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 December 8^th, 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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Page 3 Confidential Property of Schneider Electric |

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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Nature is deteriorating

Biodiversity planetary boundaries, Living planet index: all index show a severe degradation of biodiversity (its abundance, its diversity, number of species)

The global Living Planet Index: 1970 to 2016 Trend of biodiversity loss and scenarios to return to a safe operating

space (within planetary boundaries)

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End to end biodiversity footprint assessment

-

return of experience

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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 orematerial

Energy

Water

Land

Medium high complexity

Medium complexity

Tons of raw material Medium high

complexity

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

End to end Schneider Electric’s biodiversity footprint

0 1 2 3 4 5

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 Climate change

Land use

On cradle to gate impacts:

• CO₂emissions represents 70% of Schneider’s pressure on biodiversity

• Land use, about 30% - mainly due to land occupation of our supply chain (notably metals mining and timber harvesting)

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Levers of action

to reduce our impact on biodiversity

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Schneider’s climate strategy already has a significant impact on our biodiversity impacts, notably:

• engage our top 1000 suppliers in halving their emission

• Increase the purchase of green materials to 50%

Climate change Land use & others

GHG emissions are Schneider’s first pressure on biodiversity

2/3 of our impacts on biodiversity are caused by GHG emissions, mostly due to our value chain (95%) and our operations (5%).

Our climate strategy is already significant in reducing impacts on biodiversity

Cradle to gate terrestrial dynamic pressures on biodiversity SE operations

Fleet and logistics

Purchases (75% of GHG emissions, cradle to gate)

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Land use is the second most significant pressure, and can be addressed (together with climate) in the supply chain

Biodiversity is a ‘local matter’, but a lot can be done increasing traceability in the supply chain

Climate change Land use & others

1/3 of impacts are caused by land use and other pressures, mainly in the supply chain (for instance, due to the extraction of virgin material needed for purchase of pallets and metals).

Focus on raw materials:

• Secondary materials sourcing (acceleration expected with “green material” strategy by 2025)

• Traceability (the highest complexity to address, as there are very low data available in the supply chain)

Cradle to gate terrestrial dynamic pressures on biodiversity

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100% of our sites with a biodiversity roadmap by 2025

A collection of best practices of biodiversity activities to support the site in defining their biodiversity local action

Extract of list of all proposed actions:

• On site canteen

• Organic waste

• Biodiversity in urban areas

• Tree planting

• Shelter wildlife

• Best gardening practices

• Plastic clean up

• Partner with local NGOs with aim of protection of natural area / endemic species

• …

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Schneider’s publications

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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 Decemebr 8^th, 2020

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