Schneider Electric SE

As of December 31, 2024, Schneider Electric's governance structure consists of a Board of Directors of 17 non-executive members, the Chief Executive Officer (an executive corporate officer who is not a Board member), and an Executive Committee. The percentage of independent Board members was 69.82% (a weighted average ratio). Board diversity stood at 48.20% women and 51.80% men; by age, 0% were under 30, 24.12% were between 30 and 50, and 75.88% were above 50; by regional nationality, 63.83% were from Western Europe, 12.06% from Asia Pacific, and 24.12% from North America. The Board includes three Employee Directors, namely two employee representatives (Mrs. Rita Felix and Mr. Bruno Turchet) and one employee shareholder representative (Mrs. Xiaoyun Ma). Sustainability oversight runs through the Governance, Nominations and Sustainability Committee and the Audit and Risks Committee, both of which report systematically to the Board on impacts, risks, and opportunities. As of December 31, 2024, 11 Directors were identified as having sustainability skills.

Reference: page 97

Schneider Electric describes how information flows to its bodies. The CEO regularly reports to the Board at each meeting and reports quarterly on the Group's sustainability progress, notably the results of the Schneider Sustainability Impact (SSI). Several Executive Committee members, including the Chief Financial Officer, Chief Sustainability Officer, and Chief Governance Officer, also report regularly to the Board and to the Audit and Risks and the Governance, Nominations and Sustainability Committees. Special sessions on sustainability topics are held with the whole Board, and in June 2024 a dedicated session on the CSRD was organized. The Governance, Nominations and Sustainability Committee reviews the sustainability strategy and risks (jointly with the Audit and Risks Committee) and conducts an annual review of the SSI. Material impacts, risks, and opportunities are fully integrated into the Board's decision-making and reviewed at the annual Strategy session.

Reference: page 97

Schneider Electric states there is no incentive scheme for members of the Board of Directors, who receive only a fixed base amount and a fee based on attendance. The disclosed sustainability-linked incentive arrangements concern only the Chief Executive Officer, through a Short-Term Incentive Plan (STIP) and a Long-Term Incentive Plan (LTIP). For the CEO, 20% of the STIP depends on the Schneider Sustainability Impact (SSI) score achieved at year-end, and 25% of the LTIP performance conditions depend on carbon emission reduction targets linked to the Group's greenhouse gas reduction goals. Overall, the percentage of the CEO's annual variable remuneration dependent on sustainability-related targets is 20%. The Board sets the annual SSI targets used in the incentive schemes based on recommendations from the Human Capital and Remunerations Committee and reviews achievements annually.

Reference: page 97

Schneider Electric does not present the GOV-4 statement on due diligence within the ESRS 2 governance pages. Instead, it cross-refers to section 2.2.5.3 "Declaration in terms of due diligence," which is a mapping table on page 276. That table maps the core elements of the due diligence process to the sections of the report where each is addressed: embedding due diligence in governance, strategy, and business model; engaging with affected stakeholders in all key steps; identifying and assessing adverse impacts; and taking actions to address those adverse impacts. The mapping points readers to sections such as the integrated and transverse governance section (page 97), the double materiality assessment (page 114), the Vigilance plan and Enterprise Risk Management (page 109), and various topical environmental and social sections.

Reference: page 276

Schneider Electric covers risk management and internal controls over sustainability reporting through two main existing internal frameworks: the Vigilance plan matrix and the Enterprise Risk Management (ERM) framework, which together formed the basis of the double materiality assessment. The Group uses a hybrid risk management model where a central Group Risk Management function sets the framework but ownership of risks belongs to the business units, Operating Divisions, and global functions. The Vigilance plan, governed by the Duty of Vigilance Committee set up in 2017 (which has held 19 meetings since inception and meets twice a year), complies with the 2017 French duty of vigilance law and has been adapted for the Norwegian and German laws. The Internal Control function uses a risk-based approach to define key controls linked to material impacts, risks, and opportunities, and Internal Audit independently assesses the effectiveness of governance, risk management, and internal control. The Audit and Risks Committee dedicates sessions once a year to reviewing the risk matrix, ERM, and internal control, reviews internal audit results three times per year, and reports systematically to the Board.

Reference: page 109

Schneider Electric describes a curated portfolio focused on electrification, automation, and digitalization, serving four main end-markets: Data Centers and Networks, Buildings, Industry, and Infrastructure. The Group is supported by 159,000 employees around the world, has a presence in over 100 countries, and reported total Group revenue of EUR 38,153 million in 2024. Its key activities are structured around two main businesses, Energy Management and Industrial Automation, each with assets in multiple locations including R&D facilities, manufacturing plants, and distribution centers. The Group works with around 50,000 suppliers across more than 100 geographies and is building the industry's largest network of distributors, selling directly to end-users or through distributors and downstream partners such as panel builders and system integrators. Its portfolio delivers high environmental performance products, software, and services that help customers decarbonize and reduce their footprint, generating saved and avoided emissions and Impact revenues.

Reference: page 96

Schneider Electric describes ongoing dialogue with its stakeholders, with the Sustainable Development department taking into account their comments, ratings, and evaluations, which feed into the Universal Registration Document, improvement plans, and the design of the core sustainability strategy (refreshed every three to five years, with the next iteration to be deployed in 2026). For the current reporting year, no significant amendments were made to the Group's business model and strategy. The statement sets out a stakeholder table covering suppliers, employees and social partners, customers and partners, investors and financial partners, governments and institutions, and local communities and NGOs, with engagement channels and 2024 achievements such as 63% of strategic suppliers providing decent work, 83% of employees confident to report unethical behavior, 679 million tons of CO2 emissions saved and avoided for customers, 74% Impact revenues, 300+ associations engaged, and 100+ local community commitments. A Stakeholder Committee created in 2021 advises the Group, and in 2024 its members participated in the CSRD double materiality assessment to review and approve the material sustainability matters found on pages 118 to 121.

Reference: page 102

Schneider Electric presents its material impacts, risks, and opportunities (IROs) as the results of its double materiality assessment, which combines an inside-out impact perspective and an outside-in financial perspective. The results are shown in a materiality matrix plotting impact materiality against financial materiality, listing 36 sustainability matters spanning environmental, social, and governance topics, with a materiality threshold set at the high-risk level. The most material matters include Energy, Climate change mitigation, Corruption and bribery, Health and safety, Working conditions, Cybersecurity, and Data privacy. A detailed IRO register on pages 119 to 121 describes each material impact, risk, and opportunity by type, covering environment (climate adaptation, climate mitigation, energy, substances of concern, resource inflows and outflows), social (working conditions, health and safety, equal treatment, training, forced labor, affected communities, consumer safety, data privacy), and governance (corruption and bribery with potential fines up to EUR 500 million under the French Sapin II law, supplier relationships, and cybersecurity). All IROs were evaluated over short and medium term (under 5 years), with long-term horizons applied where significant market change is foreseen, notably for climate and resource topics. The Group states most identified material risks and negative impacts have not materialized substantially, and that its strategy and business model are informed by these annual assessments.

Reference: page 118

Schneider Electric describes its process to identify and assess material IROs as a double materiality assessment based on EFRAG and ESRS guidance, considering both impact materiality (inside-out) and financial materiality (outside-in). The two main sources used were the Vigilance plan matrix, assessed as suitable to score impact materiality, and the Enterprise Risk Management (ERM) process, assessed as adequate for financial materiality. The Vigilance plan matrix relies primarily on the Responsible Business Alliance methodology and initially identified over 60 potential impacts; impacts were scored against ESRS severity criteria (scale, scope, and irremediable character for negative impacts; scale and scope for positive ones) and likelihood. Final materiality was determined by setting a threshold at the high-risk mark based on severity and likelihood. The assessment was managed by a steering committee with leaders from sustainability, financial reporting, risk management, and vigilance, supported by a CSRD Committee of top management, and the final results were validated by the Executive Committee and then reviewed and approved by the Audit and Risks Committee and the Governance, Nominations and Sustainability Committee. Topic-specific tools were also used, including the Global Biodiversity Score and IBAT for biodiversity, the WRI Aqueduct Water Risk Atlas for water, and IPCC scenarios (RCPs and SSPs ranging from 1.5 degrees C to over 4 degrees C) for climate, complemented by direct stakeholder consultation workshops with four external and one internal stakeholder group.

Reference: page 114

Schneider Electric presents the disclosure requirements it covers in a Disclosure Requirements presentation table in section 2.2.5.1 (page 270). The table notes that material information is disclosed according to its significance, completeness, and capacity to meet users' decision-making needs, in line with ESRS guidance. It lists each ESRS disclosure requirement against the report section and page where it is addressed, covering BP-1 and BP-2 (page 124), the ESRS 2 governance and strategy disclosures GOV-1 through GOV-3 (page 97), GOV-4 (page 276), GOV-5 (page 109), SBM-1 (page 96), SBM-2 (page 102), SBM-3 (page 95), IRO-1 (pages 114 and 126), and IRO-2 (page 270), followed by the minimum disclosure requirements (MDR-P, MDR-A, MDR-M, MDR-T) and the topical standards such as the ESRS E1 climate disclosures (for example E1-1 through E1-6 on pages 126 to 147).

Reference: page 270

Schneider Electric commits to be Net-Zero across its entire value chain by 2050, which means reducing its 2021 footprint by an absolute 90% by 2050 and neutralizing residual emissions with high-quality and durable carbon removal credits. By 2030 it aims to be "Net-Zero ready" in operations and to reduce value chain emissions by 25% absolute from a 2021 baseline. In August 2022 it was one of the first companies to have its GHG reduction targets validated by the Science Based Targets initiative (SBTi), aligned with the Corporate Net-Zero Standard published in October 2021; the 2030 Scope 1 and 2 target is aligned with limiting warming to 1.5C and the Scope 3 target with well-below 2C. The roadmap includes milestones in 2025 and 2030, with intermediary milestones planned for 2035, and from 2025 the Group will contribute to high-quality carbon removal matching operational (Scope 1 and 2) residual emissions. At the May 2023 Annual General Meeting, 97.67% of voters approved the Company's climate transition plan. 15.62% of Corporate Officers' (CEO and Executive Committee) remuneration is climate-related. Reference: page 126

In 2024 Schneider Electric integrated its two former policies (the Energy Policy and the Environmental Policy) into one Environmental Sustainability Policy to address the various dimensions of the environment and their interconnectedness. The policy defines the Group's ambition to go beyond regulatory requirements and achieve voluntary sustainability commitments and targets, focusing on reducing GHG emissions, enhancing energy efficiency, increasing the use of renewable energy, and implementing climate adaptation strategies. The Group commits to reduce its energy and environmental footprint, avoid locked-in emissions (no new investment project leading to residual fossil-fuel emissions for long-lived assets), define and deploy environmental best practices, and strive for resilience. It ensures compliance with international standards such as the Paris Agreement, ISO 50001 for energy management, and ISO 14001 for environmental management. The Global Environment team oversees implementation, with senior management and the Board of Directors involved in governance. Reference: page 134

Schneider Electric's actions to mitigate climate change are organized around decarbonization levers. For Scopes 1 and 2 these are energy sufficiency and efficiency at sites, electrification projects at sites, renewable electricity sourcing, electrification of the vehicle fleet, and reductions in SF6 leaks. For Scope 3 the main levers are supplier engagement (The Zero Carbon Project, which works with the top 1,000 suppliers to reduce their operational Scope 1 and 2 emissions by 50% by 2025), the phase-down of SF6 via the AirSeT range of circuit breakers, and eco-design of products. In reporting year 2024, implementation of decarbonization actions in Scopes 1 and 2 resulted in a reduction of 268,033 tonnes of CO2eq. During 2024 the Group invested EUR 41.6 million CapEx and EUR 0.8 million OpEx to support its transition plan, including EUR 39.8 million on electrification projects at sites and EUR 14.4 million on manufacturing sites to support SF6 phase-down. To achieve Net-Zero ready operations by 2030 it is estimated that around EUR 400 million will be invested from 2024 to 2030. Reference: page 135

Schneider Electric's GHG reduction targets use 2021 as the base year and were validated by SBTi in August 2022. By 2030 the Group aims to reduce Scopes 1 and 2 emissions by 76% versus 2021 (equivalent to 90% versus 2017, its "Net-Zero ready" operations commitment) and to reduce Scope 3 emissions by 25% versus 2021. By 2050 it aims to reduce both Scopes 1 and 2 and Scope 3 emissions by 90% to reach Net-Zero across the value chain. In absolute terms, total Scope 1 plus Scope 2 was 293,832 tCO2eq in the 2021 base year, with targets of 70,520 by 2030 and 29,383 by 2050; total Scope 3 was 68,737,485 tCO2eq in 2021, with targets of 51,553,114 by 2030 and 6,873,748 by 2050. Targets are expressed in absolute terms and Scope 2 is calculated on a market-based approach. Since 2021, Scope 1 and 2 emissions have decreased by 51% and Scope 3 by 19% in absolute terms. Reference: page 144

Schneider Electric's total energy consumption in 2024 was 1,446,752 MWh (expressed in MWh LHV). Total fossil energy consumption was 531,750 MWh (36.75% of the total), including 245,557 MWh from crude oil and petroleum products, 198,342 MWh from natural gas, and 87,850 MWh of purchased electricity, heat, steam and cooling from fossil sources, with zero from coal. Consumption from nuclear sources was 11,836 MWh (0.82%). Total renewable energy consumption was 903,166 MWh, representing 62.43% of total energy consumption, including 871,915 MWh of purchased renewable electricity, heat, steam and cooling and 31,251 MWh of self-generated non-fuel renewable energy. Renewable energy production for 2024 was 34,034 MWh and non-renewable energy production was 13,419 MWh. Energy intensity from high climate impact sectors was 39.87 MWh per million euros of net revenue. The Group monitors energy at 900+ sites worldwide. Reference: page 146

In 2024 Schneider Electric's total GHG emissions were 56,189,052 tCO2eq on a location-based basis and 55,792,894 tCO2eq on a market-based basis. Gross Scope 1 emissions were 106,360 tCO2eq. Gross Scope 2 emissions were 433,505 tCO2eq location-based and 37,348 tCO2eq market-based, with 86.73% of electricity covered by contractual instruments (41.97% unbundled and 44.77% bundled renewable energy credits), up from 78% in 2023. Total gross Scope 3 emissions were 55,649,186 tCO2eq, dominated by use of sold products at 42,598,039 tCO2eq, end-of-life treatment of sold products (mostly SF6) at 4,462,523 tCO2eq, and purchased goods and services at 6,562,746 tCO2eq. Downstream emissions represent approximately 85% of the total footprint, upstream Scope 3 about 14%, and operations (Scopes 1 and 2) less than 1%. Total GHG intensity was 1,494 tCO2eq per million euros of net revenue (location-based) and 1,483 (market-based). Reference: page 147

Schneider Electric does not have GHG removals or storage from projects in its own operations or value chain, so reported removals, associated emissions, and reversals are all 0. From 2025 the Group aims to invest in and contribute to carbon removal stored in the geosphere to progressively match, by 2030, the volume of residual emissions in its operations. Its carbon removals contribution portfolio will initially mix nature-based and engineered solutions, with a gradually increasing share of engineered solutions. Since 2011 the Group has invested in the Livelihoods Carbon Funds (LCF, LCF2, LCF3), which finance ecosystem restoration, agroforestry and rural energy projects. In the reporting year, 475 tCO2eq of carbon credits were canceled, of which 68.42% recognized against the VERRA standard and 31.58% against other standards; 63.16% came from reduction projects and 36.84% from removal projects, with 10.53% from EU projects. Current investments in Livelihoods funds plus AVEVA's portfolio are projected to deliver 1,908,709 tCO2eq of carbon credits to be canceled over the next 20 years. Reference: page 151

Schneider Electric uses internal carbon pricing to inform its climate strategy and incentivize low-carbon decisions. Carbon prices are used in the context of climate risk assessment to test the resilience of the Group's portfolio under different external carbon pricing levels and climate scenarios. Future carbon prices are determined from current country-level data drawn from databases including the IEA, World Bank, and the Network for Greening the Financial System, then projected across various climate futures. Depending on the scenario, the carbon price applied ranges from 0 to 647 EUR per tonne of CO2eq, applied to the full GHG footprint across Scopes 1, 2 and 3 (55,792,899 tCO2eq, covering 106,365 tCO2eq Scope 1, 37,348 tCO2eq Scope 2, and 55,649,186 tCO2eq Scope 3). Separately, the Group uses Marginal Abatement Cost Curve (MACC) analysis on carbon-intensive raw materials covering 2,540,000 tCO2eq (nearly 4% of total Scope 3 emissions). Reference: page 153

Schneider Electric substantively discloses anticipated financial effects from climate-related risks and opportunities. On physical risk, of 214 sites assessed, 30 sites (14%) are exposed to flooding and seven sites (3%) to windstorms; under a Current Policy pathway (SSP3-7.0) without mitigation, 269 of 521 sites assessed (52%) would have a high likelihood of natural-hazard exposure by 2050. The magnitude of physical impact is considered medium to low, with no material loss over the past ten years. On transition risk, under the most likely Current Policy and Stated Policy pathways and without additional mitigation, the expected aggregated impact from transition climate-related risks to Schneider Electric's discounted cash flows over the next ten years is between 3% and 4%. The Group performed a sensitivity analysis on its impairment tests at CGU group level and did not identify impairment risk from climate. Some quantification (e.g. earning value at risk) is described qualitatively rather than with a single euro figure. Reference: page 154

Schneider Electric's pollution-related policies center on chemical substances control and reduction within its Environmental Sustainability Policy, which is approved by the Chief Sustainability Officer and made externally available with yearly updates. The Materials and Chemicals Directive defines the Company's rules and strategies for materials and chemical substances, aligns with the EU Taxonomy Appendix C for pollution prevention and control, and specifies prohibited substances, restricted materials, and preferred alternatives. The Global Environment Health and Safety Directive on Hazardous Substances Management (GEHSD001) guides site-level implementation of hazardous substance management. The Group commits to comply with EU-REACH (EC 1907/2006) and EU-RoHS (2011/65/EU) on a worldwide basis, prohibits halogenated flame retardants, injected PVC and phenolic resin in new parts, and refuses RoHS exemption 8(b) for cadmium in electrical contacts. It goes beyond REACH and RoHS requirements across its entire product portfolio and supply chain regardless of geographic origin. Reference: page 159

Schneider Electric carries out continuous actions to substitute hazardous substances, working with suppliers across the value chain. It is at the forefront of transitioning to SF6-free medium voltage products and is actively eliminating halogenated flame retardants from plastics (a specific action on PFBS was carried out with polycarbonate suppliers in 2024) and removing lead from metal alloys and electronics still exempted under RoHS. A dedicated Technology Standardization Management team proposes RoHS-exemption-free electronic components and lead-free metal alloys to design teams. The Group is a member of the REACH consortium led by CETIM, which in 2024 evaluated substitution of PFAS, flame retardants, borates, lithium and siloxanes. A strategic project with Accenture is identifying and prioritizing substitution actions for the next 5 years. Substitution is integrated into broader productivity, quality and supplier-strategy initiatives, making it challenging to quantify separately. On conflict minerals, by end 2024, 99% of identified smelters and refiners were designated compliant with recognized third-party validation schemes. Reference: page 163

Schneider Electric's pollution targets are defined in the Materials and Chemicals Directive, with business units assessing their portfolios against the main regulations and storing results in a database named "Check a Product". Its Sustainability Essentials targets include SSE #2 (substituting relevant offers with SF6-free medium voltage technologies) and SSE #6 (growing product revenues covered by the Green Premium program). The Group aims for 100% of its products to comply with RoHS substance restrictions globally. By end 2024, 76% of products globally (94.4% of revenue) were compliant with RoHS restrictions, of which 48% without directive exceptions. It also targets removal of SVHCs under authorization (REACH Annex XIV) before their sunset dates; currently 80% of revenue comes from products meeting three criteria (RoHS compliance, SVHC communication, and no SVHCs under authorization). For other substances of concern not listed under RoHS or REACH SVHC there is no target, due to the lack of mandatory legal communication requirements in the supply chain. The Group is defining its 2025-2030 plan to reduce substances of concern, including financial resource allocation. Reference: page 164

Schneider Electric addresses pollution of air, water and soil mainly through management of hazardous substances at its sites and through end-of-life treatment of products. It has a Global EHS Hazardous Substances Management Directive (GEHSD 001) providing global oversight, including an approved chemical list, chemical risk analyses, training on chemical safety and spill response, and guidance on proper chemical storage, transfer and disposal to minimize environmental risks. All facilities using, handling, transporting or disposing of chemicals must have a system for reporting and managing environmental incidents, with all significant environmental issues reported to the regional environment leader within 48 hours. All sites with more than 50 employees (manufacturing) and more than 500 employees (offices) are certified under ISO 14001. Schneider Electric confirmed that no major incidents or deposits linked to substances of concern or SVHCs occurred during the reporting year. Reference: page 166

Substances of concern (SoC) and substances of very high concern (SVHC) are the central focus of Schneider Electric's E2 disclosure. The Group reports the amounts of substances that leave its facilities, broken down by hazard class. For SVHCs, the total leaving facilities as part of products was 97,193,833 (units as reported), dominated by reproductive toxicity categories 1 and 2 at 97,184,045, with carcinogenicity at 1,734 and persistent/bioaccumulative/toxic properties at 7,925; a further 76,637,681 of SVHCs are generated or used (76,612,556 reproductive toxicity). For SoCs, 2,551 leave facilities as part of products (2,528 reproductive toxicity, 23 carcinogenicity) and 2,986,786 are generated or used, including 1,637,117 skin sensitisation, 1,281,469 respiratory sensitisation, and 68,200 chronic aquatic hazard. No substances left facilities as emissions or as services. Reporting relies on supplier declarations and Full Material Disclosures (FMDs), which cover only 39% of the standard parts and materials database, so a conservative assessment was used for 2024; obtaining data beyond tier 1 suppliers remains a challenge. Reference: page 165

Schneider Electric discloses financial effects from pollution-related risks and opportunities, but the substantive financial figure reported is zero for the reporting year. The Group has a comprehensive process to avoid, manage and report environmental incidents related to hazardous substances. It confirmed that no major incidents or deposits linked to substances of concern or SVHCs occurred during the reporting year, and therefore the CAPEX and OPEX reported in conjunction with major incidents and deposits linked to pollution are 0. The Group states that if any incident had occurred, the CAPEX and OPEX incurred would be reported accordingly. Schneider Electric is defining its 2025-2030 plan to reduce substances of concern and very high concern in its products, including financial resource allocation, with efforts to ensure comprehensive reporting and transparency. Reference: page 166

Schneider Electric's Global Environmental Sustainability Policy is built on circular economy principles and aims to reduce both resource inflows and outflows. On inflows it emphasizes resource sufficiency and efficiency and sustainable sourcing of recycled and renewable materials; on outflows it focuses on material reuse, recycling and ultimately avoiding waste. The policy sets targets to increase secondary resources, including a goal to reach 50% green materials in products by 2025 (38% reached as of Q4 2024) and 100% of primary and secondary packaging free from single-use plastic using recycled cardboard by 2025 (74% in 2024). It applies to all operations including manufacturing sites, offices and the supply chain, ensures compliance with ISO 14000 standards, and is overseen by the Global Environment team with senior management and Board involvement. The company reports 80% of product revenues covered by Green Premium, about 19% of revenue from software and services, and 22% of product families with at least one circular option. Reference: page 167

Schneider Electric's actions on resource use and circular economy are driven by its Schneider Sustainability Impact (SSI) and Schneider Sustainability Essentials (SSE) programs. The Green Materials initiative (SSI #4) raised green material content in products to 38% by end of Q4 2024, up from 29% in 2023 and 18% in 2022, against a 50% ambition by 2025, covering thermoplastics, steel and aluminum (about a third of procurement volume). The Sustainable Packaging program (SSI #5) reached 74% of primary and secondary packaging free from single-use plastic and using recycled cardboard, up from 63% in 2023, targeting 100% by 2025. Through take-back and end-of-use programs the company has avoided 334,364 metric tonnes of primary resource consumption since 2017 against a 420,000 tonne ambition by 2025 (SSE #10), and has increased Waste-to-Resource sites to 135 (target 200 by 2025, SSE #9). Circular business practices include EcoDesign, refurbishment (e.g. MasterPact MTZ circuit breakers), reverse logistics, Extended Producer Responsibility under the WEEE Directive, and Energy-as-a-Service through the AlphaStruxure joint venture. As of Q4 2024 the company reports it had helped customers save and avoid 628 million tonnes of CO2 since 2018. Reference: page 169

Targets on resource inflows are set under SSI #4 (increase green material content in products to 50% by 2025, covering thermoplastics, steel and aluminum) and SSI #5 (100% of primary and secondary packaging free from single-use plastic and using recycled cardboard by 2025). SSE #10 targets avoiding 420,000 metric tonnes of primary resource consumption through take-back at end-of-use by 2025, cumulatively since 2017, with 334,364 tonnes avoided as of 2024. On resource outflows the Group set two SSE targets: SSE #6 (80% of product turnover covered by Green Premium products) and SSE #10 (the same 420,000 tonne take-back target). These SSI and SSE targets are all set to be fulfilled by 2025, with SSI reported quarterly and SSE annually, and the Group is defining its next five-year program for 2026-2030. Reference: page 172

Schneider Electric reports an overall total weight of products and technical and biological materials used during 2024 of 2,189,833 tonnes. The absolute weight of secondary reused or recycled components, intermediary products and materials used to manufacture products and services (including packaging) was 159,280 tonnes, representing 7.27% of the total. The percentage of sustainably sourced wood (biological material) used in manufacturing including packaging was reported as 0%, because under Schneider's conservative definition only sustainably certified wood qualifies and coverage was not yet established. The Green Materials initiative covers about 29% of procurement volume (thermoplastics, steel and aluminum), and by end of Q3 2024, 38% of materials in scope were qualified as green, against a 50% by 2025 target. As a conservative assumption the Group set recycled aluminum volume to zero pending more supplier primary data. Reference: page 176

Schneider Electric's production focuses on electrical distribution, automation and energy management products designed for durability, disassembly, repair, upgrade and recyclability. The company discloses average product durability by Product Group using the Reference Service Life (RSL) concept per EN 50693:2019, with values ranging from about 10 years (e.g. Low Voltage Products, Machine Solution) up to around 20 years (Low Voltage Equipment IEC & NEMA, Contactors, Universal Enclosures at 20.06, Automation Transfer Switch) and 16.10 years for Air Circuit Breakers. RSL data was compiled for over 35,000 products across 75 Product Lines, 402 Strategic Product Families, 2,389 Product Families and 16,800 Product Groups. The percentage of recyclable content in products was 74% and in product packaging 70% in 2024. Recyclable content tonnage is calculated from recyclability potential multiplied by product weight, then by sales. Reference: page 181

Schneider Electric manages product end-of-life waste through its Waste-to-Resource program, focusing on visibility of hazardous waste handling, material and energy recovery, and applying best available techniques. In 2024 the Group set an ambition to reduce hazardous waste intensity by 30% in 2025 against a 2017 baseline. Under SSE #9 the company has established 135 Waste-to-Resource sites, with an ambition to reach 200 by 2025. These sites are required to achieve 99% recovery for non-hazardous waste and 100% recovery for hazardous waste, with waste-to-energy solutions limited to 10% of waste, and sites generating hazardous waste must ensure 100% proper handling and treatment. Waste is considered recovered if reduced, reused or recycled, excluding landfill and incineration without energy recovery, and each site is assessed under more than 240 indicators consolidated in the EHSA dashboard. Reference: page 182

Schneider Electric maintains a set of own-workforce policies anchored in its Trust Charter (Code of Conduct) and Group Human Rights Policy, covering working conditions, health and safety, equal treatment, and training and skills development. Signature policies include the Global Family Leave Policy (relaunched 2023, providing 20 weeks paid primary parental leave, 4 weeks secondary, 2 weeks care leave and enhanced local bereavement leave), the Global Flexibility@Work Policy (two days work-from-home for eligible employees, one day for distribution and plant roles), the DEI Policy, the Group Anti-Harassment and Anti-Discrimination Policy (deployed 2023), the Pay Equity policy, a Digital Accessibility policy (launched 2024), and the Group Health and Safety Policy aligned with ISO 45001. Policies are accessible via the intranet, approved by senior officers such as the Chief Human Resources Officer, and the Group offers an Employee Assistance Program covering over 90% of operating countries. Reference: page 203

Schneider Electric engages with its own workforce through a two-way dialogue framework set out in its Global Human Rights Policy and Trust Charter, working directly with employees and through freely appointed employee representatives, works councils, employee forums and trade unions. The main listening channel is the annual OneVoice engagement survey, which measures ten key drivers; in 2024 it achieved an 88% response rate (121,805 responses, up 7,184 since 2023) and a stable engagement score of 73%. Survey results feed manager-led action plans, with 78% of employees agreeing on the positive impact of action plans and 43% of managers having access to team-level results. Social dialogue is managed at country level and transnationally through the European Works Council under the 2014 agreement covering EEA countries plus the UK and Switzerland, with the EWC Chairperson seat held by an HR Senior Vice-President. The Group also joined the Global Deal initiative in 2017. Reference: page 210

Schneider Electric provides channels for own workers to raise concerns and remediate negative impacts, principally through the Trust Line, its global whistleblowing system operated by an external impartial third party that protects whistleblower anonymity where legally possible. Employees can report unethical behavior or misconduct either by contacting an appropriate person in the Group (manager, HR business partner, Legal Counsel or Compliance Officer) or via the Trust Line, with all channels consolidated back into the Trust Line system. Case management is a structured process led by the Ethics and Compliance team. In 2024, 51% of closed, valid and substantiated alerts reported through whistleblowing concerned discrimination, harassment and sexual harassment. The Group also promotes a Speak Up mindset and strengthened investigation capabilities in 2024 by increasing the number of HR investigators and updating e-learning for internal investigators. The detailed Whistleblowing Policy is described in section 2.2.1.1.3. Reference: page 105

Schneider Electric takes action on material workforce impacts through programs embedded in its SSI and SSE metrics and its Inclusion and Care by Design strategy. Concrete actions include the Global Family Leave and Flexibility@Work policies, mental health support (in 2024, 84.6% of new hires completed the We All Have Mental Health module), the #WorkingwithCancer pledge with a one-stop benefits shop in the top 12 countries, Global Mental Health Day campaigns reaching over 6,000 employees, and the Digital Boost upskilling program leveraged by over 38,000 employees in 2024. On engagement, manager-led action plans follow the OneVoice survey, with recognition (61%) and collaboration (59%) identified as the lowest-scoring drivers requiring continued focus. The Group tracks effectiveness through the annual engagement survey, where 74% of employees feel the organization looks after their well-being and 81% feel they have flexibility to modify work arrangements. Reference: page 203

Schneider Electric sets workforce-related targets primarily through its Schneider Sustainability Impact (SSI) and Schneider Sustainability Essentials (SSE) programs running to 2025. Key targets include an engagement score of 75% by 2025 (SSE #24), against 73% in 2024; gender diversity under SSI #8 of 50% of new hires, 40% of frontline managers and 30% of senior leadership being women by 2025; payment of at least a living wage to 100% of employees (SSE #20); a pay gap below 1% by 2025 for both genders under SSE #18; and the Health and Safety target to reduce the Medical Incident Rate to 0.38 by 2025 from a 0.79 baseline in 2019 (SSE #14). The Group notes it has not imposed specific internal targets for job architecture, pay-for-performance, incentive plans or benefit standards, and that adequate wage and equal pay targets are addressed in dedicated sections. Reference: page 203

As of the 2024 reporting period Schneider Electric reports a total of 159,002 employees by headcount, comprising 104,291 male, 54,680 female, 13 other and 18 not reported; the average headcount over the year was 157,275. Of total employees, 145,649 were permanent, 13,254 temporary and 99 non-guaranteed hours employees. The largest country populations include the United States (23,759), India (22,663), Mexico (19,380), China (16,378) and France (15,131). The workforce has a balanced age distribution with nearly 21% below 30, 59% between 30 and 50, and 20% above 50. In 2024, 19,815 employees left the company, resulting in a turnover rate of 12.6%. Trainees and apprentices were excluded from scope in 2024, in accordance with ESRS S1. Reference: page 213

Schneider Electric reports collective bargaining coverage and social dialogue separately for the European Economic Area and globally. Based on data collected from EEA countries, around 91% of employees are covered by collective bargaining agreements and around 98% are represented by employee representatives locally. At global level, 78% of employees are covered by collective bargaining agreements and 60% are represented by unions. Low representation in some EEA countries is linked to small headcounts, but every EEA country with more than 150 employees has at least one seat at the European Works Council under the 2014 agreement, and the UK and Switzerland also have representatives at the EWC. Social dialogue is managed at country level by HR leaders with employee representative bodies and unions; examples in 2024 include successful US contract ratification, Mexican negotiations involving 2,700 employees across two sites and salary negotiations benefiting 10,300 unionized employees, and robust dialogue across 30 legal entities and 100 locations in China. Reference: page 210

Schneider Electric reports gender diversity metrics under SSI #8, which targets women representing 50% of new hires, 40% of frontline managers and 30% of senior leadership by 2025. In 2024, women represented 42% of total new hires, 30% of frontline management, 31% of leadership, and 35% of the overall workforce; women made up 43% of the Board of Directors, 40% of the Executive Committee, 28% of management positions and 36% of non-management positions. At top management level (Vice-Presidents and above, including Core entities and Non-IT Integrated Entities such as AVEVA, RIB, ETAP and Luminous), there were 405 female and 946 male leaders out of 1,351 total, equal to 30% female and 70% male. The 2021 baseline for the SSI #8 metrics was 41% of new hires, 23% of frontline managers and 24% of senior leadership. The workforce spans 183 nationalities across 108 countries, with 91% of Country Presidents local or regional. Reference: page 218

Schneider Electric treats earning a living wage as a fundamental human right embedded in its Human Rights Policy and Trust Charter, and has conducted an annual living wage gap analysis since 2018. Since 2021 the Group committed under SSE #20 to pay 100% of employees at least a living wage, working with the consultant Fair Wage Network and obtaining external limited assurance; it was certified a Living Wage Employer by the Fair Wage Network in March 2024 for a second consecutive time, valid until December 31, 2025. At December 31, 2024, no living wage gaps were identified within the SSE #20 scope. Within the broader CSRD reporting scope, no living wage gap was identified except in one legal entity in Asia representing less than 0.2% of total employees and less than 0.5% of employees in Asia, a legacy acquisition under divestment, with gaps to be addressed within the year. For the CSRD metric the analysis focused on fixed compensation only. Reference: page 213

Schneider Electric set a five-year safety ambition under SSE #14 to reduce the Medical Incident Rate (MIR) to 0.38 by 2025, from a 0.79 baseline in 2019. In 2024, 197 medical incidents were recorded, giving a MIR of 0.60, with 4 incidents classified as serious and no employee fatalities; the 2024 MIR increased 17% versus 2023. The Lost-Time Day Rate (LTDR) was reduced to 9.1 lost days per incident, a 17% reduction versus 2020, and the LTIR historical trend shows 0.24 in 2024 against a 0.24 target. Under CSRD requirements, 43% of employees work in Schneider Electric sites with ISO 45001 certification and are covered by a health and safety management system. The rate of recordable work-related accidents for own workforce was 0.54, connected with 168 work-related accidents. There were no work-related injury or ill-health fatalities in Schneider Electric's own workforce in 2024, while one contractor fatality occurred in India when a contractor fell through a roof skylight while installing solar panels. Reference: page 215

Schneider Electric reports gender pay gap and remuneration ratio metrics. Under SSE #18 the Group committed to attain and maintain a pay gap below 1% by 2025 for both genders using a median, peer-group, Core-scope methodology, which differs from the CSRD definition (mean, by-gender difference, including Non-IT Integrated Entities). For 2024 the unadjusted gender pay gap, comparing average pay between female and male employees globally without adjusting for country, level or role, was 22.1%. The adjusted gender pay gap, segmented by country and level and calculated as a weighted average, was 2.0%; 0.02% of the population was not covered as their gender differs from female or male. The annual total remuneration ratio, comparing the highest paid individual to the median employee compensation under CSRD guidelines, was 95 in 2024. Reference: page 226

Schneider Electric reports incidents, complaints and severe human rights impacts via its Trust Line whistleblowing system. In 2024 the Group received a total of 2,319 reports (including 50 for AVEVA) concerning potential violations of laws, regulations, the Trust Charter and Group policies, of which 1,371 were assessed as valid and proceeded to investigation. No complaint was filed with National Contact Points for Schneider Electric in 2024. Focusing on discrimination, harassment and sexual harassment, the Group received 1,122 potential violations (including 11 for AVEVA), of which 683 were determined valid, and among the cases closed in 2024, 233 were substantiated following investigation with appropriate actions taken. At year-end 2024 the Group reported fines, penalties and compensation for damages as a result of incidents of discrimination amounting to 280,331 euros, including harassment, sexual harassment and complaints filed. Reference: page 225

Schneider Electric's policies for value chain workers are anchored in its Trust Charter and its Global Human Rights Policy, last updated in 2022 and approved by the Group's Chairman. The Human Rights Policy is built around three principles covering respect for laws, promotion of human rights across sites and subsidiaries, and support for human rights beyond the Group's borders, and it explicitly addresses forced labor, health and safety, and working conditions. It is available in eight languages and applies to all affiliates and to all permanent and temporary employees working on Group premises. The Supplier Code of Conduct (SCoC) is the policy instrument dedicated to the supply chain, covering human rights, ethical conduct, environmental management, occupational health and safety, sub-supplier engagement and access to remedy, with explicit reference to child labor, human trafficking, modern slavery and forced labor as unacceptable. The Group endorses international frameworks including the Universal Declaration of Human Rights, OECD Guidelines, ILO Declaration and the UN Guiding Principles, and a Supplier Guidebook (launched 2016) sets expectations across five areas. Reference: page 237

Schneider Electric engages value chain workers mainly indirectly through its suppliers, using a customized supplier communication and engagement plan delivered via the Schneider Electric Supplier Platform. Engagement avenues include contractual inclusion of sustainability requirements and the Supplier Code of Conduct, webinars and thematic digital sessions, one-to-one communications, and dedicated training and capacity building for ISO 26000 and the Decent Work Program. On average, each supplier receives 4-6 rounds of capacity building, clarification and coaching sessions. During 2024, as part of the Geography workstream, the Company began using Worker Voice surveys with a pilot in Vietnam, with plans to expand the tool in coming years. A Duty of Vigilance Committee set up in 2017 and chaired by the Executive Vice-President, Global Supply Chain oversees human rights issues in the value chain. Reference: page 236

Schneider Electric provides access to remedy for value chain workers primarily through the Trust Line, its internal and external alert system, which is referenced in the Supplier Code of Conduct as the ethics hotline any partner can use to raise concerns. The Human Rights Policy states the Group's commitment to provide or support remedy where it has caused or contributed to a negative impact. When non-conformances are found in vigilance audits, suppliers must implement corrective actions and undergo a revised on-site audit before risk status can be lowered. For the most serious non-conformances, each case is escalated to the Chief Procurement Officer, and unresolved top priorities may lead to ending the business relationship. In 2024, one business relationship with a supplier was stopped due to non-conformance with the Vigilance plan. Reference: page 236

Schneider Electric acts on value chain worker impacts through its Duty of Vigilance program (SSE #17), risk-based supplier screening using the RBA methodology across its core network of about 50,000 tier 1 suppliers, and on-site audits of high-risk suppliers spanning 2-3 days. In 2024, 240 on-site audits were performed and 564 suppliers answered the self-assessment questionnaire; the 2024 audits raised more than 2,400 non-conformances, of which 209 were assessed as top priority. Among the 209 top priorities, labor standards accounted for 61%, health and safety 30%, and environment and management systems 9%. From the program's start in 2017 to end of 2024, about 1,250 suppliers had been audited on-site and more than 14,800 non-conformances were raised and remediated, supporting improved working conditions for almost 400,000 employees. As of end 2024, Schneider Electric had closed 98% of all 2023 non-conformances and 40% of 2024 non-conformances, and through the ISO 26000 program achieved an average EcoVadis score of 64.4 against a 63.5 target for 2024. Reference: page 240

Schneider Electric sets targets for value chain workers through its Schneider Sustainability programs. The Duty of Vigilance target (SSE #17) to audit suppliers between 2021 and 2025 was achieved with more than 4,050 suppliers at the end of 2024, one year in advance of the 2025 deadline. The ISO 26000 program has a target average EcoVadis score of 65 points for all strategic suppliers by end of 2025, with annual milestones; against the 63.5 point target for end of 2024 a score of 64.4 was achieved (a 2.5 point increase in 2024). The Decent Work program target (SSI #6) aims for 100% of strategic suppliers to reach compliant status by end of 2025; against a 60% target for end of 2024, 63% of strategic suppliers achieved compliant status. These ambitions are split into annual targets. Reference: page 236

The affected communities topic is governed by Schneider Electric's Human Rights Policy, specifically section 2.1 on local communities and indigenous people. Through this policy the Group commits to build understanding and engage with communities potentially affected by its value chain activities, and to minimize impacts on local or indigenous populations. The policy also states that where Schneider Electric has caused or contributed to a negative impact, the Group commits to provide or help provide remedy to those harmed, and the Trust Line can be used by potentially affected communities to raise concerns. The topic also falls under the Group's Vigilance plan ambition to be a role model in its interactions with communities on ethics and human rights. The Group notes that at a later stage some specific policy may be drafted to further structure the framework. Reference: page 247

Schneider Electric's processes for engaging affected communities are overseen by the Duty of Vigilance Steering Committee, chaired by the Executive Committee member in charge of the supply chain. To understand the topic, the Group participates several times a year in coalitions including the United Nations Forum on Business and Human Rights, the UN Global Compact Decent Work and Forward Faster initiatives, the Taskforce on Affected Communities of the French UNGC, the Responsible Business Alliance, Responsible Steel and the Copper Mark. Schneider Electric has identified 6 categories of potentially affected communities, ranging from those living adjacent to its sites and suppliers' sites to people living around mines, waste management sites and customer projects. The Group acknowledges that besides its participation in coalitions it has not yet engaged directly with affected communities, and is still investigating which communities and what engagement would be relevant. Reference: page 246

Schneider Electric provides affected communities with access to remedy mainly through the Trust Line, its internal and external alert system, which communities potentially affected by the Group's activities throughout the value chain can use to raise concerns and alerts. The Human Rights Policy states that in situations where Schneider Electric has caused or contributed to a negative impact, the Group commits to provide or help provide remedy to those harmed. For customer projects, risks are prioritized and escalated through a project selection process following the 8 International Finance Corporation performance standards, with a risk assessment added to the Customer Project Process that can be reinforced by an expert third-party report. The Group notes that relations with local populations on customer projects are usually handled by the main contractor or the end-customer. Reference: page 247

Schneider Electric acts on community impacts through programs targeted at each of its 6 affected-community categories. For suppliers' sites it applies supplier qualification, the Supplier Code of Conduct, on-site and remote audits under the vigilance plan (SSE #17) and ISO 26000. For raw material extraction it runs the conflict minerals program (tin, tungsten, tantalum, gold plus cobalt and mica) and the SSI #4 program (aluminum, steel, plastics) with an ambition to raise green material content in products to 50%. Since 2021 it extended Vigilance risk assessment to communities near customer project sites; 40 customer projects were selected for review and as of end 2024, 30 projects had been reviewed (2 Type 1, 19 Type 2, 9 Type 3), with the majority found to have limited community impact. For the EACOP project, Schneider Electric commissioned an independent third-party risk assessment based on IFC performance standards and organized two field visits in Uganda and Tanzania led by its Chief Compliance Officer. Reference: page 246

Schneider Electric does not set quantified standalone targets specific to affected communities in this section. Instead it relies on broader sustainability program targets that also benefit communities, notably the SSI #4 ambition to increase green material content in products to 50% and the Duty of Vigilance (SSE #17) supplier audit program. The Group states it is still investigating which communities and what direct engagement would be relevant, and indicates that specific policy and structure may be drafted at a later stage. It also reports raw material risk evaluation prioritized by procurement volume and human rights risk, alongside an accelerating circularity strategy to limit raw material consumption and associated risks. Reference: page 246

Schneider Electric's consumer and end-user policies center on quality, product safety and data privacy. In 2023 the Group elevated its commitment through a new Quality Policy stating that meeting quality, product safety and reliability requirements is its baseline, and that it will only propose products, solutions and services that are safe when properly used for their intended or reasonably foreseeable purposes. The Customer Satisfaction and Quality network covers all layers, functions, global supply chain, operations and lines of business, and the Quality Policies are publicly available. For data privacy, the Company's Data Privacy Policy, drafted and updated in 2024, reflects fundamental privacy principles and was prepared considering the GDPR, the California Consumer Privacy Act (CCPA) and the Personal Information Protection Law (PIPL). Supporting documents include the Trust Charter, Data Golden Rules, Binding Corporate Rules, Privacy by Design Guidelines and cybersecurity policies aligned with ISO 27001, the NIST Cybersecurity Framework and ISA/IEC 62443. Reference: page 251

Schneider Electric engages consumers and end-users through multiple touch points across quality and data privacy. When customers use the Customer Care service, a short satisfaction survey is offered to evaluate their trust and to raise and address concerns or needs, with Customer Care contact information shared in communications and packaging. For data protection, consumers can access the online data privacy policy and cookie notice on the Company website, consult product-specific privacy notices for connected offers, and exercise data protection rights via dedicated email addresses (Global-Data-Privacy@schneider-electric.com and DPO@schneider-electric.com), a web form being rolled out across countries, a postal address, and the Customer Care Centers. The Group's data governance ecosystem includes a Chief Data Officer, a network of Data Officers and Data Privacy Champions, a Group Data Protection Officer and a DPO Office coordinating privacy contacts in key countries. Reference: page 251

Schneider Electric provides several channels for consumers and end-users to raise concerns and obtain remedy. Any occurrence or near-miss of bodily injury or property damage potentially attributable to a Schneider Electric offer must be reported as an Offer Safety Issue (OSI) within 24 hours of awareness by any employee or partner, and the process emphasizes that sensitivity, confidentiality or cost concerns should not delay reporting; anyone pressured not to report can use the Schneider Trust Line. For data privacy, the Trust Line allows anyone to report a violation of the Trust Charter, policies or law, security vulnerabilities or incidents can be reported to the SOC operating 24/7/365, and potential data breaches are treated as Priority 1 incidents investigated and remediated under the Cybersecurity Incident Management Policy. Individual rights requests and claims are collected and addressed in a timely manner with privacy contacts and the DPO Office. Reference: page 251

Schneider Electric takes action on personal safety through its End-to-End Issue to Prevention (E2E I2P) process and the Quality Directive Managing Customer Safety Risks, which manage offer safety issues from reporting through the Offer Safety Alert Committee Go/No-Go decision to remediation and closure approved by the Country President. The Group reduced safety-related product recalls from 23 approved recalls in 2023 to 5 in 2024, established the goal to eliminate product recalls (SSE #15), and deployed real-time and statistical process control to over 500 manufacturing lines. On data privacy, the Company runs a data protection program across Europe, the USA, China, India and other key countries using the Data Golden Rules checklist and a Data Privacy Playbook, with bi-annual country maturity assessments; in 2024 mandatory Schneider Essentials trainings covered Data Fundamentals and Cybersecurity, and a web form for exercising data protection rights was rolled out at the end of 2024 into 2025. Non-compliance with GDPR security obligations under Article 32 could expose the Company to fines of up to 4% of global annual turnover, though the Company has no track record of this consumer privacy risk having materialized. Reference: page 251

Schneider Electric's main consumer and end-user target is to drive toward zero product recalls, implemented through SSE #15. The Group reduced safety-related product recalls to 5 in 2024 from 23 approved recalls in 2023 and set the visionary goal to eliminate product recalls, expressed both as a 2025 ambition (SSE #15) and an ambition to reach zero recalls by the end-2050 horizon. A data-driven zero-defect industrialization program aims for products to achieve 100% first time right and on-time flawless launches, and a Quality Index was developed to measure quality-centric behaviors and outcomes across all plants and distribution centers. For data privacy, no separate quantified target is disclosed; progress is tracked through bi-annual country maturity assessments and a maturity matrix. Reference: page 251

Schneider Electric's business conduct policies are anchored in the Trust Charter (the Group's Code of Conduct) and the Anti-Corruption Policy, under which the Group declares zero tolerance for corruption and commitment to comply with all applicable anti-corruption laws. The Anti-Corruption Policy was published and rolled out in revised form in 2021 to meet the requirements of the French Sapin II law, acts as a handbook for all employees and affiliates, and will undergo an update in 2025 to reflect the 2024 risk assessment and align with the United Nations Convention against Corruption. It is reinforced by specific policies on Conflict of Interest and on Gifts and Hospitality, both updated in 2023. The Ethics and Compliance program is led by the Ethics and Compliance department under the Chief Compliance Officer, supported by Regional Compliance Officers and a community of Ethics Delegates, while the Board of Directors oversees effectiveness through the Audit and Risks Committee. Management commitment is shown by leadership videos and a December 9, 2024 live awareness event that saw over 6,000 employees participate. Reference: page 258

Schneider Electric manages supplier relationships through its Sustainable Procurement framework and the Schneider Procurement Policy Book, which institutionalizes screening, identification and mitigation of supplier sustainability risk and embeds preventive controls into procurement processes. In 2024 the Group sourced goods and services from more than 50,000 suppliers across more than 75 categories, amounting to a spend of approximately EUR 18.5 billion. A four-step process governs supplier relationships: the Supplier Approval Module (SAM), Supplier Qualification Module (SQM), Supplier Performance Module (SPM) and Supplier Development Process (SDP), with sustainability performance as a key evaluation criterion managed through the Schneider Supplier Portal (SSP-SRM). The Chief Procurement Officer is the most senior level accountable for implementing the policy, and supply chain finance (reverse factoring) is offered to give large, small and medium suppliers the option to be paid early. The Group also runs Vendor Query Management (VQM), which handles approximately 20,000 supplier queries each month with an average resolution time of 2 days. Reference: page 262

Schneider Electric prevents and detects corruption through a risk-based anti-corruption program built on Ethics and Compliance risk mapping, first launched in 2018 for Sapin II compliance and updated in 2024. The program focuses on at-risk employees in third-party-facing roles; the 2024 list contains 474 different job codes, with 85% of the affected population concentrated in Customer Projects and Services, Finance, Sales, Procurement and Marketing. Third-party due diligence covers customers, suppliers, Business Agents (intermediaries the Group seeks to minimize), sponsoring and donations, and mergers and acquisitions, using screening, investigation, review and audit. Anti-corruption e-learnings, available in 14 languages, were rolled out in 2024 to more than 64,000 employees with a 98.9% completion rate (versus 98.5% in 2023), and enhanced accounting control procedures launched in 2022 digitize preventive and detective controls. Whistleblowing is enabled through the Trust Line, and in 2024, 11% of closed, valid and substantiated whistleblowing alerts concerned a violation of the Anti-Corruption Policy. Reference: page 258

For the reporting year 2024, Schneider Electric was not convicted for any violation of anti-corruption and anti-bribery laws. The Group reports zero confirmed incidents resulting in conviction for the period. It notes that 11% of the closed, valid and substantiated alerts reported through whistleblowing in 2024 concerned a violation of the Anti-Corruption Policy, but discloses no confirmed convicted incidents of corruption or bribery. The disclosure is framed within the Group's broader anti-corruption program and CSRD metric on prevention of corruption and bribery. Reference: page 260

Schneider Electric discloses its payment practices in detail, tracking a Paid On Time (POT) KPI measured as the percentage of payments made within agreed terms per legal entity for OG vendors. As of December 2024 the POT metric was 80%, a significant improvement from 71% when tracking began in January 2022, against a target of 85% for 2024. Standard optimum payment terms under the PGS rules are 60 days for Europe, 90 days for China and North America, and vary by market for the rest of the world (for example 45 days for Australia and MSME India, 90 days for Japan). The average number of days to pay suppliers, measured from the invoice date, was 66 days for all suppliers (61 for Large, 70 for Medium, 77 for Small), or 46 days using the received invoice date. The percentage of payments aligned with standard terms (number of invoices approach) was 79% from the invoice date and 97% from the received invoice date, and for the full year 2024 Schneider Electric counted ten outstanding legal proceedings related to late payments. Reference: page 262