SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Sustainable development at the heart of our strategy

Prioritizing actions with a materiality matrix

1.1

Materiality Analysis In 2017, Schneider Electric renewed its materiality (1) analysis by questioning relevant external stakeholders ( e.g. customers, suppliers, trade associations, international organizations, experts, shareholders, members of the board of directors, etc.), and top and senior managers within the Group (Strategy, Country Presidents, Safety/Environment/Real Estate, Businesses and Services, Human Resources, Industrial design, IoT and digital transformation, European Works Council, etc.). The participants represented 5 nationalities; 32% of the respondents were women, 68% were men. Participants were asked to assess the significance of each issue according to a quantitative scoring scale, and then were interviewed for qualitative evaluation and justification of the given scores. This made it possible to adjust the averages so as to obtain a more representative matrix of the interviewees’ intentions. These interviews also enabled Schneider Electric to consolidate the relationship with its stakeholders and learn about their expectations. Beforehand, the issues were defined using a study of the stakes of the sector (analysis of different CSR guidelines, sector benchmark, etc.) and a comparison with the materiality analysis of 2013.With the help of consulting firm B&L evolution, the aim is to ensure that Schneider Electric reports against the most important

economic, social and environmental issues; identifies current and future opportunities and risks for the business; and updates its sustainability agenda with the key stakeholders’ expectations. In particular, the materiality matrix was one of the sources used to design the 2018-2020 Planet & Society Barometer and to confirm the topics to be addressed in the registration document. Key Learnings The materiality matrix below displays the results of the analysis. The external and internal visions of the issues are generally aligned. Issues related to governance and communities and local development are generally less material than issues related to human rights, consumers, working conditions and relationships, fair practices or the environment. Six issues are defined as crucial: human rights and duty of vigilance, data security and privacy, business integrity, workplace safety and access to health care, and carbon neutrality. The 2017 registration document, the Group’s commitments for climate (see previous page) and finally the Planet & Society Barometer 2018- 2020 cover all these priority topics through Group policies, progress plans, indicators, and short or long term goals.

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5.0

Human rights and duty of vigilance

External signals

Occupational safety and access to care

Privacy and data security

Business integrity

Carbon neutrality

Consumer health and safety

4.1

Eco-design

Transition to tomorrow's occupations

Recovery and refurbishment of end-of-life products

Diversity and inclusion

Diversity, independence and effectiveness of the board of directors

Energy efficiency and CO 2 Renewable energies

avoided

Stakeholder engagement

Zero waste to landfill Tax transparency

Employee engagement Environmental risk management Access of women to positions of responsibility

Universal access to electricity

Gender pay equity

Use of recycled or biosourced materials

Hazardous substances

Fair competition Well-being and stress reduction

3.2

Social dialog and freedom of association

Fuel poverty

Responsible communication and marketing Fair and equitable officers’ compensation

Contribution to local development

Water consumption and treatment Job creation

Transparency of lobbying

Economy of functionality Study of the societal impacts of the activity

Importance of issues according to external stakeholders 2.3 2.3 3.2

Internal signals

4.1

5.0

Importance of issues according to Schneider Electric

Human rights Governance

Working relationships and conditions Fair practices

Consumer issues Environment

Communities and local development

(1) Definition is based on AA 1000 Assurance Standard’s materiality principle as well as the Standard GRI reporting guidelines.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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