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2 Sustainable development

Green and responsible growth driving economic performance

2. Green and responsible growth driving economic performance

This chapter covers 2 subjects: E products and solutions for fighting climate change: energy efficiency, smart grid, sustainable cities, etc.; E business ethics: the Group’s Principles of Responsibility , anti-corruption, human rights, relations with suppliers and subcontractors.

2.1 Overview Context and goals

The Group works in more than 100 countries, with heterogeneous practices, standards and values. Schneider Electric is also committed to acting responsibly towards all of its stakeholders. Therefore, the Company has defined its Principles of Responsibility that apply to the entire Group and are based on dedicated organization and processes. In addition, Schneider Electric is committed to sharing its vision of sustainable development with the greatest possible number of its suppliers.

Climate change is one of the main challenges of the 21 st century. Schneider Electric works for sectors that account for the majority of global energy consumption. Energy consumption is not always optimized, which makes it one of the largest sources of CO 2 emissions. As a global specialist in energy management, Schneider Electric’s products and solutions help reduce energy consumption and CO 2 emissions. The Group is therefore developing energy efficiency offerings to reduce energy bills by up to 30% for every type of building.

Key targets and results For this section, 2 key performance indicators have been set in the Planet & Society barometer 2015-2017:

Objectives for year-end 2017

2017

2016

2015

2014

1. 100% of our recommended suppliers embrace ISO 26000 guidelines 2. All our entities pass our internal Ethics & Responsibility assessment

82.3%

64.7%

48%

87.9% ▲

98.4% ▲

93.4%

88%

-

The 2014 performance serves as a starting value for the Planet & Society Barometer 2015-2017. ▲ 2017 audited indicators. * Results measured from 2016 (measurement tools deployed in 2015). Please refer to pages 131 to 134 for the methodological presentation of indicators and the following pages for the analysis of the results (pages 86 for indicator 1, and 90 for indicator 2).

2.2 Smart energy management products and solutions to help fight climate change

Our planet is facing an unprecedented energy challenge. According to the International Energy Agency (IAE, World Energy Outlook 2016) global primary energy demand is expected to increase 30% by 2040. This would dramatically impact energy costs and security, competition for resources, access to energy for the poorest populations, economic growth – and of course climate change. Helping resolve this challenge lies at the heart of Schneider Electric’s business strategy.

Customers – companies, citizens, governments – all want to reduce their costs and environmental impact while constantly improving the reliability, safety and performance of their homes, buildings, sites and equipment. To ensure that energy efficiency targets are achieved, and to facilitate the increasing share of renewables in the energy mix, Schneider Electric provides an innovative and competitive portfolio of products, systems, services and software to help its customers.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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