Tracking Sustainability Indicators on a Quarterly Basis Is Possible With the Right Intent

RUEIL-MALMAISON, France, July 27, 2018  – For the fourth year, Schneider Electric, the leader in digital transformation of energy management and automation, announces its financial and non-financial results together for the second quarter of 2018. Each quarter, Schneider Electric publishes 21 indicators from the Schneider Sustainability Impact 2018-2020, which replaces the Planet & Society Barometer, measuring progress towards its ambitious sustainability commitments. With a total score of 4.55 out of 10 at end-July 2018, the Group has exceeded its Schneider Sustainability Impact target of 4 out of 10 for the quarter. The end-2018 target is 5 out of 10.

Gilles Vermot Desroches, Chief Sustainability Officer at Schneider Electric, commented: "We are very proud to see Schneider Electric Chairman & CEO appointed to the Board of the United Nations Global Compact. As a Group, we strive to promote human rights and international labour standards, to protect the environment and to fight against corruption, while constantly working for the adoption of the Sustainable Development Goals (SDGs) by all members. This appointment also reflects Schneider Electric's lasting commitment to Sustainable Development – a commitment that takes concrete shape through our Schneider Sustainability Impact 2018-2020 indicators. At the end of July 2018, the Group had exceeded its target score of 4 out of 10 with an overall score of 4.55, another excellent performance that confirms that the Schneider Sustainability Impact is firmly on track."

Quarter highlights

Climate:

- The "80% renewable electricity" indicator improved in the second quarter. Schneider Electric's energy needs are constantly optimized, capitalizing in full on the Group's expertise and EcoStruxure solutions. Since 2012, the Group's different sites have already achieved energy savings of 20%. At the end of 2017, Schneider Electric joined the RE100 initiative and aims to source 80% of its global electricity consumption from renewable sources by 2020. In Q2 2018, the indicator stood at 6%. Three new photovoltaic systems have already been installed at facilities in India, Thailand and China, and long-term renewable energy purchasing agreements are currently under consideration in several countries.

Circular economy:

- The "200 sites labelled towards zero waste to landfill" indicator rose to 163 sites, resulting in the recycling and reuse of the equivalent of more than four Eiffel Towers worth of metal in the first half of 2018. More than 3,400 garbage trucks worth of non-metal waste were also diverted from the landfill. The extension of the Towards Zero Waste to Landfill (TZWL) program from the previous Planet & Society Barometer is not only intended to improve performance at the different sites, but also to drive innovation within mature TZWL sites. Sites are striving beyond recycling and driving towards Circular Economy solutions within the supply chain using bold ideas such as returnable/reusable packaging and digitized solutions to eliminate waste generation altogether and bring better business and environmental value.

Health & Equity:

- The "70% score in our Employee Engagement Index" indicator increased to 67%, up two points compared to end of 2017. All drivers are progressing well, and are at the good level compared to market average. This is the sixth year in a row that this indicator has improved towards achieving 70% in 2020.

Ethics:

- The "300 suppliers under Human Rights & Environment vigilance received specific on-site assessments" indicator shows that thirty-seven suppliers were audited in Q2 2018. The aim of this indicator is to audit 300 Group suppliers over three years on the ways in which they manage human rights and the environment. The processes, team and governance were set in place in the first quarter of 2018, and the first three audits were carried out. Thirty-seven audits were completed by the end of the second quarter. These specific audits focus on the ways in which the Group can support suppliers in identifying areas for improvement and action plans to bring themselves in line with industry best practices (Responsible Business Alliance code of conduct).

Development:

- The result for the "12,000 volunteering days thanks to our VolunteerIn global platform" indicator is more than satisfactory for the second quarter. To date, 7,258 volunteering days have been completed, including 1,665 in the first quarter alone. With the launch of the new VolunteerIn digital platform, the Schneider Electric Foundation has taken on a whole new scale to drive collaborators’ engagement.

Highlights:

- Global Compact: Schneider Electric Chairman & CEO is appointed to the Board of the United Nations Global Compact.

- Schneider Electric is selected by the ISS-Oekom Corporate Responsibility Review 2018 as the leader in its sector alongside six other French industry leaders: Valeo, Peugeot, Amundi, CNP Assurances, and Sanofi. Founded in 1993, ISS-Oekom is a ratings agency that analyzes the ESG performance of companies and countries.

- Schneider Electric is recognized for its social responsibility approach in various Vigeo Eiris Euronext indices: World, Europe, Eurozone and France. Schneider Electric is also the only representative of its sector to be listed in the France index.

- Schneider Electric gains five places in the Gartner Supply Chain Top 25 ratings and is awarded 17th place in 2018 for the exemplary management of its value chain.