Time for Nature! Bringing Biodiversity central stage How Global Biodiversity Score

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Time for Nature! Bringing Biodiversity central stage

How Global Biodiversity Score helps

Xavier Houot– Senior Vice President – Chief Environment Officer September 22nd, 2020

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€27.2 billion

2019 revenues

41%

of revenues in new economies

135,000+

Employees in over 100 countries

5%

Key figures for 2019

North America

29%

Western Europe

26%

Asia Pacific

29%

Rest of World

16%

23% 77%

Industrial Automation Energy Management

Two Businesses:

A well-balanced global presence

2019 Revenues breakdown

of revenues devoted to R&D

Our purpose is to empower all to make the most of our collective energy and resources, bridging progress and sustainability for all.

€6 billion €21 billion

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A vast array of technologies for buildings, homes, industry, data centers, infrastructure. How does it link with Biodiversity ?

Energy Performance Contracting

Power Monitoring System

Variable Speed Drives

Transformers UPS Single Phase

Circuit breakers

Digital load management system

UPS 3 Phase Smart UPS MV Switchgear Circuit breaker

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Schneider Electric environmental strategy: a three-pronged journey

Climate and Resource well embedded in our Corporate Strategy, it is now “Time for Nature “

CLIMATE RESOURCE LIFE

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Our obsession : collaboratively deliver a “One-planet” prosperity path

For SCHNEIDER ELECTRIC

For our CUSTOMERS

For the WORLD’s ECONOMY

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GBS, an opportunity to measure and act at global level

From qualitative and punctual to quantitative and holistic (although not exhaustive)

GBS biodiversity footprint assessment tool…

• Calculates end-to-end footprint of organizations

• Measures positive & avoided impact

• Talks MSA.km², a metric with the potential to become the CO₂e of biodiversity

• Quantifiable / measurable approach

• Pragmatic approach → concrete & simplified (80/20)

• Possibility to aggregate results at different levels (by pressure, impact, country, input, etc.)

• Our intention: help fast-track the adoption of quantified metrics for action

• Define a quantitative strategy, with actionable targets to avoid, reduce, restore

• Track the progress, manage results and transform

business & operations

Our need The solution The way forward

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Most data required by GBS readily available from CO

₂

efforts

Lot of synergies with current reporting, however with strong differences in terms of data availability

Extra Financial Reporting

CO2 footprint Specific to GBS

Procurement (spent -€)

Tons of ore material

Energy

Water

Land

Medium high complexity

Medium complexity

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-200 -150 -100 -50 0 50 100 150 200 250 300

Schneider Electric’s biodiversity footprint

0 10 20 30 40 50

0 1 2 3 4 5

Only 0,3% of impacts are within our operation. Woods and metals impacts are significant.

Scope 1 (99% from GHG emissions)

Scope 2 (95% GHG emissions)

Use phase of products

Benefits through saved CO2 emissions

0 10 20 30 40 50

Impacts of GHG emissions

Wood (cardboards, pallets) Land use of metal mining Other

Operations

Supply chain Customers

Results are expressed in terrestrial dynamic MSA.km²

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Schneider Electric’s pressures on biodiversity

Cradle to gate terrestrial dynamic pressures on biodiversity

69%

2%

0%

29%

0%

Climate Change Encroachment Fragmentation Land use Atmospheric

Nitrogen Deposition

Key takeaways

CO₂emissions represents 70% of total Schneider’s

pressure on biodiversity – 94%

of these impacts are due to GHG emissions in our supply chain.

Land use, about 30% mainly due to land occupation of our supply chain. Attention: our direct site’s land occupation is accounted for in static impacts.

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Biodiversity has a unique traction within people

During Schneider’s Global Environment Day (June 5^th, 2020) celebrations, our 1000+ sites engaged with employees in outdoor activities to get in touch, protect, restore Nature

Bird nets and feeders building

Fruits plucking Plant seeding

Beach cleaning

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Addressing most Material impacts, with local engagement

Biodiversity is eventually a ‘local matter’, but a lot can be done throughout supply chain

I. Awareness &

engagement

II. Partnership &

innovation

III. Sustainable sourcing

focus on metals: traceability, secondary materials

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Schneider Electric committed to step-up, leveraging best practices sharing, and promoting footprint assessment

Assessing Biodiversity footprint, the opportunity to accelerate Corporate Biodiversity strategy

Schneider Electric performs first ever end-to-end biodiversity footprint assessment with the Global Biodiversity Score (GBS), a tool developed by CDC Biodiversité

Raise corporate biodiversity ambition & aim at no net loss

It is “Time for businesses” to quantify biodiversity

footprints and set ambitious targets to reverse nature loss

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MERCI !

Xavier Houot– Senior Vice President – Chief Environment Officer September 22nd, 2020

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