SCH2017_DRF_EN_Livre.indb

2 Sustainable development

Schneider Electric’s commitment to environmental performance

E further development of CO 2

quantification tools to allow easy

Schneider Energy Action is a program for the continual reduction in energy consumption of the Group’s main sites. The objectives are: E reducing the Group’s CO 2 footprint, as part of our ambitions for continued reductions in greenhouse gas emissions and in line with our COP21 and Science-Based commitments; E reducing all forms of energy consumption (electricity, heat, gas, oil), and thereby lowering costs; E deploying Schneider Electric’s energy efficiency solutions at its own sites; E demonstrating Schneider Electric’s expertise to its customers; E raising employees’ awareness about energy efficiency solutions and how they themselves can contribute to CO 2 savings. The Schneider Energy Action program uses Schneider Electric energy service activities internally to report and analyze energy consumption, to identify energy savings opportunities and to deploy actions. Notably, energy reporting is delivered with Resource Advisor software suite, part of Schneider Electric EcoStruxure ™ platform. Resource Advisor provides a data visualization and analysis application that aggregates volumes of raw energy data into actionable information. As a cloud-based software as a service (SaaS) model, it provides reduced solution cost, increased data storage capacity, and a flexible and mobile energy solution enhanced by Schneider Electric expert services. In addition, many initiatives and awareness campaigns are implemented internally to empower our employees in our CO 2 journey. The objective is to improve understanding of the short and long-term benefits of energy efficiency and renewable energy actions. There is also a dedicated Intranet site that provides information on progress and the results obtained as part of Schneider Energy Action. Around 8% of total Group CO 2 emissions come from energy consumption at its sites (according to our latest carbon footprint on scopes 1, 2, 3 from upstream suppliers to downstream distribution). Since 2005, Schneider Electric has fixed annual objectives for reduction and publishes (internally) the energy consumption of each of its production and logistics sites each year, as part of the Schneider Energy Action program. The Group set 10% reduction goals in each of the past 2 company programs (2009-2011, 2012-2014), and exceeded the targets by achieving 10% and 13%, respectively, totaling 23% reduction over the past 6 years. The 2015-2017 company program includes the following objectives: E reduction of energy consumption by 10% over 3 years compared to 2014; E deployment of certification for energy management systems in accordance with standard ISO 50001, aspiring to certify 150 sites ( i.e. covering a significant part of the Group’s energy consumption) by 2017;

impacts and the benefits of our solutions for

calculation of CO 2 our customers; E 168,400 tons of CO 2

avoided since 2015 through maintenance,

retrofit and end-of-life services; E reduction of 10.3% in our energy footprint compared to 2014 and issuance of an Energy Policy to further drive the reduction of our energy intensity and CO 2 emissions; E reduction of 10.3% in our logistics CO 2 footprint in the 2015-2017 period on average, compared to 2014 baseline, ahead of our objective of 10% (1) ; E commissioning of renewable (solar in most cases) energy sources on some of our key manufacturing and commercial sites, enabled by Schneider Electric solutions: Thailand, India, Singapore, France, US. Overall, we first actively work towards the constant reduction of our own CO 2 impacts across our supply chains, from raw materials extraction and manufacturing, to product end-of-life management. Second, we constantly work towards quantifying in a more precise manner our various forms of CO 2 avoidance contributions to our customers, and thus to the world. We clearly aspire to carbon neutrality and believe we are a part of the solution, and we are ready to communicate in 2018 on how we positively impact climate through our innovations and solutions for our customers. emissions All Schneider Electric manufacturing plants and R&D laboratories handling SF 6 gas in their processes are managing the reduction of SF 6 emissions during the different phases of their activities. Notably, the seal testing processes of the products are mainly done with helium instead of SF 6 . This method ensures that no emissions are coming from non-compliant enclosures during the production time. The SF 6 leakage rate is still decreasing: from 4% in 2008, the global rate was 0.29% by end–2017. This SF 6 leakage reduction enabled CO 2 emissions to be reduced by 3,700 tons of CO 2 equivalent in 2017 vs. 2016. A worldwide community of SF 6 experts is sharing best practices for processes, including procedures, equipment, training. Thanks to this global activity and to the commissioning of efficient equipment, we are heading towards the 0.2% target set for 2020. Energy Action program In general, Schneider Electric sites are low consumers of energy, compared with other industries, because of the mainly “discrete” and “assembly” nature of our industrial processes. Our industrial activities have a high proportion of manual or automatic assembly, and few of our processes are highly energy intensive. However, Schneider Electric wishes to set an example in the reduction of energy consumption, and uses its own technologies and software to drive energy efficiency and CO 2 reduction. Reduction of SF 6

(1) 2017 being the last year of the 2015-2017 plan, the methodology for calculating this indicator in 2017 has been completed to reflect the average reduction in tons of CO 2 over the period.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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