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Sustainable development Sustainable development at the heart of our strategy

1. Sustainable development at the heart of our strategy

A strategy serving energy transition technologies Schneider Electric, the global specialist in digital transformation of energy management and automation, brings together its expertise and solutions for its customers to make sure that energy is safe, reliable, efficient, connected and sustainable. Its mission is to make sure that Life is On for everyone, everywhere and at every moment with its technology. The Group proposes an integrated offer of technologies and market-leading solutions tailored to customer needs promoting the transition toward more electric, digital, decarbonized, and decentralized energy. Its mission contributes to meeting the energy challenge in its ecosystem – keeping global warming under a 2°C limit – while achieving improved operational efficiency. Climate action for sustainable growth In 2017, Schneider Electric was one of 120 companies to secure a place on the Climate A list of all the companies that participated in the CDP program and the only company in its industry to achieve an A rating for the 7 th year running. This strongly encourages Schneider Electric to continue its innovation strategy at every level for sustainability. The Group is committed to providing innovative solutions to overcome the energy paradox: balancing our planet’s carbon footprint with the irrefutable human right to quality energy. At Schneider Electric, the link between sustainability and business performance is concrete. Access to energy is a basic human right. Schneider Electric develops inclusive business models and creates solutions to provide clean, safe and reliable energy to the 1.1 billion people – 1 in every 6 people on the planet – without access to electricity. The Group also contributes to the fight against fuel poverty in mature economies. As part of the French Business Climate Pledge, the joint commitment of 91 French companies in favor of climate, announced during the One Planet Summit, Schneider Electric strengthened its commitments presented at COP21. They revolve around 4 complementary approaches: 1. by 2020 , reach the 21 new commitments of the 2018-2020 Planet & Society Barometer, define a precise trajectory respecting the 2°C scenarios up to 2050, validate it via the Science-based targets initiative to which the company has been a signatory since 2016, and increase the impact of its internal carbon price;

2. by 2030 , achieve carbon neutrality by reducing the carbon emissions of the Group’s sites as well as those of its industrial ecosystem including its suppliers and customers, quantify the CO 2 emissions avoided by its customers thanks to its offers, reach 100% renewable electricity, 100% recycled or certified packaging, 100% recycled waste, and double its energy productivity compared to 2005; 3. by 2050 , on scopes 1 and 2, reduce by more than 50% its CO 2 emissions in absolute value compared to 2015, in line with the guidelines of the Science-based targets; 4. from now on , act and follow in a transparent way the achievement of its objectives, by the quarterly publications of its Planet & Society Barometer and in the framework of large open coalitions, notably through joining, in December 2017, the Energy Productivity 100 (EP100) and Renewable Energy 100 (RE100) initiatives of the Climate Group, partnering with Sustainable Energy For All (SE4All) to become a delivery partner, and committing to support the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD); these commitments accelerate the results already obtained and communicated via the 4 Schneider Electric Planet & Society Barometers since 2005, for example its energy intensity reduced by 42% between 2005 and 2017 and the carbon intensity of its logistics reduced by 35% between 2012 and 2017. At the end of 2017, we have renewed and strengthened our 10 commitments towards carbon neutrality: 1. avoid the emission of 100 million metric tons of CO 2 on our customers’ end thanks to our offers (2018-2020); 2. use 80% renewable electricity in our energy mix by 2020 (2018-2020) and 100% by 2030 (2018-2030); and continue to reduce our energy consumption started since 2005 on our sites by doubling our energy productivity (2005-2030); 3. achieve 75% of our turnover under the new Green Premium ™ program (2018-2020); 4. avoid 100,000 metric tons of primary resource consumption through our EcoFit ™ , product recycling and take-back programs (2018-2020); 5. use 100% cardboard and pallets for transport packing from recycled or certified sources by 2020 (2018-2020) and use 100% packing and packaging from recycled or certified sources by 2030 (2018-2030);

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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