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Sustainable development Schneider Electric’s commitment to environmental performance

1,000 independent assessments, plus hundreds of field visits and audits), in the way we assess environmental risks in our supply chain, how we comply with changing regulations, or report to a variety of external stakeholders and analysts, not forgetting our efforts towards the embedding of environmental considerations across other functions’ processes, such as purchasing, investment, manufacturing, logistics, acquisition, Human Resources management, etc. While improving the strategic alignment of our environmental journey with our corporate strategy and company program, we meanwhile strive to address key risks and changing expectations of our global ecosystem.

glass that helps drive further innovation and value-addition for our customers and the planet alike; we took part in many multi-stakeholders’ consultations in Europe, China and France on this subject, in a dynamic move towards a more circular economy. Our partnership with the Ellen MacArthur Foundation CE100 initiative on the circular economy helps us innovate faster; 6) constantly strengthening our efforts towards robust environmental governance. Besides the 5 strategic and transformational dimensions summarized above, we can also stress our efforts towards environmental stewardship in the way we select and grow our supplier base (more than

Key targets and results For this section, 7 key performance indicators have been set in the Planet & Society Barometer 2015-2017:

Objectives for year-end 2017

2017

2016

2015

2014

1. 10% energy savings

10.3% ▲ 10.3% ▲

7.1%

4.5% 8.4%

- -

2. 10% CO 2

savings from transportation*

11.2%

3. Towards Zero Waste to Landfill for 100 industrial sites

130 ▲

99

64

34

4. 100% of products in R&D designed with Schneider ecoDesign Way ™

100% ▲ 80.1% ▲

81.6% 74.8%

13.3% 67.1%

-

5. 75% of product revenue with Green Premium ™ eco-label

60.5%

6. 100% of new large customer projects with CO2 impact quantification 100% ▲

16%

-**

-

7. 120,000 tons of CO 2

avoided through maintenance, retrofit

168,400 ▲

and end-of-life services

101,508

44,777

-

The 2014 performance serves as a starting value for the Planet & Society Barometer 2015-2017. ▲ 2017 audited indicators. * 2017 being the last year of the 2015-2017 plan, the methodology for calculating this indicator in 2017 has been supplemented, see note on pages 131 and 132. ** 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 99-100 for indicator 1, 100 for indicator 2, 104-105 for indicator 3, 96-97 for indicator 4, 96 for indicator 5, 93 for indicator 6 and 104 for indicator 7). Organization

are responsible for implementing the Group’s policies across all sites in their geographical perimeter, including plants and distribution centers, as well as some services sites, national and regional headquarters, commercial entities and R&D centers. In each region, managers coordinate teams across a group of sites (clusters), as well as for each site. These environmental and safety leaders are in charge of reporting on performance as well as coordinating progress plans; E for logistics: the Logistics Senior Vice-President and his/her teams within the Global Supply Chain Department are in charge of reducing and measuring CO 2 emissions from freight at Group level; E for countries and commercial entities: environment managers and safety champions are appointed, in each country, responsible for local reporting actions where necessary, monitoring regulations, taxes and national opportunities as applicable ( e.g. national transcriptions of the WEEE in relation to end-of-life product management, monitoring of RoHS China, etc.), the proactive management of local environmental initiatives, and relations with local stakeholders;

At Group level, the Environment Senior Vice-President determines the Group’s environmental strategy covering subjects from the definition of green offers (eco-design) and the associated marketing and communication, to environment actions in manufacturing and logistics. He is in charge of the Group’s Resources, CO 2 , and Substances strategy. The network of leaders driving environmental transformations consists of: E for the design and development of new offers: eco-design and environmental managers in each Business Unit in charge of integrating key environmental issues into the development of offers and product design, and environmental managers in charge of communicating relevant environmental features to customers; E for the management of industrial, logistics and large tertiary sites: Safety and Environment Vice-Presidents are nominated in each region, with dedicated teams reporting to them. They

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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