SCH2017_DRF_EN_Livre.indb

2 Sustainable development Methodology and audit of indicators

6. Methodology and audit of indicators

Methodology elements on the published indicators

6.1

In the absence of any recognized and meaningful benchmark for companies involved in manufacturing and assembling electronic components, Schneider Electric has drawn up a frame of reference with reporting methods for the Planet & Society Barometer’s indicators and for Human Resources, safety and environmental data. This frame of reference includes the scope, collection and consolidation procedures and definitions of this information. As it is engaged in a process of constant improvement, Schneider Electric is gradually supplementing this work to adapt its frame of reference for sustainable development indicators to changes in the Group. This document is updated every year. In keeping with its commitment to continuous improvement, Schneider Electric asked Ernst & Young to conduct a review in order to obtain a “limited” or “reasonable” level of assurance for certain Human Resources, safety and environmental data indicators, and all of the key performance indicators from the Planet & Society Barometer (see Independent verifier’s report on pages 137-138). The audit work builds on that conducted since 2006. Human Resources, safety and environment indicators The Human Resources, safety and environmental data comes from several dedicated reporting tools, primarily: Human Resources Analytics for the Human Resources data and GlobES (Global Environment and Safety) for the safety and environment data. Its consolidation is placed respectively under the Global Human Resources and the Global Supply Chain functions. Energy is managed with the Group’s own solutions, Resource Advisor and Energy Operation. Data reliability checks are conducted at the time of consolidation (review of variations, inter-site comparison, etc.). The Safety data of the sites are included in the Group metrics after 1 complete calendar year following their creation or acquisition. A site joining the Group in year n will be included in the metrics on January 1, n+2, except in exceptional circumstances when an agreement stipulates that the Safety data will not be included for 2 years. A difference can thus be recorded with respect to the scope of financial consolidation. Some small locations (sales/service teams) may not be included in the reporting or may be consolidated with larger locations. However, they represent less than 1% of Schneider Electric’s permanent headcount. Breakdown of workforce data (by gender, category, age and seniority), sites declaring employee representation and the number of collective agreements cover 93% of the total workforce. Performance interviews have taken place with 94% of the workforce. Training programs cover 83% of the workforce. This data is consolidated over all fully integrated companies within the scope of financial consolidation, including joint ventures over which the Group exercises exclusive control. Units that belong to Group companies which are fully consolidated are included in reporting on a 100% basis. Companies accounted for by the equity method are not included in the reporting.

The scope of environmental reporting is that of ISO 14001-certified sites, and certain non-certified sites on a voluntary basis and without interruption in time. All production and logistics sites with 50 or more employees must obtain ISO 14001 certification before the end of the third full calendar year of operation or membership of the Group. Administrative, R&D and sales sites with 500 employees or more also have to obtain ISO 14001 certification. Other sites may seek certification and/or report on a voluntary basis. A difference can be thus recorded with respect to the scope of financial consolidation. Indicators from the Planet & Society Barometer The barometer data is used and consolidated under the departments directly concerned by the indicators (Human Resources, environment, the Foundation, etc.) and each represented by a pilot. The global performance of the Planet & Society Barometer is calculated by the Group’s Sustainable Development Department. The indicators from the Planet & Society Barometer have a Group scope with specific levels of coverage for each indicator. 10% energy savings The objective is to reduce energy consumption by 3.5% each year, for a total reduction of 10% over the whole duration of the company program (2015-2017) using Schneider Electric solutions. The program addresses all Schneider Electric sites, and has a particular focus on major energy consumers (218 sites in 2017). Any newly acquired sites will be included in the program the year after acquisition. Supply chain and operational entities are the internal customer and the Energy & Sustainability Services teams are the internal provider. Energy savings are calculated versus a baseline year: 2014 for the whole duration of the company program 2015-2017. In order to ensure a fair calculation of the savings, the actual consumption of a site is normalized versus the baseline year. This normalization is based upon a site-specific model enabling climate and changes in production levels to be taken into account. All energy consumption that can be modeled is taken into account and converted into MWh. This indicator was audited by Ernst & Young. 10% CO 2 savings from transportation This indicator includes emissions from the transport of goods purchased by Schneider Electric, covering 71% of the Group’s total transport costs.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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