SCH2017_DRF_EN_Livre.indb

2

Sustainable development Green and responsible growth driving economic performance

Measuring rollout and effectiveness The Responsibility & Ethics Dynamics program is the subject of regular internal communication. The objective is to inform all the employees and remind the management teams of the priority actions that they must drive forward, depending on the risks to which they are exposed in their countries of operation. Furthermore, since 2015, all Group entities have had to respond to an annual questionnaire on the implementation of the program. The results are checked by the internal control teams (around 5% of entities) and are then analyzed by the team in charge of ethics at the corporate level and by the Principles of Responsibility Advisors at the local level, who support entities with lower scores and share with them the best practices of those with the highest scores. This assessment has been used as a reference for the Ethics indicator on the 2015- 2017 Planet & Society Barometer: “All our entities pass our internal Ethics & Responsibility assessment”. At the end of 2017, 98.4% of entities had successfully completed this assessment. Personal data protection Schneider Electric believes that the global implementation of a digital strategy must reconcile economic objectives and respect for fundamental human rights, including the right to protection of personal data and privacy. Schneider Electric has chosen to implement a code of conduct for the protection of personal data (Binding Corporate Rules), a legal framework proposed to international companies by the personal data protection authorities in the European Union. To facilitate their effective application, these rules must be visible and understandable by all entities. As a result, a global data protection policy, training sessions, an e-learning module and fact sheets are available on a dedicated collaborative space. The year 2016 was marked by the adoption on April 27 of Regulation (EU) 2016/679 of the European Parliament and Council, a general regulation on the protection of personal data, which will come into force on May 25, 2018. This Regulation, which will expand the scope of personal data protection rules beyond the borders of EU Anti-corruption Schneider Electric applies a zero-tolerance policy towards corruption and other unethical business practices and considers that “doing things right” is a key value creation driver for all its stakeholders. In addition to the compliance with all international and local regulations, all Schneider Electric employees are expected to comply with the Company’s values of integrity and transparency. Schneider Electric will not tolerate any exception or show any weakness in ruthlessly sanctioning any misconduct. The Company has been committed to preventing and controlling the potential occurrence of corruption within its operations for many years now. As recently underlined by the World Bank and the IMF, not only 2.6

countries, is an opportunity for Schneider Electric to strengthen its global governance procedure on personal data protection, and to continue and step up its efforts to rally its entities and its employees on the subject, an essential condition for developing the trust of its employees and its customers in a digital environment. In June 2016, training sessions on the Regulation for Schneider Electric entities were introduced, and working groups were created to build a global action plan aimed at streamlining the entities’ practices in meeting the new obligations. The implementation of this action plan will be periodically monitored by the company’s Management with the assistance of the Group Data Protection Officer. Policies in areas of high political risk As a global and responsible company, Schneider Electric has strict policies and practices in areas identified with high political risks to significantly reduce or eliminate them. The Group strictly respects all applicable embargos and trade regulations and has implemented export control organization and processes in its operations. An Export Control Center of Excellence composed of specialists monitors and enforces the export control program, deploys the awareness-raising programs and support the operational teams. The export control processes include but are not limited to due diligence screenings (embargo & restricted countries, denied party lists, dual-use goods, sensitive applications). The aim is to ensure compliance with all applicable export control law and regulations, both local and extra- territorial. Award for excellence The Group is proud to have been selected by The Ethisphere Institute for its 2018 World’s Most Ethical Companies index for the eighth year running. Schneider Electric is one of just 135 international companies recognized for their commitment and approach to ethics. Performance is measured based on the existence and depth of governance, the company’s reputation and influence, the quality of actions to promote citizenship and societal responsibility, the culture and actions carried out to promote ethics.

corruption is operating as a strong disincentive to foreign investments or contributes to higher-order crimes, but it also is the first factor preventing poverty reduction. The figures are impressive: businesses and individuals pay an estimated USD1.5 trillion in bribes each year, which stands for 2% of global GDP or 10 times the value of overseas development assistance (1) . Our actions against all forms of corruption are part of our Ethics and Responsibility program and benefit from its policies, tools (including the alert system and training) and organization (see above).

(1) Source: World Bank – Combating Corruption.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

90