Schneider Electric creates shared value through three main initiatives: (1) Fostering energy access by providing solutions for communities lacking electricity, including products, business models, and vocational training, (2) Promoting energy efficiency through solutions, education, and reducing their own carbon footprint, and (3) Measuring their impact and progress through a Sustainability scorecard to improve performance and remain a leader in sustainability.

1. Creating Shared Value
September 2016
Meriem Kellou, CSR Manager, East Asia & Japan
Confidential Property of Schneider Electric

2. How do we create shared value at
Schneider Electric ?
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3. Schneider Electric, the global specialist in energy management and
automation…
Balanced Geographies – FY 2015 revenuesDiversified End Markets – FY 2014 revenues1
€26.6 billion
FY 2015 revenues
~160,000
people in 100+
countries
~5%
of revenues devoted
to R&D
1 Estimated at the end of 2014
Utilities &
Infrastructure
Industrial
& Machines
Data Centers
& Networks
Non-residential &
Residential Buildings
27% 26%14%33%
27%
North America
18%
Rest of World
26%
Western Europe
29%
Asia Pacific

4. 4
Confidential Property of Schneider Electric
The global energy challenge at Schneider Electric
Perspective on creating shared value
1998 2002 2008 2014
vsEnergy
demand
By 2050
Electricity by 2030
CO2
emissions to
avoid dramatic
climate changes by
2050
The facts The need
Creation of the
Foundation
Creation of the Sustainable
Development direction
The Planet
& Society
Barometer
Creation of a
CSR scorecard
Access to
Energy
program
Launch of the access
to energy program
“The global energy challenge represents a real
area of growth and resilience”*
Energy
Efficiency
Smart
Grids
Smart
Cities
Access to Energy as a
value proposition*
CSR awareness Energy dilemma as a business opportunity
*Schneider Electric CEO’s letters

5. Fostering energy
access
Solutions for the energy gap
People
Fighting
fuel poverty
A measured commitment:
The Planet & Society Barometer
> Communicated quarterly
> Audited annually
Contributing to solve the energy equation With…
A recognized commitment
• Top 50 companies that are changing the World by Fortune
Magazine
• #4 in the Corporate Knights’ Carbon Clean 200
• #10 in the Newsweek Global Green Ranking 2016
Solutions for Efficiency
Active Energy efficiency,
Energy management &
Sustainability services
Smart cities
Smart grid
Business practices
Products and sites
Employees
Communities
Ethics & Responsibility
Innovation
People
Business
Providing an answer that has an impact:
Sustainability as a competitive advantage and in our values

6. A 10 year-culture of measurement to improve our performance
continuously
Planet & Society barometer
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7. An innovative tool to drive sustainability performance
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 Since 2005
 Key performance indicators
 Tracked quarterly and published
 Audited every year
 Linked to Executive VPs’ remuneration
Value for our stakeholders Value for our business
Access to real-time & reliable information on our
sustainability achievements
Clear understanding of our commitments
Proof that we walk the talk
Best in class in international rankings
Positive impact on our stock value
Anticipation & management of sustainability risks
and opportunities
Measurement of our profitability
Dialogue with stakeholders

8. The new Planet & Society barometer 2015-2017
Our detailed sustainability scorecard

9. Governance & Ethics
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 Board of Directors with an independent vice-
chairman Lead Director
 4 committees : Governance, Audit & Risk,
HR & Social responsibility, Strategy
 Principles of Reponsibility
 Compliance with international law & other
commitments
 Continuous dialogue with our stakeholders :
materiality matrix, revenue break-down,
advisor to the public sector
Value for our stakeholders Value for our business
Total transparency on leadership
Trusted partner
Safe investment
Sharing the same vision
Source of innovation
In line with our stakeholders’ expectations
Risk mitigation
Increase involvement and legal responsibility of
board members
On-going improvement

10. Our solutions for energy efficiency
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 Mastering our carbon footprint
 Energy consumption reduction
 Sharing Energy knowledge : free Energy
Education & Sustainability Education
Programs
 Our core business = energy management
 Up to 30% energy savings
 Facilitating efficiency in emerging economies
Value for our stakeholders Value for our business
Positive impact on climate change
Profitable solutions
Access to high-level training & career opportunities
Growing & profitable market
SE recognized as a leader in energy
Brand awareness
Trusted relationships with public authorities

11. Access to Energy
A basic human right
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12. How do you provide
energy access to people
who are deprived of it?
According to the International Energy
Agency, nearly 1.3 billion people still lack
access to electricity in 2012.
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1.3 Billion
people don’t have
access to energy in
the world
3 Billion
with an unsafe,
expensive and
fossil-based access
Up to 30%
of their revenue spent
on inefficient ,
dangerous, and
polluting energy

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Our Solutions
Provide safe, clean electricity to communities by actively involving local stakeholders, including residents, end customers, and beneficiaries
Offers & business models
for the design and deployment of adequate electrical
distribution offers.
Vocational training
Training, both technical and business, to address local skill
shortages.
Investments
Investment funds for innovative energy entrepreneurship
locally.

14. •More than 3,3 million
households have access to reliable, clean and affordable
energy
•15 investments in start-ups
•113 349 people trained in energy
related trades
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15. Offer and Business Models
Solutions for village electrification and domestic solutions for energy-related needs

16. Our challenge
Responds to the energy needs of
villages and involves local
populations to guarantee their
long-term sustainability
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17. Mobiya VillayaHomaya Training
Individual lighting
& phone charging
TrainingIndividual
electrification
Collective electrification
Our range
Access to light,
fans, TV,….
Access to light,
and phone
charging
• Electricity for schools, health center, and other
public buildings
•Battery charging
•Lights for public areas & roads
•Easier access to water
Didactical benches, courses
contents
We develop products and solutions that meet a wide range of both individual and community needs across the energy chain

18. Investment
Investing in energy access

19. SEEA has invested in 15 companies developing effective solutions in
Africa & Asia
Kayer Energie Rurale, a rural social enterprise
that builds solar irrigation systems in Senegal
Simpa Networks, which makes modern energy
simple, affordable, and accessible for everyone.
Nova Lumos, which designs
remote solar electricity
production systems large
enough to replace small
diesel generators
Fenix International, a social enterprise
that develops access to energy solutions in
partnership with mobile operators
One Degree Solar, which designs, produces, &
distributes solar products in off-grid communities
SunFunder, a financing company that
specializes in companies seeking to
increase energy access in emerging
countries

20. Training
Training for social and business development
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21. Our challenge
Provide underprivileged people
with the knowledge and skills
that have long-term impact.
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22. Build a career path in energy related-job
Our training offer
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Adapted to local needs
• Free and accessible
• Few months of basic training
• Or full-time or evening and
week-end courses
•Or multi-year training leading to
qualifications
Empowerment of people
• Enable entrepreneurship for people who
have been trained, connecting them with
the retail plans of the countries.
• Give trainees the ability, should they
wish, to sell and maintain energy access
offerings and to create their own small
business in time.
Transfer of competencies
Facilitate the training of trainers to
support the effective and quality roll-out
of training down the line

23. A support of Schneider Electric’s employees
• Missions of the volunteers of the Schneider
Electric Teachers association, which, if the need
arises, enables the sharing of expertise.
A collaborative effort on the field
• Involvement of Schneider Electric’s local
subsidiaries
• Partnership with local players and/or national or
international non-profit organizations (NGOs,
governments, etc.).
Funding investments
• in materials and pedagogic equipment for
practical work
Our added-value
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24.  Better life : improved health, safer
environment, economical
development, new skills
 Sustainable solutions
 Employees’ well-being
 Economical and social
development opportunities for
Governments
 Inclusion of local people, from
passive beneficiaries to active
participants
Value for our stakeholders
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Value for our business
 Addressing the BOP market
 Diversifying our customers and
business partners
 Engaged employees
 Brand image
 International recognition
 Good relationships with public
authorities
 Media coverage

25. Questions?
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