the United States and more generally in North America, regular communication takes place with both union and non-union employees on key business topics and trends affecting their jobs. Company officials meet on a semi-annual basis with key international union leaders to inform them of competitive issues impacting the company’s business, and to ensure alignment with the company’s business strategies/challenges, on a local, regional and global basis. In 2017, a 2-day meeting was held with union representatives from factory locations and international union leaders to forge alliances on employee safety and mutually work on safety improvement opportunities. Social dialog in Mexico In Mexico, Schneider Electric leaders conduct regular communication with employees on topics related to their jobs: this communication takes place in different ways, including large communication meetings and small group conversations. There is also continuous communication with the Union leaders and delegates of 4 national unions which represent unionized employees. Schneider Electric keeps them informed of internal and external issues impacting the company’s results, listens to their concerns and looks for alignment with the company strategy and challenges. Schneider Electric and the Unions review the collective contract every year. In 2017, Schneider Electric Mexico was certified by CEMEFI as a “Socially Responsible Company”. The mission of CEMEFI is to foster and enhance the culture of philanthropy and social responsibility in Mexico and strengthen the organized and active participation of society in solving community problems. Different topics are evaluated during the certification process, including active labor relations points. Moreover, we were audited in 2017 for compliance with the EICC Code (Electronic Industrial Citizen Coalition), confirming our compliance on social, environmental and ethical standards, including the Universal Declaration of Human Rights, ILO International Labor Standards, OECD Guidelines for Multinational Enterprises, ISO and SA standards and many more. This certification confirms previous awards that had been granted in previous years to Schneider Electric Mexico in relation to social responsibility, diversity and family policy. Social dialog in China The Group has over 30 entities and over 100 sites in China. The majority of them have set up unions. Unions give input in the review of local policy relating to employee remuneration. Unions also take a key role in leading employee events and activities. Meanwhile, unions are also involved in employee relations in the event of company redundancy programs. The Group has discussed the terms of a collective contract with unions for several plants. Six entities have already signed the collective contract.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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