Schneider Electric is committed to sustainability and has integrated sustainability into its overall corporate strategy. It uses a Planet & Society barometer to measure and drive sustainability performance across five key areas: climate, circular economy, ethics, development, and health & equity. The barometer score accounts for compensation and incentives for thousands of employees. Schneider Electric has received numerous sustainability awards and rankings in recognition of its longstanding leadership and competitive performance in sustainability.

1. Confidential Property of Schneider Electric
Envisioning a sustainable future by solving the energy paradox
The Sustainable Development at Schneider Electric

2. A world of opportunities &
challenges
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3. Page 3Confidential Property of Schneider Electric |
A world full of changes…
URBANISATION
An additional
2.5 billion people
will live in cities by 2050
DIGITALIZATION
30 billion devices
Connected by 2020
INDUSTRIALIZATION
33% increase
of global energy consumption
2014-2040 in New Policy Scenario
…and challenges

4. Sustainability is a growth pillar for
Schneider Electric:
Our sustainability strategy is integrated in
the Group strategy to meet the energy
challenge.
Schneider Electric’s project for society is
to act to keep global warming below
the 2°C limit and to reduce the energy
gap, with ethics and responsibility.
In October 2017, we won the 1st European
Integrated thinking Award.
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We are strategically committed
into sustainability

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Culture and
values
Customer
& public
Regulation
& ratings
vs
Energy demand CO2 emissions
The facts The need
Million people live in
fuel poverty in Europe
Billion people have no
access to electricity
Million people live in
fuel poverty in Europe
x1.5 2
1.1 63
3 challenges leading our sustainable strategy
The energy equation
The energy paradox
The rise of awareness
Energy efficiency and resources efficiency are a must for the planet ...
and the bottom-line
Find business solutions for long-term development collaborating with public
and private actors
Build a culture and a comprehensive disclosure on environmental, social, and
governance data not only to comply but make it a competitive advantage
and a transformation driver

6. Performance measurement
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The Planet & Society barometer, an innovating tool to measure and drive
sustainability performance
So an index…
Schneider Electric launched its sustainability approach in 2002. We were then faced with two questions:
• How to mobilize the corporate community around sustainability objectives?
• How to report to our stakeholders regularly and in summary form on the initiatives taken in these
fields?
The response we found was to create the Planet & Society barometer in 2005: a composite indicator updated
every quarter, rendered as a score out of 10, and as a performance display panel. We upgrade it by adapting the
indicators to new challenges every 3 years.
Providing an overall
measure of Group
improvement in
sustainability
Comprising our key
sustainability
objectives
Annually audited by
an external party
Linked to
compensation

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• Short-Term Incentive Plans
The Planet & Society barometer score accounts for ~ 5% in short-term incentives for Global functions and
Leaders of the Group - 7,000 people.
+ c.8,500 NDVC with One day training KPI within GSC + other personnel have sustainability criteria in their individual stip if
relevant and decided, e.g. all plant & logistic centers’ managers have safety-related incentives, personnel working on the
barometer’s progress plans usually have the related KPIs in their incentives.
• Long-Term Incentive Plans
The Planet & Society barometer score accounts for 20% of shares subject to performance conditions.
The plans include over 3,000 beneficiaries every year.
• Profit-Sharing Incentive Plan
The Planet & Society barometer score accounts for 10% in the profit-sharing plan of the 2 largest French
entities of the Group (SEI and SEF) – over 10,000 people.
Overview of sustainability criteria in compensation

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Climate
Increase in temperatures is projected to likely
exceed 1.5 degree by 2100, up to 4.8 degrees
(IPCC fifth report).
COP21 (Dec. 2015) must lead to a legally
binding climate agreement, applicable to all
countries from 2020, to maintain global
warming below 2 degrees.
Development
“End poverty in all its forms everywhere” and
“Ensure access to affordable, reliable,
sustainable, and modern energy for all” are
two of the UN Sustainable Development
Goals to succeed the UN Millennium
Development Goals after 2015.
Circular economy
The decline in ecosystems is making natural
resources scarcer, more expensive and less
diverse (KPMG “Expect the unexpected”).
A circular economy seeks to restore capital,
applies to entire systems -not only products-,
and e.g. sells “performances” instead of
“goods” with a higher profit margin (Ellen
MacArthur Foundation).
Ethics
The OECD has published the Anti-Bribery
Convention, the first multilaterally agreed
code of business conduct that governments
have committed to promoting.
The UN “Ruggie Framework” states the
companies’ responsibility to respect human
rights and avoid causing or contributing to
adverse human rights impacts.
Health & Equity
Health determines an individual's ability to
produce and consume.
In developing countries, human health will be
increasingly affected by climate change (heat
waves, floods) & rapid urbanization (e.g. in Asia).
Other countries will face increased stress and
lifestyle-based disorders such as cardiovascular
diseases, obesity and diabetes.
Megatrends most impacting for Schneider Electric 2015-2020

10. AND MULTIPLE RECOGNITIONSWith CLEAR PRIORITIES
Climate
Ethics
Circular
economy
Health &
Equity
Development
DJSI World and Europe, Industry Leader 2013-2016
CDP Climate Leader, part of the “Climate A list” for the 7th year
Ethisphere, world's most ethical companies, listed for the 7th year
3rd company globally for clean-energy in Carbon Clean 200 List
27th most sustainable company in the world in Global 100 list
12th greenest company in Newsweek Green Ranking
1st company in CAC40 in fighting climate change (Carbon Clear by EcoAct)
Integrated Thinking Award: best European company in integrating strategic,
financial and sustainability dimensions
#15 on Glassdoor’s Best Places to Work in France, Aon Best Employers award
in India, Australia’s top ten most attractive companies by Randstad, Universum
world’s most attractive employers, LinkedIn’s Global Top Companies List
Rating agencies & related indexes: Vigeo Eiris Industry Leader, Oekom
Industry Leader, MSCI Industry Leader, Sustainalytics top 3, EcoVadis Gold rating
Other SRI indexes: FTSE4Good, FTSE Environmental Opportunities, Ethibel
Pioneer and Excellence, ECPI Equity: Carbon, Ethical, Renewable Energy, ESG
Best in Class, Megatrend, and Climate Change
Ipreo report SRI Leaders Index Spring 2017: Schneider Electric listed as 13th
global company with the most SRI funds in its capital (119 funds)
• Carbon neutrality by 2030
• CO2 impact quantification of large customer
projects
• Investment in R&D for sustainability
(EUR10 billion over 10 years)
• Human Rights policy
• UN Guiding Principles on Business &
Human Rights (Ruggie framework)
• Supplier Code of Conduct
• Zero Waste to Landfill
• Maintenance, retrofit and end-of-life
services
• Schneider ecoDesign Way to all new offers
• Employee Well-being program, and Global
Family Leave policy
• Gender pay equity
• One day training for every employee per
year
• Low carbon solutions for access to
electricity (for 50 million people over 10
years)
• Fighting fuel poverty in mature countries
• Employee volunteering for development
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Sustainability is at the core of everything we do (our priorities)
Our commitment is recognized (sustainability awards 2017)

11. Rankings 2002 2009 2010 2011 2012 2013 2014 2015 2016 2017
DJSI World & Europe
(World since 1999,
Europe since 2001)
CDP
(“Climate A list” since
2010, Disclosure list
2008-2015)
Ethisphere
(since 2007)
Global 100
(since 2005)
13th 10th 9th 12th 27th
Green ranking
(US since 2009, WW
since 2010)
10th 25th 10th 12th
Carbon clean 200 list
(since 2016)
4th 3rd
Vigeo/Euronext
Vigeo
(ASPI 2002-2012,
Euronext Vigeo since
2012)
(…)
Industry
leader
91/100 97/100 99/10092/100
World
Europe
Industry
leader
Industry
leader
Industry
leader
Climate A
100/100
Climate A Climate A Climate A Climate A
Climate A
World, Europe,
France
Europe Europe, France Europe World, Europe,
France
A longstanding and competitive journey
World, Europe,
France
Climate A

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Indexes & rankings Schneider Electric’s position 2017 Competitors’ in
DJSI
In the DJSI World and Europe
Industry Leader through 2013-2016
In the DJSI World: Siemens (but out of the DJSI Europe)
Industry Leader: Philips Lighting; Industry Group Leader: CNH Industrial
CDP Climate Change In the “Climate A list” through 2011-2017 -
Ethisphere Listed for the 7th consecutive year Rockwell Automation
Carbon Clean 200 list 3rd company globally for clean-energy Siemens#1; ABB#4; Emerson#12
Global 100 27th most sustainable company in the world Siemens#1; Legrand#59; GE#99
Green ranking 12th greenest company in the world
Siemens #4; ABB #21; GE #78; Eaton #111; Honeywell #269; Johnson
Controls #374
Vigeo Eiris
Industry leader
In the World, Europe, France indexes (as of Dec. 2016)
In the World index: Johnson Controls
In the World, Europe, France Indexes: Legrand
Oekom Industry leader (and prime status) Siemens: prime status
MSCI
Industry Leader
In the MSCI Global Sustainability, SRI, and Environment
NP
MSCI Global Environment = companies with > 50% of revenues from
environmentally beneficial offers; it includes most of our competitors.
Sustainalytics Top 3 NP
Ecovadis Gold rating Siemens: silver rating
Ipreo SRI Leaders 13th global company with the most SRI funds in its capital Siemens#26; Johnson Control#31; ABB#52; Legrand#100
What about the competition?

13. 1. 80% renewable electricity
2. 10% CO2 efficiency in transportation
3. 100Mt avoided CO2 on our Customers' end through our offers
4. 25% increase in turnover Energy & Sustainability Services
5. 75% of sales under our new Green Premium program
6. 190 sites labeled Towards zero waste to landfill
7. 100 % cardboard and pallets for transport packing from recycled or certified sources
8. 100,000 tons of avoided primary resources consumption through Ecofit, Recycling and Take-Back programs
9. 2 pts /100 increase in average score of ISO 26000 assessment for our strategic suppliers
10. 300 suppliers under Human Rights & Environment vigilance received specific on-site assessment
11. 100% of sales, procurement and finance employees trained on anti-corruption
12. x4 turnover of our Access to Energy program
13. 350,000 underprivileged people trained in energy management
14. 12,000 volunteering days thanks to our VolunteerIn global platform
15. 70% scored in our Employee Engagement Index
16. 1 medical incident per million hours worked
17. 90% of employees have access to a comprehensive Well-being at work program
18. 100% of employees are working in countries that have fully deployed our Family Leave policy
19. 100% of workers received 12 hours of learning in the year with 30% digital learning
20. 90% of white collars have an individual development plan
21. 95% working in a country with commitment and process in place to achieve gender pay equity
Climate
Circular
economy
Ethics
Development
Health &
equity
Our barometer for the years 2018-2020 along our 5 megatrends