1、IMPACTCompanyEnabling a sustainable future2021 Sustainable Development ReportAs an impact company,we are convinced that to do good,we need to do well,and vice-versa.Our sustainability and business impacts converge to act for a climate positive and socially equitable world.1Life Is On|Schneider E2021
2、 Sustainable Development ReportIn this sustainable development reportA changemaker for sustainability 2An introduction by Chief Strategy&Sustainability Officer,Olivier Blum 41 Sustainability at the heart of our strategy 51.1 Our strategic vision towards long-term positive impact 61.2 The Schneider S
3、ustainability Impact,a unique transformation tool 71.3 Measuring our contribution to a more sustainable world 121.4 Integrated and transverse governance of sustainable development 161.5 Open dialog with stakeholders 191.6 Main ESG risks and opportunities 251.7 Key external frameworks and ESG ratings
4、 332 Driving responsible business with Trust 362.1 Trust Charter,Schneider Electrics Code of Conduct 382.2 Ethics&compliance program 392.3 Zero tolerance for corruption 452.4 Compliance with tax regulations 462.5 High standards for the quality and safety of our products 462.6 Digital trust and secur
5、ity 492.7 Human rights 502.8 Employee health and safety 532.9 Vigilance plan 562.10 Relations with project execution contractors 602.11 Sustainable relations with suppliers 612.12 Vigilance with local communities 683 Acting for a Climate positive world 703.1 Climate governance 723.2 Roadmap towards
6、a 1.5C climate trajectory 743.3 Delivering a climate positive impact with EcoStruxure 783.4 Decarbonizing our operations by 2030 803.5 Decarbonizing our supply chain by 2050 844 Being efficient with Resources 884.1 Preserving the planet and its biodiversity 904.2 Eco-efficient manufacturing 944.3 Gr
7、een offers 1005 Great People making Schneider Electric a great company 1085.1 2025 people strategy and vision 1105.2 Diversity,equity,inclusion,and well-being 1145.3 Talent attraction and development 1215.4 Compensation and benefits 1265.5 Social dialog and relations 1296 Delivering Social Impact fo
8、r a just transition 1326.1 Offering better lives through access to green electricity 1346.2 Investing for high social impact 1376.3 Empowering new generations with the Schneider Electric Foundation 1396.4 Developing access to education and employment all over the world 1447 Methodology and audit of
9、indicators 1507.1 Methodology elements on the published indicators 1507.2 Methodology elements on EU taxonomy indicators 1607.3 Sustainability Accounting Standard(SASB)Correspondence table 1627.4 Task-Force on Climate Related Financial Disclosures(TCFD)correspondence table 1647.5 Independent third p
10、artys report on consolidated non-financial statement presented in the management report 1688 Indicators 1708.1 Environmental&Climate indicators 1708.2 Social indicators 1768.3 Societal indicators Schneider Electric22021 Sustainable Development Report2021 Sustainable Development ReportIMPACTCompanyA
11、changemaker for sustainabilityFor over 15 years,sustainability has been at the core of Schneider Electrics transformation journey.The Group is now a world corporate leader in sustainability and a key enabler for all stakeholders in its ecosystem to accelerate their own energy efficiency and sustaina
12、bility transition.With this experience,comes a strong belief that what makes Schneider Electric stand out today and tomorrow is that it is an impact company.Schneider Electric is an impact company,a company which lives by a unique sustainability strategy and operating model,built to deliver positive
13、 impacts in the long-run.It entails a responsibility to share learnings and keep raising the bar.An impact company seeks to address the needs of allstakeholders in its ecosystem,from employees to supply chain partners,customers,as well as local communities and institutions.To deliver sustainability
14、in its entire value chain,it must combine a solid profitability with leading practice on all Environmental,Social and Governance dimensions.It means that an impact company has inherently aligned and integrated its purpose and its business mission to ensure its corporate value delivers on sustainabil
15、ity needs and ambitions.The companys operating model is set up to impact on all of the above at global and local levels.Its culture builds on strong and practiced values with the right talent and processes to be a leading purpose-led company.An Impact model recognized in external ratings 1.Performan
16、ce the foundation for doing good2.All Stakeholders in our ecosystem3.All ESG dimensions4.Business digital partner for Sustainability and Efficiency5.Model&Culture set up for global and local impactOur Guiding Principles“Companies need to have a net positive mindset where they can benefit from solvin
17、g the worlds problems instead of creating them.This restorative mindset is aligned with Schneider Electrics impact company model that can be a true driver for change.”Bertrand PiccardChairman of the Solar Impulse Foundation3Life Is On|Schneider E2021 Sustainable Development ReportLife Is On|Schneide
18、r E1.Focused on material issues2.Disrupting the status quo3.Transparent quarterly disclosure 4.Robust assured by an independent third party5.Rewarding employees for performanceFor our EcosystemClimateCarbon pledge towards net-zero CO2 emissionsIn our operations by 2030In our value chain by 2050Biodi
19、versityPledge to be efficient with resources with no net biodiversity loss in our operations by 2030Access to EnergyProvide access to green electricity to 100 million people by 20302030 PLEDGEOur 2025 sustainability commitments With less than ten years left to reach the 17 United Nations SDGs,Schnei
20、der Electric has accelerated its impact and is making new,bold commitments to drive meaningful impact within the framework of its business activity.Such sustainability commitments and progress are fully integrated in the governance processes and bodies that design and execute the Groups strategy int
21、ernally and externally at every level from the Board of Directions to the operations.Act for a climate-positive worldby continuously investing in and developing innovative solutions that deliver immediate and lasting decarbonization in line with our carbon pledge.Be efficient with resourcesby behavi
22、ng responsibly and making the most of digital technology to preserve our planet.Live up to our principles of trustby upholding ourselves and all around us to high social,governance,and ethical standards.Create equal opportunitiesby ensuring all employees are uniquely valued in an inclusive environme
23、nt to develop and contribute their best.Harness the power of all generationsby fostering learning,upskilling,and development for each generation,paving the way for the next.Empower local communitiesby promoting local initiatives and enabling individuals and partners to make sustainability a reality
24、for all.Schneider Sustainability ImpactProgress against our six commitments for 2021 2025 are tracked through quantitative performance indicators,under two complementary tools:the Schneider Sustainability Impact(SSI)and the new Schneider Sustainability Essentials(SSE).The SSI is the translation of o
25、ur six long-term commitments into a selection of 11 highly transformative and innovative programs.The programs are tracked and published quarterly,as well as audited annually.To instill a culture of sustainability,the SSI performance is embedded in the short-term incentive plans for the managers and
26、 leaders of the Group.A notable addition to the SSI in 2021 is the local commitment,aiming to deploy meaningful local actions in the 100+markets where the Group operates.The SSE is a new tool created to maintain a high level of engagement and transparency for 25 other long-lasting programs,such as o
27、ur promise to pay all our employees above the living wage.Our unique transformation tool Schneider Electric42021 Sustainable Development ReportWorlds Most Sustainable Corporation in 2021For well over a decade,sustainability has been at the heart of what Schneider does.Still,2021 was a standout year,
28、in several respects.In January,our continuous efforts to address climate change and social inequality received the highest profile of external recognitions when the Canadian media and research company Corporate Knights ranked us the Worlds Most Sustainable Corporation.This,along with numerous other
29、ESG recognitions in 2021,is testimony to the valuable,long-term positive impact we have.Throughout the year,the need to address climate change and social inequality hit headlines seemingly every day.In November,governments and businesses made important commitments at the COP26 climate change confere
30、nce,though talk must now translate into rapid,bold and comprehensive action if were to prevent a potentially catastrophic rise in global temperatures.We share the responsibility to act with governments and other institutions,and we believe that private-sector corporates like Schneider play a crucial
31、 role in leading the transition to a cleaner,more inclusive world.Paving the way as an Impact CompanyAs an Impact company,were determined to keep intensifying our meaningful and lasting impact across all dimensions of ESG(environmental,social,corporate governance and ethics),from employees to supply
32、 chain partners,customers,as well as local communities and institutions at local and global levels.By weaving sustainability and societal impact into all facets of our business,we create long-term value for all stakeholders and deliver profitable growth.During the course of the year,we moved forward
33、 with our 2021-2025 Schneider Sustainability Impact(SSI)targets.These are aligned to both our six long-term commitments related to climate,resources,equal opportunities,trust,all generations,and local communities,and to the United Nations Sustainable Development Goals.This latest program reinforces
34、our ESG commitments through 11 global targets,plus a new local target to empower our country organizations to address their specific challenges and opportunities.The progress we make on these SSI targets is a true indicator of our companys transformation,both globally and on the ground.Our achieveme
35、nts to fight climate change and social inequalityIn the first quarter of 2021,we kicked off a new initiative to help 1,000 of our top suppliers reduce their carbon emissions by 50%by 2025.With our supply chain community,were working to evaluate,strategize and implement decarbonization actions suited
36、 to each suppliers specific maturity and scope.Furthermore,weve raised our ambitions when it comes to the environmental and social responsibility of our supply chain:we are well on our way to using more sustainable resources and materials in our products and packaging,and we audit our suppliers to e
37、nsure they comply with the highest ethical work standards and best practices.As ever,were committed to helping resolve social problems,and to promoting equal opportunities for all our employees.We live in a world for instance where 800 million people dont have access to energy,which is why we develo
38、p and deliver adapted solutions that supply clean,safe and reliable energy,hereby unlocking education and economic opportunity,and a better quality of life.We also continue to prioritize learning,development and upskilling not only for Schneiders multi-generational workforce,but also through the wor
39、k of the Schneider Electric Foundation in supporting local NGOs that run vocational training programs for young people.In 2021,we reached an impressive milestone in this field,with 300,000 people trained in energy management since we launched the program in 2009.And no less importantly,we seek to bu
40、ild trust with our stakeholders,living up to the highest standards of corporate governance,through initiatives that monitor and educate teams on ethics,cybersecurity,safety,and quality.Our 2021 Trust Charter,the evolution of our Principles of Responsibility,sets out the expectations of how we work a
41、t Schneider,and equips our teams to confront any unethical behavior they might encounter.These are just some highlights of 2021.Looking ahead,as a leading Impact Company in 2022,were committed to doing even more,even faster.An introduction by Chief Strategy&Sustainability Officer,Olivier Blum5Life I
42、s On|Schneider E2021 Sustainable Development ReportIn this section1.1 Our strategic vision towards long-term positive impacts 61.2 The Schneider Sustainability Impact,a unique transformation tool 71.3 Measuring our contribution to a more sustainable world 121.4 Integrated and transverse governance o
43、f sustainable development 141.5 Open dialog with stakeholders 191.6 Main ESG risks and opportunities 251.7 Key external frameworks and ESG Ratings 332021 Recognitions2021 Highlights#1Worlds Most Sustainable Corporation in 2021 by Corporate Knights3.92/10Schneider Sustainability Impact score,outperfo
44、rming 2021 3.75/10 target347MTonnes of saved and avoided CO2 emissions for our customers since 2018+4MPeople have access to green electricity in 202171%Highest Employee Engagement Index of all time 1,000+Suppliers committed to the Zero Carbon Project1 Sustainability at the heart of our Schneider Ele
45、ctric62021 Sustainable Development ReportResourcesClimateTrustGenerationsEqualLocalEmpower all to make the most of our energy and resources1 Sustainability at the heart of our strategy1.1 Our strategic vision towards long-term positive impact1.1.1 A holistic and strategic vision of sustainability“Su
46、stainability”is about creating system value.It encompasses continuous improvement of environmental,social,and ethical dimensions across an organizations entire value chain and stakeholders.Schneider Electrics short-term roadmap(3 5 years)is built on a consultation process involving external and inte
47、rnal stakeholders,called a materiality assessment,as well as dedicated internal governance mechanisms involving the Strategy&Sustainability team,employees,experts in the Group,the Executive Committee,and the Board of Directors,under the leadership of the Chief Strategy&Sustainability Officer.In the
48、medium(5 10 years)and long term(10 30 years),Schneider Electric aligns its strategy on key issues under the United Nations Sustainable Development Goals(SDGs)and global climate scenarios in coherence with its business model and global footprint.This holistic approach to sustainability allows the Gro
49、up to greatly mitigate risks and also brings tangible value added through a greater attractivity to customers,new talents,and investors,while boosting innovation.The numerous awards received each year(e.g.,#1 Most Sustainable Corporation,Financial Times top 50 Diversity Leaders,Gartner Supply Chain
50、Top 25,etc.)and the Groups leadership in the main ESG indices(e.g.,Dow Jones Sustainability World Index,Euronext Vigeo Eiris World 120,etc.),confirms that Schneider Electric is headed in the right direction.1.1.2 A unique position to fight climate change and social inequalityAs a global specialist i
51、n the digital transformation of energy management and automation,the Group places its expertise and solutions at the service of its customers to ensure that energy is safe,reliable,efficient,connected,and sustainable.The Group proposes an integrated offering of technologies and market-leading soluti
52、ons tailored to customer needs,promoting the transition towards more electric,digital,decarbonized,and decentralizedenergy.These solutions balance the need to reduce the planets carbon footprint with the inalienable human right to quality energy and access to digital.In fact,Schneider Electric is un
53、iquely positioned among the 1,000+companies taking action for climate change because it acts on both sides of the same equation:The solutions Schneider Electric brings to the market are directly linked to activities to mitigate,adapt,and improve humanitys resilience to climate change;At the same tim
54、e,Schneider Electric acts to reduce its end-to-end CO2 footprint,aiming for a net-zero CO2 supply chain by 2050,with precise steps for 2025,2030,and 2040.This positive contribution is measured as Impact revenues,which represent 71%of the Groups total revenues in 2021.In addition,to further contribut
55、e to a new electric and digital world,100%of Schneider Electrics innovation projects are aligned with its purpose,more than 90%being either strictly green or neutral.On this journey for a better planet,the Group is convinced that no one should be left behind,and businesses should operate a just tran
56、sition.1.1.3 A commitment to the United Nations Sustainable Development GoalsSchneider Electric is committed to taking urgent action to co-create a brighter future aligned with the United Nations Sustainable Development Goals(SDGs),consisting of 17 objectives and measuring its impact with transparen
57、cy.The SDGs are about protecting the planet,alleviating poverty,and achieving worldwide peace and justice.By tracking its sustainability performance and publishing quarterly results,Schneider Electric uphold its commitments to the SDGs and industry leadership in corporate social responsibility.The G
58、roups sustainability roadmap2021-2025 Progress on our Climate Pledge to reach carbon neutrality in the Groups operations.Reach the 11 global,and one local,objectives of the Schneider Sustainability Impact(SSI)2021 2025,as well as the 25 objectives of the Schneider Sustainability Essentials(SSE)under
59、 our six long term commitments(climate,equal,resources,generations,trust,and local).7Life Is On|Schneider E2021 Sustainable Development Report1.2 The Schneider Sustainability Impact,a unique transformation tool1.2.1 A continuous improvement process anchored in our practice since 2005To demonstrate s
60、ignificant impacts and initiate lasting change,performance must be measured,in a relevant manner for a company and its stakeholders.That is why Schneider Electric defines specific Group objectives and measures its results each quarter(since 2005)in a dashboard commonly referred to as a“barometer”.In
61、 2018,this barometer was renamed Schneider Sustainability Impact(SSI).Schneider uses this tool to address its sustainability challenges and to improve each of the pillars of its strategy identified through its materiality matrix.The SSI uses a scoring scale of 10 and provides an overall measure of t
62、he Groups progress.The tool also enables Schneider to anticipate and effectively manage its risks and opportunities by mobilizing key stakeholders around specific,measured objectives and reliable results.The SSIs performance and monitoring systems are audited annually by an external auditor(limited
63、assurance).Each SSI seeks to:Mobilize the whole Company around holistic sustainabilitygoals impacting its ecosystem;Share the Groups improvement plans with stakeholders;Create system value.On a daily basis,Schneider Electric proves that economic,environmental,and social interests are convergent.1.2.
64、2 Two complementary sustainability performance dashboards to progress between 2021 and 2025In 2020,Schneider Electric defined six new objectives for the 2021-2025 period:1.Act for a climate positive world,by continuously investing inand developing innovative solutions that deliver immediate andlasti
65、ng decarbonization in line with our carbon pledge.2.Be efficient with resources,by behaving responsibly andmaking the most of digital technology to preserve our planet.3.Live up to our principles of Trust,by upholding ourselves andall around us to high social,governance,and ethical standards.4.Creat
66、e equal opportunities,by ensuring all employees areuniquely valued and work in an inclusive environment to developand contribute their best.5.Harness the power of all generations,by fostering learning,upskilling,and development for each generation,paving theway for the next.6.Empower local communiti
67、es,by promoting local initiativesand enabling individuals and partners to make sustainabilitya reality for all.2030 Reach net-zero operational emissions and reduction of Scope 3emissions by 35%(versus 2017)as part of the Groups validated1.5C Science-Based Target(SBT)Consume 100%renewable electricity
68、(RE100)Double energy productivity(versus 2005)(EP100)Switch to 100%electric cars(EV100)Provide access to energy to 100 million peopleThe execution of the Groups 2021 2025 sustainability strategy is tracked through quantitative key performance indicators(KPIs),under two complementary tools:the SSI an
69、d the new Schneider Sustainability Essentials(SSE).The SSI is the translation of our six long-term commitments into a selection of 11 highly transformative and innovative programs.The programs will be tracked and published quarterly,audited annually,and linked to short-term incentive plans for more
70、than 64,000 employees.A notable addition to the SSI in 2021 is the local aspect,aiming to deploy local actions in the 100+markets where the Group operates in order to better empower all leaders and collaborators to unlock meaningful local impacts.The SSE has been created to maintain a high level of
71、commitment and transparency in the actions taken by the Group.This new tool brings balance between the innovative transformation plans of the SSI and the need to keep progressing on other long-lasting programs.In this spirit of continuous improvement,and in a holistic vision of sustainability,the SS
72、E will track annual progress with 25 quantitative KPIs,and some additional qualitative programs.Collectively,the SSI 11 Global Impacts and its Local Impact,as well as the 25 SSE programs,are the Groups short-term sustainability roadmap and our contribution to the 17 United Nations SDGs.More details
73、on our contributions to each SDG are available online.1.2.3 A vision beyond 2025 for climate,biodiversity,and access to energyClimate change,biodiversity loss,rising inequalities,all those issues have long-term consequences and cannot be addressed with a short-term mindset only:solving these issues
74、requires a combination of a long-term vision and concrete short-term action.The Groups meaningful purpose and its 2021-2025 SSI fit with Schneiders longer-term 2050 vision for a fair and decarbonized world,and key steps along the way in 2030 and 2040 that are presented below.2040 Become carbon neutr
75、al on full end-to-end footprint by 2040 (full Scopes 1,2,and 3),10 years ahead of 1.5C climate trajectory.This means that all Schneider Electric products will be carbon neutral by 2040(using quality offsets)2050 Engage with suppliers towards a net-zero CO2 supply Schneider Electric82021 Sustainable
76、Development Report1 Sustainability at the heart of our strategy3.92/10Schneider Sustainability Impact score in 2021(1),outperforming 3.75/10 target for the yearSchneider Sustainability ImpactLong-term commitments aligned to UN SDGs2021-2025 programsBaseline(2)2021 progress(3)2025 TargetClimate1.Grow
77、 our Schneider Impact revenues(4)70%010071%80%2.Help our customers save and avoid millions of tonnes of CO2 emissions263M0100347M800M3.Reduce CO2 emissions from top 1,000 suppliers operation0%01001%50%Resources4.Increase green material content in our products7%010011%50%5.Primary and secondary packa
78、ging free from single-use plastic,using recycled cardboard13%010021%100%Trust6.Strategic suppliers who provide decent work to their employees(1)-In progress100%7.Level of confidence of our employees to report unethical conduct(1)81%+0pts+10ptsEqual8.Increase gender diversity in hiring(50%),front-lin
79、e management(40%)and leadership teams(30%)41/25/24010041/27/2650/40/309.Provide access to green electricity to 50 million people30M0100+4.2M50MGenerations10.Double hiring opportunities for interns,apprentices and fresh graduates4,9390100 x1.25x211.Train people in energy management281,7370100328,3591
80、MLocal+1.Country and Zone Presidents with local commitments that impact their communities0%100%100%(1)The Schneider Sustainability Impact(SSI)provides an overall measure of the Groups progress on its sustainability goals on a scoring scale of 10.This is achieved by converting each KPIs performance o
81、n a 10-point scale,considering that base year performance receives a 3/10 score and the 2025 objective translates to a 10/10 score.For each KPI,the relevant score is obtained by linear interpolation and rounded down to the second decimal.The overall score of the tool is the average of each KPIs scor
82、e with equal weight excluding the local commitment(SSI#+1).As an exception,in 2021,two other KPIs are excluded:SSI#6,as the program is still in development,and SSI#7,because 2021 is the baseline year.(2)Generally,the 2020 performance serves as a baseline for SSI programs,except for two programs meas
83、ured against a 2019 baseline to mitigate COVID-19 impacts(SSI#1 Impact revenues and SSI#10 opportunities for the next generation).(3)Each year,Schneider Electric obtains a“limited”level of assurance on methodology and progress from an independent third party verifier for all of the SSI indicators(ex
84、cept for SSI#6,SSI#7 and SSI#+1),in accordance with ISAE 3000 assurance standard(for more information,please refer to the Universal Registration Document).The 2021 performance is also discussed in more details in each section of this report.(4)For the reporting requirements under the European Taxono
85、my Regulation,please refer to page 12 and page 160.9Life Is On|Schneider E2021 Sustainable Development ReportSchneider Sustainability EssentialsLong-term commitments aligned to UN SDGs2021-2025 programsBaseline(1)2021 progress(2)2025 TargetClimate 1.Decarbonize our operations with Zero-CO2 sites3051
86、1502.Substitute relevant offers with SF6-Free medium voltage technologies0%38%100%3.Source electricity from renewables 80%82%90%4.Improve CO2 efficiency in transportation0%-1%15%Resources5.Improve energy efficiency in our sites0%6.6%15%6.Grow our product revenues covered with Green Premium77%78%80%7
87、.Switch our corporate vehicle fleet to electric vehicles1%7.7%33%8.Deploy local biodiversity conservation and restoration programs in our sites0%0%100%9.Give a second life to waste in Waste-to-Resource sites 12012620010.Avoid primary resource consumption through take-back at end-of-use since 2017(me
88、tric tons)157,588203,881420,00011.Deploy a water conservation strategy and action plan for sites in water-stressed areas 0%9%100%Trust12.Deploy a Social Excellence program through multiple tiers of suppliers(3)-In progress-13.Train our employees on Cybersecurity and Ethics every year90%96%100%14.Dec
89、rease the Medical Incident rate0.790.650.3815.Reduce scrap from safety units recalled4,2024,0242,10116.Be in the top 25%in external ratings for Cybersecurity performanceTop 25%Top 25%Top 25%17.Assess our suppliers under our Vigilance Program3741,2034,000Equal18.Reduce pay gap for both females and ma
90、lesF:-1.73%M:1.00%-1.61%1.11%120Products with an environmental profile1,291,768Households at the Base of the Pyramid got access to energy thanks to Schneider Electric solutions70.4%of employees worked on ISO 14001 certified sites460Missions with the“Schneider Electric Teachers”NGO16%CO2 savings on t
91、ransportation98.4%of our entities passed our internal Ethics&Responsibility assessment100%of products in R&D designed with Schneider EcoDesign Way9Indicators with increased objectives in 2019100%of employees are working in countries that have fully deployed our Family Leave PolicyNew tool Schneider
92、Sustainability Essentials with 25 objectivesLocaldimension with 200 commitments taken by Zone and Country PSchneider Electric122021 Sustainable Development Report1 Sustainability at the heart of our strategy1.3 Measuring our contribution to a more sustainable worldSchneider Electric has been an earl
93、y adopter of transparent disclosures on sustainable revenues,and created its own methodology of“Impact revenues”(1)in 2019,covering offers that bring environmental efficiency to its customers,while not generating any significant harmful impact to the environment,and excluding revenues from carbon in
94、tensive segments.Recently,the European Union(EU)has shown international leadership by being the first to develop a Regulation and Taxonomy aiming at driving investments towards environmentally sustainable activities,which the Group applauds.Both methodologies are somewhat aligned but currently diffe
95、r in the scope of eligible activities,and in end-segments exclusions.The Group is supportive of a better alignment over the next years to provide its multinational stakeholders with standardized metrics and empower them to shape a more sustainable future for all.1.3.1 A purpose-led,Impact CompanySch
96、neider Electrics purpose is to empower all to make the most of our energy and resources,bridging progress and sustainability for all.The Groups differentiation lies in its complementary actions to demonstrate outstanding environmental,social,and ethical performance,and to support its customers in th
97、eir Net-zero CO2 journey.Schneider is the digital partner of its customers for sustainability and efficiency.The Group proposes an integrated offering of technologies and market-leading solutions tailored to customer needs,promoting the transition towards more electric,digital,decarbonized,and decen
98、tralized energy.Those active energy efficiency solutions-which consist of optimizing the entire energy cycle using energy control products,systems,services,and software help mitigate,adapt,and improve humanitys resilience to climate change.Schneider Electric quantifies this climate impact as part of
99、 Schneider Sustainability Impact(SSI)and is committed to help its customers save and avoid 800 million tonnes of CO2 by 2025(cumulated since 2018).As of end 2021,the Group delivered 347 million tonnes of CO2e of this commitment.The methodology and results of this indicator are audited every year as
100、part of the extra-financial audit.1.3.2 Early-adopter of transparent disclosures on sustainable revenuesFor more than fifteen years,Schneider Electric has led by example and transparently presented its sustainability performance to its stakeholders,across all environmental,social and governance topi
101、cs and tried to develop new market practices,such as its saved and avoided CO2 methodology or biodiversity footprint.In 2019,the Group was one of the first companies to proactively disclose information on the share of its revenue coming from offers that bring energy,climate,or resource efficiency to
102、 its customers,while not generating any significant harmful impact to the environment.Originally called“Green Revenues”to match market standards,such sales were renamed“Schneider Impact revenues”(1)to avoid any confusion with the new European(1)Schneider Impact revenues are calculated using Schneide
103、rs own consistent methodology and are distinct from turnover eligible under the EU TaxonomyTaxonomy coming into force.In 2021,the Group took a step further by committing that Schneider Impact revenues reach 80%of Group sales by 2025 as part of its SSI.It is worth noting that each year the performanc
104、e of the SSI impacts short-term incentive plans for 64,000 employees.Grow our Schneider Impact revenues to 80%The Group supported the Hong Kong University of Science and Technology(HKUST)as part of its plan to deploy an integrated data center solution to provide effective operation and management,en
105、suring high reliability and 24/7 availability,as well as full visibility for day-to-day monitoring of all systems and processes.Schneider proposed EcoStruxure for Data Center,an open,interoperable,IoT-enabled system architecture and platform.It leverages advancements in IoT,mobility,sensing,cloud an
106、d big data analytics technologies to bring unprecedented insight into data center operations through our connected products,edge control,apps,analytics and services.As a result,HKUST achieve significant energy saving and their power usage effectiveness(PUE)rating more than doubled.ClimateSSI#180%70%
107、Baseline2025 target2021 Progress71%Schneider Impact revenues can be split into four categories:1.Energy efficiency architectures bringing energy and/or resource efficiency to customers.2.Grid reinforcement and smart grid architectures contributing to electrification and decarbonization.3.Products wi
108、th differentiating green performance,flagged thanks to our Green Premium program.4.Services that bring benefits for circularity(prolonged asset lifetime and uptime,optimized maintenance operations,repair,and refurbish)and energy efficiency(maintenance to maintain the operational performance of equip
109、ment and avoid a decrease of energy efficiency over time).Additionally,revenues derived from activities with fossil sectors and others are systematically excluded,including Oil&Gas,coal mining,and fossil-power generation,in line with prevailing corporate responsibility reporting and sustainable fina
110、nce practices,even though Schneider Electrics technologies deliver resource and carbon efficiency in such sectors as well.In line with Schneider Electrics strategy to phase out SF6 from offers by 2025,SF6-containing switchgear for medium voltage applications are also excluded.In addition,neutral tec
111、hnologies such as signaling,racks and enclosures,access control,or emergency lighting are excluded.13Life Is On|Schneider E2021 Sustainable Development ReportBased on our assessment,which covers 100%of Schneider consolidated sales,the total share of Schneider Impact revenues is 71%in 2021 versus 70%
112、in 2019.In addition,to further contribute to a new electric and digital world,100%of Schneider Electrics innovation projects are aligned with its purpose,more than 90%qualifying as impact innovation under Schneiders definition,or neutral.This concerns every innovation contributing to a decarbonized
113、world,for instance energy and process efficiency,resource optimization,SF6-free projects,or Green Premium offers.The methodology to calculate this figure is similar to the Schneider Impact Revenue methodology and should not be confused with OpEx and CapEx eligible under the EU Taxonomy.1.3.3 New rep
114、orting requirements under the European Taxonomy RegulationThe adoption of the Taxonomy Regulation(Regulation(EU)2020/852)in 2020 establishes a European Union-wide classification system to identify economic activities that are considered as environmentally sustainable as part of the European Unions l
115、ong-term plan to connect finance with its sustainability goals.Dedicated Delegated Acts(DA)specify(or will specify),for each of the six environmental objectives identified,which activities are likely to make a substantial contribution to an objective(eligibility).Environmental objectives with publis
116、hed DA(covered in this eligibility assessment and subject to evolutions):1.Climate change mitigation2.Climate change adaptationEnvironmental objectives for which DA are not published yet:3.Sustainable use and protection of water and marine resources4.Transition to a circular economy5.Pollution preve
117、ntion and control6.Protection and restoration of biodiversity and ecosystemsPursuant to Article 8 of the regulation and the delegated regulation published on 6 July 2021,the proportion of turnover,Capital(CapEx)and Operational Expenditure(OpEx)resulting from products or services associated with econ
118、omic activities considered sustainable is due to be reported progressively over the fiscal years 2021 to 2023.In FY 2021,large undertakings are required to disclose those three KPIs for activities eligible to climate objectives according to the EU Climate Delegated Act already published.Eligible act
119、ivities then need to be subjected to a series of screening tests,to determine if they are Taxonomy-aligned and can be reported as such,meaning that corporates will have to demonstrate that the eligible activities do not significantly harm any of the other five objectives(“Does Not Significantly Harm
120、”,DNSH criteria),and comply with minimum social safeguards(e.g.OECD,United Nations).1.3.4 Gradual inclusion of economic activities to the EU TaxonomyIn this report we focus on eligibility according to the current EU Climate DA published.Full reporting on eligibility and alignment for all six objecti
121、ves is expected in 2024(FY 2023).Nature of Schneider Electrics main taxonomy-eligible economic activities under current Climate DA Energy efficiency in buildings Low CO2 mobility end segment Renewables end segment Transmission and distribution of electricity Services related to energy performance of
122、 buildingsEnergy efficient building automation and control systemsSmart monitoring and regulation of heating systemsZoned thermostats and devices for the smart monitoring of electricity loads or heat loadsElectric vehicles charging stations and supporting grid reinforcement technologiesElectrical in
123、frastructure for urban and suburban public transportPort infrastructure for shore-side electrical power to vessels at berth and electrification and efficiency of ports operationsManufacture of renewable energy technologies,equipping wind and solar power generation capacitiesEquipment and projects fo
124、r the construction of transmission and distribution infrastructureCommunication and control technologies for the controllability and observability of the electricity system,such as advanced automation softwareTechnical consultations such as energy audits,simulations and trainingsEnergy management se
125、rvicesEnergy performance contractsProportion of Taxonomy-eligible economic activities in the Groups total turnover,capital(CapEx)and operational expenditure(OpEx)28%of turnover|27%of CapEx|23%OpESchneider Electric142021 Sustainable Development Report1 Sustainability at the heart of our strategyImpor
126、tantly,the phased application of reporting requirements,as well as the evolving nature of the regulatory framework means that the KPIs disclosed in this report may evolve as the regulation and its reporting requirements do.A complementary DA defining additional eligible activities for the climate ch
127、ange mitigation objective is also under public consultation at the time of writing,and DAs for the remaining four environmental objectives are expected in 2022.This means that more Schneider activities could be included in the EU Taxonomy reference framework gradually.For instance this may concern S
128、chneiders offers related to grid reinforcement and smart grid architectures contributing to electrification and decarbonization,products with differentiating green performance(flagged thanks to our Green Premium program)or services that bring benefits for circularity and energy efficiency.Another ex
129、ample is the Groups industrial automation activities,which can have significant environmental benefits.1.3.5 Schneider Electrics support to the EU TaxonomySchneider Electric has experienced both the value and the challenges of conducting a mapping of green business activities early on.The Group ther
130、efore welcomes the European Commissions work to define a common classification system for sustainable economic activities and believes that the taxonomy can bring greater transparency and reporting alignment among non-financial undertakings.The Group is willing to share its experience in the measure
131、ment of revenues contributing to a sustainable world and work collaboratively and constructively with relevant stakeholders to advance the transition to a sustainable and low-carbon economy.In particular,Group experts are contributing to the Platform on Sustainable Finance,an expert group assisting
132、the EU Commission in developing technical criteria.1.3.6 Turnover derived from Taxonomy-eligible activities under the current EU Climate Delegated ActSchneider Electric identified several business activities that are eligible according to the current EU Climate DA.We provide the list of those activi
133、ties in our methodological note on page 160.In 2021,the Taxonomy-eligible turnover amounts to 28%,representing EUR8,032 million out of EUR 28,905 million total revenues.Non-eligible turnover therefore amounts to 72%.This number is based on the first evaluation of the eligibility of Schneider Electri
134、cs activities using two combined approaches,including an offer-based approach(i.e.by nature of technology),whereby each line of business products are reviewed against the definition of economic activities as defined in the EU Climate Delegated Acts,and an end-segment approach,whereby the amount of r
135、evenues generated from Taxonomy-eligible end-segments(Green Transport and Renewables mainly)for each product line is reviewed.Double-counting between offer-based approach and end-segment-based approaches are then removed before consolidation.1.3.7 Capital(CapEx)and Operational Expenditure(OpEx)In 20
136、21,Taxonomy-eligible CapEx amounts to 27%,representing EUR 757 million out of EUR 2,764 million.Therefore,the Taxonomy-non-eligible CapEx amounts to 73%.All costs based on IFRS 16 related to long-term leasing of buildings are considered eligible.CapEx related to assets or processes associated with T
137、axonomy-eligible activities,including Research&Development(R&D)CapEx,were calculated using allocation keys of eligible turnover per business and operations.In 2021,CapEx for eligible individual measures was not evaluated.In 2021,Taxonomy-eligible OpEx amounts to 23%,representing EUR 291 million out
138、of EUR 1,276 million total OpEx(R&D).Therefore,the Taxonomy non-eligible OpEx amounts to 77%.Only non-capitalized costs related to R&D are reported.OpEx related to building renovation measures,short-term leases,maintenance and repair and other expenditures relating to the day-to-day servicing of ass
139、ets represent less than EUR 116 million and are therefore considered as non-material for Schneider Electric business and excluded from the KPI calculation.Read more on our EU Taxonomy assessment methodology page 216 Spotlight on Sustainability ConsultingSchneiders sustainability consulting business
140、brings together the full portfolio of Schneider Electric solutions to provide unparalleled,end-to-end support to our customers to achieve their net-zero,sustainable transformations,from formulating climate strategy to execution&deployment of sustainability offers.For example,Schneider Electric is he
141、lping the VELUX Group,the world leader in roof windows and skylights,to develop a global program to successfully reduce their energy use and scale renewable capacity at each of the companys factories.The project,which is designed to support VELUX Group in reaching its company carbon neutral goal by
142、2030 and accelerate its plan to be Lifetime Carbon Neutral,includes the energy assessment of all factory sites resulting in the development and implementation of Zero Carbon Action plans,support of its Energy Excellence program in accordance with ISO50001,improved energy efficiency,expansion of onsi
143、te renewable heating and electricity capacity to phase out fossil fuels,and implementation of a global monitoring system through Schneider Electrics EcoStruxure Resource Advisor to measure and analyze energy usage.15Life Is On|Schneider E2021 Sustainable Development ReportSpotlight on Building Manag
144、ement Systems(BMS)Due to their high energy use and the carbon generated during their manufacturing and construction process,buildings account for nearly 40%of global greenhouse gas(GHG)emissions.Decarbonizing buildings and ensuring their efficient energy usage requires the implementation of smarter
145、solutions and thereby helps combat climate change.Such activities are qualified as“Manufacture of energy efficiency equipment for buildings”(3.5)in the EU Climate DA.Our EcoStruxure Building Operation solution is a scalable,open integration software platform at the heart of the building management s
146、ystem that facilitates control,monitoring,and management of building assets.It offers users a single pane of glass window for efficient monitoring and operations of building systems to enable improved building efficiency,asset utilization,uptime,and occupant comfort through integration of HVAC,elect
147、rical,lighting,security,fire,power,and other subsystems.By monitoring,controlling,organizing,and acting on disparate data from building assets to a single system through advanced connectivity and integration with heterogeneous building systems,our solution brings better visibility and decision-makin
148、g processes,optimizes how and when energy is used,and enables proactive energy reduction.For example,our solution for the Cinnamon Grand Colombo,Sri Lankas largest hotel,helps save 4,000 metric tons of GHG emissions annually.Even though energy savings equipment had been previously installed,the oper
149、ations staff was not able to identify specific areas where energy was being wasted.There was a need to gain visibility into the data to develop effective energy savings strategies.After conducting an initial energy audit,an upgrade of the hotels existing BMS to Schneider Electrics EcoStruxure Buildi
150、ng Operation solution was recommended.At the Cinnamon Grand Colombo,the EcoStruxure solution integrates the hotels electrical and mechanical plants,which include building systems for air conditioning,exhaust,ventilation fans,pumps,steam and hot water boilers,energy meters,and high efficiency,magneti
151、c bearing chillers from Smardt.The result provides efficient energy monitoring,management,and reporting that drives savings across the entire hotel.Delivering environmental benefits through industrial automationSchneider Electric works hand in hand with industrial enterprises to automate their opera
152、tions,and in doing so,helps them reduce or eliminate carbon emissions and optimize their use of resources.From smart sensors and connected devices to advanced process controllers with software analytics on the top,industrial automation systems enable better monitoring,control,and optimization strate
153、gies to directly improve energy performance,and indirectly,improve maintenance to prevent an increase in energy use due to plant downtime and resulting startup and shutdown processes,as well as defective products.Advanced supervision also enables to mitigate environmental pollution risks.As such,the
154、y are major enablers to mitigate climate change,pollution prevention and support the deployment of a circular economyTraditionally,industrial operators have been blamed for climate change,resource scarcity,and harm to the environment and the society around them.Today,industry contributes 32%of the w
155、orlds CO2 emissions.At the same time,many of the most energy intensive industries produce the essential building blocks for society and key components of our modern world.According to the BloombergNEF report,Digitalization:An Untapped Pathway to Sustainability,industrial digitization promotes decarb
156、onization and circularity,reduces material waste,prolongs equipment lifetime,and enables better emissions monitoring.Schneiders teams have seen it firsthand with our industrial customers.For example,Schneider Electric supported EastLink to improve the ventilation system of the EastLink freeway tunne
157、ls in Australia for better energy efficiency and a reduction in noise levels from the ventilation stacks:Auditing the energy usage of the tunnel system,Schneider identified areas where significant energy savings could be made.Since the opening of EastLink,the speed of airflows within the tunnels and
158、 stacks was controlled in a traditional way-by switching individual fans on and off at pre-programmed times of the day.When switched on,a fan always operated at full speed.This was inefficient,using more electricity than necessary and producing high operating noise levels.It was also causing unneces
159、sary wear and tear on components.To address the energy usage and noise issues,Schneider worked with EastLink to upgrade ten large ventilation fans from fixed speed fully off/fully on operation to a much more efficient self-regulating or closed loop variable speed operation.An on demand ventilation s
160、ystem using Schneider Electric EcoStruxure architecture,Modicon M580 PACs,Altivar Process variable speed drives and an AVEVA Plant SCADA system was implemented to bring together automation,connectivity and software for real time control and visibility.The upgrade has reduced energy use by almost 70%
161、and the carbon footprint reduction by 9,000 tonnes per annum.This is thanks to the use of the EcoStruxure for Industry solution with the variable speed drives,and the control algorithms in the M580 PAC which means the fans are only ever operating at the speed that is required at the time.This reduct
162、ion in fan usage will also see an increase in the fan life because of the lower stresses applied to the drive motor and impeller.The upgrade with Schneider Electric has contributed to EastLink being awarded the top 5-star GRESB sustainability rating.GRESB has ranked EastLink number 1 private entity
163、road company in the world,and number 5 of 280 infrastructure assets of all types around the Schneider Electric162021 Sustainable Development Report1 Sustainability at the heart of our strategy1.4 Integrated and transverse governance of sustainable developmentAt Schneider Electric,sustainability is i
164、ntegrated in the processes and bodies that design and execute the Groups strategy at Board,executive,and operational levels.1.4.1 Management Oversight1.4.1.1 The Board of DirectorsIn 2013,the Board of Directors decided to extend the powers of the Governance&Remunerations Committee to corporate socia
165、l responsibility(CSR)issues.Since 2014,there has been a specific committee for CSR,the Human Resources&CSR Committee.The Committee meets at the initiative of its Chairperson or at the request of the Chairman&CEO.The agenda is drawn up by the Chairperson.The Committee shall meet at least three times
166、a year(five meetings in 2021).The Committee may seek advice from any person it feels will help it with its work.Main responsibilities:Employee shareholding schemes and share allocation plans;Compensation of Group managers;Succession plan for key Group Executives;Human resources;CSR policy and result
167、s.In 2021,the Human Resources&CSR Committee reviewed the Sustainability strategy.1.4.1.2 The Group Sustainability CommitteeSince 2010,the three members of the Executive Committee in charge of Human Resources,Global Supply Chain,and Strategy&Sustainability have met twice per year with the Sustainabil
168、ity SVP to monitor and steer the Groups action plans in this area.In 2016,the Global Marketing EVP,joined this Committee.In 2020,the Chief Governance Officer as well as the Chief Financial Officer also joined.The committee meets quarterly.In 2021,this committee met three times.The Committee may seek
169、 advice from any person it feels will help it with its work.Main responsibilities:Decides the sustainability dynamic;Validates the Schneider Sustainability Impact;Monitors global sustainability performance and rankings;Reviews alignment with United Nations Sustainable Development Goals;Informs the B
170、oard Human Resources&CSR Committee.1.4.1.3 The Stakeholder CommitteeIn order to reinforce its sustainability governance further with solid external insights,Schneider Electric has created a new Stakeholder Committee in 2021.The Committee is composed of 8 external members,sharing the same passion for
171、 sustainability,and its mission is to oversee the delivery of long and short-term commitments undertaken by Schneider Electric in accordance with its Purpose and Sustainability strategy.The company strives at ensuring diversity of the Stakeholder Committee members,in terms of ethnicity,gender and ex
172、perience.The Stakeholder Committee meets three times a year and is chaired by Jean-Pascal Tricoire,Chairman&CEO of Schneider Electric,and Olivier Blum,the Chief Strategy&Sustainability Officer of Schneider Electric,acts as its secretary.1.4.2 Coordination and monitoring1.4.2.1 The Group Sustainabili
173、ty departmentThe Sustainability department,created in 2002,has been part of the Strategy department since 2008.It has the following responsibilities:Schneider Electrics sustainability strategy and rollout of action plans at Group level with relevant entities;Schneider Electrics innovative community
174、projects to ensure continued improvements in the Groups performance in this area;Central point of contact for internal and external stakeholders regarding sustainability at Schneider Electric.It is organized around four areas:Corporate Citizenship,specifically with the Schneider Electric Foundation
175、as well as local economic and social development programs;Access to energy,with responsibility for the Access to Energy program;Environment,with responsibility for deploying Group climate and environmental policies,actions and strategies Group performance,in particular by steering the Schneider Sust
176、ainability Impact,the Extra-Financial Performance Declaration,the Schneider Sustainability Report,and the integrated report.1.4.2.2 Territory Sustainability LeadersIn 2021 Schneider Electric took a commitment to empower local communities and asked its Country and Zone Presidents to take three local
177、commitments that impact their communities under the 6 long-term commitments of the Group and adapted to the specific context in their countries,which resulted in 200 commitments taken worldwide.To manage these programs and to better answer the needs of Schneiders local stakeholders,a new model for s
178、ustainability governance in the company was created with a network of 40 Territory Sustainability Leaders.This new network will meet every two months and will work to further instill a culture of sustainability at every level of the company,to empower every employee to act,and to innovate with disru
179、ptive sustainability actions.A Group Sustainable Communities Taskforce,chaired by the Executive Vice-President International Operations,and composed of representatives of each of Schneiders five operational regions and the Sustainability department,has met twice in 2021 to monitor the deployment of
180、the local programs and the creation of the Territory Leaders network.The Taskforce will meet annually going forward to review progress and opportunity for global deployment of local initiatives.17Life Is On|Schneider E2021 Sustainable Development Report1.4.3 Diffusion1.4.3.1 The Schneider Sustainabi
181、lity Impact Steering CommitteeIn 2020,a specific SSI Steering Committee was created,with about 50 members:representants of each Executive Committee member,each geography,function,and business unit.Three all-hands workshops took place,and the sustainability team organized individual follow up intervi
182、ews with each member to define precise and measurable programs for the 2021 2025 SSI.1.4.3.2 SSI and SSE pilots and sponsorsThe execution of Schneider Sustainability Impact and Schneider Sustainability Essentials programs is ensured,for each program,by operational managers or“pilots”,and SVP-level a
183、s well as Executive Committee level sponsors.1.4.3.3 Other key organizationsSeveral other Committees and organizations drive progress on all pillars of the sustainability strategy,for instance:Global Supply Chain organization,with responsibilities including safety and the environment;Human Resources
184、 organization;The Ethics&Compliance organization.Sustainability Fellows network,Volunteers,Schneider Electric Foundation delegates Board of Directors Human Resources&CSR Committee Approve the sustainability strategy and SSI Approve LTIP and STIP for the Chairman&CEO360-degree ESG implementationBusin
185、esses and corporate functions Implement strategy and Company programs and policies Execute sustainability objectives(SSI,variable compensation)Support awareness Innovate360-degree ESG visionSSI Steering Committee Establish dialogue with the entire company to boost ambition,innovation and integrate a
186、ll challenges Co-develops new SSI programs Representatives from Executive Committee,operational activities and central functionsNetwork and expert committeesSchneider Electric has expert committees*on dedicated and material topics,in particular:Climate Environment Human rights Governance Ethics Citi
187、zenship Diversity&InclusionAll employeesExecutive Committee Group Sustainability CommitteeStakeholder Committee Validate strategy and alignment with the United Nations SDGs Challenge and monitor global sustainability performance and progress of initiatives Participate,challenge and oversee the execu
188、tion of Schneiders Purpose,Sustainability strategy and delivery of long-and short-term commitmentsSustainability department and local sustainability leads Co-ordinates and monitors the sustainability strategy and performance Manage innovation projects Lead the relationships between internal and exte
189、rnal stakeholdersDiffusionCo-ordination and monitoringManagement oversight*Non-exhaustive list:Access to Energy Committee,Carbon Committee,SERE(Safety Environment Real Estate)Committee,Ethics Committee&Fraud Committee,Duty of Vigilance Committee,Foundations Executive Committee&Schneider VolunteerIn
190、Board,HR Committee,Diversity&Inclusion Committee,SSI pilots,and sponsors.Sustainability governance at Schneider E182021 Sustainable Development Report1 Sustainability at the heart of our strategy1.4.4 Internal governance modelInternal policies create the backbone of an organizations compliance and s
191、ecurity program.They ensure employees understand how to implement critical tasks and meet behavior expectations.Regulators have made clear the need for effective policy development and management programs.It is no longer enough to merely document the existence of policies and procedures.Organization
192、s must be able to demonstrate that employees know,understand and apply them.In other words,simply developing and publishing policies is no longer sufficient in the eyes of our stakeholders(NGOs,regulators,customers,financial partners,etc.).To that end,Schneider Electric has established a four tier f
193、orm of documentation pyramid of norms,under the umbrella of its Code of Conduct called the Trust Charter,strengthened by policies,standards,procedures,and guidelines.Policies consist of formal statements produced and supported by the leadership team,that state where the organization stands on import
194、ant issues.Schneider has around 85 global policies.The Schneider Electric Global Policy Management Policy provides the rules to be followed for global policies.Standards defined in these internal policies assign quantifiable measures and define acceptable level of quality.They aim to make a policy m
195、ore meaningful and effective.Procedures establish the proper steps to take to operationalize a policy and/or standard.Finally,guidelines provide additional guidance with a set of recommendations to clarify expectations in relation to a given procedure.Trust Charter In 2021,Schneider Electric evolved
196、 its Principles of Responsibility to the Trust Charter,acting as its Code of Conduct and demonstrating its commitment to ethics,safety,sustainability,quality,and cybersecurity.It is an executive summary of our policies and a guide on how we work.It is available publicly on our website in 30 language
197、s.Further details are provided on page 38.Human rights&corporate citizenshipIn 2017,Schneider Electric drafted a specific Human Rights Policy as part of a broader program on duty of vigilance in its value chain and in line with the United Nations Guiding Principles on Business and Human Rights(see p
198、age 50).Human resources and safetyThe Groups Human Resources policies cover the following topics:diversity,equity and inclusion,health&well-being,safety,security and travel,employee engagement,family leave,anti-harassment,recruiting,international mobility,training,human capital development,talent id
199、entification,total remuneration,social benefits,and COVID-19.These apply to the Group and are accompanied by global processes.Ethical business conductIn addition to the Trust Charter,different policies bolster the Groups commitments in terms of business ethics and integrity.The Business Agents Polic
200、y specifies the rules to be followed when an external stakeholder is solicited to get a deal and integrates the approval process of business agents.The Internal Fraud Investigation directive indicates the commitment to whistleblower Schneider Electricprotection.The Gifts&Hospitality Policy was appro
201、ved by the Groups CEO in December 2015 and updated in 2021 before local deployment.It is supplemented by an anti-corruption Code of Conduct detailing related processes.Other policies cover social media management,competition law,conflict of interest,export control,etc.Cybersecurity,data privacy and
202、protectionWith the acceleration of the digitalization,Schneider Electric developed many policies to reinforce its cybersecurity and respect personal data and privacy,such as IT asset management and usage,acceptable use of assets,general information security,data classification,global data privacy,us
203、er access management policy,email security policy,and many others.It is the pillar containing the most policies.Climate and resourcesSchneider Electrics environmental policy aims to improve industrial processes,reinforce product EcoDesign and incorporate Group customers concerns about environmental
204、protection by providing them with product and service solutions.It is bolstered by the Energy and Environment policies.These policies apply to the Group and are accompanied by global action plans.Responsible sourcingIn 2016,Schneider Electric renewed the charter for its suppliers,called the Supplier
205、 Guide Book.The first chapter of this book sets out the Groups sustainability expectations in five areas:environment,fair and ethical business practices,sustainable purchasing,working conditions,and human rights.These requirements are detailed in a dedicated document called the Supplier Code of Cond
206、uct.In 2018,the Group adopted the Responsible Business Alliance(RBA)Code of Conduct for suppliers.In October 2021,Schneider renewed its Supplier Code of Conduct whereby it requires all its suppliers to review their own operations,take ambitious targets,and initiate bold actions in the areas mentione
207、d in this Supplier Code of Conduct.Strive for high qualitySchneiders priority is to delight its customers with an outstanding end-to-end experience.Quality is every customers right and every employees responsibility.Experience is the most important driver for customers,defining the business relation
208、ships they sustain with suppliers and partners.The Groups customers place trust in its resilient,highly personalized,multi-channel experience,and the superior quality of its products.To ensure this,the company acts with agility,discipline,and good business sense throughout the offer life cycle from
209、creation to supply,manufacturing,delivery,when in operation and when being serviced.The Group has deployed a specific Quality Directive“Managing Customer Safety Risks”and a Quality Procedure“Offer Safety Review”to protect its customers.They are supported by a robust Quality Management System,which i
210、s improved continuously to fulfill expectations of all relevant parties.It is in full alignment with the Trust Charter as well as in compliance with ISO 9001 standard.19Life Is On|Schneider E2021 Sustainable Development Report1.5 Open dialog with stakeholders1.5.1 Focused dialog with clearly identif
211、ied stakeholdersThis diagram is an overview of sector stakeholders proposed in France by Gimlec,the French trade association for electrical equipment,automation,and related services.Schneider Electric engages in open and continuous dialog with each of its stakeholders.In particular,the Sustainabilit
212、y department takes into account the comments,ratings,and evaluations from stakeholders on the Groups Sustainability Policy and programs.This feedback is integrated into the drawing up of the registration document,the Group corporate brochure(Schneider Sustainability Report),the integrated report,and
213、 new improvement plans throughout the Company program,as well as during the design of the SSI every three years.Buildings,Industry,Infrastructureand EnergyNon-GovernmentalOrganizations,Media,etc.SocialPartners and Bodies,UIMM,etc.Legislators,EuropeanCommission ILO,OECD,etc.Other StandardizationBodie
214、s,Teaching andResearch,IndependentExperts,etc.SRI,Financial and Extra-Financial Analysts,etc.Groups and ProfessionalUnions,Consortiums,JV,etc.Local Residentsand TerritorialCollectivitiesContractors,Integrators,OEM,SystemsManufacturers,DistributorsEmployeesAuthorities andGlobal CompactStandardization
215、Bodies IECand ProductCertifcationShareholders,Investors,Banksand InsurersSuppliers andSubcontractorsGimleccompaniesCivil societySocialCustomersPartnersFinancialInstitutionalTechnicalThe table below presents the major dialog channels with stakeholders.It is not exhaustive.StakeholderDialogDepartmentC
216、ustomersQuarterly customer satisfaction surveys Co-innovation programsOnline publication of environmental information on productsQuality,Customer Satisfaction,R&D,Sales,EcoDesignFinancialQuarterly conference calls to present financial and extra-financial information,meetings and plenary meetingsRegu
217、lar meetings with individual shareholdersQuarterly newsletters to shareholdersResponse to extra-financial rating questionnaires Individual meetings with SRI analystsResponse to SRI analyst questionsFinance,Secretary of the Board,SustainabilityPartnersPurchaser/supplier meetingsSuppliers daySupplier
218、qualification processAwareness-raising about the United Nations Global Compact and ISO 26000Participation in commissions and work groups on the sustainability of professional groupsProcurement,Environment,R&D,Businesses,SustainabilitySocialYearly employee satisfaction surveySocial dialog with employ
219、ee representation bodiesSustainability Open linesHuman Resources,SustainabilityTechnicalCollaborative approach,creation,and participation in competitiveness cluster initiatives,R&D programs,university chairs,and professional associationsActive participation in international standardization bodiesPEP
220、 Ecopassport programR&D,Activities,EnvironmentInstitutionalCommitment to and promotion of the United Nations Global CompactRelationships with public authorities,legislators,and the European Commission,especially in the field of energy efficiencySustainability,Purchases,InfluenceCivil societyParticip
221、ation in working groups and local and international organizations on challenges within our industryCommunity programsPartnerships with local NGOsAccording to subject and audience,Foundation,and Access to Energy Schneider Electric202021 Sustainable Development Report1 Sustainability at the heart of o
222、ur strategy1.5.2 Materiality analysis2020 methodologyIn 2020,Schneider Electric built its third materiality matrix by questioning external stakeholders(e.g.,customers,suppliers,international organizations,trade associations,experts,shareholders)and top and senior managers within the Group,including
223、the Executive Committee.Nearly 200 stakeholders have been consulted in total(143 through an internal survey,54 interviewed in person).Participants were first asked what they felt were the key worldwide trends most likely to impact Schneider Electric in the future,before being asked to assess the sig
224、nificance of 31 issues according to a quantitative scoring scale.Then,participants were interviewed for qualitative evaluation and justification of the given scores.Participants were guided to prioritize the most transformative issues.Issues were scored according to their importance as follows:1 Med
225、ium or low importance2 Important3 Critical4 Chosen in top three most critical topicsThese surveys and interviews also enabled Schneider Electric to consolidate the relationship with its stakeholders and learn about their expectations.Beforehand,the challenges were defined using a study of the sector
226、s stakes(analysis of the different CSR guidelines,sector benchmarks,etc.)and a comparison with the 2017 materiality analysis.With the help of consulting firm Utopies,the aim is to ensure that Schneider Electric reports on the most important economic,social,and environmental challenges;identifies cur
227、rent and future opportunities and risks for the business;and updates its sustainability agenda with key stakeholders expectations.In particular,the materiality matrix was one of the sources used to design the 2021-2025 Schneider Sustainability Impact and Schneider Sustainability Essentials,and to co
228、nfirm the topics to be addressed in the registration document.Key learningsOverall,stakeholders point to growing instability whether environmental,social,political,or economic.This creates uncertainties for businesses,which should work on building resilience:Climate is the main trend identified exte
229、rnally and internally.It includes the trend for energy transition and electrification,on which external stakeholders expect Schneider Electric to take the lead.Inclusion and the need for a just transition covering the Companys extended responsibility to its ecosystem,in particular in the supply chai
230、n,to ensure the low-carbon transition equally benefits all.Stakeholders also mentioned the growing expectations in providing ethical and sustainable products.Resilience,and the move towards more local supply chains,specifically post-COVID-19,can be a way to mitigate geopolitical uncertainty and a ri
231、se in protectionism.Ethics in digital:the growth of digitalization and the need for stronger ethics represents both an opportunity and a risk for Schneider Electric.This covers topics such as the power of data and the ethical use required,the opportunities and dangers of Artificial Intelligence(AI),
232、as well as peoples well-being,or job security in a transitioning world.Resource scarcity and circular economy showed very high expectations internally.During the discussions,some elements were often mentioned:1.The vision of the Group,endorsing the link between sustainability and digital,is complex
233、and not always easy to understand for non-experts.Schneider Electric could be more pedagogic in its advocacy.2.There are high expectations for Schneider to become a globally recognized leader for a decarbonized world,with its products and solutions,and in terms of thought leadership.3.All 31 topics
234、are deemed important,reinforcing our holistic vision of sustainability.Issues were prioritized based on three groups:Licence to operate fundamental“must have”topics such as product quality and safety,and cybersecurity.Standard issues topics which are on track,and on which Schneider Electric must rem
235、ain mobilized(e.g.,health and security,environmental excellence,corruption).Key transformational topics those which have the potential to transform markets and differentiate Schneider Electric from others(e.g.,climate change engagement,circular economy,human engagement).4.The SSI is a renowned and t
236、ransformative program which is a source of pride internally,and recognition externally,but which needs a new lease of life:simplified,with increased internal buy-in and awareness.21Life Is On|Schneider E2021 Sustainable Development Report1.52.02.53.03.51.52.02.53.03.5Internal StakeholdersExternal st
237、akeholdersGovernance and EthicsProduct stewardshipMissionSocialEnvironmentSocietySustainable supply chainBecoming a leader of the circular economy and rethinking our resource footprintBeing a role model in the effective reduction Decarbonizing our supply chain Guaranteeing cybersecurity of products
238、and solutionsGuaranteeing a 100%responsible offerGuaranteeing quality and safety of productsActively contributing to the rise of the industry 4.0Guaranteeing optimalworking health andsafety conditionsfor our employeesDeveloping regionalvalue chainsAiming for zero corruption at all levels,in the whol
239、e value chainPromoting diversity and inclusion in all our professions,countries and operationsAdvocating an all electric and all digital worldFacilitating renewable energy productionEnsuring an expert and representative governance for long term sustainable valueBeing exemplary in the managementof ou
240、r customers and partners dataEnsuring customer due diligence Becoming a key playerin electric mobilityAiming for environmental excellence at our sitesEnsuring our employees well-being in and out of the workplaceSupporting our employees in the transformation of their professionBeing a recognized acce
241、ss to energy playerEnsuring an exemplary influence policyContributing tothe fight againstenergy povertyEnsuring fair pay forour employeesEnsuring digital sobrietyContributing to training and education in energy&digital professions Ensuring social dialogue Limiting global impact on biodiversity,in ou
242、r whole value chainEnsuring exemplary tax practicesof our own CO2 emissionsGuaranteeing high social and environmental standards for subcontractors and suppliers Becoming a key player for a net zero carbon built environment*Materiality matrixTop four expectationsThe materiality matrix above displays
243、the results of the analysis,which can be summarized in four megatrends:1Leading climate action in our ecosystem with our partners.2Pioneering circular economy and being efficient with resources.3Ensuring a fair transition and guaranteeing high ethical,social,and environmental standards along more lo
244、cal value chains.4Leverage digital in cybersecure solutions to boost positive impact.The 2021 registration document,Schneider Electrics commitments for the climate(see page 70),and the 2021-2025 Schneider Sustainability Impact cover all these priority challenges through Group policies,improvement pl
245、ans,indicators,and short or long-term Schneider Electric222021 Sustainable Development Report1.5.3 Global and local external commitments to move forward collectivelySchneider Electric works with different local and international organizations and associations on economic,social,and environmental iss
246、ues to foster sustainability in cooperation with various players.Schneider confirms its commitment to and participation in discussions on challenges related to climate change.In the following table we present Schneiders main memberships.TopicCommitmentSustainable governance and cross-functional topi
247、csInternational:World Business Council for Sustainable Development(WBCSD);United Nations Global Compact(Board);Business for Inclusive Growth coalition(B4IG);International Chamber of Commerce(ICC,Environmental and Energy commission);Business for Social Responsibility(BSR).Europe:International Busines
248、s Europe;CEO Alliance;Energy Solutions;European Partnership for Energy and the Environment(EPEE);VDMA(network organization for the mechanical engineering industry in Germany and Europe).France:French trade association for electrical equipment,automation,and related services(Gimlec);French Study Cent
249、er for Corporate Social Responsibility(ORSE,Board);Entreprises pour lEnvironnement(EpE);French Association of Private Sector Companies(AFEP);French Business Confederation(MEDEF);French trade association for electronic,electric,and communication equipment(FIEEC);French Chamber of Commerce and Industr
250、y(CCI France,Environmental and Energy commission).United States:National Electrical Manufacturers Association(NEMA,Chair),National Association of Manufacturers(NAM,Executive Committee);Information Technology Industry Council(ITI).United Kingdom:BEAMA(UK trade association for manufacturers and provid
251、ers of energy infrastructure technologies and systems).ClimateInternational:Energy Transitions Commission(ETC);signatory of the United Nations Global Compact Business Ambition for 1.5C Pledge;Carbon Pricing Leadership Coalition;Caring for Climate;The Climate Group and We Mean Business(RE100,EP100,EV
252、100,Responsible Climate Policy,Report Climate Change Information/TCFD);Business Climate Summit;Clinton Climate Initiative;The 2C Challenge Communiqu;White House Pledge;Global Footprint Network.France:EpE(ZEN 2050);French Business Climate Pledge;Climate Chance.CybersecurityInternational:ISO/IEC JTC 1
253、/SC 27:Information security,cybersecurity,and privacy protection;IEC/TC65/WG10:Security for industrial process measurement and control Network and system security;IEC/ACSEC(Advisory Committee on Information security and data privacy),IT Industry Council(Board and Cybersecurity Chair).Europe:CEN/CLC/
254、JTC 13 Cybersecurity and Data Protection;CLC/TC 65X Industrial-process measurement,control,and automation;Digital Europe(board);The European cybersecurity organization(ECSO,convenorship of the group in charge of the standardization,certification,and supply chain management aspects);EG2 group(part of
255、 the European Commission Smart Grid task force,in charge of advising it for a future network code for electricity supply cybersecurity).National:IEEE Power System Communications&Cybersecurity Committee(PSCC);ISA99:Industrial Automation and Control Systems Security;The Cybersecurity Coalition.Energy/
256、Energy efficiency/Electric mobility/Digital/RenewablesInternational:Alliance to Save Energy;The Green Grid(Board);eu.bac(the European association for building automation and controls energy efficiency in buildings);Orgalim;CAPIEL/CECAPI(CAPIEL vice Chair;Impact of Digitization for Buildings;Smart bu
257、ildings);Global Alliance for Building and Construction(GABC);Energy Solutions;CEO Alliance.Europe:European Alliance to Save Energy(Vice-chair);Energy Solutions;Solar Power Europe;Wind Europe.France:National Industry Council;National Energy Transition Council,Green Building Plan;Promodul,financing co
258、mpany for energy transition;Avere(Electric Vehicle Association,Board and Vice-Chair);IFPEB(Institut franais pour la performance nergtique du btiment);Industry of the Future Alliance;P2E Initiative;Ignes(digital,energetic,and security engineering industries);France Data Centers;Comit Stratgique de Fi
259、lire(CSF);Industries des Nouveaux Systmes nergtiques;Minalogic,Conseil National de lindustrie.Industry 4.0 and Smart ManufacturingIndustry 4.0 enables smart manufacturing with a wide offer of information and operational technologies as well as communication technology.The acceleration of digitizatio
260、n,software,and data in the industrial field is orchestrated by Industry 4.0 for more interoperability,efficiency,and value creation.International:OPC Foundation(Board,CTO);FDT Group(Board);FieldComm Group(FCG,Board);ECLASS(Board);AutomationML(Board);Open Process Automation Forum(OPAF);Industrial Dig
261、ital Twin Association(IDTA,Chair);Digital Twin Consortia(DTC);Industrial Automation and Control Systems Security(ISA 99);Edge Computing Consortium(ECC);IEC TC65(Industrial-process measurement,control,and automation,Secretary and chair of Sub-committees);ISO TC184(Automation systems and integration,C
262、hair);ISO/IEC JTC1 SC 41(IIOT and Digital Twin);CEN/CENELEC ISO joint working group on CyberSecurity;ISO Smart Manufacturing Coordination Committee;IEC Smart Manufacturing System Committee,Universal Automation.Org(UAO,President of the Board)for distributed control and Orchestration.National:Industri
263、e 4.0(Germany);Alliance Industrie Du Futur(France);Piano Industria 4.0(Italia),Smart Manufacturing(USA);International Coalition for Intelligent Manufacturing(China).1 Sustainability at the heart of our strategy23Life Is On|Schneider E2021 Sustainable Development ReportTopicCommitmentSmart grids and
264、sustainable citiesInternational:Grid Edge Executive Council(Greentech Media);OpenADR Alliance;Peak Load Management Alliance;IEEE(T&D and Power and Electronics Society);Association of Energy Service Professionals(AESP);Association for an Energy Efficient Economy(AEEE);Urban Infrastructure Initiative
265、led by the WBCSD;Electric Drive Transportation Association(EDTA);ISGAN(International Smart Grid Action Network);Europe:T&D Europe(the European association of the electricity transmission and distribution equipment and services industry,President,Executive Committee),Orgalim(Infrastructure Task Force
266、);CAPIEL(European Coordinating Committee of Manufacturers of Electrical Switchgear and Controlgear);smartEn(Smart Energy Europe,Chairman of the Board);United States:Research Triangle Cleantech Cluster(Raleigh,North Carolina);Fort Collins Cleantech Cluster(Colorado);Bay Area Climate Collaborative(SF
267、Bay);North American Electric Reliability Council(NERC,Functional Model Demand Response Advisory Team);Pacific Northwest Demand Response program;Think Smart grids;Tenerrdis Energy Cluster.Circular economy and product environmental performanceCircular economy initiatives and product environmental perf
268、ormance deliver product with lower environmental impact and full transparency on environmental attributes.International:Ellen MacArthur Foundation membership;PEP ecoPassport(Product Environment Profile,Presidency),PEP ecoPassport was selected by EU as leader of PEF(Product Environment Footprint)expe
269、rimentation phase(2020-2021)for EEE cluster(Electric and Electronic Equipment),for promotion of transparent,robust and digital Product Environmental information;National Initiatives:AFEP(Circular economy working group);AFNOR Circular Economy;Gimlec(chairmanship of strategic taskforce for Circular Ec
270、onomy);MTES/Feuille de Route conomie Circulaire(active contributions,working groups).Access to energyAccess to energy is a fundamental human right and a means for social and economic development.The pooling of forces and the sharing of knowledge between actors are essential to advance public policie
271、s,capacity building,new technologies or innovative financing.International:Alliance for Rural Electrification(ARE);Sustainable Energy for all(SE4ALL);International Finance Corporation(IFC)Energy2Equal initiative(Empowering Women in Africas Renewable Energy Sector);Solar Impulse Foundation.National I
272、nitiatives:ADEME(French Ecological Transition Agency);Renewable Energy Trade Association(SER);HEC Movement for Social&Business Impact.Diversity,Equity and InclusionSchneider Electrics diversity,equity,and inclusion ambition is to offer equal opportunities to everyone everywhere.The Group wants its e
273、mployees no matter who they are,or where in the world they live to feel uniquely valued and safe to contribute their best.Promoting diversity,equity,and inclusion is a moral as well as a business imperative as a diversity of people and an environment of inclusion leads to greater engagement,performa
274、nce,and innovation.International:Signatory of the United Nations Womens Empowerment Principles(WEP);Committed to the UN Generation Equality Forum;Signatory of the OECD Global Deal;Member of the World Economic Forum(WEF)Partnership for New Work Standards;Signatory of the Womens Forum climate charter;
275、Member of the ILO Global Business and Disability Network(GBDN);Member of the Gender and Diversity KPI Alliance(GDKA).National Initiatives:Diversity Charter;Agreement for professional gender equality;Parenthood Charter;Disability Agreement;Agreement on inter-generational mechanism;Apprenticeship Agre
276、ement;Signatory of PaQte,a collective of companies working to be more inclusive with specific action plans for working-class neighborhood;Youth and regional development with associations(FACE,100 Chances 100 Emplois,Energie Jeunes,ADIE,GEFLUC).EducationInternational:Training program in energy manage
277、ment for disadvantaged people,in partnership with local vocational training centers and/or national or international non-profit organizations.National Initiatives:Schneider electric school,framework agreements with the Ministry of National Education,Higher Education and Research,partnerships with th
278、e continuing education network of UIMM,Ingnieurs Pour lcole network(IPE),selected by the Ministry of Education for the Digital School project.Ethics and human rightsInternational:Transparency International,Global Compact LEAD(Decent Work in Global Supply Chains);Member and co-leader of the B4IG coal
279、itions“Advancing human rights in direct operations and supply chains”working group;IDH-The Sustainable Trade Initiative.National Initiatives:Cercle thique des affaires(Business ethics club,Board of Directors);Club Droits Humains(Human rights club)of Global Compact France;Entreprises pour les droits
280、de lhomme(Businesses for Human Rights).BiodiversityLivelihoods(carbon offset fund for biodiversity and rural communities),act4Nature Initiative;Caisse des Dpts et Consignations(CDC)Positive Biodiversity Businesses club(B4B+)membership.PhilanthropyInternational:International Association for Volunteer
281、 Effort(IAVE),more than 70 NGOs supported each year in over 35 countries;The European Venture Philanthropy Association(EVPA).National Initiatives:Fondation de France,Admical(Association pour le dveloppement du mcnat industriel et commercial,member of the European network CERES);IMS-Entreprendre pour
282、 la cit;Centre franais des fonds et fondations;Alliance pour le Mcnat de comptences.The Rnovons initiative/CLER the energy transition network;Hope,la chaire pour lutter contre la Prcarit Energtique/Fondation Grenoble INP;Stop lexclusion nergtique/Fondation des Schneider Electric242021 Sustainable De
283、velopment Report1 Sustainability at the heart of our strategy1.5.4 Schneider Electric contribution to standardizationWith many experts actively participating in international and national standardization bodies,Schneider Electric is making a decisive contribution to the creation and distribution of
284、standards that ensure the safety and reliability of electric facilities and equipment,and address their environmental impacts all along their life cycle to prepare for a better circular economy,support the new energy landscape with the goal of greener energy integration,safer energy delivery and bet
285、ter integration of prosumers,support the digital transformation of the industry and any other customer values.Schneider is very active in international committees,covering also National Committees in US,China,India and historically Europe.CEN(European Standardization Committee),CENELEC(European Comm
286、ittee for Electrotechnical Standardization)and ETSI(European Telecommunications Standards Institute)are the three official European standardization bodies.CEN-CENELEC-ETSI serve as a main contributor of the French electrotechnical institute,which is a founding member of international(IEC Internation
287、al Electrotechnical Commission)and European(CENELEC)organizations.CENCEN is an association that brings together the National Standardization Bodies of 34 European countries.CEN provides a platform for the development of European Standards and other technical documents in relation to various kinds of
288、 products,materials,services and processes.CEN supports standardization activities in relation to a wide range of fields and sectors including:air and space,chemicals,construction,consumer products,defence and security,energy,the environment,food and feed,health and safety,healthcare,ICT,machinery,m
289、aterials,pressure equipment,services,smart living,transport and packaging.CENELECCENELEC is an association that brings together the National Electrotechnical Committees of 34 European countries.CENELEC prepares voluntary standards in the electrotechnical field,which help facilitate trade between cou
290、ntries,create new markets,cut compliance costs and support the development of a Single European Market.CENELEC supports standardization activities in relation to a wide range of fields and sectors including:Electromagnetic compatibility,Accumulators,primary cells and primary batteries,Insulated wire
291、 and cable,Electrical equipment and apparatus,Electronic,electromechanical and electrotechnical supplies,Electric motors and transformers,Lighting equipment and electric lamps,Low Voltage electrical installations material,Electric vehicles railways,smart grid,smart metering,solar(photovoltaic)electr
292、icity systems,etc.ETSI ETSI creates globally applicable standards for information and communications technologies(ICT),including fixed,mobile,radio,converged,broadcast and internet technologies.Authorized by the European Union,ETSI implements legislation governing electronic use and other EU initiat
293、ivesIECThe IEC is a global,not-for-profit membership organization that brings together more than 170 countries and coordinates the work of 20,000 experts globally.The IEC publishes around 10,000 IEC International Standards which together with conformity assessment provide the technical framework tha
294、t allows governments to build national quality infrastructure and companies of all sizes to buy and sell consistently safe and reliable products in most countries of the world.IEC International Standards serve as the basis for risk and quality management and are used in testing and certification to
295、verify that manufacturer promises are kept.Smart grids and sustainable citiesInvolved in IEC and CENELEC,at governance and technical levels,Schneider Electric participates actively in the standardization of smart grids,for which it leads the definition of standards and the standardization roadmap wi
296、thin the European smart grids coordination group,as well as the group in charge of standardizing the interfaces between smart buildings and smart grids.Schneider co-chairs the Smart Energy Grid coordination group of the CEN-CENELEC-ETSI responsible for ensuring availability of an appropriate set of
297、standards for the rollout of smart grids in Europe,as well as supporting the coming new legislative“Clean Energy Package”.It chairs the group at the IEC level in charge of defining the roadmap of international standards to support the rollout of the Smart Energy sector(smart grids,in addition to int
298、erfaces with other energies).This roadmap also includes cybersecurity and resilience,as well as the impact of the IoT.It chairs and actively contributes to the definition of Prosumers electrical installations,installations integrating local production such as PV,wind,storage to ensure they are desig
299、ned and erected with a high level of safety and efficiency.It chairs the IECs Advisory Committee for Energy Efficiency(ACEE)and chairs the Advisory Committee on Safety(ACOS).Circular economy and product environmental performanceSchneider contributed to the European Commissions Circular Economy packa
300、ge,with CEN-CENELEC-ETSI developed a set of published standards assessing durability,reparability,reusability,recyclability,ability to be remanufactured,etc.which fall within the scope of the EcoDesign directive.Schneider has appointed active experts in each of the working groups.It contributes to t
301、he terminology of circular economy being the first step of the digitalization of this topic,and also contributes to the material efficiency within environmentally conscious design,to the life cycle assessment product category rules and specific rules for high and low voltage equipment,and to greenho
302、use gas emission reduction quantification.Standardization to accelerate environmental transformationSince February 2007,Schneider has represented France on the IECs Advisory Committee for Environmental Aspects(ACEA).ACEA works to advise and coordinate the IECs efforts to tackle environmental issues.
303、25Life Is On|Schneider E2021 Sustainable Development Report It is particularly heavily involved in the working group on sustainability(chairing environment and circular economy groups)and in the work on the rational use of energy.It chairs the IEC TC111 Committee on Environmental standardization of
304、Electric and Electronic Equipment and IEC TC 23 Electrical Accessories(protection devices,wiring devices,home and building control systems).It is the secretary of IEC SC23K on Energy Efficiency Products,Systems and Solutions.In 2018 it led the UPS manufacturers group in the EU Commissions Product En
305、vironmental Footprint(PEF)pilots for defining rules to assess the PEF of products put on the EU market,prior to its implementation of the European policy.It chairs ISO TC 184(Automation systems and integration).Digital transformationDigitization is the key driver for the advanced manufacturing,optim
306、izing the production with more flexibility,more interoperability,more predictability,and continuity,providing a new level of system efficiency and sustainability.More data,software and tools enabling virtual descriptions,defined in digital twins,creating new capabilities and services combined with M
307、achine learning and Artificial Intelligence.Thats why Schneider Electric is strongly involved in ISO and IEC technical committees,and association like Industrial Digital Twin Association to deep dive and deploy the Asset Administration Shell through industrial Use Cases of the standardized digital t
308、win and in Universal Automation.Org,to address a more functional and distributed approach for the orchestration of industrial systems.National committeesSchneider Electric chairs many French standardization committees hosted by AFNOR(French standards organization)and in other national committees,suc
309、h as the chair of the French and Swedish Committees for environmental standardization and the French Committee on Circular Economy.It was a major contributor to smart manufacturing initiatives such as the AIF in France.Notably,it is a member of the Council Board and of the IEC Conformity Assessment
310、Board.1.6 Main ESG risks and opportunities1.6.1 Evaluation methodologyAs part of its Extra-Financial Performance Declaration,the Group presents the main risks and opportunities identified with respect to major societal challenges in this section.In order to compile the list of main extra-financial r
311、isks for the Group,a panel of both internal and external tools is used to address the expectations of its stakeholders as best as possible.The Group Sustainability team leads the evaluation,working in close collaboration with the Group Risk Management function and with the Duty of Vigilance Committe
312、e.The Groups corporate governance bodies supervise the development of internal control and risk management systems.The Audit&Risks Committee has particular responsibility for following up on the efficiency of internal control and risk management systems and reports to the Board of Directors.Internal
313、 tools:A regular stakeholder consultation(materiality assessment and matrix),at least once every three years(last exercise done in 2020);The Group risk matrix,led by the Group Risk Management function,updated every year;Specific committees(Carbon,Human Resources,Ethics,etc.);Vigilance risks matrix.C
314、ontinuous monitoring of external signals and international frameworks:Regulatory framework:the key topics listed under Article R.225-105 of the French Commercial Code(Extra-Financial Performance Declaration);International institutions/organizations(United Nations Global Compact and SDGs);Environment
315、,Social,and Governance(ESG)rating agencies;Specific requests from investors and customers;Recommendations from the Task Force on Climate-related Financial Disclosures(TCFD),and various frameworks (SASB,GRI,etc.).The analysis covers the entire value chain of the Group and its stakeholders:suppliers a
316、nd subcontractors,transactions,customers,as well as Schneider Electrics scope extending to the activities at its Foundation on cross-functional,environmental,social,and societal topics,human rights,and anti-corruption,with a double materiality approach.Each topic is monitored by the relevant departm
317、ents and their management teams,or“Risk Overseers”,who are in charge of proper risk assessments and the implementation of mitigation and prevention actions.The main departments and managers are:Sustainability,Access to Energy,and Environment,and the Global Sustainability SVP and Chief Strategy&Susta
318、inability Officer;Human Resources and the Chief Human Resources Officer;Procurement and the Chief Procurement Officer;Governance,Safety,and Ethics,and the Chief Compliance Officer and Chief Governance Officer.The main identified risks are quantified on probability of occurrence and magnitude of impa
319、ct by these departments to determine gross risks,and an assessment of current mitigation measures informs on potential net impacts.Extra-financial risks presented here are gross risks,i.e.,absolute risks before a mitigation plan is implemented.On this basis,the list of extra-financial risks is revie
320、wed and validated by relevant SVPs,the Board of Directors secretariat,Internal Audit team,Group Risk Management function and presented to the Human Resources&CSR Committee and to the Group Sustainability Committee at least every 3 years,in coherence with the SSI calendar.Seven main risk categories w
321、ere identified and are presented in detail in the following pages:Business conduct Corporate governance Cybersecurity and data privacy Environment Product,projects,system quality and offer reliability Human rights Responsible workplace Talent development and Schneider Electric262021 Sustainable Deve
322、lopment ReportFollowing its assessment of material risks,Schneider Electric presents its main ESG risks and opportunities.Risk description and impactPoliciesMain actions and 2021 performanceOpportunity created Business conduct Competition law Non-competitive behaviorSchneider Electric products are s
323、old worldwide and are subject to national and supranational competition laws and antitrust regulations.Non-compliance could result in fines and impact the companys reputation.Trust CharterConflict of interest PolicyCompetition Law Policy New whistleblowing system in place this year called the Trust
324、Line Increase relationship with suppliers to ensure compliance.Corruption and briberyCorruption is the abuse of entrusted power for private gain.It may occur through third parties activities(partners,suppliers,agents,companies to be acquired)and cause various impacts for the company:Reputational Leg
325、al Financial Development of the company Employer brandTrust CharterAnti-Corruption PolicyBusiness Agents PolicyGifts&Hospitality Policy Donations PolicyConflict of Interest Policy(new)Business Agent Policy(new)Trust Line whistleblowing system Specific risk mapping dedicated to“Ethics&Compliance”risk
326、s SSI#7:Measure the level of confidence of our employees to report unethical conduct:81%achieved,aiming for 10pts increase by 2025 Four additional modules as part our anti-corruption e-learning SSE#13:100%of employees trained every year on Cybersecurity and Ethics in 2025(96%achieved 2021)More oppor
327、tunities with actual and potential customersTalent attraction and retentionCorporate governance Delivering on ESG performance Failure to achieve our long-term sustainability commitments Brand and reputational impact Distrust from stakeholdersInternal Governance in place at every level(Board,Executiv
328、e Committee,Operations)to drive and monitor progressQuarterly Schneider Sustainability Impact(SSI)public disclosure SSI performance embedded in managers and leaders short-term incentives SSI 2021 performance reached 3.92/10,beyond 3.75/10 target Top 1%of several ESG Ratings Worldwide confirming we a
329、re headed in the right directionHigher credibility and trust to support our customers in their Climate and Sustainability journeyRisks mitigation ahead of competition thanks to the SSI disruptive and virtuous continuous improvement process ESG complianceFailure to report,lack of transparencyNew Corp
330、orate Social Responsibility regulations,Standards and market expectations are redefining what“Sustainable businesses”are Brand and reputational impact Risk of exclusion from growing Socially Responsible Investment(SRI),ESG or green portfoliosTransparent public reporting on sustainability objectives
331、and performance in quarterly SSI reports and in annual reports aligned with key frameworks(GRI,SASB,TCFD,WEF Common Metrics,SDGs)Regular engagement with stakeholders to identify critical sustainability topics(materiality analysis)Engagement and dialog with investors to ensure expectations are met Up
332、graded quarterly SSI reports Winner of the 2021 Transparency Awards for ESG informationGreater attractivity to investors,customers and talentsStrengthened partnerships with clients,suppliers,and other partners in the Groups ecosystemAnticipation of sustainability trends and risk mitigationInfluence
333、other companies to have better practices 1 Sustainability at the heart of our strategy27Life Is On|Schneider E2021 Sustainable Development ReportRisk description and impactPoliciesMain actions and 2021 performanceOpportunity created Cybersecurity and data privacy Business disruptionIndustrial activitiesRisk of a malicious exploitation or intrusion into the infrastructures of Schneider Electric pro
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