1、Universal Registration DocumentFinancial and sustainable development report Bridging progress and sustainability for allContents The Universal Registration Document was filed on March 23,2021 with the Autorit des Marchs Financiers(AMF),as the competent authority under Commission regulation 1129/2017
2、/EU,without prior approval in compliance with Article 9 of this regulation.The Universal Registration Document may be used for purposes of a public offer of securities or admission of securities to trading on a regulated market if it is approved by the AMF as well as any amendments,and an offering c
3、ircular relating to securities and the summary approved in compliance with Commission regulation 1129/2017/EU.This Universal Registration Document is a free translation into English of the official version of the Universal Registration Document which has been prepared in French and in ESEF format(Eu
4、ropean Single Electronic Format)and which includes the Annual Financial Report for the fiscal year ended December 31,2020 and is available on the AMFs website(www.amf-france.org)and on the Companys website().Strategic Report0.Introduction Our Purpose 1 At a glance 2 A statement from Chairman and CEO
5、,Jean-Pascal Tricoire 4 An interview with Chief Financial Officer,Hilary Maxson 7 2020 Key Financial Indicators 8 Outlook 10 Sustainability Impact 12 Business Model 14 Strategy 16 Our Impact 18 Our Leadership Team 201.Groups strategy:opportunities and risks1.Trends and opportunities 242.Customer Foc
6、us 263.Company Purpose 284.Energy Management 305.Industrial Automation 326.Digital Transformation 347.People Vision 368.How we manage risks 389.Risk factors 492.Sustainable development1.Sustainability at the heart of Schneider Electrics strategy 722.Green and responsible growth driving economic perf
7、ormance 963.Schneider Electrics commitments towards environmental excellence 1184.Committed to and on behalf of employees 1445.Schneider Electric,an eco-citizen company 1706.Methodology and audit of indicators 1857 Indicators 200Corporate Governance Report3.Corporate governance report RFA1.Governanc
8、e Report 2152.Compensation Report 264Financial Statements4.Consolidated financial statements at December 31,2020 RFA1.Consolidated statement of income 3022.Consolidated statement of cash flows 3043.Consolidated balance sheet 3054.Consolidated statement of changes in equity 3075.Notes to the consolid
9、ated financial statements 3086.Statutory Auditors report on the consolidated financial statements 3545.Parent company financial statements RFA1.Balance sheet 3622.Statement of income 3643.Notes to the financial statements 3654.Statutory auditors report on the financial statements 3745.List of securi
10、ties held at December 31,2020 3776.Subsidiaries and affiliates 3787.The companys financial results over the last 5 years 380Shareholder Information6.Information on the Company and its capital1.General information on the Company 3842.Shareholders rights and obligations 3853.Capital 3884.Ownership str
11、ucture 3945.Employee incentive plans Employee shareholding 3956.Stock market data 3967.Investor relations 3977.Annual Shareholders Meeting RFA1.Explanatory comments&draft resolutions submitted to the Annual Shareholders Meeting 4002.Statutory Auditors special reports 4228.Persons responsible for the
12、 universal registration document and audit of the financial statements Persons responsible for the Universal Registration Document 430 Persons responsible for the audit of the financial statements 4311Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder I
13、nformationRead more about our purpose on page 28 Our purpose is to empower all to make the most of our energy and resources bridging progress and sustainability for all.At Schneider,we call this2Schneider Electric Universal Registration Document Introduction0At a glanceOur performanceA signature yea
14、r:2020 has been a strong and defining year financially,demonstrating our agility and resilience.25.2BRevenues-4.7%organic 15.6%Adjusted EBITA margin+20 bps organic2.6BAdjusted Net Income*-4.4%134 million tonsCO2 Saved for Customers3.7BFree Cash Flow 159%conversion rate 2.60Proposed Dividend per Shar
15、e +2%118.3Share Price(at December 31,2020)c.72%Green Revenues*In 2019,the Group changed its definition of Adjusted Net Income,which includes the Adjusted EBITA,amortization expenses of purchase accounting intangible assets(excluding impairment),net financial income and loss,income tax expense on the
16、 above at the effective tax rate(excluding non-recurring items),discontinued operations net income and share of profit and loss of associates,deducting impact of non-controlling interests.This definition of Adjusted Net Income was created to be more transparently derived from the financial statement
17、s.*Green Revenues definition:offers that bring energy,climate,or resource efficiency to customers,while not generating any significant harmful impact on the environment and are split into four categories described on page 99.Software and Digital servicesc.7%Edge Controlc.10%Connectable productsc.25%
18、c.50%Group revenue leveragingField Servicesc.10%Digital and service business for increased efficiency across life cycle3Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationNorth AmericaWestern EuropeRest of the WorldAsia Pacific24%27%17%32%29%
19、26%15%30%33%67%Percentage of total employees by geography in 2020 Percentage of revenue by geography in 2020Our businessc.5%Revenue spent on innovation128,000+Employees in over 100 countriesOverall workforce gender balanceMaleFemale4Schneider Electric Universal Registration Document Introduction0A s
20、tatement from Chairman and CEO,Jean-Pascal Tricoire Our mission is to be your digital partner for efficiency and sustainability2020 was a signature year.A year of incredible disruption,a year of strong performance,and a year of acceleration of our strategy.While the COVID-19 pandemic continues to di
21、srupt our lives,we saw a reinforcement of the trends that support our business.Although we have learned to live with the virus,in 2020,we were forced to change.We now live and work differently.We adapted to new ways of working with much less travel and many more digital meetings.The disruption of 20
22、20 went far beyond the pandemic,with social upheaval and geopolitical tension.We saw the conclusion of Brexit,an acceleration in technologies and innovation,such as electric vehicles and 5G,as well as increasing commitments to halt climate change.For Schneider Electric,it has been a signature year.W
23、eve changed more than we ever thought we could,while staying true to our mission.We delivered on our purpose and missionOur first priority in 2020 was the health and safety of our people and the communities in which we operate.We supported and helped our ecosystem,our customers and partners,and all
24、the people close to us by putting in place dedicated safety,security,and work policies.We also launched the Tomorrow Rising Fund,with more than 70 local projects supporting the response,resilience,and recovery of communities in more than 60 countries.Our purpose is to empower all to make the most of
25、 our energy and resources,bridging progress and sustainability for all.At Schneider we call this,Life Is On,and never has this been more true than in 2020,as we ensured continuity for our communities supporting critical infrastructure,such as electricity and water networks,hospitals,data centers and
26、 industrial plants,pharmaceuticals,and food cold chains.We were recognized as providing mission critical services to many sectors,in more than 90 countries,and as such,were asked by authorities to keep our business running.All our teams remained committed and continued to serve customers.In a matter
27、 of days,we transitioned our customer care centers from in-office to work-from-home set ups.We were able to support our customers in reducing risk in their operations and to operate remotely with our automation and digital solutions.Our manufacturing plants remained up and running,allowing us to mee
28、t the critical needs of this crisis year.2020 confirmed that,at Schneider,great people make a great company.In 2020,we achieved resilient business performance and,at the same time,built the future.In 2020,we achieved four things:1.A resilient business performance;2.We shaped our future,realizing str
29、ategic acquisitions;3.We increased our sustainability impact;and 4.We transformed how we work,to adapt to circumstances in record time.Resilient business performanceThis year of crisis has proven that the execution of our strategy,and the repositioning of Schneider Electric over the past 15 years,ha
30、s made us more resilient.Compared to the global financial crisis of 2009,when our sales decreased by 15.7%,and our profitability by-310 bps versus 2008;in 2020,we were much more resilient.We have been able to achieve strong business performance,with EUR 25.2 billion in Revenues(-4.7%with the previou
31、s year),a Gross Margin at a 12-year high of 40.4%,an Adjusted EBITA margin expanding+20 bps organically,and a record-high Free Cash Flow of EUR 3.7 billion,which is a signature of our quality of execution.Both Energy Management and Industrial Automation businesses delivered very solid profitability
32、and all geographies contributed to the rebound in the second half of the year.Jean-Pascal TricoireChairman and CEO5Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationThe transformation towards more digitization and services,our sustainability
33、 leadership,and our multi-hub organization,positively impacted the Groups 2020 performance.We witnessed a step-change in our customers adoption of our solutions for digitization and sustainability.The Groups assets under management grew by 46%over this past year,and software and services,which now r
34、epresent 17%of our revenue,grew 6 pts higher than the rest of the Groups portfolio.Our business related to digital solutions and EcoStruxure,including software,controls,connected products,and services,and representing more than 50%of our total revenue,has become an indisputable catalyst for growth a
35、nd is due to increase further in the future.The accelerated execution of our long-standing strategy of more products,more services,more software,and better systems supported strong resilience.We were able to support customers across all sectors in managing their operations remotely,providing more ef
36、ficiency and resiliency.We continued to engineer and deliver projects.In the second half of the year,we were back to growth and sold more services,digital solutions,and products than in 2019,thanks to our unrivalled network of partners.We fully leveraged our global set up and our multi-local model t
37、o benefit from our global scale and adapt with speed and reactivity to the very different local COVID-19 situations.We truly believe that trusting and empowering local teams is the most efficient way to deal with the unexpected and to swiftly define local and innovative solutions.Our supply chain re
38、covered quickly and its performance,in terms of customer-centricity,sustainability and digitization,was recognized and in 2020 ranked#4 globally and#1 in Europe by Gartner.We shaped our future and realized strategic acquisitions This strong performance made it possible to continue investing for the
39、future and to provide continued dividend growth for shareholders for the 11th consecutive year.We acted nimbly to accelerate our transformation journey.We finalized the acquisition of the Electrical&Automation business of Larsen&Toubro,building the foundation for stronger development in India and of
40、 a new global hub to serve global markets from India.We also constructed defining deals in software,with the completed acquisitions of RIB Software,to accelerate the digital transformation of the construction sector,and ProLeiT,to reinforce our automation capabilities in the food and beverage sector
41、.We realized the strategic investment in Planon,to extend our cloud-based capabilities for construction orchestration and facility management optimization,as well as the proposed acquisition of ETAP to form a unique suite electrical design tools,and we supported AVEVAs planned acquisition of OSIsoft
42、.As such,we are uniquely positioned to address the software needs of our customers across the life cycle of their projects and installations.Our mission is to be the digital partner of our customers for sustainability and efficiency,as digitization becomes increasingly pervasive in buildings,in data
43、 centers,across smart grids,industries,and in homes.For years,we have continuously developed and reinforced a full offer for an all-digital,all-electric world.By combining digital and electric solutions and services,we deliver a unique efficiency value proposition based on four dimensions of integra
44、tion.Firstly,we enable integration of energy and automation for energy and resource efficiency.Secondly,we connect everything from end-point to the cloud,making every installation transparent and the data available to all those who need it,from operators to the control room.Thirdly,based on a fully
45、integrated suite of software and digital twins,we enable the integration of an installations life cycle across all phases,from design and build,to operate and maintain.And finally,digitization allows us to connect and manage companies across sites to reach new levels of enterprise-wide efficiency.At
46、 Schneider Electric,we relentlessly innovate for our customers,with technology and in the way we do business.We launched new innovations,such as EcoStruxure Automation Expert and our SM AirSeT switchgear to eliminate SF6 from our systems.In 2021,more than 20 new,innovative offers will be released.In
47、 2020,our eCommerce business grew over 20%year-on-year,now representing 25%of our overall distribution business.A step-change in sustainabilityThis year we have seen a strong call for sustainability,and a deep move towards smart and green recovery plans.We realized that,even as we continue to fight
48、COVID-19,climate change is the next risk on the horizon and that it is a risk that will impact everyone around the world,even more severely than the pandemic.Corporations are making ambitious commitments and the sense of emergency has increased with the COVID-19 crisis.Today,more than 370 companies
49、have joined the UN Global Compacts Business Ambition for 1.5C,and many other coalitions have taken shape.Governments are turning a corner,as shown by the Green Deal in Europe,Chinas targets to peak emissions in 2030,and the new US administrations return to the Paris Agreement.This has been strongly
50、fostered over the past two years by growing demand from investors and shareholders to boards and CEOs,to put together science-based targets for carbon neutrality.Our customers support our solutions for an all-digital,all-electric world,transitions we enable with more products,more software,more serv
51、ices,and systems.”In 2020 we accelerated and prepared for thefuture.”6Schneider Electric Universal Registration Document Introduction0At Schneider Electric,sustainability is at the core of everything we do,in line with our purpose.We keep on progressing and consolidating our position as a practition
52、er and an expert in sustainability and ESG,that is,environment,social and governance.We have put more resources behind our sustainability business and advisory services to help our customers and partners navigate this landscape and to lead them on a proven decarbonization pathway that combines both
53、strategy and action,while also positively impacting their bottom line.We have already developed strong partnerships for sustainability and efficiency and since 2018,our systems business alone has helped save 134 million tons of CO2 for our customers.We are grateful for the international recognition
54、we achieved as a leader in sustainability,ranked as the worlds#1 most sustainable corporation on Corporate Knights Global 100 in 2021,recognized as a CDP A List Company for ten years in a row,trusted by numerous ESG investors all around the world,listed as one of the most ethical companies,and recog
55、nized with a Glassdoor 4.0 ranking.In 2020,we completed our Schneider Sustainability Impact 2018-2020 program,delivering a strong performance of 9.32 out of 10 against the year-end target of at least 9 out of 10,despite the disruption caused by COVID-19.However,we want to continue to raise the bar a
56、nd go even further,so in 2020,we took a new step towards our environment,society and economy goals,with six long-term commitments to sustainability,including carbon emissions(to be carbon neutral on full end-to-end footprint by 2040)and resource preservation goals(net zero biodiversity loss in our o
57、perations by 2030),substantiated by more than ten concrete detailed targets.For example,we want 80%of our revenues to be green revenues by 2025 and increase gender diversity in hiring(50%)to front-line managers(40%)and leadership teams(30%).Sustainability is a strong driver for growth.Doing business
58、 as unusualIn 2020,we transformed faster than ever,and adopted new ways of doing things that we had previously thought impossible.We demonstrated agility,through our fast reaction and ability to adapt to the pandemic,with both our customers and internally.We innovated to transform the way we work:10
59、0%of our customer care centers across 62 locations moved to remote working;We developed remote services in many areas;and We organized more than 5,600 digital events,600,000 digital trainings,and hundreds of digital smart factory tours.We held our first ever all-digital Annual Shareholders Meeting,a
60、llowing more shareholders to participate than ever before.I personally spoke with many more customers,employees,shareholders,investors,and partners than in a normal year.We reinforced the communication with our suppliers and distributors,and stepped up collaborative services,such as AVEVA 3D,IGE-XAO
61、,and RIB Softwares M2 platform.Collaboration and trust are a major catalyst of resilience.We swiftly changed the way we work across the Company,leveraging our multi-hub organization,further empowering our local teams,and encouraging a hybrid home/office way of working.This was possible thanks to the
62、 day-to-day experience with digital tools that our teams operating in different global sites,have acquired over the past ten years.We encourage flexible working and our employees have been working from home a few days per week for years,which helped a lot.As such,we were able to reorganize quickly w
63、hen the pandemic brokeout.The future operating model will be more digital and decentralized:a hybrid of what we have learned and how we worked before.2021 Perspectives2020 was a pivotal year for digitalization and sustainability.Looking ahead,2021 will be a year of a strong rebound and momentum in a
64、ll our geographies and many sectors,with growth opportunities in buildings,homes,data centers,infrastructure,and industry.Electrification,digitization,and sustainability are at the top of the agenda of all our customers.A year of intense action and transformation in 2020 has prepared us for a contin
65、uation of strong execution in 2021.We are well-positioned with our end-markets,our portfolio,our model,our organization,and our leadership to grow our business and deliver digital solutions for efficiency and sustainability to our customers across the life cycle.We remain focused on the deployment o
66、f our priorities and our 2021 financial target is in line with our ambition to achieve c.17%Adjusted EBITA margin by 2022.Strength resides in agility,local reactivity,and speed.Lets build on everything we learned in 2020.Crises are a powerful learning accelerator because they leave us no choice.They
67、 also remind us that we are more resilient,more flexible,and more able to change than we all imagine,attributes which are a solid foundation for innovation and growth.Jean-Pascal Tricoire,Chairman and CEORead more about our strategy on page 16 A statement from Chairman and CEO,Jean-Pascal Tricoire25
68、.2BRevenues 7Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder Information0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationAn interview with Chief Financial Officer,Hilary Maxson66BMarket Cap.(end-2020)Consistent s
69、trategy drives resilient performanceWhat were the highlights of Schneider Electrics 2020 performance?2020 highlighted the strength of our multi-local business model and our ability to act with agility and to change the way we work all while continuing to execute on our major business transformations
70、.We finished 2020 with Revenue of EUR 25.2 billion,down-4.7%organic,better than our external guidance and market expectations.We saw a strong uptick in activity in the second half,particularly in China,India,and the United States and with sequential improvement across geographies.Demand in certain s
71、egments,such as residential buildings,smart grids,and data centers,stepped-up amidst the pandemic.Gross Margin continues to develop well and reached 40.4%,with consistent improvement over the past five years,reflecting our focus on more products,services,and software;our consistent delivery of indus
72、trial productivity and our track-record of RMI and cost recovery over the cycle.Gross Margin was also boosted by positive net price and mix,factors expected to normalize in 2021.We improved Adjusted EBITA margin by+20 bps organic,reaching+15.6%.Recent acquisitions(L&T,RIB Software,and ProLeiT)contri
73、buted positively,with the integration process on track.As a result of this strong operational performance,coupled with an improving cost of financing,our Adjusted Net Income was down only 4.4%organic.Our Free Cash Flow reached an all-time record of EUR3.7 billion(including IFRS 16 impact),partly boo
74、sted by lower activity in 2020,showing our capacity to convert our result into cash with good control on our working capital and enabling continued strategic investments in innovation.Returning cash to our shareholders remains a priority in our capital allocation strategy and we continued our track-
75、record of progressive dividends for an 11th year,increasing our proposed dividend by+2%to EUR 2.60 pershare.Could you share your medium-term ambition to increase operating profitability,what are the key levers?We are well positioned both strategically and financially to drive strong and profitable g
76、rowth across the economic cycle.First,through our consistent strategy focused on delivering efficiency,reliability,and sustainability to our customers,increasingly through digitally enabled solutions.And we are well positioned in our end-markets with a portfolio well-aligned for growth in a post COV
77、ID-19 world.In mid-2020,we reaffirmed our medium-term ambitions:across-cycle organic growth of+3%to+6%in Revenues,Adjusted EBITA margin of around 17%by 2022,and across-cycle Free Cash Flow of around EUR 3 billion,on average.This improvement in profitability will be achieved through a combination of
78、organic growth,organizational simplification and efficiency,continued productivity,and portfolio optimization.What is the outlook for Schneider Electric in 2021?Our priority for 2021 is to continue to deliver profitable growth.We expect this strong and sustainable performance to be achieved through
79、a combination of topline growth,where we are targeting organic sales growth between+5 and+8%and Adjusted EBITA margin expansion of+60 bps to+100 bps organic.This implies Adjusted EBITA margin of around 16.1%to 16.5%for 2021(including scope based on transactions completed in 2020 and FXbased on curre
80、nt estimation).Could you tell us more about what you think will contribute to the future success of Schneider Electric,particularly after the challenges of 2020?Though we are very committed to our shorter-term targets,we are also very focused on preparing the Group for the medium and longer term.We
81、believe that our focus on more connected and green products,more digital offerings,and more services including sustainability services will enable growth in future years.In 2020,based on our ability to act with agility and our strong cash flow profile,we maintained our investments in strategic R&D a
82、nd closed or proposed a number of transformational acquisitions focused on positioning Schneider Electric for longer-term success.To ensure success over the medium and longer-term,we also ensure to allocate specific time in our internal business reviews towards elements of ESG specifically focusing
83、on quality and safety,customer satisfaction,employee engagement,and ethics within the Group as well as with our suppliers and broader eco-system.We continue to raise the bar on our ESG commitments with our new Schneider Sustainability Impact program for 2021-2025.Our first sustainability-linked conv
84、ertible bond,issued in November 2020,reiterates our sustainability commitments.We emerged from a crisis year and we have strong plans for future efficiency,effectiveness,and growth.With our strong operating model,future-ready portfolio of businesses,and focus on innovation we are positioned to drive
85、 strong organic growth and attractive returns to shareholders in an increasingly all-electric and all-digital world.Hilary Maxson,Chief Financial OfficerRead more about our performance on page 8 Hilary MaxsonChief Financial Officer8Schneider Electric Universal Registration Document Introduction025.2
86、27.225.724.724.52016202020192018201715.615.615.114.814.32016*20202019201820172,1262,4132,3342,1501,750201620202019201820172020 Key Financial IndicatorsStrong execution and resilient business model driving quick rebound from crisis2020 has been a signature year with intensive and agile execution endi
87、ng with a record high Gross Margin and Free Cash Flow while maintaining the same profit margin level as the previous non-crisis year.To be future ready,the Group accelerated its transformational acquisitions in both business portfolios and presence in India,with a step-change in sustainability,and f
88、ocused its investment in innovation,services,and cybersecurity.The step-change seen in customer adoption of digitization and sustainability accelerated and supported software and services growth,despite lockdowns.The Group remains committed to its strategic priorities of more products,more software,
89、more services,and more sustainability.RevenueAdjusted EBITANet IncomeIn billions of euros25.2BIn%of consolidated revenues15.6%In millions of euros2,126MRevenues were down-7.4%(-4.7%organic),a net scope effect of-0.2%,mostly due to disposal of Pelco and Converse Energy Projects,and deconsolidation of
90、 Electroshield Samara,offset by consolidation of L&T E&A,RIB Software,and ProLeiT,and a negative exchange rate effect of-2.5%mainly driven by the appreciation of the Euro against USD.2020 delivered resilient results,with Energy Management down-4.5%organic,with strong revenue growth in residential,da
91、ta center,utilities,and consumer packaged goods,and Industrial Automation down-5.3%,with discrete markets being resilient while process and hybrid markets remained challenged.Across those two businesses,Software and Services now account for around 17%of turnover,showing resilience versus Group perfo
92、rmance and bringing both recurring revenue and customer stickiness.Most geographies were strongly impacted by the COVID-19 pandemic over the year:North America-4.9%,Asia Pacific-4.1%,Western Europe-5.3%,and Rest of the World-4.1%.2020 delivered very solid profitability by maintaining Adjusted EBITA
93、at the same level as 2019,despite the crisis,at 15.6%,with organic expansion of 20 bps versus 2019,thanks to pricing actions,RMI tailwind,strong productivity,and strong delivery of savings.This represents the fifth consecutive year of Adjusted EBITA margin expansion,increasing by+300 bps organic ove
94、r the period covering both lower-and higher-growth years.Net Income(Group share)was EUR 2,126 million,-12%from 2019.Restructuring charges were-EUR 421 million in 2020,EUR 166 million higher than last year due to the Groups structural savings and cost efficiency plan.Other operating income and expens
95、es were-EUR 210 million,mainly consisting of M&A and integration costs,versus-EUR 411 million in 2019.Increase of the amortization and impairment of intangibles(-EUR 207 million in 2020)was mainly linked to recent acquisitions.Net financial expenses were-EUR 278 million,EUR 17 million higher than in
96、 2019,mainly driven by the cost of net debt decrease,offset by a write-off of a subsidiary loan and lower dividends from equity investments.Income tax amounted to-EUR 638 million.The effective tax rate was 22.7%,in line with expectations.Share of profit on associates decreased slightly to EUR 66 mil
97、lion,from EUR 78 million last year.The Group share of Delixi net income was 73m,up c.EUR 8 million year-on-year.*2016 figures restated due to the deconsolidation of the Groups solar activity.9Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder Informatio
98、n405060708090100110120130Jan 2016Jan 2018Jan 2017Jan 2019Jan 2020Dec 2020Schneider ElectricCAC 403,6733,4762,1022,2532,216201620202019201820174.725.324.643.853.12201620202019*201820172.602.552.352.202.0420162020201920182017Free Cash FlowDividend per ShareAdjusted Earnings Per Share*In millions of eu
99、ros3,673MIn euros2.60In euros4.72Free Cash Flow was exceptionally strong at EUR 3,673 million,a record cash performance and the second successive year above EUR 3 billion.The performance was supported by favorable working capital evolution,typical of a lower growth environment,and accentuated by cer
100、tain favorable timing impacts from COVID-19.As indicated previously,the Group expects to have an average across the cycle Free Cash Flow of around EUR 3 billion(excluding impacts from IFRS 16).Net capital expenditure of EUR 762 million remained stable at 3%of Revenue.Cash conversion was 159%in 2020(
101、before the impact of IFRS 16)compared to 133%in 2019.Taken on a normalized basis,adjusting the Net Income(Group share)for one-off non-cash items,cash conversion in 2019 was 121%.The proposed dividend is EUR2.60 per share,up 2.0%versus 2019,subject to Shareholders approval at Annual Meeting of April
102、28,2021,for payment on May 12,2021.The Group maintains its progressive dividend policy despite the impacts of COVID-19 on the Adjusted Net Income generated in the year.As a result,and due to the importance which the Group places on its commitment to a progressive dividend,the dividend payout ratio f
103、or 2020 will reach 55%,above the c.50%which has been typical in the recent past.Earnings per Share were down-11%,mostly driven by sales decrease,higher M&A integration and restructuring costs,and higher amortization of purchase price accounting intangibles.Share price against CAC 40 index over five
104、yearsRead more about our performance on page 301*In 2019,the Group changed its definition of Adjusted Net Income,which includes the Adjusted EBITA,amortization expenses of purchase accounting intangible assets(excluding impairment),net financial income and loss,income tax expense on the above at the
105、 effective tax rate(excluding non-recurring items),discontinued operations net income and share of profit and loss of associates,deducting impact of non-controlling interests.This definition of Adjusted Net Income was created to be more transparently derived from the financial statements.Schneider E
106、lectric Universal Registration Document Introduction010Outlook11Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationBy end-market Buildings:strong growth expected in residential markets,and good growth in specialized areas of non-residential,i
107、ncluding warehouse and healthcare.Data center:a continuation of robust demand is expected,leading to strong growth.Infrastructure:good growth is expected in the Utilities segment,supported by strong project execution,with continued demand for the Groups offers in relation to Smart Grid.Industry:stro
108、ng growth expected in short-cycle,led by Original Equipment Manufacturer(OEM)demand.Mid-and late-cycle to remain impacted in the near-term,with hybrid segments better oriented.By geographic market North America:strong growth expected for the region,including in both residential and data center marke
109、ts.Mid-and late-cycle industrial markets to remain challenged in the near-term,while short-cycle is expected to grow well.Continued softness expected in Mexico.Asia Pacific:strong growth expected for the region.China to continue growth momentum,with good traction across most end-markets and segments
110、.The rest of the region to see continued improvement,supported by a recovery in global trade.Western Europe:good recovery to continue in the region,led by residential and data center end-markets.Discrete automation markets are expected to perform better than process and hybrid.Green Deal stimulus co
111、uld start to contribute towards the end of the year.Rest of the World:strong growth expected overall for the region,although with performance contrasted by country.Rising commodity prices are expected to be supportive of growth in certain countries.The Group expects positive growth in aggregate in 2
112、021 as it continues to deploy its strategic priorities in key markets.The Group targets 2021 Adjusted EBITA growth between+9%and+15%organic.The target would be achieved through a combination of organic revenue growth and margin improvement,currently expected to be:Revenue growth of+5%to+8%organic.Ad
113、justed EBITA margin up+60bps to+100bps organic.This implies achieving Adjusted EBITA margin of around 16.1%to 16.5%(including scope based on transactions completed in 2020 and FX based on current estimation).2021 outlook and targetThough the uncertainty emanating from the COVID-19 crisis remains,the
114、 Group expects the following trends in each of its main end-markets and geographies,driving growth in 2021.+5%to+8%Target organic revenue growth12Schneider Electric Universal Registration Document Introduction0Megatrends and SDGsOur 21 2018-2020 programs2020 resultsClimate80%renewable electricity80%
115、10%CO2 efficiency in transportation8.4%120 million tons of CO2 saved on our customers end thanks to EcoStruxure offers13425%increase in turnover for our EcoStruxure and Energy&Sustainability Services17.6%Circular economy75%of sales under our new Green Premium program76.7%200 sites labeled Towards Ze
116、ro Waste to Landfill206100%of cardboard and pallets for transport packing from recycled or certified sources99%120,000 metric tons of avoided primary resource consumption through ECOFIT,recycling,and take-back programs157,588Health&equity70%scored in our Employee Engagement Index69%0.88 medical inci
117、dents per million hours worked0.5890%employees have access to a comprehensive well-being at work program90%100%of employees are working in countries that have fully deployed our Family Leave Policy100%100%of workers received at least 11.25 hours of learning in 2020,and 30%of workers learning hours a
118、re done digitally90%90%of white-collar workers have individual development plans92%95%employees are working in a country with commitment and process in place to achieve gender pay equity99.6%Ethics+5.5 pts increase in average score of the ISO 26000 assessment for our strategic suppliers+6.3 pts350 s
119、uppliers under human rights and environment vigilance received specific on-site assessment374100%of sales,procurement,and finance employees trained every year on anti-corruption94%Developmentx4 turnover of our Access to Energy programx1.64400,000 underprivileged people trained in energy management28
120、1,73715,000 volunteering days thanks to our VolunteerIn global platform18,469All indicators are audited annually by an independent third-party body.Strong environmental and social impact Sustainability ImpactLearn more about Schneider Sustainability Impact program on page 82 13Life Is On|Schneider E
121、0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationProud of 2020s achievementsPart of the CDP A-List 10 years runningOnce again,Schneider Electric made it onto the CDP A-List,thanks to strong commitments to integrate climate action across business models,governanc
122、e,risk management,actions,and incentives,both at Group-level and extended to our ecosystem.The CDP rating is awarded based on a questionnaire and a scoring methodology embedding the most advanced requirements,such as Science-Based Targets,and recommendations from the Task Force on Climate-related Fi
123、nancial Disclosures.CDP is a non-profit running a global disclosure system where more than 9,600 companies report on their climate impact at the request of 515 investors with 106 trillion US dollars in assets.In 2020,273 companies were awarded an A rating.Over 800 cities and 120 states and regions d
124、isclose their impacts through CDP.Ranked#2 in our industry in Financial Times Diversity LeadersSchneider Electric ranked second in its industry(and 27th out of 850 companies)in Financial Times(FT)Diversity Leaders.Diversity and inclusion are an integral part of who we are and what differentiates us,
125、through the commitments we act on every day,which focus on valuing difference and welcoming people from all walks of life.FTs Diversity Leaders are identified via an independent survey of more than 100,000 employees,with insights shared with Statista from human resources and recruitment experts as w
126、ell as from FT readers who also share their views.10 yrs1st#2The Most Sustainable Company in the World in Corporate Knights Global 100 rankingFor the first time since being part of the Corporate Knights ranking in 2012,Schneider took the number one position in the Global 100,thanks to a strong perfo
127、rmance evaluated across 25 Environmental,Social,and Governance(ESG)indicators.The latest Corporate Knights Global 100 was based on an assessment of over 8,000 companies with more than US$1 billion in revenues.This acknowledgment highlights Schneiders business shift towards a zero-carbon world,its pe
128、rformance in terms of clean revenues and investments,its diversity culture,and its consistent efforts to reach sustainability excellence.#1RE100s Clean Energy Trailblazer award from The Climate GroupSchneider has been distinguished as the first 2020 Clean Energy Trailblazer by The Climate Groups RE1
129、00 in recognition of its ambitious program to optimize energy and resources and grow the share of renewables in the energy mix.As well as acknowledging the Groups efforts to decarbonize and foster clean electrification in its operations and supply chain,Schneiders work to reduce the carbon footprint
130、 of customers and address the digital and energy needs of developing communities further differentiate the Group from others.This commitment is embodied through involvement in and partnership with The Climate Groups initiatives for renewables(RE100),for energy efficiency(EP100),and for electric vehi
131、cles(EV100).Learn more about our ratings and awards for sustainable development,see page 94 14Schneider Electric Universal Registration Document Introduction0Business ModelBridging progress and sustainability for allWe believe access to energy and digital is a basic human right.Our generation is fac
132、ing a tectonic shift in energy transition and industrial revolution catalyzed by a more electric world.Electricity is the most efficient and best vector for decarbonization;combinedwith circular economy approach,we will achieve climate positive impact as part of theUnited Nations Sustainable Develop
133、ment Goals.Our key resources and relationshipsOur unique wayEnergy transitionHomes and buildingsData centersPeopleWe are the most local of global companies with 128,000+colleagues,in over 100 countries representing our diverse talents.33%of our 2020 workforce were women.IndustrialOur 115 smart facto
134、ries and distribution centers deliver efficiency and productivity across our unique end-to-end supply chain to better serve customers.InnovationOur community of over 1,400 certified R&D engineers are nurtured to fuel our innovation strategy.Schneider Electric holds more than 19,000 active patents an
135、d patent applications worldwide,and in 2020 more than 750 new patent applications were filed on both our core and digital technologies.EnvironmentWe optimize our energy and resources across 232 ISO14001-compliant facilities and 206 sites committed to zero landfill waste.80%of electricity was from re
136、newables in 2020 and 157,588 tons of primary resource consumption was saved with circular models.Partners and SuppliersWe empower our 650,000+-strong partner ecosystem to expand our coverage and we arm our 3,800+ecoXpert program partners to drive new digital business opportunities.We extend our sust
137、ainability excellence requirements to our suppliers representing EUR 12 billion in procurement volume.Financial strengthOur organic growth,consistent margin improvement and disciplined capital allocation drives sustainable,positive free cash flows of EUR 3.7 billion.Energy ManagementAdjusted EBITA m
138、argin18.8%ElectrificationSUSTAINABILITY15Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationOur sustainable value for all stakeholdersFocusing on the welfare of people We are committed to gender equality through equal opportunities for everyo
139、ne,everywhere.99.6%of our global workforce covered by our Gender Pay Equity Framework.We strive to guarantee the highest safety standards and eliminate workplace accidents.Medical incidents per million hours worked reduced to 0.58.Achieving sustainability goals with customers We help customers reduc
140、e their CO2 footprint with EcoStruxure solutions and Energy&Sustainability Services.On average,businesses achieve 20%reduction in carbon emissions.We enable sustainable performance providing comprehensive environmental information for all eco-designed Green Premium offers.77%of sales from Green Prem
141、ium products in 2020.Empowering underserved communities Our Access to Energy program supports training,entrepreneurship,startups,and technologies for the worlds most energy-deprived populations.281,737 underprivileged people received vocational training.Prioritizing ethical partnership with supplier
142、s As responsible corporate citizens,we uphold the highest standards of ethical business conduct to strengthen collective trust,cultivate long-term viability,and comply with local regulation.374 suppliers under Human Rights&Environment vigilance received specific on-site audits.Delivering return and
143、profits to shareholders Our business model delivers consistent,sustainable,and strong financial performance and attractive returns.+29%share price growth.EUR 66 billion market capitalization(December 31,2020).Proposed Dividend per Share EUR 2.60,+2%versus 2019.Industry 4.0InfrastructureIndustryLearn
144、 more about the Groups commitments on page 73 Industrial AutomationAdjusted EBITA margin17.1%DigitizationEFFICIENCY16Schneider Electric Universal Registration Document Introduction0StrategyExecuting on our growth commitmentsSustainability and efficiencyDigital innovation 2020 progressWe delivered ef
145、ficiencies for our customers:During the COVID-19 crisis,Schneider Electric was recognized as mission-critical in over 90 countries,ensuring that hospitals,grids,water,food and beverage and cold chain installations,and mission-critical infrastructure were running and able to adapt to the new reality.
146、During lockdowns,we continued to service critical infrastructure thanks to field services teams and remote monitoring capabilities.We innovated in sustainability with:Unique SM AirSeT switchgear to avoid using SF6,the greenhouse gas commonly found in electrical equipment.Launch of GreenStruxure with
147、 Huck Capital to deliver renewable Energy-as-a-Service contracts for buildings.Strategic venture with Verkor in France,to accelerate European battery cell production.Green Premium program and c.72%of our business labeled as Green Revenues(1).2020 progressWe reinforced our software portfolio across t
148、he life cycle,with:Voluntary public takeover of RIB Software to expand capabilities in building life cycle digitization.Announced acquisition of OSIsoft by AVEVA,connecting customers real-time industrial data for efficiency.Minority investment in Planon for Integrated Workplace Management to transfo
149、rm buildings into safe,sustainable,and resilient assets.Proposed investment in ETAP to design,model,simulate,and optimize critical power systems with digital twins.We released new innovations at virtual Innovation Summit 2020 World Tour events,including:Low-voltage PrismaSeT Active switchboards,usin
150、g cloud-connectivity to monitor hazardous power losses.Ergonomic and connectivity-ready ComPacT breakers and modular plug-and-play accessories.EcoStruxure Automation Expert to program and run open,virtualized,and interoperable applications for industrial efficiency and resiliency.New digital service
151、s and software,such as EcoStruxure Power Monitoring Expert and Power SCADA Operations.2021 priorities Continue to accompany our customers across the whole life cycle of their assets,portfolios,and installations.Focus on delivering our full value proposition to support the future of buildings,homes,d
152、ata centers,industries,infrastructure,and grid.Scale up growth with sustainability and prosumer technologies.2021 priorities Successfully integrate and grow with software and services.Drive synergies of recent software acquisitions.Bring further added value to our customers with digital services.Con
153、tinue to make the most of our digital channels.Our purpose is to empower all to make the most of our energy and resources,bridging progress and sustainability for all.We want to be the digital partner of our customers for sustainability and efficiency.We believe digital solutions create opportunitie
154、s to connect the physical and digital world,and combine energy management and automation.Our EcoStruxure platform and core innovations help change the way buildings,industries,and cities are designed,built,and operated.(1)Green Revenues are stringently defined as offers that bring energy,climate or
155、resource efficiency to our customers,while not generating any significant harmful impact to the environment.Learn more about Green Revenues on page 99.17Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationDiversity and inclusionTrust and resil
156、ience2020 progress Employees celebrated International Womens Day,Pride Month,International Mens Day,Global Mental Health Day,and awareness campaigns for LGBT+and People with Disabilities.91%of white-collar employees discussed their development with their managers.In June,all employees were surveyed
157、with specific questions related to COVID-19 and 68%of employees took part.Over 7,000 students joined the Global Virtual Student Experience to learn about Schneider Electric through self-learning and project simulations.Diversity and Inclusion awards from Forbes,Financial Times,Bloomberg,Great Place
158、to Work,Glassdoor,Workhuman,and Universum;partnerships with Gender&Diversity KPI Alliance,ILO Global Business,and Disability Network.45,000 employees registered on Open Talent Market to drive upskilling,career development,and mentoring.Employee Resource Groups in more than 40 countries helped empowe
159、r and advance women in leadership locally.2020 progressOur trusted and empowered local teams swiftly defined innovative solutions to deal with unexpected situations:Local response teams acted to protect employee,supplier,and customer health and safety and mitigate exposure to COVID-19(personal prote
160、ctive equipment,business travel restrictions,limited site access,and progressive return to work after lockdowns).Teams,especially in our supply chain,displayed resilience and flexibility to work remotely and maintain operations.We upheld commitments to ethics,digital trust,and cybersecurity:98%of em
161、ployees completed cybersecurity training.Schneider Electrics first Ethics&Compliance Day recognized working environments that promote a speak-up culture.Enforcing the highest standards in business ethics and compliance for employees,customers,and partners,notably through our alert system.2021 priori
162、ties Build behavior and results-driven culture through New Ways of Working.Deliver recruitment experience for Schneider Electrics workforce of the future.Increase gender diversity,from hiring to frontline managers and leadership teams(50/40/30).Create opportunities for the next generations.Build emp
163、loyee career and development plans for 10 years before retirement.2021 priorities Launch our Ethics and Compliance Risk Assessment as part of the new Enterprise Risk Management Framework.Advance our Principles of Responsibility as our Charter of Trust.Strive for diversity,equity,and inclusiveness,va
164、luing difference and welcoming people from all walks of life.Facilitate agility and flexibility and offer equal opportunities to all,reinforced by our multi-hub approach,which makes us the most local of global companies.Trust is at the core of what we do and is a signature of our brand.We believe th
165、at trust is the foundation of resilience and empowerment.We do not compromise on safety,quality,delivery,cybersecurity,ethics,and compliance.18Schneider Electric Universal Registration Document Introduction02020 Business HighlightsOur ImpactJanuaryFebruaryMarchAprilJulyAs part of EV100,Schneider Ele
166、ctric pledged to switch its 14,000-car fleet to electric by 2030.Electric vehicle charging infrastructure and EcoStruxure e-mobility solutions will also be installed in the Groups flagship sites.Schneider Electric signed the European Plastics Pact for more responsible use of plastic in product desig
167、n and packaging,by prioritizing circular materials and recycling over single use plastics.On the opening day of the annual meeting of the World Economic Forum in Davos,Schneider Electric was ranked in Corporate Knights Global 100 Most Sustainable Corporations,and the Carbon Disclosure Project(CDP)“A
168、-List”.As part of a French industrial COVID-19 taskforce,Schneider Electrics supply chain experts took up the challenge to increase production of Air Liquide Medical Systems respirators and deliver 10,000 in 50 days.Schneider Electric Foundations Tomorrow Rising Fund mobilized employees,customers,an
169、d partners and supported 74 local projects in 67 countries,touching the lives of 1.5 million people.Schneider Electric successfully completed the voluntary public takeover of RIB Software to expand its capabilities in building life cycle digitization.JuneSchneider Electric ranked fourth in Gartners
170、Supply Chain Top 25 recognizing the Groups supply chain transformation and its business,financial and Environmental,Social,and Governance(ESG)performance.19Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationAugustSeptemberOctoberSchneider Ele
171、ctrics 60-year old factory in Lexington,Kentucky(USA)joined the World Economic Forums Advanced Lighthouse Network,as a showcase of digitally transformed manufacturing and production,saving energy,and water resources,cutting CO2 emissions and reducing unplanned machine downtime.Schneider Electric acq
172、uired ProLeiT,enhancing the Group offering in Consumer-Packaged Goods.The Schneider Electric India Private Ltd entity was born from Larsen&Toubros Electrical&Automation and Schneiders Low Voltage&Industrial Automation businesses and confirmed its ambition as Indias innovation and manufacturing hub,s
173、erving new economies.AVEVA announced a transformative deal to acquire OSIsoft,a global leader in real-time industrial operational data software and services,to combine and create a leading Industrial Internet of Things(IIoT)portfolio.Schneider Electric published its biodiversity footprint report usi
174、ng the Global Biodiversity Score tool developed by CDC Biodiversit,and identify ways to protect and restore biodiversity.The 2020 Innovation Summit toured the world stopping at 10 digitally interactive events,highlighting strategies and technologies to drive electrification,digitization,and innovati
175、on for a lower-carbon world.Schneider Electrics ESG-focused Investor Day highlighted how the Group focuses on all its stakeholders and on circularity,biodiversity,governance,and social values for long-term value creation.Schneider Electric launched the first sustainability-linked convertible bond,ty
176、ing its performance in three sustainability KPIs to investor returns.Schneider Electric announced strategic transactions to enhance Energy Managements software portfolio,including minority investment in Planon for Integrated Workplace Management and the proposed investment in ETAP to design,model,si
177、mulate,and optimize critical power systems with digital twins.Schneider Electric was selected among 2020s Top 25 Corporate Startup Stars,in recognition of the worlds most active corporates working with startups and developing best practices in corporate-startup collaboration.DecemberNovember20Schnei
178、der Electric Universal Registration Document Introduction0Our Leadership TeamInspiring bold ideas for the futureJean-Pascal TricoireChairman&Chief Executive Officer Olivier BlumChief Strategy&Sustainability OfficerEmmanuel LagarrigueChief Innovation OfficerHilary MaxsonChief Financial OfficerHerv Co
179、ureilChief Governance Officer&Secretary GeneralChris LeongChief Marketing OfficerPeter WeckesserChief Digital OfficerCharise LeChief Human Resources Officer21Life Is On|Schneider E0Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationAnnette ClaytonExecutive Vice-Pre
180、sident,North America OperationsChristel HeydemannExecutive Vice-President,France OperationsYin ZhengExecutive Vice-President,China OperationsPhilippe DelormeExecutive Vice-President,Energy ManagementBarbara FreiExecutive Vice-President,Europe OperationsLuc RemontExecutive Vice-President,Internationa
181、l OperationsPeter HerweckExecutive Vice-President,Industrial Automation Global functions Operations BusinessMourad TamoudExecutive Vice-President,Global Supply Chain22For EEC Engie,enabling future innovation starts with SF6-free solutions and EcoStruxure from Schneider Electric.23Strategic ReportCor
182、porate Governance ReportFinancial StatementsShareholder InformationGroups strategy:opportunities and risks1.Trends and opportunities 242.Customer focus 26 3.Company purpose 28 4.Energy Management 305.Industrial Automation 32 6.Digital transformation 34 7.People Vision 36 8.How we manage risks 389.Ri
183、sk factors 4924Schneider Electric Universal Registration Document Groups strategy:opportunities and risks1 Electricity makes energy green:Electricity is the most efficient energy and the best vector of decarbonization.Digital builds a smart future:Digital and software enables supply/demand efficienc
184、y and end-to-end life cycle management.Regional differences in electrical and digital regulations are more prevalent:Solutions for a more sustainable and resilient world must be adapted to regional specificities.The Groups positioning focuses on three megatrends:a world that is all electric,all digi
185、tal,and more multi-local.1.All electricElectrification will intensify in line with the energy transition,due to several factors:More electric loads,namely:The electrification of transportation as the yearly electricity consumption from electric vehicles is anticipated to grow by 18%p.a.from 2019 to
186、2040(1).Further electrification of industrial processes currently powered by gas.The acceleration of electricity demand,due to growth in internet traffic,data center infrastructure,and increased connectivity.Increased electrification in buildings,driven by the electrification of heating,cooking,and
187、cooling,and new regulations to accelerate decarbonization.(1)Bloomberg New Energy Finance.(2)Rocky Mountain Institute.(3)Includes Onshore Wind,Offshore Wind,Utility-scale PV,Small-scale PV,Solar thermal,Source:Bloomberg New Energy Finance.(4)International Energy Agency.(5)Quicksilver Capital,industr
188、ial digital transformation,Spring 2020.(6)World Economic Forum:Shaping the Future of Digital Economy and New Value Creation,2019.Innovation that promotes more cost-effective electrification and power decentralization:Energy batteries are expected to provide up to five times more energy density by 20
189、30(2).More renewables,with a variable capacity mix anticipated to reach up to 50%by 2040(3).2.All digital Todays digital economy is driving disruption across every sector.Digital remote interactions have become more prevalent,further revolutionizing how we work and live together.Growing need to aggr
190、egate exponential amounts of data.11 billion smart appliances in 1 billion homes are expected to participate in interconnected electricity systems by 2040(4).Large data volumes generated by IoT in industrial applications:an offshore oil rig is expected to produce 12 terabytes of data daily and a sma
191、rt factory 5 petabytes per week(5).New business models with artificial intelligence,algorithms,and platforms that turn vast amounts of data into insights and value.It is estimated that 70%of new value created in the economy over the next decade will be based on digitally-enabled platform business mo
192、dels(6).1.Trends and opportunitiesMegatrends driving our growthSchneider Electric believes in an acceleration of digital adoption with an increasing sense of urgency to transition to cleaner,more electric and decarbonized energy,and industrial systems.For us,Electricity and Digital are the recipe fo
193、r a more sustainable and resilient world.At Schneider we call this Electricity 4.0,powering the New Electric World,which combined with Industry 4.0,creates a strong catalyst for growth in energy efficiency and process efficiency.25Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFin
194、ancial StatementsShareholder Information3.More multi-localEnergy,power,and electrical norms and standards have been devised regionally since their inception.But,as power and electrical systems become smarter,more digital and more data-centered,they also need to align with digital regulations and sta
195、ndards.We believe in a multi-local world,where locally tailored solutions will be more prevalent,namely due to:Local data regulations on connectivity and data privacy,such as General Data Protection Regulation(GDPR).Regulations for higher cybersecurity adoption in North America,Europe,the Middle Eas
196、t and Asia.Diverging local or regional standards for electricity(for example,different approaches to Arc Fault detection).Why these trends matter for Schneider Electric?For Schneider Electric,electrification represents growth opportunities in buildings,industries,infrastructure and grids,data center
197、s,and homes.Digital transformation is a key driving force in all our markets,enabling more data analytics and insights into operations for improved energy management and process efficiency,enabling more agility.We see many of our customers stepping up their efforts and investments in sustainability.
198、Our solutions from connected devices,to software,digital services,and energy and sustainability services help our customers.Buildings of the future that are sustainable,resilient,hyper-efficient,and people-centric.Infrastructure and grids of the future that are sustainable,resilient,flexible,and dis
199、tributed.Homes of the future are sustainable,smart homes of the future connecting the lifeline of the home electricity with digital,to help achieve carbon-neutral goals.Data centers of the future that are sustainable,resilient,hyper-efficient,and adaptive.Industries of the future that are sustainabl
200、e,efficient and resilient,human-centric,and fully digital.Schneider Electric is the most local of global companies with a balanced footprint.Equally,the diverse mix of teams across the globe ensures the highest level of local expertise and support for our customers specific needs and global R&D expe
201、rtise strengthens the Groups innovation strategy.We believe this local set-up empowers our country leaders to best react to local market changes with agility.26Schneider Electric Universal Registration Document Groups strategy:opportunities and risks12.Customer focusResidential:We help create sustai
202、nable and smart homes of the future by connecting electricity with digital in individual homes,apartments,and public housing.We support our customers to achieve a net-zero future,create safe and adaptive homes with reliable power,use actionable insights to efficiently manage energy usage and costs,a
203、nd enjoy personalized living experiences.Buildings:We offer intelligent building technologies for Real Estate,Healthcare,Hotels and Retail customers.Our solutions help them maximize operational efficiency and energy savings,while lowering OpEx costs,ensuring cybersecurity and decarbonization of asse
204、ts.Building on our software portfolio that includes IGE+XAO and Alpi,we now also support the digitization of construction,with RIB Software to unlock the full potential of building efficiencies and sustainability.Cloud and service providers:We provide data center,network solutions,and edge computing
205、 to internet giants,co-location providers,and industrial customers.We help them increase reliability and power usage effectiveness,accelerate decarbonization of their operations,and increase efficiency and optimize value chains with Unified Operations Centers from AVEVA.Power and grid:We serve compa
206、nies producing,delivering,and/or selling electricity to help them reduce their carbon footprint,digitize networks,and connect customers to smart grids.We help our customers overcome challenges,such as increased intermittent renewables or decentralized generation with our Advanced Distribution Manage
207、ment systems to better manage system interruption duration and frequency.Water and wastewater:We support customers across the entire water cycle,from water resources to water distribution,sewage management and treatment.Through our innovative smart water technologies and services,we help make water
208、safe,reliable,sustainable,and efficient across the entire water cycle.We partner with our customers in their digital transformation to reach resilience and sustainability goals.Mobility:We serve automotive manufacturers and electric car battery manufacturers to enable productivity and sustainability
209、 through digitization.We also provide solutions for critical transportation infrastructure,such as electric car charging,airports,railways,subways,and ports.Our solutions include microgrids and Energy-as-a-Service,to help customers run safe,reliable,efficient,and carbon-free operations.Oil and gas:W
210、e provide integrated digital solutions and high-performance systems,software,and services to oil and petrochemical companies,and Engineering Procurement and Construction(EPC)companies.We help customers manage the entire life cycle of capital projects,achieve sustainability targets,and improve safety
211、 and operations with digital twins,from production to processing and supply chain operations,namely thanks to AVEVA offers and EcoStruxure Power and Process,which enables the convergence of power and control.Consumer packaged goods:We enable digital transformation at every step of the value chain fo
212、r Food and Beverage and Life Sciences companies.Our solutions provide improved sustainability,efficiency,and traceability,such as Manufacturing Operations Management and Manufacturing Execution software from AVEVA.With ProLeiT,we help Food and Beverage customers advance their digital transformation
213、and optimize their production processes,driving increased productivity and efficiency.Mining,minerals,and metals:We help mining,cement,glass,and metals customers to achieve greater energy and production efficiency and sustainability targets,thanks to EcoStruxure and IoT-enabled solutions.Unified Ope
214、ration Centers from AVEVA provide a comprehensive view at company level to drive efficiencies at scale by connecting all assets and sites into one repository.Meeting customer expectationsWe focus on strategic segments with our unique combination of energy management,automation and process efficiency
215、,delivered through products,control systems,software,and services.27Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationLeveraging a global network of over 650,000 service providers and partnersWe strive to be the most partner-friendly company
216、 in our industry.A significant share of Group revenues is managed through intermediary partners,with their own added value.This network enables us to extend our segment coverage and have a strong connection to local markets.We are increasingly focusing on digital interaction with our partner ecosyst
217、em,thanks to the Partner Portals and Schneider Electric Exchange.Distributors and retailers:Our main distribution partners are electrical distributors,specialists in IT,telecom and data center applications,DIY retailers,online marketplaces,e-tailers,and specialist technical distributors for automati
218、on and industrial software solutions,access control,and security products.Distribution now represents approximately 45%of total Group turnover.2020 was an inflection point for eCommerce.We continued to digitally equip our customers and channel partners with more web-based trainings,web shops,and dig
219、ital tools for design,selection,configuration,and customer support,while lockdowns limited access to physical stores.In 2020,eCommerce grew 22%year on year and it now represents 25%of the Groups overall distribution business.Panel builders:Collaboration with panel builders,who build and sell electri
220、cal distribution or control/monitoring switchboards,helps bring to market our innovative solutions and provide end-users the solutions for a more digital and more electric world.Panel builders buy low and medium-voltage devices and act as specialists,or connected power system experts,who manage and
221、maintain electrical assets after installation and throughout their entire operational lifetime.Contractors:To design solutions tailored to end-users specific needs,we work closely with contractors,small specialists or generalist electricians,and large companies that specialize in installation equipm
222、ent and systems.We provide training and support and leverage our multichannel partner model,which is increasingly digital,via the Partner Portal and Exchange platforms.System integrators:System integrators design,integrate,and support automation to meet their customers needs for the performance,reli
223、ability,precision,and efficiency of their operations.We give system integrators access to all areas of automation from field control to Manufacturing Execution Systems and Building Automation Systems.Specifiers/consulting engineers:To meet their customers specific demands,specialist engineers,archit
224、ects,and design firms are prescribing more efficient and integrated energy management solutions,specifically for critical power,security,and building automation.As our essential partners,we collaborate and provide application-focused design information and tools,with IGE+XAO,Alpi,and EcoStruxure Pow
225、er Design software.Electricians:We have one of the most comprehensive networks of electricians worldwide.We enable electricians to operate more efficiently through training,technical support,and digital tools,such as My Schneider Electric app,where over 400,000 electricians are registered.Our relati
226、onship with electricians is strengthened by increasing their visibility to end-users through different tools,including online“installer locators”.Original equipment manufacturers(OEMs):We work with more than 15,000 OEMs to improve machine performance and reduce time-to-market for packaging,conveyor,
227、material handling,hoisting,and Heating,Ventilation,and Air Conditioning(HVAC)applications,providing tools and software such as EcoStruxure Automation Expert.We nurture strong OEM partnerships through programs to enhance their capacity to deliver internationally.28Schneider Electric Universal Registr
228、ation Document Groups strategy:opportunities and risks13.Company purposeOur purpose is to empower all to makethe most of our energy and resources,bridging progress and sustainability for all.At Schneider,we call this Industries of the future Truly open automation,agnostic software,and unique solutio
229、ns that protect our planet are bringing tomorrows industries to life today.Homes of the future Create sustainable,smart homes by connecting the lifeline of your home electricity with digital,to help achieve your carbon-neutral goals.Infrastructure and grids of the future Increase sustainability and
230、efficiency with smartgrids.Buildings of the future Capture the power of an all-digital,all-electric infrastructure for more sustainable,resilient,efficient,and people-oriented buildings.Data centers of the future Leverage the power of connected infrastructure for more sustainable,efficient,adaptive,
231、and resilient data centers.29Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationOur mission is to be your digital partner forsustainability and efficiency.30Schneider Electric Universal Registration Document Groups strategy:opportunities and
232、risks14.Energy ManagementAt a glanceRevenues19.3BAdjusted EBITA3.6BPercentage of Group sales76.9%Powering the new electric worldThe Energy Management business helps customers make the most of their energy and accelerate their journey to net-zero carbon emissions.A more electric and digital world is
233、key to addressing the climate crisis.Electricity is the most efficient energy and the best vector of decarbonization,and with digital innovation the invisible becomes visible,unleashing huge potential to eliminate energy waste.Our market-leading,innovative solutions connect the dots between flexible
234、 energy supply and demand,delivering homes,buildings,data centers,industries,infrastructure,and grids of the future that allow us to collectively share better the energy and resources that our planet can provide,delivering a future that is more sustainable,more resilient,and more efficient.The Energ
235、y Management products,systems,software,and services include:Medium and low-voltage equipment Building and grid automation Critical power End-to-end life cycle software,from design and build,to operate and maintain Energy and Sustainability Services Innovations introduced in 2020 include:EcoStruxure
236、Workplace Advisor and Engage Enterprise App:Optimized space usage,improved employee experience,and reduced service costs.EcoStruxure Building Operation:Actionable insights to optimize building performance and improve engineering efficiency.EcoStruxure Connected Room Solutions:Personalized occupant e
237、xperience and room control.EcoStruxure Power Monitoring Expert,Power SCADA Operation,and Power Advisor:Reduced energy costs and unplanned downtime,with optimized operations.Low-voltage PrismaSeT Active switchboards:Cloud-connectivity to monitor hazardous power losses.ComPacT breakers and accessories
238、:Ergonomic,modular plug-and-play accessories that are connectivity-ready.SM AirSeT for medium voltage switchgear:A unique combination of pure air and vacuum to eliminate the need for SF6,a potent greenhouse gas commonly found in medium and high-voltage electrical equipment.Acti9 Active compact conne
239、cted multi-function breaker:Proactive monitoring and alerting of electrical faults.Monitoring&Dispatch Services:24/7 remote monitoring for proactive on-site remediation of IT infrastructure issues.Wiser Energy Center:The connected AI electrical panel of the future for grid-to-plug home energy manage
240、ment.Wiser home automation:Room-by-room temperature control,lighting,security,and energy management.31Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationRaising the level of safety and quality for national electricity distribution networksSch
241、neider Electric worked with the Egyptian Government to supply one of the largest,advanced distribution management systems in Egypt.Bringing electricity to 20 million more people,the smart grid is sustainable,digitized,resilient,and connected to more than 12,000 products and 1,000 distribution points
242、,with the ability to continue expanding in the future.Innovating climate positive IT operations EcoDataCenter has built a climate positive data center in Falun,Sweden,providing energy efficient and sustainable co-location services and high-performance computing solutions for clients,communities,and
243、the environment.EcoStruxure from Schneider Electric delivers insights into their operations,as well as efficient and reliable power and cooling solutions including Galaxy VX UPSs which are 99%efficient in ECOnversion Mode and leverages Green Premium technologies,designed with environmental transpare
244、ncy and end-of-life instructions.Transforming through software with bolt-on strategic investments for life cycle efficiency and sustainabilityIn 2020,Schneider Electric announced several major investments to enhance its Energy Management software portfolio,building on IGE+XAO and Alpi,all of which a
245、re aligned with the Groups strategic vision to grow its suite of best-in-class,end-to-end software solutions to unlock efficiency and sustainability across the life cycle,from CapEx to OpEx.In July 2020,Schneider Electric completed the voluntary public takeover of RIB Software SE,a leading software
246、platform provider for planning,costing,and real-time construction monitoring.With its 5D BIM cloud-based construction software iTWO 4.0,RIB has developed the worlds first enterprise cloud technology with AI integration to bring efficiency in the construction phase.RIB helps contractors,project owner
247、s,and real estate developers to gain full life cycle efficiency from design and build,to operate and maintain,enhancing Schneider Electrics EcoStruxure suite.In November,Schneider Electric took a minority investment in Planon Beheer B.V.to digitize the entire building life cycle through the integrat
248、ion of both EcoStruxure and Planons enterprise scale solutions.This combination will help scale both platforms,connecting millions of assets worldwide,whilst transforming built environments from passive,costly assets,into safe,sustainable,and resilient buildings.Schneider Electric also proposed taki
249、ng a controlling stake investment in Operation Technology Inc.(ETAP)in November.This completes Schneiders existing software portfolio for mission-critical power systems as a platform-independent supplier for large network design,modeling,simulation,and operation solutions.32Schneider Electric Univer
250、sal Registration Document Groups strategy:opportunities and risks15.Industrial AutomationAt a glanceRevenues5.8BAdjusted EBITA992MPercentage of Group sales23.1%Building the next generation industrial world Industrial Automation technologies are enabling the industries of the future.Securing safe,res
251、ilient,energy efficient,and sustainable processes across the complete life cycle helps optimize supply chains and transform existing facilities into smart factories.The Industrial Automation business offers customers innovation through products,systems,and software for the automation and control of
252、machines,plants,and processes,including world-leading brands such as Modicon,Foxboro,Triconex,TeSys,Altivar,Eurotherm,and Tlmcanique Sensors.Innovations introduced in 2020 include:EcoStruxure Automation Expert,the first software-centric industrial automation system creating step-changeimprovements t
253、hroughout the complete operational life cycle.EcoStruxure Augmented Operator Advisor which leveragesvirtual reality with real-time operating data to safely enable fastdiagnostics,maintenance,and operation of machinesand plants.By combining the fully digitalized TeSys island loadmanagement system wit
254、h the Modicon M262 logic and motioncontroller,machine builders and OEMs get full IndustrialInternet of Things(IIoT)machine integration with unprecedentedefficiency.EcoStruxure Secure Connect Advisor,a cybersecuresolution,allowing operators and experts to remotely program,diagnose,and troubleshoot ma
255、chines from almost anywhere.Industries of the future are openEcoStruxure Automation Expert was unveiled during the Innovation Summit 2020 World Tour to deliver the benefits of open automation and interoperability with portable application software to the fourth industrial revolution.Its plug-and-pro
256、duce approach boosts efficiency,resilience,productivity,agility,and sustainability across operations,and saves engineering time,eliminates vendor lock-in,and delivers business impact.Doubling down on domain expertise in consumer packaged goods Integrating ProLeiTs Process Control and Manufacturing E
257、xecution Systems into Schneider Electrics Digital Plant business is enhancing our business value for food and beverage manufacturers,such as breweries and dairies,among others.EcoStruxure for Smart Manufacturing now delivers native connectivity to Modicon PLCs(Programmable Logic Controllers)and AVEV
258、A software,alongside ProLeiTs expertise in automation,information,and control technology to improve processing plant monitoring.33Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationBuilding an automated futureThe Sanwa Group,a plastics manufa
259、cturer operating nine factories in Singapore to supply car manufacturers in South-East Asia,embarked on its Industry 4.0 transformation with Schneider Electric and doubled its production output.Sanwa uses an EcoStruxure Machine and Power solution for data collection to improve its decision-making an
260、d operational visibility via digital interfaces.Thanks to IoT-enabled,remote power management and wireless sensors,Sanwa tracks each machines energy consumption at a central command station.Factory floor inspections are also empowered with EcoStruxure Machine Advisor and EcoStruxure Augmented Operat
261、or Advisor for real-time insights into machine performance using augmented reality.This enables Sanwa to analyze the data collected,improve efficiency,enhance competitiveness,and grow their business.Connecting power and process solutions for sustainability Developed with AVEVA for energy-intensive i
262、ndustries,the EcoStruxure Power and Process solution combines process and power management to reduce CapEx and operational energy costs and drive profitability and sustainability.Digital twin technologies converge to unite asset engineering and process optimization,that is managed by a Unified Opera
263、tion Center built on edge control software.This enables real-time visibility and smart analysis of energy-intensive industrial assets and processes to improve operational profitability and resiliency.Next generation data-driven insights to drive performance intelligenceAs AVEVAs majority shareholder
264、,Schneider Electric is poised to accelerate success with the OSIsoft acquisition.Combining AVEVAs market-leading software with OSIsofts data management platform will harness the power of information and artificial intelligence,enabling broader,deeper optimization that drives sustainable innovation t
265、hroughout the engineering and operations life cycle.Many new applications are envisioned for process and hybrid industries.34Schneider Electric Universal Registration Document Groups strategy:opportunities and risks16.Digital transformationDigitalization for a smarter,greener futureSchneider Electri
266、cs digital transformation is fundamentally changing how we do business,at every level of the Group.Our ambition is to further strengthen our leading position as a cross-industry,IoT player with our EcoStruxure portfolio.We design an open platform,scale digital offers,and foster digital collaboration
267、 across our ecosystem of customers and partners.At a glanceDistribution sales via e-commerce 2.8B+22%YoYAssets under Management 4.2M+46.6%YoYEmployees able to work from home in response to COVID-19+120,000In parallel,we aim to digitally transform the Groups Product Life cycle Management and Customer
268、 Relationship Management,as well as our Finance and Procurement,Global Supply Chain,and Human Resources functions.Our continued efforts in these areas will enable end-to-end process efficiency and greater productivity.Built on solid foundations and lessons learned in 2020,and in response to the ongo
269、ing impact of COVID-19,we will continue to modernize both our digital infrastructure and tools for connectivity Connectivity and smart factoriesSchneider Electric operates 115 smart factories and distribution centers worldwide,where the Group showcases its digital technologies and services virtually
270、 or in person.Since 2018,five of Schneiders Smart Factories have been selected by the World Economic Forum as Fourth Industrial Revolution Lighthouses the worlds most advanced factories,which are leading the way in the adoption of Fourth Industrial Revolution technologies.In 2020,Schneiders facility
271、 in Lexington,USA was honored as an Advanced End-to-End Lighthouse.Other Advanced Lighthouses have been announced in 2019 and 2018,namely facilities in Batam,Indonesia and in Le Vaudreuil,France,alongside two developing Lighthouse facilities in Monterrey,Mexico and Wuhan,China.Ensuring digital trust
272、 with suppliersWith approximately 40 billion devices online,almost everyone and everything is connected in the world today.Schneider Electric sources goods and services from more than 50,000 unique suppliers across five continents.As goods and services are increasingly delivered through digital chan
273、nels,the effectiveness of our supplier community relies on trust and collaboration to protect our digital ecosystem.In 2020,we continued to enhance and safeguard supply chain management,procurement,and Enterprise Resource Planning(ERP)systems with third-party risk management to ensure compliance acr
274、oss the supply chain.and business continuity,accelerate the journey to cloud,reduce technical debt,and deliver on the tenets of the Groups cybersecurity and data management strategy for digital trust.Our digital transformation is also closely aligned with the Groups sustainability strategy.The use o
275、f EcoStruxure IT solutions will help bring Schneider Electric closer to fulfilling its carbon pledge,while our continued innovation and efficiency-enabling digital offers will support our customers in achieving their sustainability goals.35Life Is On|Schneider E1Strategic ReportCorporate Governance
276、ReportFinancial StatementsShareholder InformationAgile digital citizensDigital knowledge is a priority skill and the Group aims to upskill over 90%of employees with the launch of its Boost Your Digital Knowledge smart learning solution,which is part of the Digital Citizenship program helping employe
277、es build their digital skills.The programs knowledge library covers the most essential future skills required by Schneider Electric,including data science,digital economy,digital technologies,as well as cybersecurity,which is considered a critical area of knowledge and awareness.In 2020,99%of target
278、ed Schneider Electric employees completed dedicated,mandatory cybersecurity online training,strengthening the Groups cybersecurity posture.Open ecosystem engagement The Group continuously prioritizes the value of partnerships and ecosystems,simplifying and improving digital points of engagement to b
279、etter serve its customers.In 2020,we digitally engaged with 421,000 average monthly active users(MAUs)across all platforms.Launched in 2019,Schneider Electric Exchange is the worlds first cross-industry,open ecosystem that unleashes the power of collaboration in an open environment.We continue orche
280、strating this innovative community of customers and partners while fostering an entrepreneurship mindset to globally scale and monetize new digital offers.In 2020,Schneider Electric Exchange reached 75,000 registered users(+30%)and featured 480 digital offers.The Groups ambition is to further increa
281、se the adoption of Schneider Electric Exchange,enabling more transactions and co-innovation based on the open EcoStruxure platform.Monthly(on average)active users engaged across digital touchpoints421,000Customer voice and digital experienceProviding customers with the information they need,when and
282、 where they need it,is key to improving their digital experience.The Digital Net Satisfaction Score(NSS)used throughout Schneider Electrics digital platforms captures our customers overall satisfaction and their specific feedback.In 2020,the overall NSS increased by 13 points,reinforcing the positiv
283、e impact of prioritizing customer feedback.In 2020,Schneider Electric launched and scaled the personalized experience to enable 500,000 partners,30,000 distributors,and 100 key accounts to embark on a more personalized digital journey,covering relevant offer information and tools.Together with impro
284、vements in digitizing our pricing and quotation tools as well as providing more interactive customer support,we are making great progress in how we digitally engage with customers and efficiently support how they do business with Schneider.36Schneider Electric Universal Registration Document Groups
285、strategy:opportunities and risks17.People VisionGreat people make a great companyAs the changes to our world accelerate and transform our industry,we consider the Groups culture as a key business differentiator to achieve profitable growth through innovation and to outpace the market.The energy tran
286、sition requires Schneider Electric to work closely in its different markets and to develop a shared vision with customers,supported by faster innovation,technology,and deep insights.As such,we need to empower our people and shape our organizational culture to meet this challenge.Digitization is also
287、 changing the way we work,and creating new opportunities for customers,suppliers,and our teams.We believe this change is a great catalyst for employee engagement and to articulate a meaningful purpose that motivates us all.We are passionate about our meaningful purpose,to empower all to make the mos
288、t of our energy and resources,bridging progress and sustainability for all.As part of our Schneider Sustainability Impact(SSI)and under our Human Rights Policy,for some years we have committed to mandatory global standards covering fundamental employee benefits for everyone,everywhere.Throughout the
289、 COVID-19 pandemic in 2020,the Group acted and remained focused on the health and safety of its people.To this end,the Group enhanced its existing global benefit standards(Life,Health and Family Care)for all its employees worldwide during the COVID-19 crisis.Everyones mental and physical well-being,
290、both at work and beyond,was a priority,upheld by the Groups Learning and Well-Being teams who ran weekly virtual learning sessions to help manage stress and share tools and best practices.Customized support was also available for leaders,including a Diversity&Inclusion toolkit,A Managers Guide to th
291、e New Normal,and a number of LiveTalks to discuss effective approaches.The pandemic situation reinforced the importance of living our core values and leadership expectations every day and particularly highlighted how crucial Acting Like Owners is,for both the health of our people and the Group at la
292、rge.The most local of global companiesGlobalization allows Schneider Electric to welcome more diverse teams and to ensure our local presence best supports our customers specific needs.We prioritize how we develop and retain our employees to create an inclusive workplace that offers long-term career
293、and development prospects and learning pathways.We are the most local of global companies,built across four hubs(Paris,France;Hong Kong,China;Boston,USA;and Bangalore,India)providing opportunities to grow within our organization,and we are continually championing diversity,equity,and inclusion to ma
294、ke a bigger impact on society.The very nature of the workforce and the job market is evolving.There are up to five generations working side by side,and each generation has a varied set of expectations from their employer.This in turn is leading to a shift towards a highly personalized,digitized empl
295、oyee experience.We accelerated the global rollout of the Open Talent Market to drive upskilling,career development,and mentoring.This smart platform,powered by AI,helps employees take ownership of their careers and develop real and new experiences.With 83%(1)of our employees preferring more flexibil
296、ity in when and where to work,we are empowering employees to manage their unique life and work by leveraging agile,flexible,and smart ways of working to help our people effectively manage hybrid working.Our People VisionAll this change influences how we work together and ultimately how we create val
297、ue for our customers.We updated our People Vision to accelerate our business performance and transform our culture and leadership.At Schneider Electric,we are building for the future,in sync with the changes happening in our markets and with our customers.Our People Vision consists of the following:
298、Our Employee Value Proposition(EVP)is our commitment to engage existing and future talent.Its the reason why people join,stay,and remain engaged and shows how we differentiate ourselves as an employer.Our Core Values determine who we are,what we do and define the way we work together and deliver on
299、our EVP promise.Our values guide our choices and illustrate the behaviors we expect our employees to demonstrate.Our Leadership Expectations show how we expect leaders to drive the Group for the future.They emphasize how our leaders will transform the Group by stepping up both individually and colle
300、ctively.(1)From internal survey,July 202037Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancial StatementsShareholder InformationSince launching our People Vision in the fourth quarter of 2018,our efforts have focused on executing our vision through our day-to-day interaction.
301、We regularly survey our teams to measure employee awareness and to gather and address their feedback.Our behaviors have been incorporated progressively in all our people rituals such as recruitment(behavioral interviewing),performance evaluation,recognition,and promotion of leaders(based on our defi
302、ned behaviors).We have also implemented policies to foster better work-life integration and developed frameworks to help our employees manage their own situation.The initiatives we have launched,and the ones were continuing to build on,reflect our goal to be the best place to work,so the best people
303、 choose us and stay with us.Engaging with early career talent is an ongoing priority.Launched in 2011,Schneider Go Green is an annual competition for Business and Science,Technology,Engineering,and Mathematics(STEM)students around the world to find innovative solutions for energy management and auto
304、mation exposing them to our employer brand and core values.It is now an established global initiative to attract graduates for early career opportunities and ongoing talent fulfillment objectives.Over the years,the competition has become a great opportunity for students to not only share bold ideas,
305、but also to start a career at Schneider Electric.In ten years,Schneider Go Green has had more than 117,400 registrants,with more than 21,700 students from 172 countries submitting ideas.In 2020 alone,more than 24,400 students registered and nearly 3,000 students submitted ideas.Schneider Go Green co
306、ntinues to develop strong and increasing interest from students,especially in emerging economies.2020s global winning students,Angie Redondo and Jorge Polo,from Universidad Nacional de Colombia,presented a Sustainable Fishing project to benefit the Bojay community,living on the Atrato River near Col
307、ombias Pacific coast.Toni,an Industrial Engineering degree student at Escuela Superior de Ingenieras Industrial,Aeroespacial y Audiovisual de Terrassa,was a top Schneider Go Green 2020 European finalist and is now a trainee in Spain.Schneider Go Green makes you understand that technology is nothing
308、but the bridge between peoples problems and the solution they need.Go Green lets you dream that a better world is possible if we work together for it.I loved it and it enriched me as a person,and also as a professional!”38Schneider Electric Universal Registration Document Groups strategy:opportuniti
309、es and risks18.How we manage risks8.How we manage risks8.1 Definition and objectives of internal control and risk managementDefinition and objectivesThe Groups internal control procedures are designed to ensure:compliance with laws and regulations;application of instructions and guidelines issued by
310、 GroupSenior Management;the proper functioning of the Companys internal processes;the reliability of financial reporting;andmore generally,internal control helps the Group manage itsbusinesses,run efficient operations and use its resourcesefficiently.Internal control aims to prevent and manage risks
311、 related to the Groups business.These include accounting and financial risks,as well as operating,fraud and compliance risks.However,no system of internal control is capable of providing absolute assurance that these risks will be managed completely.Scope of this reportThe system is designed to cove
312、r the Group,defined as the Schneider Electric SE parent company and the subsidiaries over which it exercises exclusive control.Jointly controlled subsidiaries are subject to all of the controls described below,with the exception of self-assessments of the implementation of Key Internal Controls(see“
313、Operating Units”within“Control procedures”,session 8.5,page 46).Internal control reference documentsThe Groups internal control system complies with the legal obligations applicable to companies listed on the Paris stock exchange.It is consistent with the reference framework laid down by the Autorit
314、 des Marchs Financiers(French Financial Markets Authority AMF)on internal control and risk management.The Groups internal control process is evolving;procedures are adapted to reflect changes in the AMF recommendations and the business and regulatory environment,as well as in the Groups organization
315、 and operations.Information used to prepare this DocumentThis Document was prepared using contributions from the Groups Internal Audit and Internal Control Departments,as well as the various participants in internal control.39Life Is On|Schneider E1Strategic ReportCorporate Governance ReportFinancia
316、l StatementsShareholder Information8.2 Organization and management:internal control key participantsThe Groups corporate governance bodies supervise the development of internal control and risk management systems.The Audit Committee has particular responsibility for following up on the efficiency of
317、 internal control and risk management systems and reports to the Board of Directors thereon(see“Board committees”,chapter 3,section 1.4,page 251).Each manager is responsible for monitoring internal control in his or her area,at the different levels of the organization,as are all key internal control
318、 participants,in accordance with the tasks described hereafter.+Internal AuditOperating Divisions and business unitsInternal ControlGroup FunctionsSenior ManagementAudit CommitteeGlobal Finance DepartmentAnnual internal audits and control missions.Embedding risk and control concerns.Monitoring imple
319、mentation of recommendations.Within each business unit,the management team organizes control of operations,ensures that appropriate strategies are deployed to achieve objectives,and tracks unit performance.Organising and monitoring self-assessment campaigns and the implementation of set action plans
320、.Decision-making and risk management at corporate level.Issue,adapt,and distribute policies,target procedures,and instructions to units and individuals assigned to handle specific duties.Responsible for designing and leading the overall internal control system including the oversight,identification
321、and assessment,and mitigation of risk at Group level as well as Business Unit level and across key Group functional areas.Follows-up on the efficiency of internal control and risk management systems and reports to the board thereon(see“Board committees”,chapter 3,section 1.4,page 251).Organising con
322、trol and ensuring compliance with procedures.The BoardThe Board is informed about the efficiency of the internal control and risk management systems.40Schneider Electric Universal Registration Document Groups strategy:opportunities and risks18.How we manage risksSenior ManagementSenior Management is
323、 responsible for designing and leading the overall internal control system,with support from all key participants,in particular the Group Internal Audit and Internal Control Departments.It also monitors the Groups performance during business reviews with the Operating Divisions and Global Functions.
324、These reviews cover business trends,action plans,current results,and forecasts for the quarters ahead.Similar reviews are carried out at different levels of the Group prior to Senior Managements review.Internal Audit DepartmentThe Internal Audit Department reports to Senior Management.It had an aver
325、age headcount of 19 auditors and 23 regional internal controllers in 2020.The internal auditors are responsible for ensuring that,at the level of each unit:the identification and control of risks is performed;significant financial,management,and operating information is accurate and reliable;complia
326、nce with laws and regulations and with the Groups policies,standards,and procedures is ensured;compliance with the instructions of the Head of the Group is ensured;acquisition of resources is carried out at a competitive cost,and their protection is ensured;expenses are properly engaged and monitore
327、d;correct integration and control of acquisitions are ensured.Annual internal audit and internal control plans are drawn up based on a combination of a risk-based and audit universe coverage-based approach.The risk-based dimension is embedding risk and control concerns identified by Senior Managemen
328、t,taking into account the results of past audits,the results of Key Internal Control self-assessments returned by the units,and other indicators such as the evolution of a set of financial metrics,the Corruption Perception Index,or the Employees Disengagement Index.When necessary,the audit plan is a
329、djusted during the year to include special requests from Senior Management.The internal audit process is described in“Control procedures”,section 8.5,page 46.After each internal audit,a report is issued setting out the auditors findings and recommendations for the units or function audited.The manag
330、ement of audited entities or audited domains is requested to define for each recommendation an action plan aiming at implementing corrective actions.Measures are taken to monitor implementation of recommendations and specific follow up audits are conducted if necessary.Audit reports and the implemen
331、tation of their recommendations are distributed to Senior Management.An executive summary is sent to the President of the Audit Committee as well as to the top management.A synthesis of the main takeaways and conclusions from a selected number of audit missions is presented to the Audit Committee fo
332、r each committee session(five times per year).These reports are subject to regular exchange with the Groups auditors.The Head of Internal Audit and Internal Control has direct access to the President of the Audit Committee and meets her on a regular basis throughout the year.Internal Control Departm
333、entThe Internal Control Department,which reports to the Reporting and Consolidation Department,is particularly responsible for:defining and updating the list of Key Internal Controls in close cooperation with the Global Functions and other subject matter experts in line with the recommendations of the AMF reference framework;maintaining and leading a network of around 14 local internal controllers
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