SCH2017_DRF_EN_Livre.indb

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Sustainable development Schneider Electric’s commitment to environmental performance

E implement environmental ‘Best Available Techniques (BAT)’ across our processes and activities; E operate in compliance with all applicable environmental regulations, and be a proactive player locally to build collaborations when required; E involve our employees, suppliers and other business partners in our continuous improvement process. Due diligence and results Reduction of CO 2 emissions Description of risks and opportunities As a corporation, we are strongly aware of climate change and we take an active part in a variety of multi-stakeholder organizations to join together and promote solutions, attribute a price to CO 2 , and strengthen CO 2 governance globally. We know how much climate change can be a threat and trigger risks for the global economy and population. We also see massive opportunities for companies and practices which are “part of the solution” to grow their own relevance and revenues. Clearly, working to build a low-carbon economy is a wise strategy, and we are on the side of activists in this aera. As far as climate change risks in the form of a possible future cost of CO 2 are concerned, we have estimated the possible impacts on our 400 to 500 ktCO 2 /year (scopes 1 and 2 as per the Greenhouse Gas Protocol -mostly energy and electricity related). footprint The main source of Schneider Electric’s end-to-end ( i.e. Scopes 1, 2 and 3 included, as per the Greenhouse Gas Protocol) carbon footprint is the purchase of raw materials and equipment (c.74% of our carbon footprint). Emissions due to the use and end-of-life of our products and solutions are not yet included in our reporting. In 2017 we have been developing a methodology to quantify CO 2 avoided and induced by our offers at our customers, and quarterly reporting of such data is lined-up for 2018 onwards. Logistics, including freight paid by Schneider Electric, represents 10.6% of our carbon footprint. Emissions in Group buildings represent 8.2%, employees’ travel and waste respectively 4.7% and 0.6%. Emissions from SF 6 leaks in our facilities are continuously decreasing and represent 0.2% of our carbon footprint. Overall, scope 3 emissions represent around 90% of our carbon footprint. The diagram below represents Schneider Electric’s 2017 carbon footprint on scopes 1, 2 and 3 from the upstream activity of all its suppliers to the downstream logistics activity to distribute its products to its customers. CO 2

2.3%

Other, including waste

0.2% Energy 8.2%

4.7%

10.6% Business travel & communiting

leaks

SF

6

Freight

74%

Purchases

Schneider Electric has reached the A level in CDP Climate (former Carbon Disclosure Project) in 2017, for the 7 th year. Group policy CO 2 reduction has been a focus for Schneider Electric for many years. Periodic measurement of our end-to-end CO 2 footprint has been done, transformation programs to progressively reduce CO 2 externalities from our operations are underway, and new offers with better (positive) CO 2 impacts have been designed and launched. In this COP23 year (2017), we can mention the following initiatives and achievements: E we reaffirmed our 10 CO 2 commitments taken in 2015 ahead of COP21; the overarching goal we pursue is carbon neutrality of Schneider Electric’s extended supply chain by 2030, accounting for end-to-end CO 2 emissions and avoidances throughout the value chain; E in 2017, we firmed-up a membership of the Climate Group RE100 initiative, reflecting our commitment to become 100% renewable electricity-powered by 2030, with an intermediate target of 80% by 2020; E in 2017, we also multiplied initiatives, from One Planet Summit joint leadership on the business track, steering close to 100 companies committed to aggressive climate strategies. We joined the Climate Leadership Council in the US, alongside other leading companies. E our (scopes 1 and 2) CO 2 reduction targets are in line with the recommendations of IPCC scientists to limit global warming to 2°C, and we joined the Science-Based Targets initiative (initiative supported by CDP, United Nations’ Global Compact, the World Resources Institute and WWF); E regular follow-up of our EUR300 million Climate Bond dedicated to financing low-CO 2 innovations providing more than 10% CO 2 gains compared to reference solutions;

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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