Schneider Sustainability Impact 2018-2020 Achieves 2019 7/10 Target a Quarter in Advance with a 7.08/10 Score

Rueil-Malmaison, France, October 24, 2019 /3BL Media/ – For the fifth year, Schneider Electric, the leader in digital transformation of energy management and automation, announces its financial and non-financial results together for the third quarter of 2019. Each quarter, Schneider Electric publishes 21 indicators from the Schneider Sustainability Impact, measuring progress towards its ambitious sustainability commitments for 2018 to 2020, in line with its COP 21 commitments and United Nations Sustainable Development Goals. With a total score of 7.08 out of 10 in Q3 2019, the Group reached the Schneider Sustainability Impact target of 7
out of 10 for the end of 2019, a quarter in advance.

The non-financial results by indicator can be found here.

Gilles Vermot Desroches, Sustainability Senior VP at Schneider Electric, commented: "This quarter, Schneider Electric has significantly stepped up its commitments towards the United nations Sustainable Development Goals. First by joining the Business for Inclusive Growth coalition with 33 other companies to lead the way in tackling inequality and promoting diversity in the workplace and supply chain. Then by presenting robust climate commitments at Climate Week in New York, along with 86 other companies of the Business for 1.5°C ambition initiative, to achieve carbon neutrality in its ecosystem in the short term, and decarbonization of its operations and supply chain in the mid and long term. Schneider Electric will leverage its EcostruxureTM
solutions to deliver its own targets and help more customers save CO2 emissions. Since the launch of Schneider Sustainability Impact, it already helped customers save 88 million tons CO2. With new Access to Energy offers, the Group will also keep helping millions of people in emerging countries meet basic energy needs.”

Quarter highlights

Climate:

• The "increase in turnover for our Energy & Sustainability Services" indicator shows very strong performance at +20.2% in Q3 2019. The high growth is boosted by the energy efficiency business with the public sector in the US. The energy sourcing business is contributing to the growth as well. Energy & Sustainability Services targets a 25% increase in sales in 2020 compared to the 2017 baseline

Circular economy:

• For Q3 2019, 96% cardboard and pallets for transport packing come from recycled or certified sources. This excellent performance results from a good teamwork focusing on clear communication with regional suppliers and real-time adaptation of part numbers in internal Schneider Electric systems. Some regions are already optimized while the remaining ones show increasing improvement. Internal regional actions have been put in place to focus on this KPI, like increasing the use to recycled wood and studies launched to increase lifecycle of pallets hence reducing the need to purchase additional ones

Health & Equity:

• The 3 rd quarter MIR is at 0.70, 24% better than the target for 2019 and 26% better than the result for 2018. This outstanding performance is due to the collective efforts of all Schneider Electric employees and the improvement activities implemented by safety teams throughout the organization. Additionally, Global Safety Day, Schneider Electric’s annual campaign to promote the importance of safety at work and at home, was celebrated on October 16th. The topic for this year was "S.A.F.E. First applied to Emergency Preparedness". Global Safety Day engages employees to celebrate the commitment to a culture of safety. This year, the campaign generated awareness on the different types of emergencies and taught collaborators how to be prepared for any potential catastrophic event

Ethics:

• As of Q3 2019, 244 audits have been conducted for suppliers under Human Rights & Environment vigilance. The 3-year program ambition has been elevated from 300 to 350 specific onsite audits, and Schneider Electric is well on track to reach overall target. In alignment with the Group strategy and vision, and to comply with the 2017-French law concerning the Corporate Duty of Vigilance, Schneider Electric committed to implementing a vigilance plan. This includes identifying and managing suppliers that are most exposed to risks in terms of labor practices, health & safety, and environment. Yearly, a supplier risk mapping is performed through a recognized third-party expert mapping tool. The Group’s risk management
  process includes control actions after the audits, focusing on improvement and closure of NonConformances

Development:

• As of Q3 2019, 236,491 underprivileged people have been trained in energy management in more than 45 countries and aims to reach 1 million by 2025. Based on three priorities, entrepreneurship, integration of women into the energy professions, and training of trainers, the program allows participants to improve future access to a skilled job or business creation. The major challenge is to pursue a longterm partnership policy with local and global players able to replicate the projects. NGO ADEI (ActionDevelopment-Education-International), after replication in several centers in Tanzania and Burundi, confirms its expertise to set up short term courses in three new centers in Rwanda

Highlights:

• Schneider Electric announced at the Climate Week NYC three new climate action commitments: demonstrating carbon neutrality in its extended ecosystem by 2025, achieving net-zero operational emissions by 2030 as part of validated SBT target and engage with suppliers towards a net-zero supply chain by 2050
• Schneider Electric is one of the 99 signatories of the French Business Climate Pledge 2019
• Schneider Electric has committed to tackling inequality by joining G7 “Business for Inclusive Growth” initiative, a coalition of 34 leading international companies powered by the OECD
• Schneider Electric has launched new Access to Energy products: Mobiya Lite, Mobyia Front and Homaya Pay As You Go to complement its portfolio of offers, to meet basic energy needs of rural communities in emerging countries
• Schneider Electric is part of the DJSI World Index for the 7th year in a row
• Schneider Electric is in Equileap’s Ranking 2019 top 100, designed to promote transparency on gender equality in the workplace. The Group is ranked 1st in the industrial sector and the 5th among French companies
• Schneider Electric is ranked 9 in Fortune’s Change the World list 2019. It has been named for its energymanagement and automation technologies, and circular business innovations to invent products that last longer, can be repaired and remanufactured at the end of life
• Schneider Electric’s Global Mobility program has been recognized with a Bronze award in Brandon Hall Group’s Human Capital Management Excellence awards, category Best Unique or Innovative Workforce Management Program
• Schneider Electric has been named one of the 2019 Best Workplaces in Manufacturing & Production by Great Place to Work and Fortune

The non-financial results for the second quarter of 2019 are available on our site: www.schneider-electric.com/sri

About Schneider Electric

At Schneider, we believe access to energy and digital is a basic human right. We empower all to make the most of their energy and resources, ensuring Life Is On everywhere, for everyone, at every moment.

We provide energy and automation digital solutions for efficiency and sustainability. We combine world-leading energy technologies, real-time automation, software and services into integrated solutions for Homes, Buildings, Data Centers, Infrastructure and Industries.

We are committed to unleash the infinite possibilities of an open, global, innovative community that is passionate about our Meaningful Purpose, Inclusive and Empowered values