SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Sustainable development at the heart of our strategy

The Global Reporting Initiative The Global Reporting Initiative (GRI) was established in 1997 as a mission to develop globally applicable directives to report on economic, environmental and social performances; it was initially intended for companies and subsequently for any governmental or non-governmental organization. Brought about by the Coalition for Environmentally Responsible Economies (CERES) in association with the United Nations Environmental Program (UNEP), the GRI integrates the active participation of companies, NGOs, accounting bodies, business associations and other stakeholders from across the globe. Schneider Electric aligns its non-financial reporting with GRI and, until 2013, scored a B+ with respect to GRI 3.1. In 2014, the Group began to align with GRI 4, at the “In accordance – Core” level. In 2016, it integrates the evolutions of the GRI Standards. A reference table with its indicators and those proposed by GRI is available on Schneider Electric website. The Sustainability Accounting Standards Board (SASB) Schneider Electric complies with SASB reporting guidelines for its sector: Energy Management (p. 99-100 and 140-141), Hazardous Waste Management (p. 101, 102, 104 and 140), Product Safety (p. 50 and 53-54), Product Lifecycle Management (p. 95-97), Business Ethics and Competitive Behavior (p. 87-91 and 53-54), Materials Sourcing (p. 52). Internal guidelines Schneider Electric has written guidelines that promote an ethical framework and strategic roadmap in which the activities of the Group are carried out: the Principles of Responsibility , which are supplemented by policies and related directives. Consequently, the Group’s desire to vigorously implement its commitments gave rise to the Responsibility & Ethics Dynamics program (R&ED program) in 2010. See pages 87-90. Ethics & Compliance In addition to the Principles of Responsibility , which act as a reference framework within which Schneider Electric conducts its business, different policies and directives bolster the Group’s commitments in terms of business ethics and integrity. The Business Agents policy was fully updated and strengthened in January 2015, and deployed worldwide. It specifies the rules to be followed when an external Ratings and awards The evaluations and awards underline external recognition of the Group’s sustainable development programs and indicate the Company’s performance in its sector. In the Ipreo report SRI Leaders Index Fall 2017, Schneider Electric was listed as 5 th for the global company with the most SRI funds in its capital (365 funds). 1.6

stakeholder is solicited to get a deal and integrates the approval process of business agents. The Internal Fraud Investigation directive was also updated in mid-2015 and clearly indicates the commitment for whistleblower protection. The new Gifts & Hospitality policy was approved by the Group’s CEO in December 2015 and deployed locally. In 2016, the Group also put in place a new Anti-Corruption policy deployed in 2017. It is supplemented by an Anti-Corruption Code of Conduct detailing the related processes. In 2016, a new directive specifies the Alerts Management processes. The other policies cover social media management, data management and protection, competition law, the market ethics code, etc. Human rights In 2017, Schneider Electric has written a specific human rights policy as part of a broader program on Duty of vigilance in its value chain and in line with the UN Guiding Principles on Business and Human Rights (See p. 91). Responsible purchasing In 2016, Schneider Electric renewed the charter for its suppliers, called the Supplier Guide Book, whose first chapter sets out its expectations for sustainable development in five areas: environment, fair and ethical business practices, sustainable procurement, labor practices, and human rights. These requirements are detailed in a dedicated document called the Supplier Code of Conduct. Environment The first version of Schneider Electric’s environmental policy was published in 1992, modified in 2004 and confirmed in 2007. It aims to improve industrial processes, reinforce product eco-design and incorporate Group customers’ concerns for environmental protection by providing them with product and service solutions. It is bolstered by the Energy, Eco-design, Materials and Substances, and WEEE (Waste Electrical and Electronic Equipment) policies. These policies apply to the Group and are accompanied by global action plans. Social The Group’s Human Resources policies cover the following: diversity & inclusion, health & well-being, safety, security and travels, employee engagement, recruiting, international mobility, training, human capital development, talent identification, total remuneration, and social benefits. These apply to the Group and are accompanied by global processes.

Ratings and indexes DJSI World and Europe

In 2017-2018, Schneider Electric is part of the DJSI (Dow Jones Sustainability Index) World and Europe indexes and ranks second in its sector with a score of 83/100. It has been part of these 2 indices

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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