SCH2017_DRF_EN_Livre.indb

2 Sustainable development Methodology and audit of indicators

The scope covers projects awarded which have been recorded during the year, at the global level, beyond a certain amount. The indicator calculates the percentage of projects with quantification of the CO 2 impact. This indicator was audited by Ernst & Young. 120,000 tons of CO 2 avoided through maintenance, retrofit and end-of-life services Through collection of equipment containing SF 6 at the end of its life, by Schneider Electric Field Services teams (End of Life, EcoFit ™ centers, Maintenance), and adequate handling and treatment, Schneider Electric is able to recycle significant quantities of SF 6 (thus CO 2 equivalents) every year. This indicator is the result of the arithmetic addition of SF 6 quantities recovered from equipment. CO 2 equivalent is calculated based on global warming potential of SF 6 (1 ton of SF 6 being equivalent to 23,500 tons of CO 2 ). This indicator was audited by Ernst & Young. x5 turnover of Access to Energy program to promote development for underprivileged people This indicator tracks the growth rate of the Access to Energy program’s annual turnover, based on the actual 2014 turnover. It covers the sales in Africa, Asia and South America of all products and solutions which contribute to providing access to modern energy for populations living in rural and peri-urban areas: individual lighting, individual and collective electrification, energy services and training equipment and training contracts. Sales are aggregated every quarter based on invoicing data from operational entities. Following the disposal of the subsidiary Conlog, the sales of this subsidiary have been excluded from the 2016 scope, without, however, changing the 2014 baseline or 2017 target. This indicator was audited by Ernst & Young. 100% of our recommended suppliers embrace ISO 26000 guidelines The objective is to motivate “recommended” (also called “strategic”) Group suppliers to roll out and monitor improvement plans conforming to ISO 26000. An assessment of recommended suppliers is carried out by a third party. Suppliers whose assessments are too low are not considered as embracing ISO 26000. The assessments are monitored during business reviews with the Schneider Electric buyers, with a view to continuous improvement according to the guidelines of ISO 26000. The list of recommended suppliers to take into account for the year is fixed at the beginning of the year. The number of recommended suppliers assessed during the year is set at January 31 of year n+1 in order to take into account the assessments still in progress on December 31 of year n. Sustainable development has become one of the 7 pillars used to measure supplier performance since 2011, allowing the highest- performing suppliers to become “recommended” suppliers. This indicator was audited by Ernst & Young. All our entities pass our internal Ethics & Responsibility assessment The calculation is based on an annual internal survey performed by the entities. It consists of 10 self-assessment questions, 2 of which

are not applicable to all entities (the internal control team determines which sites are concerned by the HR and supplier-related internal control questions). Entities are considered as passing the test if they have at least 80% positive answers among applicable questions. Entities have to provide supporting documents for all positive answers, and the internal control team then performs an audit for 5 to 10% of entities. The results are published at the end of Q3, and entities have the opportunity to take action in order to improve their score before 30% reduction in the Medical Incident Rate (MIR) The Medical Incident Rate (MIR) is the number of work incidents requiring medical treatment per million hours worked ( i.e. average hours of 500 employees working for one calendar year), including injuries and occupational illnesses. Incidents may or may not have resulted in a day off. All incidents reported on Schneider Electric sites are counted (including therefore incidents affecting subcontractors on site and temporary workers). All Schneider Electric sites are taken into account. Medical incidents do not include: visits to a physician or other licensed health care professional solely for observation or counseling; the conduct of diagnostic procedures, such as x-rays and blood tests, including the administration of prescription medications used solely for diagnostic purposes ( e.g. eye drops to dilate pupils); or first aid. The focus of the Medical Incident Rate (MIR) is on the identification and evaluation of workplace hazards. 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 with a target to reduce it by 10% year- on-year. This indicator was audited by Ernst & Young. One day training for every employee every year The indicator measures the percentage of employees who received at least one training day during the year, the equivalent of 7 hours in total. All permanent employees, white collar and blue collar, who are entered into our HR Training information system are included in the indicator. Subcontractors, fixed-term contract employees, trainees, apprentices and employees close to leaving the company ( e.g. pre- retirement) or employees who have left the company permanently or temporarily during the past 12 months are excluded. Individual new arrivals are counted after 3 months in the company since the end of 2015; new acquisitions are counted 12 months after being incorporated into our HR information system. This includes all training activities: in person, individual or collective, tutored, e-learning, webinars, internal and external; all areas of training: products, management, languages, office, security, legal and regulatory training, etc.; excluded from the count are: training that does not have a formal trainer, with no written learning objectives publication of the results at the end of Q4. This indicator was audited by Ernst & Young.

or notices and time spent on social media. This indicator was audited by Ernst & Young.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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