SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Green and responsible growth driving economic performance

To promote and develop integrity in business activities, various anti- corruption initiatives have been created or strengthened: E a new Anti-Corruption Policy and an Anti-Corruption Code of Conduct have been disclosed and deployed through the entire organization in 2017. These two documents are now part of a set of policies focusing on business integrity with the Business Agent policy and the Gifts & Hospitality policy, created in 2015, whose deployment continued throughout the year in the different business units and subsidiaries; E Schneider Electric is an active member of Transparency International France, a leading NGO which aims to stop corruption and promote transparency, responsibility and integrity at all levels and across all sectors; the Group participates in inter- company exchanges organized by the NGO. In April 2017, a workshop was organized at Schneider Electric’s headquarters to discuss the robustness of the program and its compliance with all regulations, including the US Foreign Corrupt Practices Act, the UK Bribery Act, and the French Sapin 2 Act; E following the success of the anti-corruption compliance certificates issued by Ethic Intelligence to the Schneider Electric’s African subsidiaries for their activities on the continent (Schneider Electric Egypt & North East Africa, Morocco, Nigeria, South Africa, and ex-subsidiary Conlog), a new wave of certifications has been launched for the Middle East zone. During the last quarter of 2017, Saudi Arabia and the United Arab Emirates were the first subsidiaries to be controlled. This is a major initiative by Schneider Electric in its efforts to combat Human Rights As mentioned in Our Principles of Responsibility , Schneider Electric complies with local laws in every country where it operates. In addition to laws, it is committed to respecting the international human rights principles encompassed in the Universal Declaration of Human Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights and the United Nations Declaration on the Rights of the Child. In 2011, the United Nations issued the Guiding Principles on Business and Human Rights that precisely defined the roles and responsibilities of States and businesses on that matter. As a business leader, Schneider Electric intends to follow and promote these principles. Sustainability is at the heart of its company strategy and it is convinced that energy access is a basic human right. With its new Human Rights policy approved by its CEO in 2017, Schneider Electric confirms its engagement to strive for the respect of all internationally recognized Human Rights, along its value chain. Based on the “Protect, Respect, Remedy” framework, this policy is the first step of the implementation of the UN Guiding Principles on Business and Human Rights within the Group’s operations. We are committed to working with and encouraging our stakeholders to uphold the principles in this policy and to adopt similar policies within their operations. 2.7

corruption on the continent which is noted for the depth of its action; E a new online training module dedicated to the fight against corruption has been developed in 2017 and will be deployed in 2018. This 30-minute module reinforces the strong commitments of the Company in that matter and introduces ethical dilemmas based on real-life scenarios. It is mandatory for some targeted functions (Procurement; Sales; Finance) and the results will be tracked and shared publicly through the Planet & Society Barometer. This module comes in addition to the video module created in 2015 and integrated into the e-learning module dedicated to Our Principles of Responsibility which is compulsory and part of the onboarding package for new employees; E specific training and educational materials have been developed for some functions, such as the Procurement function, the Tender Response and Project Implementation centers, and the Finance Department; E information in the form of Lessons Learned was provided to Country Presidents in cases of alerts detected that underwent investigation in order to explain and give instructions on how to prevent unethical acts; E Schneider Electric actively participates in the Global Compact France working group comprising companies with Advanced status, which tackles many subjects including anti-corruption; it contributes to the sharing of best practices organized by the organization Cercle éthique des affaires and by the Ethic Intelligence agency. Concerning child labor, we are committed to respecting the Rights of the Child, including the right to free education, and therefore are committed to contributing to the elimination of child labor. In practice, we will not engage in or support the employment of children under the age of 18. Some exceptions are accepted for children between the age of 15 and 18 when professional experience is part of their education path ( e.g. trainees, apprentices). Along the same line, concerning forced labor, we will neither use nor support the use of forced or involuntary labor of any kind, directly or indirectly. Based on the International Labor Organization definition, the term forced or involuntary labor shall mean all work or services for which the person has not offered him- or herself voluntarily or willingly. Examples include, but are not limited to, human trafficking, slavery, debt bondage, and ID retaining. In addition to the formulation of these principles, we are committed to providing our employees with periodic communications, training and support to promote this policy, including a program of internal skills building. To help us on this journey, we joined Entreprises pour les droits de l’homme (EDH – Businesses for human rights), a leading French association of businesses providing its members with tools and advice on implementing the UN Guiding Principles on Business and Human Rights.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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