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FINANCIAL AND SUSTAINABLE DEVELOPMENT REPORT
2024 Universal
Registration Document
Technology
for Impact
se.com
Schneider Electric | Universal Registration Document 2024
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Impact Makers are people who choose
action – action that enables individuals
and organizations to achieve a more
resilient, efficient, and sustainable world.
The Universal Registration Document was filed
on March 26, 2025 with the Autorité des Marchés
Financiers (AMF), as the competent authority under
Commission regulation (EU) 1129/2017, without prior
approval in compliance with Article 9 of this regulation.
The Universal Registration Document may be used for
purposes of a public offer of securities or admission of
securities to trading on a regulated market if completed
by a securities note and, if applicable, a summary
and any amendments to the Universal Registration
Document. The whole is then approved by the AMF
in accordance with Regulation (EU) 2017/1129.
This Universal Registration Document is a reproduction
in PDF format, translated in English, of the official
version of the Universal Registration Document
established in ESEF (European Single Electronic
Format), filed with the AMF on March 26, 2025 and
available on the AMF website www.amf-france.org.
This reproduction is available on our website www.se.com.
We are...
makers
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RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.
S T R A T E G I C R E P O R T
Integrated report
Our purpose
2
About Schneider
4
Industrial Tech for the future
6
Our business model
8
A message from the Chairman of the Board of Directors,
Jean-Pascal Tricoire
10
A message from the Chief Executive Officer, Olivier Blum
11
An interview with Chief Financial Officer, Hilary Maxson
12
Financial Performance Highlights
13
Outlook and targets
19
Key Achievements of 2024
20
Unprecedented opportunities in the end-markets we serve
22
2024 India Investor Event
28
An “Impact Maker” for sustainability
30
Proud of 2024’s sustainability achievements
32
Governance
34
Our Stakeholders
38
Chapter 1
Group strategy
1.1
Strategy Overview
50
1.2 Megatrends and Driving Trends
51
1.3
Our Vision
58
1.4
Key Focus Areas
59
1.5
Strategy Pillars
61
1.6
Ambition to Impact
65
Chapter 2
Sustainable development
Introduction by our Chief Sustainability Officer
68
2.1
Sustainability vision
69
2.2 Sustainability statements | CSRD
95
2.3 Sustainable impact for all | Beyond CSRD
280
2.4 Methodology, external assurance and indicators
310
Chapter 3
How we manage risk at
Schneider Electric RFA
An introduction by our Chief Governance Officer & Secretary General
360
3.1
Risk management scope
361
3.2 Organization and management
361
3.3 Risk management mechanisms
366
3.4 Key risks and opportunities
371
3.5 Insurance
395
C O R P O R A T E G O V E R N A N C E R E P O R T
Chapter 4
Corporate governance report RFA
Vice-Chairman & Lead Independent Director’s introduction
398
4.1
Governance Report
398
4.2 Compensation Report
452
F I N A N C I A L S T A T E M E N T S
Chapter 5
Consolidated financial statements
at December 31, 2024 RFA
5.1
Consolidated statement of income
504
5.2 Consolidated statement of cash flows
506
5.3 Consolidated balance sheet
507
5.4 Consolidated statement of changes in equity
509
5.5 Notes to the consolidated financial statements
510
5.6 Statutory Auditors’ report on the consolidated financial statements 562
5.7 Extract of the management report for the year ended
December 31, 2024
567
Chapter 6
Parent company financial statements RFA
6.1
Balance Sheet
576
6.2 Statement of income
578
6.3 Notes to the financial statements
579
6.4 Statutory auditors’ report on the annual financial statements
591
6.5 List of securities held at December 31, 2024
595
6.6 Subsidiaries and affiliates
596
6.7 The company’s financial results over the last 5 years
598
6.8 Extract of the management report for the year ended
December 31, 2024
599
S H A R E H O L D E R I N F O R M A T I O N
Chapter 7
Information on the Company
and its capital
7.1
Shareholding
602
7.2
Capital
604
7.3
General information on the Company
612
7.4
Shareholders’ rights and obligations
612
7.5
Stock market data
615
7.6
Investor relations
616
Chapter 8
Annual Shareholders’ Meeting RFA
8.1
Explanatory comments & draft resolutions submitted
to the Annual Shareholders’ Meeting
620
8.2 Statutory auditors’ special reports
655
Chapter 9
Persons responsible for the
Universal Registration Document
and audit of the financial statements
Persons responsible for the Universal Registration Document
664
Persons responsible for the audit of the financial statements
664
Universal Registration Document cross-reference table
665
Annual Financial Report cross-reference table
668
Cross-reference table referring to the elements
of the Management Report
669
Cross-reference table referring to the elements
of the Corporate Governance Report
670
Glossary
671
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Integrated report
Our purpose is to create
by empowering
all to make the most of
our energy and resources,
bridging progress and
sustainability for all.
At Schneider we
call this
.
*we celebrate
impact makers
Impact Makers turn sustainability ambitions
into actions at the intersection of automation,
electrification, and digitalization.
These actions impact our daily lives and
empower all to make the most of our energy
and resources, bridging progress and
sustainability for all.
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S T R A T E G I C R E P O R T
Our performance
2024 was a year of Impact driven by a strong focus on execution across the Group.
We delivered against ambitious financial and extra-financial targets, achieving
record revenues, strong profitability and Free Cash Flow above €4bn for the second
consecutive year, while also exceeding our Schneider Sustainability Impact targets.
Financial KPIs
(1) Conversion of FCF / Net Income (Group share).
(2) Subject to shareholder approval on May 7, 2025.
Revenues
€38.2B
+8.4% organic
Adjusted EBITA margin
18.6%
+90bps organic
Our Impact
Impact
revenues
74%
(stable vs. 2023)
Schneider Sustainability Impact
score
7.55/10
outperforming 2024
7.40/10 target
Net Income (Group share)
€4.3B
+7%
Free Cash Flow
€4.2B
99% conversion rate(1)
Tonnes of CO2 emissions
saved and avoided
679M
to our customers since 2018
CO2 emissions
reduced
40%
from top 1,000 suppliers’
operations
Adjusted Earnings per Share
€8.32
+15%
Proposed Dividend per Share(2)
€3.90
+11%
People with access
to green electricity
+23.6M
since 2020
People trained in
energy management
824,404
since 2009
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About Schneider
Our mission is to be
the trusted partner in
Sustainability and Efficiency.
Our business
Employees
177k
Total employees by geography in 2024(1)
25%
12%
37%
26%
Asia Pacific
Western Europe
North America
Rest of the World
(1) The total average workforce includes non-employee interim workers.
Revenue
€38.2bn
Revenue by geography in 2024
36%
13%
27%
24%
North America
Asia Pacific
Western Europe
Rest of the World
Integrated report
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E U R O P E
I N D I A
C H I N A
N O R T H A M E R I C A
Our four hubs
Where we operate
We are one integrated company. We are the most local of global companies.
Our multi-hub approach is a key element to offer improved resiliency, agility,
and proximity to our customers and suppliers.
See page 64 to find out more
about our multi-hub approach.
What we offer
We are a global industrial technology leader bringing world-leading expertise in electrification,
automation and digitization to smart industries, resilient infrastructure, future-proof data centers,
intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide
integrated end-to-end lifecycle AI enabled Industrial IoT solutions with connected products, automation,
software and services, delivering digital twins to enable profitable growth for our customers.
See page 22 to find out more
about our end-markets.
Why we do it
We believe access to energy and digital is a basic human right.
Our generation is facing a tectonic shift in energy transition and industrial revolution catalyzed
by a more electric world. Electricity is the most efficient and best vector for decarbonization;
combined with circular economy approach solutions, we will achieve climate-positive impact
as part of the United Nations Sustainable Development Goals.
See page 48 to find out more
about our strategy.
We are an Impact Company
This means sustainability is at the core of everything we do, in line with our purpose.
See page 67 to find out more
about our sustainability strategy.
We operate in
100+
Countries
IMPACT
Company
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~€400bn
~€500bn+
2023
2027
The Next Frontier
Transforming to be the “Industrial Tech” leader as we embark upon the Next Frontier for Schneider Electric
Our unique portfolio is best equipped for growth on themes enabling a sustainable future
We have curated our portfolio to become a powerhouse in electrification and digitalization, driving sustainability and efficiency
for customers across end-markets.
Digital + Electric
=
Sustainable
Green and Smart
Well positioned on structurally growing markets
The end-markets we serve are in an
accelerated growth phase as a function
of the five megatrends. An addressable
market of around EUR 400 billion in 2023
is set to grow at a compound annual
growth rate (CAGR) of between +6% and
+7% between 2023 and 2027, to reach in
excess of around EUR 500 billion by 2027.
Megatrends driving The Next Frontier
We identify five megatrends that will drive the expansion of our addressable market and we believe that we are ideally positioned to thrive
in the end-markets we serve.
Digitalization
and AI
Climate
Change
Energy
Transition
Evolution
of Wealth
New Global
Equilibrium
See Chapter 1 on page 48 to find out more.
Potential addressable market estimates
2023–27, in €bn
> €100bn growth
CAGR
+6% to +7%
Integrated report
Industrial Tech for the future
(1) Subject to shareholder approval on May 7, 2025.
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Four pillars
Schneider Electric is characterized by a number of key markers and strengths which make us unique. These elements combine together
to allow us to successfully execute on our strategy and serve our customers.
Technology leader
• The Digital Flywheel enhances recurring revenue and
provides a compelling value proposition to customers.
• From EcoStruxure to CONNECT: A complete digital
architecture for the benefit of customers.
• Accelerating the pace of innovation through
our future-ready R&D program
Customer Centric
• Key 2024 innovation offers across both businesses
with more to come in 2025.
• Committed to a unique ecosystem based
on long-term partnerships.
• Customer centric integrated service offers to address
customers’ needs across the lifecycle.
• Capex to Opex to Recurring Experience.
Impact Company
• Leading ESG in our ecosystem.
• Commit to a Net-zero CO2 value chain by 2050.
• Recognized by TIME magazine and Statista as
“World’s Most Sustainable Company”.
People Company
• Defined by our unique culture and model.
• Committed to a Multi-hub operating model
decentralized for people empowerment.
• Committed to our people & culture leading
us into new frontiers.
See Chapter 1 on page 48 to find out more.
Capital allocation priorities are clear with strong link to shareholder value creation
• 15 years of progressive dividend(1)
• Including through Covid-19
• M&A not a prerequisite for
achievement of medium-term targets
• Will remain agile and opportunistic
towards M&A in growth markets
Shareholder
value creation
• Rated A/A-1 with S&P Global
• Rated A3 with Moody’s
Strong Investment
Grade Credit Ratings
1
• Capacity investment
• Step-up in R&D intensity
Funding
Organic Growth
3
Continued focus on
Progressive Dividends
2
Portfolio evolution/
Share Buyback
4
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Integrated report
Our business model
We have curated a unique portfolio that is best equipped for growth on
themes enabling a sustainable future
Creating
Creating impact for all
our stakeholders.
For our
customers
+7%
Group revenues
2019–2024 CAGR
Partners
and suppliers
40%
performance of the
Zero Carbon Project
Our expertise
Our integrated approach allows us to provide our customers
with a complete plug and play integrated solution.
ELECTRIFICATION
• Complete end-to-end offers
• Unparalleled network of partners
• Global leadership
• Innovation leader
• Sustainability trusted partner
through consultancy
AUTOMATION
• Automation – Building, Grid, Process,
Discrete
• Process, safety & Cyber leader
• Software defined Open Automation
• Product leadership
DIGITALIZATION
• Native connectivity
• End to End lifecycle approach with
AVEVA, ETAP, RIB Software
• Data driven insight
• Artificial Intelligence
BUILDINGS
DATA CENTERS
INFRASTRUCTURE
INDUSTRY
Our advantages and resources
We are advocates of open
standards and partnership
ecosystems that are passionate
about our shared values
enabling positive impact.
People
177k
employees worldwide,
in 100+ countries(1)
Innovation
1,400+
patent applications
filed globally in 2024
(1) The total average workforce includes non-employee interim workers.
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Enabling a
sustainable
future
The planet and
local communities
53.4M
people provided access to
green electricity since 2009
For our
employees
62%
of eligible employees benefiting
from 2024 share plan
For our
shareholders
+48%
3-year Total
Shareholder Return(1)
Environment
154
Number of zero-CO2 sites
Partners and suppliers
650k+
service provider and
partner ecosystem
Financial strength
A/A-1 and A3
strong investment grade
credit rating
(1) From January 1, 2022 to December 31, 2024
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Dear Shareholders,
As we take the time to reflect on another milestone year for
Schneider Electric, it’s clear that the world we are operating in is
being reshaped, fast. AI is becoming ubiquitous, significantly
transforming the way we live and conduct business. Electrification
is accelerating, powering AI, electric mobility, heat pumps, and all
new technologies. It is proving to be the most powerful and
profitable catalyst of the needed energy transition. Meanwhile,
sustainability remains a high priority amongst companies, even if
the subject is controversial. And global trade continues to adapt to
geopolitical developments, driving a shift to greater localization,
agility and responsiveness.
As companies and societies alike navigate these transformations,
Schneider Electric stands ready as a trusted partner to support all
on this journey. Schneider’s portfolio of advanced technologies,
combining IoT, energy and industrial data, software and services,
all augmented by AI, fosters more efficient, competitive,
decarbonized, and resilient operations. Matched with our unique
multi-hub set up, we create impact at the local level, while helping
multinationals deploy faster. This current position is a testament
to the dedication of our stakeholders over the past twenty years,
and we extend our gratitude to our investors for their ongoing trust
and collaboration.
On behalf of the Board of Directors, I would also like to express our
deep thanks to our employees for their passion, energy and
commitment this past year, ensuring we support our customers with
their ambitions and projects, and deliver on our own performance
and sustainability goals. We firmly believe that sustainability brings
real and solid business value. Our performance and recognitions
including World’s Most Sustainable Company by Time Magazine in
2024, and by Corporate Knights in January 2025, are proof points
of this strategy.
Our Board of Directors, with its extensive international, industrial
and technological experience, is a significant asset to our
company. In November, on the recommendation of the
Governance, Nominations and Sustainability Committee, the Board
decided unanimously to appoint Olivier Blum as Chief Executive
Officer to accelerate the execution of our strategy and engage into
the next phase of our development. For more than 30 years, Olivier
has been an outstanding and transformative leader at Schneider,
deeply understanding our business, operating model and culture,
and focusing on future technology and strategic development,
while delivering strong and consistent operational performance, as
shown by the acceleration of Energy Management under his tenure.
I would like to express my sincere gratitude to Peter Herweck for
his work and contributions to our continued success during his tenure.
Throughout 2024, I continued to actively support Schneider’s
evolution in areas critical to its success: innovation and technology,
culture and people, sustainability and our multi-hub model. I
remained highly engaged with key stakeholders around the world,
in particular across Asia Pacific, building on strong relationships to
further support Schneider’s influential positioning. There is no
better place to engage and support than in our labs and in the field,
connecting with our teams and customers, to understand their
expectations and aspirations.
As we look to 2025 and beyond, the evolving complexities of the
world and the innovations we have developed present us with
remarkable opportunities. Our company is uniquely positioned to
make a positive impact by empowering everyone to make the most
of our energy and resources. This is an exciting time for Schneider
Electric, and I am fully committed to supporting Olivier and the
team in seizing these opportunities.
Life Is On
Jean-Pascal Tricoire
Chairman
See more about our
governance on page 397.
“As companies and societies alike
navigate the reshaping of the world
we are operating in, we stand ready
as a trusted partner to support all
on this journey.”
Jean-Pascal Tricoire
Chairman
Integrated report
A message from the Chairman of the Board of Directors, Jean-Pascal Tricoire
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S T R A T E G I C R E P O R T
Dear Shareholders,
The past year has been marked by great achievements. We
delivered strong financial results, demonstrating the resilience of
our business model and the enduring value of our solutions in
addressing the world’s most pressing challenges. Our unwavering
focus on innovation and sustainability has fueled our progress,
leading to the launch of groundbreaking offers that empower our
customers to meet their energy efficiency and decarbonization
goals. We also deepened our engagement with key stakeholders,
including customers, partners, and communities, fostering
collaborative relationships, and driving positive impact.
The year 2024 also brought a leadership transition for Schneider
Electric. It is with great honor that I have stepped into the role of
CEO, having taken the position in November, and I am fully
committed to steering this remarkable company toward the exciting
growth opportunities ahead.
Looking ahead, we are entering a new era of sustainable
innovation. The coming years will be crucial as we accelerate our
journey to becoming the undisputed leader in Electrification and
Digitalization technologies to deliver energy and operational
efficiency to our customers.
Our focus will be on several key priorities:
•
Accelerating the Energy Transition: We will play a crucial role
in enabling the global energy transition by providing innovative
solutions for renewable energy generation, grid modernization,
and energy storage.
•
Driving Digital Transformation: We will continue to invest
in our digital capabilities, leveraging the power of data, AI,
and the Industrial Internet of Things to deliver enhanced
customer value and operational efficiency.
•
Strengthening our Leadership as an Impact company:
We will deepen our commitment to sustainability, both within
our own operations and through our partnerships with
customers and suppliers. Our goal is to positively impact
our entire ecosystem and continue to be recognized as
a leader in sustainable business practices.
In 2025, we will continue to invest in the development of our
software solutions in Energy and Industrial applications thanks to
AVEVA to provide customers with greater control, efficiency, and
resilience. We will deepen our engagement with customers,
providing differentiated and tailored solutions that address their
specific needs and challenges. We will continue to invest in
research and development, focusing on advancements in
electrification and automation technologies. By capitalizing on
significant growth opportunities in key markets like North America,
India, and the Middle East, and solidifying our leadership across all
four end-markets, we will position Schneider Electric for continued
success in the years to come.
As an Impact Company, we believe in ‘doing well to do good’ by
striving for strong financial performance and business success
while simultaneously driving positive environmental and social
impact. We aim to exceed customer expectations and we are
committed to empowering our employees, supporting our
suppliers, engaging with our communities, and building trust with
our investors.
Sincerely,
Olivier Blum
CEO, Schneider Electric
See more about our strategy on
page 48.
“The coming years will be crucial as we
accelerate our journey to becoming the
undisputed leader in Electrification and
Digitalization technologies to deliver
energy and operational efficiencies
to our customers”
Olivier Blum
CEO
Integrated report
A message from the CEO, Olivier Blum
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2024 marked the first year of Schneider Electric’s medium term
goals set during the 2023 Capital Markets Day. How did the
company’s performance align with these objectives?
In November 2023 we explained that five megatrends are driving
a structural step-up in our markets with estimated potential
addressable market growth of +6% to +7% CAGR (2023–2027)
and we remain uniquely well positioned to capture this opportunity.
Our ambitions for the Next Frontier for the company remain
unchanged with organic revenue growth to be +7% to +10% CAGR
(2023–2027) together with an organic expansion of adjusted EBITA
margin of c.+50bps CAGR (2023–2027).
In 2024, we have had the support of all five megatrends with a
particular acceleration tied to the advent of large-language models
in AI supporting our Data Center business. The year highlighted the
strength of our diversified yet focused business model: diversified
geographically and focused from an end-markets standpoint. We
kept our focus on strong execution across our portfolio and delivered
strong results with revenues of EUR 38 billion, up +8.4% organic
(above our guidance of +6% to +8% organic for the year), driven
by strong growth in our Systems as well as Software and Service
businesses. Systems growth remained supported by good traction
from our Data Center & Networks end-market as well as
Infrastructure. We saw positive growth in our Products business in
2024, with overall stabilization of the Residential buildings market and
while Sales in Discrete automation remained down year-on-year there
were some signs of demand recovery towards the end of the year.
Our adjusted EBITA margin reached 18.6% in 2024, up +90bps
organic, supported by improved industrial productivity and positive
contribution from Systems Gross Margin improvement. We
continued to responsibly invest in our strategic priorities with the
execution of previously communicated capacity investments plan
to support growth and innovation and our R&D investments are now
at 5.9%(1) of sales at the end of 2024.
We delivered free cash flow above EUR 4.0 billion for the second year
in a row with EUR 4.2 billion and around 99% cash conversion ratio(2).
2024 was a year in which you actively implemented your capital
allocation strategy. Could you share more details about it?
First, as reiterated by Olivier, our capital allocation priorities are clear
and remain unchanged. Strong investment grade credit ratings
remain our first priority and in 2024 the Group received upgrades
from two agencies with S&P Global Ratings upgrading Schneider
Electric to A/A-1 with a Stable outlook and Moody’s maintaining a
rating of A3 while upgrading the outlook to Positive. With a proposed
dividend of EUR 3.90(3) for 2024 we will fulfill our progressive
dividend policy for the 15th year in a row while we kept investing
(1) Group revenues invested into R&D cash-out
(2) Free Cash Flow as a proportion of Net Income (Group Share)
(3) Subject to shareholder approval on May 7, 2025
in a responsible way in funding our organic growth ambitions and our
net-zero roadmap. We also invested in our portfolio in 2024 with the
acquisition of Motivair, a company specialized in liquid cooling and
advanced thermal management solutions for high performance
computing systems, strengthening our leading position in Data
Centers. We also increased our ownership of Planon, a leading
software provider in smart sustainable building management, from
25% to a controlling stake of 80% and we expect to remain agile and
opportunistic towards acquisitions that reinforce our unique portfolio
positioning in growth markets.
You hosted an Investor Event in India in December 2024, what
were the key messages there?
Indeed, in December 2024, we hosted an India Investor Event in
Hyderabad, where our investors and financial analysts had the
opportunity to deep dive into the significance of India for our
company over the medium and long-term. They had the chance to
see our tailored offerings for the Indian market and visit one of our
World Economic Forum-awarded ‘Sustainability Lighthouse’ factories.
This event provided an opportunity for investors to meet Olivier and
hear his vision for the company while over the two days we focused
on our strategic positioning in India, now our third-largest market
and one of our four Global Hubs, and the unprecedented
opportunity ahead.
We highlighted India as one of the geographies set to lead growth in
coming years, together with the US and Middle East and Africa, and
we would expect to be achieving double-digit Sales growth CAGR in
India, over the medium and long-term, while expanding our capacity
by 2.5 to 3 times to serve both India and the global market.
Finally, with the introduction of the Corporate Sustainability
Reporting Directive in 2024, what implications does this have
for Schneider Electric?
This year, the Corporate Sustainability Reporting Directive (CSRD)
is being enacted by the European Union and will increase detailed
disclosure of environmental, social, and governance information
from many companies. You can see our first CSRD reporting as
Chapter 2.2 within this report. Schneider Electric has been at the
forefront of extra-financial disclosure for many years now and for us
CSRD compliance is important alongside the additional reporting
we provide under our SSI and SSE to support investors to
understand the value we are creating for all of our stakeholders
through our sustainability efforts.
Integrated report
An interview with Chief Financial Officer, Hilary Maxson
“2024 has been a year of strong execution
leading to a strong performance,
positioning us firmly on track to achieve
our 2027 ambitions.”
Hilary Maxson
Chief Financial Officer
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Financial performance highlights
2024 was a year of Impact driven by underlying market growth and a strong focus on execution across
the Group. We achieved record revenues, strong profitability and Free Cash Flow above €4bn for the
second consecutive year, delivering a strong start to the Next Frontier.
Revenue Performance
Consolidated revenue totaled EUR 38,153 million for the year
ended December 31, 2024, up +8.4% organic and up +6.3%
on a reported basis. The Group continued to benefit from strong
and dynamic market demand linked to structural megatrends.
There was strong growth in sales of the Group’s Systems offers,
notably in the Data Center and Infrastructure end-markets. The
Group also saw strong growth in Services linked to digital offers
and trends of renovation and modernization in mature economies.
The Group’s agnostic software assets continued their transition
to a subscription revenue model, mechanically impacting organic
growth as expected, while displaying good underlying evolution,
characterized by strong growth in annualized recurring revenues
at AVEVA. Product sales grew, with good growth in sales of
electrical distribution products across many end-markets and
segments, while sales into the Residential market were stable
globally, though varied by geography. As expected, weakness in
discrete automation markets remained as OEMs and Distributors
rebalance inventories to reflect an improved supply environment.
Price contribution returned to a normalized level across the
Group in 2024, following a period of elevated contribution
in 2022 and 2023.
FX impacts were -1.2% mainly driven by weakening of Chinese
Yuan and several new economies, partly offset by strengthening
British Pound against the Euro and a positive impact from
hyperinflation accounting. There was a net negative impact of
-0.7% from acquisitions and disposals, primarily relating to the
divestment of the Group’s industrial sensors business and Gutor
and partly offset by acquisitions of EcoAct and Planon.
Revenue (€ billions)
€38.2B
38.2
35.9
34.2
28.9
25.2
2020
2021
2022
2023
2024
Energy Management
Energy Management generated revenues of EUR 31,131 million,
equivalent to 82% of the Group’s revenues and was up +12%
organic. North America grew +18% organic led by strong
Systems growth primarily in the Data Center end-market,
supported by good growth elsewhere. Western Europe was up
+5% organic with double-digit growth in Italy led by Data Center
sales, high-single digit growth in Spain, mid-single digit growth in
France led by Infrastructure, mid-single digit growth in the U.K.,
while Germany saw a slight decline. The Buildings end-market
remains subdued across the region, with sales into the Residential
market stable in most major economies except Germany, which
continues to decline. Outside of the major economies, there was
strong growth in the Nordics region. Asia-Pacific grew +6%
organic, led by strong double-digit growth in India, with traction
across end-markets. China was down low-single digit impacted by
weak construction markets and general economic uncertainty
delaying customer investment plans. Australia saw good growth,
led by performance in the Data Center end-market. The remainder
of the region was up in aggregate. Rest of the World was up +19%
organic, seeing strong double-digit growth in the Middle East and
Africa while additionally benefitting from price actions taken in
response to previous currency devaluation in certain countries.
39%
12%
26%
23%
North America
12,225 M€ (+17.6% org.)
Western Europe
7,081 M€ (+5.0% org.)
Asia Pacific
8,124 M€ (+6.1% org.)
Rest of the World
3,701 M€ (+18.6% org.)
14
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Industrial Automation
Industrial Automation generated revenues of EUR 7,022 million,
equivalent to 18% of the Group’s revenues and was down -4%
organic. Sales into Process & Hybrid markets grew, with good
traction for Services, while the Group’s industrial software at AVEVA
delivered strong growth in annualized recurring revenue, during its
ongoing transition to a subscription revenue model. Discrete
markets remained impacted by weakness at OEMs and Distributors
as they rebalance inventories leading to a decline in sales. North
America contracted -4% organic due to weakness in discrete
automation markets with growth in sales into Process & Hybrid
markets and for Industrial Software at AVEVA. Western Europe
declined -12% organic, with France, Germany and Italy notably
impacted by the weakness in discrete automation, while Process
markets remained better oriented across the region. Asia Pacific
was down -5% organic, with China down low-single digit, primarily
due to weakness in Discrete automation.
India delivered positive growth, up in both Discrete automation and
Process & Hybrid markets. The remainder of the region was down
in aggregate with Australia, Japan and Korea declining due to weak
OEM demand across the region. Rest of the World was up +14%
organic, led by strong growth in the Middle East across both
Discrete and Process & Hybrid markets, with the region additionally
benefitting from price actions taken in response to previous
currency devaluation in certain countries.
23%
18%
32%
27%
North America
1,625 M€ (-3.8% org.)
Western Europe
1,912 M€ (-11.6% org.)
Asia Pacific
2,223 M€ (-4.7% org.)
Rest of the World
1,262 M€ (+13.6% org.)
Summarized financial results
€ million
2023 FY
2024 FY
Reported change
Organic change
Revenues
35,902
38,153
+6.3%
+8.4%
Gross Profit
15,012
16,268
+8.4%
+10.5%
Gross profit margin
41.8%
42.6%
+80bps
+80bps
Support Function Costs
(8,600)
(9,185)
+6.8%
+7.8%
SFC ratio (% of revenues)
-24.0%
-24.1%
-10bps
+10bps
Adjusted EBITA
6,412
7,083
+10.5%
+14.2%
Adjusted EBITA margin
17.9%
18.6%
+70bps
+90bps
Restructuring costs
(147)
(141)
Other operating income & expenses
98
(87)
EBITA
6,363
6,855
+8%
Amortization & impairment of purchase accounting intangibles
(430)
(406)
Net Income (Group share)
4,003
4,269
+7%
Adjusted Net Income (Group share)
4,066
4,664
+15%
+18.4%
Adjusted EPS (€)
7.26
8.32
+15%
+18.2%
Free Cash Flow
4,594
4,216
-8%
Adjusted EBITA margin
18.6% +90 bps org. in 2024
18.6
17.9
17.6
17.3
15.6
2020
2021
2022
2023
2024
Adjusted EBITA margin at 18.6%, up +90 bps organic due to
strong gross margin performance coupled with SFC leverage
Gross profit was up +10.5% organic with Gross margin up +80bps
organic, reaching 42.6% in 2024. The organic increase in margin
percentage was driven by industrial productivity and improved
Gross Margin in the Systems business, mainly due to pricing.
2024 Adjusted EBITA reached €7,083 million, increasing organically
by +14.2% and the Adjusted EBITA margin expanded by +90bps
organic to 18.6% as a consequence of the strong Gross Margin
improvement coupled with SFC leverage. SFC costs increased
slightly as a percentage of revenues at 24.1% with a favorable
organic development of +10bps despite continued investment
in innovation, digital and commercial footprint, offset by a negative
FX impact.
Integrated report
Financial performance highlights
15
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
The key drivers contributing to the earnings change were the following:
(1) Price on products and raw material impact.
(2) For those currencies meeting the criteria to be considered hyperinflationary under IAS 29, such as Argentina and Türkiye, an IFRS technical adjustment for
hyperinflation impact is reflected as FX and therefore excluded from the organic growth calculation. The effect of operational actions taken in these countries such as
increased pricing to mitigate the inflationary impact is reflected as part of the organic growth.
€ million
Adj. EBITA
YoY change
Comments
Adj. EBITA FY 2023
6,412
Volume impact
+1,181 Positive impact from higher sales volumes.
Industrial productivity
+331 The Group’s industrial productivity level was +€331m with a lower contribution in H2
vs. H1 as expected due to capacity investments made within the Group’s supply
chain, primarily in North America and India.
Net price(1)
Gross pricing on products
Raw Material Impact
+67
+106
-39
The net price impact was positive at +€67m in 2024. Gross pricing on Products was
positive at +€106m. Gross pricing on Systems was strong and the related margin
impact is captured within the Mix category of this bridge. In total, RMI was a headwind
at -€39m, having turned negative in H2.
Cost of Goods Sold inflation
Production labor cost and
other cost inflation
R&D in Cost of Goods Sold
-139
-128
-11
Cost of Goods Sold inflation was -€139m in 2024, of which the production labor cost
and other cost inflation was -€128m, and an increase in R&D in Cost of Goods Sold
was -€11m. The overall investment in R&D, including in support function costs
continued to increase as expected and represented 5.6% of 2024 revenues.
Support function costs
-663 Support Function Costs increased organically by -€663m, or +7.8% org. in 2024. The
Group was impacted by inflation for -€378m and continued to focus on strategic
priorities with investments of -€394m mainly linked to R&D, commercial footprint and
digital, including AI and transformation projects. The Group delivered +€243m of cost
savings, mainly relating to headcount. Other cost increases of -€134m consisted of
miscellaneous items.
Mix
162 2024 performance resulted in a positive mix effect of +€162m where strong
improvement of Gross Margin in the Systems business mainly derived from pricing
was partly offset by the dilutive impact from the faster growth of Systems revenues
compared to Products.
Foreign currency impact(2)
-151 The impact of foreign currency decreased adjusted EBITA by -€151m, or around
-20bps of adj. EBITA margin in 2024, with underlying FX impacts of -40bps and a
benefit from hyperinflation accounting of +20bps
Scope and Others
-117 The impact from scope & others was -€117m in 2024, with net Scope impacts
representing a neutral impact on adj. EBITA margin %. Others consists of
miscellaneous small items.
Adj. EBITA FY 2024
7,083
Energy Management
22.1%
Adjusted EBITA margin, up +110 bps organic.
Industrial Automation
14.8%
Adjusted EBITA margin, down -150 bps organic.
16
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Net income up +7%
€ million
2023 FY
2024 FY
Comments
Adj. EBITA
6,412
7,083
Other operating income and
expenses
98
(87) Other operating income and expenses were -€87m in 2024, primarily consisting of
M&A and integration costs and a provision in respect of the French Competition
Authority investigation, partly offset by a gain recognized on the carrying value of the
initial investment in Planon. 2023 included a disposal gain partly offset by M&A and
integration costs.
Restructuring costs
(147)
(141) Restructuring costs were -€141m in 2024, €6m lower than in 2023.
Amortization and impairment
of purchase accounting
intangibles
(430)
(406) Amortization and impairment of intangibles linked to acquisitions was -€406m in 2024,
€24m lower than last year due to an impairment recognized in 2023.
Net financial income/(loss)
(530)
(409) Net financial expenses were -€409m in 2024, €121m less than last year. The decrease
primarily relates to higher interest income on cash deposits and positive FX
differences.
Income tax expense
(1,285)
(1,398) Income tax amounted to -€1,398m, higher than last year by €113m. The Effective Tax
Rate was 23.1%, in line with the expected range of 22–24% for FY2024, and 0.7pts
lower than the 2023 ETR of 23.8%.
Profit/(loss) of associates and
non-controlling interests
(115)
(153) Share of profit of associates was +€17m, down -€34m vs. last year, mainly due to
performance at Uplight. Amounts attributable to non-controlling interests of -€170m
were stable compared to -€166m in 2023.
Impairment of investments in
associates
-
(220) The Group recorded a non-cash impairment charge of -€220m against the carrying
value of its investment in Uplight, with slower adoption at customers than was
envisaged in the business plan impacting near-term growth, in part due to regulatory
challenges.
Net Income (Group share)
4,003
4,269 Net Income (Group share) was €4,269m in 2024, up +7% vs. last year due to the
strong operating result and despite the impairment of Uplight.
Adjusted Net Income (Group
share)
4,066
4,664 Adjusted Net Income was €4,664m in 2024, up +15% vs. last year.
(1) Subject to shareholder approval on May 7, 2025.
Net Income (Group share) (€ millions)
€4,269m
Adjusted Earnings
Per Share (€)
€8.32
Proposed Dividend
Per Share (€)(1)
€3.90
4,269
4,003
3,477
3,204
2,126
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
4.72
6.13
7.11
7.26
8.32
progressive dividend
for 15th year in a row
2020
2021
2022
2023
2024
2.6
2.9
3.15
3.5
3.9
Integrated report
Financial performance highlights
17
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Life Is On | Schneider Electric
S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Financial Strength
A/A-1
Standard & Poor’s
A3
Moody’s
Free cash flow of €4.2 Billion
The Group delivered Free Cash Flow of €4,216 million in 2024,
primarily due to the P&L performance driving record operating
cash flow of €6,308 million. This included R&D cash costs of €2,260
million, which increased to 5.9% of 2024 revenues.
Net capital expenditure increased to -€1,364 million (compared to
-€1,313 million in 2023) remaining stable at around 3.6% of
revenues, with 2.4% relating to net tangible capex and 1.2% to
intangible capex (mainly capitalized R&D). The Group expects to
continue the capacity investment program outlined at its 2023
Capital Markets Day, involving both Capex and Opex investments.
Trade working capital buildup impacted the Free Cash Flow in 2024
by -€594 million, primarily in relation to inventory to support the
Group’s focus on supply chain execution and its program of
capacity additions, resulting in DIN up by 7 days compared to
December 2023. DSO on receivables improved by 6 days with
improved payment terms on Systems projects and strong cash
collections, while DPO on payables was worse by 2 days.
Free Cash Flow (€ millions)
€4,216m
4,216
4,594
3,330
2,799
3,673
2020
2021
2022
2023
2024
Balance Sheet Remains Strong
€ million
Dec. 31, 2023
Dec. 31, 2024
Total current and non-current financial liabilities
13,933
14,831
– of which Bonds
10,843
12,650
Cash and cash equivalents
(4,696)
(6,887)
Net financial debt excluding purchase commitments over non-controlling interests
9,237
7,944
Non-current purchase commitments over non-controlling interests
50
19
Current purchase commitments over non-controlling interests
80
184
Net financial debt including purchase commitments over non-controlling interests
9,367
8,147
Schneider Electric SE issued bonds totaling €3,550 million during
2024.
Schneider Electric’s net debt at December 31, 2024 amounted to
€8,147 million (down from €9,367 million at December 31, 2023)
after payment of -€2.0 billion to fulfill the 2023 dividend, a net
impact from acquisitions and disposals of -€0.5 billion and payment
of -€0.3 billion in relation to share buyback, offset by the strong
Free Cash Flow performance of +€4.2 billion.
The Group remains committed to retaining its strong investment
grade credit rating.
18
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Digital update
In 2024, the Digital Flywheel represented 57% of Group revenues (vs. 56% in 2023), showing progress towards a
target range of 60% - 65% by 2027. Growth of the Digital Flywheel was led by strong performance in Connectable
Products, Field Services and Digital Services. Within the agnostic Software businesses (AVEVA, ETAP and RIB
Software), which continue through a transition to a subscription model, around 77% of revenues (vs. 70% in 2023)
were classified as recurring, showing strong progress towards a target of around 80% by 2027.
Digital flywheel progresses to 57% of FY Group revenues
8%*
29%*
11%*
9%*
Software & Digital Services
+5%
org. growth
Connectable Products
+13%
org. growth
Edge
Control
-6%
org. growth
Field
Services
+12%
org. growth
*of FY24 Group revenues.
+8%
org. growth
in FY 2024
Key achievements of 2024:
(1) Agnostic Software comprises AVEVA, ETAP and RIB Software
• Innovation driving double-digit growth in Connectable Products
• Edge control impacted by weakness of OEM and Discrete automation market, while Energy Management offers grew strongly
• +7pt YoY increase in recurring revenues in agnostic Software(1)
• Double-digit growth in Field Services supported by increasing installed-base
FY 2024 revenues
77%
% of agnostic software
revenues
c.80% by 2027 ambition
Recurring revenue in Agnostic Software(1)
to increase to c.80% by 2027
FY 2024 revenues
57%
% of Group revenues
60% to 65% by 2027
ambition
Moving towards 60% to 65%
of Group revenues by 2027
Integrated report
Financial performance highlights
19
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Outlook and targets
Expected Trends In 2025
• Strong and dynamic market demand to drive growth, with
contribution from all four end-markets
• Continued strong demand for Systems offers, led by the Energy
Management business
• A demand recovery in Discrete automation, with sales growth
weighted towards H2
• Further progress on subscription transition in Software; strong
growth in Services
• All four regions to contribute to growth, led by U.S., India,
Middle East & Africa
• Execute on previously communicated capacity investments to
support growth
• Preparing for agile commercial actions to counter the impact of
fast-evolving geopolitical developments and associated fiscal
costs
2025 Target
The Group sets its 2025 financial target as follows:
2025 Adjusted EBITA growth of between +10% and
+15% organic.
The target would be achieved through a combination of organic
revenue growth and margin improvement, currently expected to be:
• Revenue growth of +7% to +10% organic
• Adjusted EBITA margin up +50bps to +80bps organic
This implies Adjusted EBITA margin of around 19.2% to 19.5%
(including scope based on transactions completed to-date and FX
based on current estimation).
2024–2027 Financial targets and longer-
term ambitions as announced in 2023
capital markets day
Based on its current view and assuming no major
changes to the macro-economic and geopolitical
environment, Schneider Electric announced its
medium-term financial targets as follows:
2024–27 Financial Targets:
• Organic revenue growth of between +7% to +10%, CAGR 2023–
2027(1).
• Organic expansion of Adjusted EBITA margin of around +50
basis points, CAGR 2023–2027(1).
Longer-term ambitions:
• Organic revenue growth of 5%+ on average across the
economic cycle.
• To consistently be a Company of 25(2) across the economic
cycle.
• Cash conversion ratio(3) expected to be around 100%, on
average, across the economic cycle.
(1) 4-year CAGR.
(2) Sum of organic revenue growth % and adj. EBITA margin %.
(3) Free Cash Flow as a proportion of Net Income (Group Share).
20
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Key achievements of 2024
January
World Economic Forum recognizes
Schneider Electric as a Circularity
Lighthouse
Schneider Electric was named a
global Circularity Lighthouse by the
World Economic Forum and
McKinsey for its pioneering innovative
circularity solutions. An example is
refurbishing MasterPact MTZ circuit
breakers at the MasterTech plant in
France, giving them a second life by
collecting, disassembling, upgrading,
and testing them before resale.
Learn more about this story on
se.com
April
Schneider Electric launches
All-In-One Battery Energy Storage
System for Microgrids
Schneider Electric announced the
launch of its Battery Energy Storage
System (BESS), designed and
engineered to be a part of a flexible
and scalable architecture. BESS is
the foundation for a fully integrated
microgrid solution that is driven by
Schneider Electric’s controls,
optimization, electrical distribution,
and world-renowned digital and field
services.
Learn more about this story on
se.com
February
Schneider Electric launches
EcoStruxure™ Plant Lean
Management boosting productivity
and digitalization in manufacturing
Schneider Electric launched
EcoStruxure Plant Lean Management,
a digital solution that collects and
aggregates data across industrial
operations to develop KPIs for short
interval management (SIM) meetings.
These meetings help shop floor
teams review production cycles and
address issues. The technology is
already in use in many of Schneider
Electric’s smart factories.
Learn more about this story on
se.com
May
Schneider Electric opens new
smart factory in Hungary,
increasing production capacity for
Europe
Schneider Electric opened its 36th
smart factory in Dunavecse, Hungary,
spanning 28,000 m² and employing
up to 500 people. This is its largest
engineering-to-order (ETO) factory in
Europe and will be the core site for
producing the latest SF6-free medium
voltage switchgear, RM AirSeT.
Learn more about this story on
se.com
March
Schneider Electric collaborates
with NVIDIA on reference designs
for AI Data Centers
Schneider Electric and NVIDIA are
collaborating to optimize data center
infrastructure, introducing the first
public AI data center reference
designs, setting new benchmarks
for AI deployment and operation
within data center ecosystems.
In December, the two companies
announced a new data center
reference design, which will
support liquid-cooled, high-density
AI clusters.
Learn more about this story on
se.com
June
Schneider Electric named the
World’s Most Sustainable
Company by TIME Magazine and
Statista
Schneider Electric topped TIME
Magazine and Statista’s “World’s
Most Sustainable Companies for
2024” list. This recognition highlights
Schneider Electric’s efforts to reduce
CO2 emissions and help customers
become more energy efficient.
Schneider Electric’s mission is to
be a trusted partner in sustainability
and efficiency.
Learn more about this story on
se.com
Integrated report
21
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
July
Schneider Electric Official
Supporter of the Paris 2024
Olympic and Paralympic Games
Schneider Electric became Official
Supporter in climate contribution
projects for the Paris 2024 Olympic
and Paralympic Games to make a
concrete impact on the ambition to
organize more responsible Games.
Successful at meeting the
requirements in three selected
projects, bringing co-benefits to
biodiversity and local communities,
and contributing to Sustainable
Development Goals.
Learn more about this story on
se.com
October
Schneider strengthens its leading
position in Data Centers by
acquiring Motivair Corporation
Schneider Electric signed an
agreement to acquire a controlling
interest in Motivair Corporation, a
company specialized in liquid cooling
and advanced thermal management
solutions for high performance
computing systems. This transaction
strengthens Schneider Electric’s
portfolio of direct-to-chip liquid
cooling and high-capacity thermal
solutions. Schneider Electric
completed the transaction to acquire
Motivair Corporation in March 2025.
Learn more about this story on
se.com
August
Recognized as a Leader in Building
Decarbonization Consulting by
Verdantix
Schneider Electric was named a
Leader in Verdantix’s report for its
end-to-end advisory approach to
decarbonization. The buildings
sector, responsible for 37% of global
energy-related emissions, benefits
from Schneider Electric’s expertise in
building systems optimization, energy
use modeling, and renewable energy
strategy and procurement.
Learn more about this story on
se.com
November
Schneider Electric has contributed
to restoring Notre Dame Cathedral
in Paris
Schneider Electric donated
advanced Energy Management and
security solutions to restore Notre
Dame Cathedral. The contributions
included equipment, expertise, and
maintenance, ensuring the site’s
electrical facilities are secure and
efficient. This project highlights
Schneider Electric’s commitment to
preserving historic monuments and
integrating modern technology into
heritage sites.
Learn more about this story on
se.com
September
Schneider Electric and Glencore
collaborate to drive copper
circularity
Schneider Electric partnered with
Glencore to transform its copper
supply chain and enhance
decarbonization efforts, prioritizing
responsibly sourced materials with
high recyclable content. Schneider
Electric is also working with Glencore
on digitizing and decarbonizing their
raw materials supply chain with
solutions like AVEVA Pi, ETAP
and our Power and Energy
Management systems.
Learn more about this story on
se.com
December
Schneider Electric hosts an
India-specific Investor Event for
investors and financial analysts
Schneider Electric hosted an investor
and analyst event in Hyderabad,
India, focusing on its business in
India, its third-largest market by
revenue and one of its four global
hubs. With over 60 years of presence
and €2.2B revenue in 2023, highlights
included offer portfolios for India and
global markets, leveraging brand
strengths from Schneider Electric
and Lauritz Knudsen.
Learn more about this story on
se.com
22
Schneider Electric | Universal Registration Document 2024
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Integrated report
Unprecedented opportunities in the end-markets we serve
Data Centers and Networks end-market
Digitalization and AI megatrends are driving unprecedented changes and opportunities to the Data Centers
and Networks end-market with increased needs for both Energy Management and software offers.
Strong future growth is expected, with critical needs for electrical content boosted by this turning point
in technology. We support data centers end-to-end across the lifecycle:
Building a
digital model
Source
management
through our
ASCO Power
Technologies
solutions.
Power
distribution:
medium and low
voltage distribution
that provides
power efficiently.
Uninterruptible
Power Supply
which is the power
at the rack level as
well as the facility
level.
Cooling
Both air and liquid
cooling technology.
Monitoring:
we ensure all of
this is monitored
appropriately with
connectivity for
every asset.
End-markets exposure
24%
of 2024 orders
Market Position
#1
in electrical distribution
#1
Most complete portfolio
Market CAGR 2023–2027
> 10%
Key Drivers
Artificial Intelligence
Market Segments
• Cloud and Service providers
• Enterprise IT
• On-premise Enterprise Datacenter
• Commercial & Industrial
Customer example – Stream Data Centers
Goal
To create a strategic partnership that helps Stream to
continue serving the world’s largest customers in the new era
of AI. Stream needed a trusted partner that could keep pace
with its rapid growth, customer needs, and the associated
technological advances.
Challenge
Collectively, data center operators are facing a massive
surge in demand brought on by hyperscale and cloud
investment in artificial intelligence. Power availability, supply
chain constraints, and rising construction costs are creating
a challenging market for many data center developers
throughout the world.
Solution
Stream Data Centers entered into a strategic partnership
with Schneider Electric to help serve customers and support
exponential growth, creating close collaboration that delivers
with agility and velocity even in a capacity constrained
environment. Stream and Schneider Electric are true
partners invested not only in ample capacity planning but
also in developing solutions that will efficiently power the
future data center landscape.
Results
This agreement supports Stream’s mission to serve the
world’s most technologically sophisticated customers by
delivering efficient, resilient, and secure environments. By
solidifying this agreement, Stream and Schneider Electric
are better positioned to seamlessly meet customers’ current
and future AI, cloud, and digitization needs.
23
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I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Buildings end-market
Strong megatrends are driving growth for the Buildings end-market. On one hand, the growing population
and increasing urbanization in emerging economies is driving the need for construction with a rise in first time
demand together with increased digitalization. On the other hand, there is a need for existing infrastructure
refresh, particularly in mature economies where radical acceleration with retrofit is required in order to meet
decarbonization commitments, supported by government investment.
End-markets exposure
30%
of 2024 orders
Market Position
#1
in electrical distribution
1 in 4
Present within 25%
of all buildings
Market CAGR 2023–2027
+4% to +5%
Key Drivers
Decarbonization
Market Segments
•
Office & public buildings
•
Healthcare
•
Hotels
•
Residential
•
Commercial buildings
•
Retails chains
Customer example – Capgemini
Goal
Schneider Electric and Capgemini share a vision of reducing
energy consumption across 23 campuses in India, aiming to
create an integrated system to efficiently monitor all critical
assets across these campuses, ultimately to reduce energy
waste, costs, and emissions for Capgemini and their clients.
Challenge
23 campuses and 66 Capgemini buildings across India
needed a centralized system to monitor and control
energy-consuming assets in real-time, optimize energy use,
and reduce carbon footprint.
Solution
Capgemini India launched the Energy Command Center
(ECC) and executed various projects to integrate energy-
efficient technologies and solar power solutions into the
infrastructure, leveraging Schneider’s advanced
EcoStruxure™ Platform, a connected architecture that
enables centralized monitoring and control of all energy-
consuming assets.
Results
ECC now connects Capgemini’s 23 offices and 66 buildings
in India and provides 24/7 monitoring of all
energy consuming assets across campuses, leading to
29% of reduction in energy consumption (vs 2019). On top of
that, Capgemini India has successfully transitioned to 100%
renewable electricity for their own operations and are able to
export renewable energy across four local campuses to the
local electricity grid.
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Integrated report
Unprecedented opportunities in the end-markets we serve
Industry end-market
Within the Industry end-market we target electro-intensive industrial companies in multiple segments including
Energies & Chemicals, Consumer Packaged Goods, and electric vehicle (EV) battery manufacturing. We bring
our complementary Energy Management and Industrial Automation offers together to fulfill the needs for energy
efficiency, increased automation, and sustainability. The Industry end-market is driven by the acceleration of
digitalization and process electrification coupled with trends of reshoring and mega-projects.
End-markets exposure
33%
of 2024 orders
Market Position
#1
in electrical distribution
#1
in Industrial data
and safety
Market CAGR 2023–2027
+5% to +6%
Key Drivers
Reshoring & mega-projects
Market Segments
•
Energy & Chemicals
•
Consumer Packaged Goods
•
Metals, Mining & Minerals
•
Machine solutions / OEMs
•
EV & battery manufacturing
Customer example – Michelin
Goal
To make its net-zero ambitions a reality by 2050, Michelin, a
world-leading mobility company and renowned tire
manufacturer, knew that it had to achieve more energy-
efficient operations by optimizing energy consumption to
protect our planet.
Challenge
Michelin wanted to make energy consumption monitoring
accessible to everyone in the company, standardize energy
data from multiple sources starting from the shop floor level
across key industrial processes such as the “mixing”, one of
the biggest consumer of energy, with a need to process a
huge quantity of data.
Solution
AVEVA™ PI System™ has been deployed to read, standardize,
and contextualize energy consumption data from many parts
of the production process, making it available to all in a
standard way. With this solution the people, both from the
shop floor and from the central teams, can understand
deeply, can analyze, benchmark, compare and then can find
the best practices to share all around the world.
Results
Through this deployment of AVEVA™ PI System™, Michelin has
been collecting and standardizing data from 15 production
sites around the world and saved up to 10% in the initial few
months by optimizing process parameters. Sharing best
practices across factories globally reduced energy
consumption by as much as 16%.
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I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Infrastructure end-market
Within the infrastructure end-market we primarily address the needs from grid, transportation, and water
and wastewater segments. The grid is going through a structural transformation as it represents a bottleneck
to the energy transition. Increased power requirement, resiliency, and safety needs are driving investments
around grid modernization, grid extension for extended power reach, and grid digitalization for increased
efficiency and sustainability.
End-markets exposure
13%
of 2024 orders
Market Position
#1
in electrical
distribution
#1
in Industrial
data
#1
in Grid
Market CAGR 2023–2027
+5% to +7%
Key Drivers
Big government funding
Market Segments
• Grid
• Transportation
• Water & Wastewater
Customer example – Drakenstein Municipality
Goal
Drakenstein Municipality, one of the largest municipalities in
the Western cape situated 30 minutes from Cape Town, has
a set of ambitious objectives to contribute to a more
sustainable future.
Challenge
The Municipality is in an area which is perfect for
investments, development and business expansion and is
focusing on excellent service delivery to its customers and is
investing in network upgrades like electricity. The impact of
power outages results in loss of income and unhappy
customers.
Solution
Since 2016, the Municipality has partnered with Schneider
Electric and its licensed partners to achieve both short-term
and long-term objectives. The electric distribution utility is
using SCADA and embracing SF6-free MV switchgear,
eliminating the use of greenhouse gases in the ring main unit
(RMU) and enhancing service continuity. This innovation
establishes a new standard for improving the reliability, and
sustainability of the power grid and facilitating digital
monitoring of real-time events and providing various
notifications and measurements.
Results
Schneider Electric’s AirSeT MV Switchgear technology
helped Drakenstein Municipality reduce its carbon
equivalent footprint, by eliminating SF6 from MV switchgear
and thus avoiding c.73,000kg of CO2 in a single substation.
Its digital capabilities enable more effective network
management and optimize maintenance leading to improved
power reliability and service continuity. Drakenstein
Municipality has achieved measurable benefits with our
SF6-free technology. Pure air has no impact on the
environment, its use eliminates the need for costly and
complex recycling of harmful gases at the end of life, and
offers safer operation of equipment by staff. Ultimately AirSeT
helps reduce the environmental footprint of our society.
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An integrated architecture for enhanced value for our customers across end-markets
Energy
Management
Industrial
Automation
Hybrid: Cloud
and On-Premises
AI & Cybersecurity
IoT & Data
Software for complete Digital Twin
Buildings
Infrastructure
Industry
Data Centers
Software & Advisory
Digital Services
Field Services
Automation & Control
Connected Products
Non-connected Products
Software, Apps,
Analytics and Services
Edge Control
Connected Products
Multiple customer
entry points
Electrical and automation technologies are
converging with software and sustainability
as enablers for rapid acceleration
From EcoStruxure to Connect: a complete digital architecture
At Schneider Electric, we have evolved from unconnected products
to highly connectable solutions, enhanced by automation and
digital services. This transformation benefits both our customers
and internal processes. Our CONNECT platform unifies
technologies, creating a seamless, intelligent digital twin for
optimized operations.
This connectivity allows us to offer digital services and preventive
maintenance, enhancing customer value. By standardizing
gateways and focusing on user experience, we ensure our
products are easy to use and serviceable by design.
This approach simplifies usage and delivers unique value across
different segments, ensuring our customers benefit from innovative,
connected solutions.
Integrated report
Design
Build
Operate & Maintain
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Making an
as the #1 most
sustainable company
2021
2022
2023
2024
2025
1st
4th
7th
7th
1st
Going beyond the scope of operations in sustainability
We help our customers define their sustainability journey, strategize
with them through our Sustainability Consulting offer, then help
them to digitize so they have full visibility of their operations. Finally,
we help them to decarbonize through our equipment with PPAs,
managed services, and the rest of our broad offering. Today, 40%
of the Fortune 500 companies are our clients, and we additionally
help them in their decarbonization journey through networks where
we drive decarbonization in different industries such as
semiconductors or pharmaceutical supply-chains through our
Catalyze and Energize programs.
Following these, in 2024 we’ve announced the Materialize program
for Scope 3 decarbonization of the mining sector, which aims to
reduce emissions across the supply chain, leveraging our expertise
and collaborative approach to drive sustainability in the industry.
Find out more about Materialize program at
www.se.com
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Integrated report
2024 India Investor Event
December 2 & 3, 2024
Hyderabad, India
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I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
3rd largest
Market for
Schneider Electric
(1) Including temporary employees.
1 of 4
Global hubs
60+ years
Of presence
38k+
Employees, x2 in the
last 7 years(1)
Schneider Electric in India:
A Legacy of Innovation and Impact
Pioneering IMPACT in India
1963
Schneider Electric started
operations through a joint
venture with the Tata Group
2002–2003
R&D, Automation,
and Application Center
Bengaluru and Baroda
factories.
ries.
2006–2017
Rapid expansion
Acquired leading brands:
APC, Luminous, Invensys.
2019
Smart manufacturing
and supply chain
Hyderabad and Bengaluru
factories are classified as
Smart Factories.
Mumbai Distribution
Center became
a Smart
Distribution
Center.
2024
Expanded our footprint
with our new campus
and rebranding
Inaugurated one of our
largest employee campuses
in Solarium City, Bengaluru.
L&T Switchgear is now Lauritz
Knudsen Electrical &
Automation.
2023
Completed 60 years in India
partnering for sustainability
by announcing major
expansions
2020
Largest acquisition in India
Completed the acquisition
of L&T Electrical and
Automation, along with
Temasek.
31
factories
31
distribution
centres
2,000+
suppliers
30+
export to over
30 countries
19,000+
Global Supply Chain
employees(1)
Our ambition for Schneider Electric in India
• Organic sales growth engine: Double-digit CAGR
• Expanding capacity by 2.5x to 3x to serve India and the globe
• Leadership across end-markets: From mega cities to rural
• Cutting edge Smart Manufacturing: Country / Region / World
• Innovation in product franchise: R&D excellence
• Driving force in AI applications: External & Internal
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IMPACT
Company
Integrated report
An “Impact Maker”
for sustainability
For over 20 years, sustainability has been at the core of Schneider Electric’s transformation journey. The Group
is now a world corporate leader in sustainability and a critical partner to our customers, suppliers, investors,
NGOs, and other stakeholders using our services and products to accelerate their own energy efficiency and
sustainability transition. Our purpose drives us in “creating impact by empowering all to make the most of our
energy and resources, bridging progress and sustainability for all”. Schneider Electric is an Impact Company.
At Schneider Electric, we pride ourselves on being an Impact
Company because sustainability does not only inform what we do,
it drives corporate decision making. This entails a responsibility to
share learnings and keep raising the bar.
We are an Impact Company convinced that to do good, we need to
do well, and vice-versa. To deliver sustainability impact, we must
combine solid profitability with leading practice on all environmental,
social, and governance (ESG) dimensions. At the same time, this
positive impact supports the long-term resilience of the Company
as we attract new customers, investors, and talents.
Our sustainability and business impacts converge to act for a
climate positive and socially equitable world, while delivering
solutions to our customers for sustainability and efficiency.
We bring everyone along in our ecosystem, from employees to
supply chain partners, customers, as well as local communities and
institutions. Building on a foundation of trust, our unique operating
model with a multi-hub approach is set up to impact at both global
and local levels. From a meaningful purpose, our culture builds on
strong people and leadership values empowering all Schneider
Electric people to make a great company.
An Impact model recognized in external ratings
Moody’s
ESG Solutions
Schneider Electric ranked
1st in TIME magazine
and Statista’s World’s
Most Sustainable
Companies
The only company in its
sector listed as A List
14 years in a row
Named World’s Most
Sustainable Corporation
by Corporate Knights’
as part of its Global 100
ranking, and only
company to have ever
ranked 1st twice
In top 1% performance
among 100,000+
companies, achieving
Outstanding level
Schneider is part of the
Euronext Vigeo World
120, Europe 120, Euro
120, France 20 and
CAC40 ESG indices
1. Do well to do good
and vice versa
Performance
The foundation for doing good
Business
Part of the solution
All ESG
Dimensions
2. Bring everyone along
Model & culture
Set up for global and local impact
All stakeholders
in the ecosystem
See our recognitions on the
Awards page at www.se.com
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I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Read more about Schneider Sustainability Impact
and Schneider Sustainability Essentials in
chapter 2, on pages 71 to 79.
Read more about our contributions the
United Nations Sustainable Development Goals
on pages 80 and 81.
Our 2025 sustainability commitments
With less than 10 years left to reach the 17 United Nations Sustainable Development Goals (SDGs), Schneider Electric has accelerated its
impact and is making new, bold commitments to drive meaningful impact within the framework of its business activity. Schneider Electric’s
6 long-term commitments are to:
Our unique transformation tool
Act for a climate-positive world
by continuously investing in and developing innovative solutions that deliver
immediate and lasting decarbonization in line with our carbon pledge.
Be efficient with resources
by behaving responsibly and making the most of digital technology to
preserve our planet.
Live up to our principles of trust
by upholding ourselves and all around us to high social, governance, and
ethical standards.
Create equal opportunities
by ensuring all employees are uniquely valued in an inclusive environment to
develop and contribute their best.
Harness the power of all generations
by fostering learning, upskilling, and development for each generation,
paving the way for the next.
Empower local communities
by promoting local initiatives and enabling individuals and partners to make
sustainability a reality for all.
1. Focused
on material issues
2. Disrupting
the status quo
3. Transparent
quarterly disclosure
4. Robust
assured by an independent third party
5. Rewarding
employees for performance
Since 2005, Schneider Electric measures and demonstrates its
progress against sustainability goals with a unique transformation
dashboard today called Schneider Sustainability Impact (SSI).
The SSI is the translation of our six long-term commitments into
a selection of 11 highly transformative and innovative programs
executing our 2021 – 2025 sustainability strategy. It has been
designed to focus on the most material issues, leveraging internal
and external stakeholders’ feedback.
Every quarter, the SSI provides, on a scoring scale of 10, an overall
measure of all the programs’ progress, which is shared with all our
stakeholders together with financial results.
At the end of the year, 76,000 employees of the Group are
rewarded for the progress achieved as the SSI constitutes 20%
of their short-term incentive plans’ collective share (STIP).
To ensure robustness, the SSI performance and monitoring
systems are audited annually by an independent third party and
obtain a limited assurance, in accordance with (revised) ISAE 3000
assurance standard (except for SSI #+1). In 2024, the Group
obtained a reasonable assurance for SSI #8.
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Integrated report
Proud of 2024’s sustainability achievements
The Schneider Sustainability Impact is a scorecard demonstrating that rapid and disruptive changes for
a more sustainable world are possible across diverse, complex topics. Schneider is committed to taking
urgent action to co-create a brighter future aligned with the United Nations SDGs, and measuring its impact
with transparency.
In 2024, the SSI achieved a great score of 7.55/10, outperforming its 7.40/10 target for the year. This result represents the average progress
of 11 SSI programs (excluding SSI #+1).
The Group kept supporting the decarbonization journey of its ecosystem by enabling its customers to save and avoid +126 million tons
of CO2 emissions this year alone through its solutions and services (SSI #2), and by helping its 1,000 top suppliers (SSI #3) to reduce their
operational CO2 emissions by 40%. In 2024, over 245,600 new people were also trained in energy management (SSI #11), and 7 million
people have accessed to clean and reliable electricity (SSI #9), reaching the 2025 ambition a year ahead. Lastly, progress against the local
commitments taken in the markets where Schneider operates (SSI #+1) can be consulted on a dedicated page on se.com.
7.55/10
vs. 6.13/10 in 2023 and outperforming 7.40/10
target for the year
Schneider Sustainability Impact
6 Long-term Commitments
aligned to UN SDGs
11+1 targets for 2021–2025
Baseline(1)
2024 Progress(2)
2025 Ambition
Climate
1.
Grow Schneider Impact revenues(3)
2019: 70%
0%
74%
80%
2.
Help our customers save and avoid millions of tonnes
of CO2 emissions
2020: 263M
0
679M
800M
3.
Reduce CO2 emissions from top 1,000 suppliers’
operations
2020: 0%
0%
40%
50%
Resources
4.
Increase green material content in our products
2020: 7%
0%
38%
50%
5.
Primary and secondary packaging free from
single-use plastic, using recycled cardboard
2020: 13%
0%
78%
100%
Trust
6.
Strategic suppliers who provide decent work to
their employees
2022: 1%
0%
63%
100%
7.
Level of confidence of our employees to report
unethical conduct
2021: 81%
0%
83%
91%
Equal
8.
Increase gender diversity(4) in:
hiring (50%),
front-line management (40%),
and leadership teams (30%)
2020 : 41%
2020 : 23%
2020 : 24%
0%
0%
0%
42%
30%
31%
50%
40%
30%
9.
Provide access to green electricity to 50M people
2020: 30M
0
53.4M
50M
Generations
10. Double hiring opportunities for interns, apprentices
and fresh graduates
2019: 4,939
x1
X1.59
x2
11.
Train people in energy management
2020: 281,737
0
824,404
1M
Local
+1. Country and Zone Presidents with local commitments
that impact their communities
2020: 0%
0%
100%
100%
(1) The baseline year is indicated in front of each SSI baseline performance.
(2) Each year, an independent third party verifier performs a “limited” assurance engagement on all SSI and SSE indicators (except SSI #+1 and SSE #12 in 2024), in
accordance with (revised) ISAE 3000 assurance standard (see Independent verifier’s report on page 337). In addition, SSI #8 was subject to a “reasonable”
assurance engagement in 2024 (see Independent verifier’s report on page 340). Please refer to page 311 for the methodological presentation of each indicator.
(3) Per Schneider Electric definition and methodology. Note that for the reporting requirements under the European Taxonomy Regulation, please refer to pages 184 to 202.
(4) From 2025 onwards, diversity targets shall not impact local incentives in countries or entities prohibiting the establishment of such targets.
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Generations
Celebrating social entrepreneurship
The #25YearsYoung Campaign celebrates global impact by
selecting 25 exceptional social entrepreneurs from over 350
youth-led projects competing for the €50,000 “Youth
Champion Award,” enhancing visibility for innovative solutions
across 65 countries.
Climate
Supporting our supply chain decarbonization
journey
Launch of the Materialize supply chain decarbonization
program designed to support companies in the metals and
minerals sector reduce emissions.
Equal
Investing with impact for all
Schneider Electric’s Energy Access Asia impact fund co-led
investments to expand in ATEC’s IoT-enabled electric stoves
to help decarbonize cooking across Asia and Africa and
empower millions of women to fight climate change.
Trust
Striving with our ecosystem for sustainability
Schneider Electric has launched in 2024 the 3rd edition of its
Sustainability Impact Awards, an initiative aimed at
celebrating and recognizing its partners, customers, and
suppliers who are leading the charge in sustainability through
electrifying or digitizing their operations.
Local
Contributing to our common heritage
Proudly contributed to the restoration of Notre Dame
Cathedral, providing cutting-edge energy management
solutions that ensure safety, optimize energy consumption,
and support this UNESCO World Heritage Site’s future.
Resources
Making circularity shine
Schneider Electric is recognized as a Circularity Lighthouse
by the World Economic Forum and McKinsey, for its end-to-
end circular approach across a broad portfolio in energy and
building automation solutions.
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Governance
Our Board of Directors
As of March 26, 2025, the Board of Directors
consisted of 17 Directors. Mrs. Clotilde Delbos was
co-opted as a Director, in replacement of
Mrs. Cécile Cabanis, resigning, by the Board of
Directors on November 1, 2024. The ratification of
her co-optation will be proposed to the Annual
Shareholders’ Meeting to be held on May 7, 2025.
Board expertise
Public company management (14)
Corporate finance (13)
Accounting, audit & risk (5)
International markets (15)
Industry knowledge (9)
Employee perspective &
knowledge of the Group (4)
Digital & software (7)
Environment/Climate (4)
Social (8)
Governance, law, ethics &
compliance (6)
*
Excluding the Director representing the employee shareholders and Directors representing the employees unlike the ratio
disclosed in section 2.2.1.1.2 of Chapter 2 of this Universal Registration Document.
**
Including joint meeting with other committees.
Jean-Pascal Tricoire
Chairman of the Board of Directors
61 years, French
• Organizes and directs work of
Board, presides over Annual
General Meetings.
• Supports the Company in its high-
level relations with select stakeholders
(notably in Asia), in coordination
with the Chief Executive Officer.
• Promotes the Company’s values
and culture, in particular in relation
to environmental, social and
governance (ESG).
• Advises CEO, notably on strategic,
human capital, and leadership
development matters.
Board committees
Audit & Risks Committee
7 meetings**
4 members
100% independent
100% average attendance
Governance, Nominations &
Sustainability Committee
11 meetings**
6 members
67% independent
100% average attendance
Human Capital &
Remunerations Committee
5 meetings**
5 members
100% independent*
92% average attendance
Investment Committee
4 meetings
9 members
71% independent*
97% average attendance
Digital Committee
5 meetings**
7 members
67% independent*
89% average attendance
C Committee Chair
Léo Apotheker
Director
71 years, French & German
Nive Bhagat
Independent Director
53 years, British
Giulia Chierchia
Independent Director
46 years, Belgian & Italian
Clotilde Delbos
Independent Director
57 years, French
Rita Félix
Employee Director
42 years, Portuguese
Philippe Knoche
Independent Director
56 years, French & German
Linda Knoll
Independent Director
64 years, American
Jill Lee
Independent Director
61 years, Singaporean
Xiaoyun Ma
Employee Shareholders
Director
61 years, Chinese
Anna Ohlsson-Leijon
Independent Director
56 years, Swedish
Abhay Parasnis
Independent Director
50 years, American
Anders Runevad
Independent Director
65 years, Swedish
Gregory Spierkel
Independent Director
68 years, Canadian
Lip-Bu Tan
Independent Director
65 years, American
Bruno Turchet
Employee Director
51 years, French
C
C
C
• 3 Employee Directors
• 86% Independent
Directors*
• 43% women Directors*
• 82% non-French
Directors
• 12 nationalities from
3 continents
Fred Kindle
Vice-Chairman & Lead
Independent Director
66 years, Swiss
• Consulted by the Chairman
on agenda and sequence of
events for Board meetings.
• Has the ability to require that
the Chairman convene a
Board meeting.
• Deals with any possible
conflicts of interest.
• Carries out annual
assessments of the Board.
Olivier Blum
Chief Executive Officer
54 years, French
• Has sole authority to bind
the Company with third
parties.
• Defines and proposes the
strategy.
• Manages the Company.
• Runs the business.
• Develops human capital
and leadership.
Fred Kindle
Vice-Chairman &
Lead Independent Director
66 years, Swiss
Jean-Pascal Tricoire
Chairman of the Board of
Directors
61 years, French
C
+
The governance structure
Integrated report
C
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S T R A T E G I C R E P O R T
I N T E G R A T E D R E P O R T
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Our Executive Committee
As of March 26, 2025, the Executive Committee was chaired by the Chief Executive Officer and meets
monthly. Its mission is to conduct Schneider Electric business in line with the strategy defined by the
Board of Directors.
Our Stakeholder Committee
The primary mission of the Stakeholder Committee is to oversee the delivery of long- and short-term commitments undertaken by Schneider
Electric in accordance with its purpose and sustainability strategy.
Activities of the Board in 2024
There were eight meetings (including a Strategy session of three days) with 97% average attendance.
Business and financial results
Ongoing business, financial statements and information delivered to
the market, and ESG strategy.
Strategy and investment
Review of strategic priorities, including during the Strategy session,
and authorization of significant acquisitions and disposals (over
EUR 250 million).
Sustainability, risks and compliance
Sustainabilty (CSRD) reporting, risk mapping, business continuity
plan, and ethics and compliance framework.
Corporate governance
Succession plan for Corporate Officers, composition of the Board and
its committees, compensation of Corporate Officers, long-term
incentive plan, preparation of the Annual General Meeting.
Olivier Blum
Chief Executive Officer
54 years, French
Hilary Maxson
Chief Financial Officer
47 years, American
Charise Le
Chief Human Resources
Officer, 52 years, Chinese
Chris Leong
Chief Sustainability Officer
57 years, Malaysian
Olivier Blum
Chief Executive Officer
54 years, French
Salvo Lombardo
Chairman of the Committee,
Former Chief of Staff,
UNHCR
65 years, Italian
Amani Abou-Zeid (Dr.)
African Union Commissioner
in charge of Infrastructure,
Energy, ICT and Tourism
63 years, Egyptian
Giulia Chierchia
Director of Schneider
Electric SE
46 years, Belgian & Italian
Michela Conterno
Chief Executive Officer of LATI
49 years, Italian
Rita Félix
Employee Director of
Schneider Electric SE
42 years, Portuguese
Lan Xue (Dr.)
Cheung Kong Chair
Distinguished Professor and
Dean of Schwarzman College
in Tsinghua University
65 years, Chinese
Amit Narayan
Founder & CEO of Aina
Climate AI Ventures
53 years, American
Bertrand Piccard
Chairman of Solar Impulse
Foundation
67 years, Swiss
Hervé Coureil
Chief Governance Officer
& Secretary General
54 years, French
Mourad Tamoud
Executive Vice-President
Global Supply Chain,
53 years, French
Nadège Petit
Chief Innovation Officer
45 years, French
Jing Ren
Executive Vice-President
Strategy, Brand &
Communications
44 years, Chinese
Peter Weckesser
Chief Digital Officer
56 years, German
Gwenaelle Avice-Huet
Executive Vice-President
Europe Operations
45 years, French
Laurent Bataille
Executive Vice-President
France Operations,
46 years, French
Manish Pant
Executive Vice-President
International Operations
55 years, Indian
Aamir Paul
Executive Vice-President
North America Operations
47 years, American
Zheng Yin
Executive Vice-President
China & East Asia
Operations
53 years, Chinese
Barbara Frei
Executive Vice-President
Industrial Automation
54 years, Swiss
Frédéric Godemel
Executive Vice-President
Energy Management
61 years, French
Caspar Herzberg
Executive Vice-President
Schneider Electric
Software, Chief Executive
Officer – AVEVA
52 years, German
Our shareholders
8.0%
86.3%
2.5%
3.2%
BlackRock, Inc. (8.0%)
Employees (3.2%)
Treasury shares (2.5%)
Public (86.3%)
• 41% women
• 59% non-French members
• 7 different nationalities from
3 different continents
Key
Global functions
Operations
Business
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Our Executive compensation
Integrated report
Our Executive compensation
The general principles underlying the compensation policy for Corporate Officers and the analysis of their contribution to the Group’s
performance are reviewed and approved by the Board of Directors based on the recommendation of the Human Capital & Remunerations
Committee. Executive compensation set by the Board of Directors is aligned with the Group’s global strategy and is based on three pillars
divided into seven principles:
Pay for Performance
Alignment with shareholders’
interest
Competitiveness
• Principle 1: Prevalence of variable
components: circa 80% for the
Chief Executive Officer (at target).
• Principle 2: Performance is
evaluated via economic and
measurable criteria.
• Principle 3: Financial and
Sustainability objectives are fairly
balanced and distributed between
short-term (annual variable
compensation) and medium-term
(long-term incentive) components.
• Principle 4: Significant proportion
of the total compensation delivered
in shares.
• Principle 5: Performance
conditions support Schneider
Electric’s strategic priorities and
are aligned with shareholders’
expectations.
• Principle 6: To benchmark the
Corporate Officers’ compensation
package “at target” in the median
range of the Company’s updated
peer group.
• Principle 7: To reference the
CAC 40 third quartile and the
STOXX Europe 50 median.
Group’s strategic priorities
How the strategy links to the Corporate Officers’ variable compensation
Organic growth
Value for customers
Sustainability
Continuous efficiency
Value & returns to
shareholders
Annual incentive plan
Delivering strong execution and creating value for customers and shareholders every
year to contribute to Schneider Electric’s long-term success
Group organic
sales growth
Group organic
Adjusted
EBITA margin
improvement
Group cash
conversion
rate
Net
Satisfaction
score
Schneider
Sustainability
Impact
35% 25% 10% 10% 20%
Long-term incentive plan
Building an integrated and leading company with strong sustainability focus and
attractive returns to shareholders
Adjusted Earnings
per Share
Relative Total
Shareholder Return
Carbon emissions
reduction targets
40%
35%
25%
Aligned with those principles, the compensation of the Chief
Executive Officer is made of the following components: for the
variable component of the compensation, the Board upon
recommendation of the Human Capital & Remunerations Committee,
chooses the performance conditions directly linked to the Group’s
priorities. The Schneider Sustainability Impact (SSI) which includes
a climate target (see section 2.1.1 of the Universal Registration
Document) is used as a criterion in the annual variable compensation
of the Chief Executive Officer and that of the 76,000 employees
benefiting from such compensation. In the same way, the Carbon
reduction targets criterion will be used for the long-term incentive
plan granted to more than 4,500 employees including the Corporate
Officer.
(1) Estimated valued, in accordance with IFRS standards, of the LTIP to be
granted during 2025 fiscal year.
(2) Between 0% and 200%.
Balance between compensation elements
28%
Target annual
variable
compensation
100% of fixed(2)
22%
Fixed
compensation
50%
LTIP(1)
22%
Not linked to
performance
50%
Paid in cash
50%
Paid in shares
50%
Short term
50%
Long term
(minimum 3 years +
presence condition)
78%
Linked to
performance
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Our Enterprise Risk Management
Schneider Electric places a significant importance on resilience within the values and principles which guide its actions, as a key element
for sustainable growth which is part of the Group’s Sustainability value.
An Enterprise Risk Management based on the three lines of defense model
Schneider Electric uses a hybrid risk management model with central functions and experts in charge of setting risk management
mechanisms, establishing policies, and other activities, while the ownership of the risks belongs to the Business Units, Operating Divisions,
or Global Functions who are responsible for deploying the central framework to manage their risks.
Key Risks
The key risks selected and
presented in the adjacent table are
the risks considered by the Group
as specific to its business and
identified as having the potential
to affect its activity, its image, its
financial situation, its results, or the
achievement of its objectives.
However, the Group may be exposed
to other non-specific risks, or risks
of which it may not be aware,
or risks of which it may be
underestimating the potential
consequences, or other risks that
may not have been considered by
the Group as being likely to have
a material adverse impact on the
Group, its business, financial
condition, reputation, or outlook.
In each category, risks are
assessed in terms of potential
impact for the Group according
to three levels (red, orange, and
green), with red being the most
likely to affect the Group.
Categories and Risks
Potential
net impact
1
Event triggered risks
1.1
Cybersecurity on Schneider Electric infrastructure and its digital
ecosystem (including connected products used as a gateway to attack
Group’s customers and partners)
1.2
Export controls
1.3
Product, project, system quality, and offer reliability
1.4
Competition laws
1.5
Corruption linked to B2B and project business
1.6
Human rights and safety issues through the value chain
1.7
Counterparty risk
1.8
Currency exchange risk
1.9
Health & Safety
2
Trend driven risks
2.1
Technology evolutions (Generative AI)
2.2
Operational disruption due to global political and economical disruptions
2.3
New competitive landscape and business models in energy
2.4
Supply chain resilience
2.5
Group offer evolution and innovation
2.6
Attracting and developing talent with a focus on critical skills
2.7
Failure to achieve our long-term sustainability commitments and comply
with regulatory requirements
2.8
Business disruption due to environment-related risks
3
Management practice risks
3.1
Inappropriate Data Management
3.2
IT systems management
3.3
M&A and integration
3.4
Projects acceptance and outcomes
3.5
Procurement and Supplier relations
Key to symbols
High impact
Medium impact
Low impact
Board of Directors
Senior Management
Operating Divisions
and business units
(Risk Owners)
Audit & Risks Committee
Accountable to stakeholders for organizational oversight. The Board is informed about the efficiency of the internal control and risk management systems.
Responsible for designing and leading the overall internal control system including the oversight,
identification and assessment, and mitigation of risk at Group level as well as Business Unit level
and across key Group functional areas.
Follows-up on the efficiency of internal control
and risk management systems and reports
to the board thereon.
1st line of defense
3rd line of defense
2nd line of defense
Takes ownership of how the
risks are controlled on the
ground, following the risk
management procedures
set by the 2nd line of defense.
Sets risk management mechanisms, advises and monitors the 1st line
of defense, helps them build action plans to improve response,
control and monitoring of risks.
Independently assesses if
the 1st line of defense is
managing risks properly
and if the 2nd line of
defense is supporting the
1st line in the right way.
Group Risk
Management
Internal Control
Post Merger
Operations
Global Functions
and Risk
Overseers
Internal Audit
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2024 achievements
Top 25%
in external ratings for
Cybersecurity performance
330,000+
employees of our suppliers with
better working conditions thanks
to the ‘Vigilance Program’ for
suppliers since 2017
4,052
suppliers assessed under our
Vigilance Plan since 2018
Schneider Electric’s vigilance plan
Schneider Electric started in 2017 the implementation of a vigilance plan covering its business activities
as well as those of its suppliers and subcontractors in order to prevent negative impacts on people or
the planet within its value chain. Since then, this vigilance plan has been continuously reinforced, aiming
to expand further towards communities.
An end-to-end, risk-based mitigation plan
The Group’s vigilance plan complies with the provisions of the 2017 French law on corporate duty of vigilance and includes:
• A risk analysis specific to risks that Schneider Electric poses or may pose on its ecosystem and environment;
• A review of the key actions implemented to remediate or mitigate these risks;
• An alert system (Trust Line); and
• Governance specific to vigilance.
In this Registration document, Schneider Electric presents the results of the risk assessment, and the subsequent mitigation actions. A
synthesis of key risks and actions is presented below.
The plan is governed by the Duty of Vigilance Committee, set up in 2017. The committee meets twice a year, and has met 19 times since its
inception.
Risk areas
Main risk identified
Main mitigation actions
Risk level
Schneider
Electric sites
• Cybersecurity: only high risk for the
Group’s sites, as Schneider Electric is a
supplier of connected and digital solutions,
thus a potential target for cyberattacks
aimed at its customers’ systems
Training sessions
Cybersecurity Leaders
Incentive for plant managers
Annual review of policies
Cyber Badges
Read more on cybersecurity
page 267
Suppliers
• Human rights: most frequent issues
concern decent working hours, paid leave,
and proper resting time.
• CO2 emissions: notably coming from the
transformation and transportation of raw
materials.
• Pollution: for some categories of
substances purchased, such as solvents
Supplier Code of Conduct
Supplier Vigilance Plan (SSE #17)
ISO 26000 assessments
The Zero Carbon Project (SSI #3)
Green materials (SSI #4)
Decent Work program (SSI #6)
Sustainable Packaging (SSI #5)
Read more on suppliers programs
page 236
Contractors
• Health and safety: physical injuries that
can happen during construction, or when
doing services and maintenance operations
• Business ethics: mostly related to potential
corruption, conflict of interest, and integrity
due to the contractual nature of this activity.
On-site audits
Training on anti-corruption and Business Agent Policies
Project follow-up
Selection process adapted to our Vigilance Plan
Read more on contractors
page 240
Local
communities
• Communities living around Schneider
Electric sites (factories, offices, etc.) have a
limited risk exposure because operations
are usually located in large, well-structured
urban areas.
Vigilance risks assessments
Project reviewed according to involvement and
mitigation capabilities
Read more on communities
on page 246
Risk level: Low to Medium
Medium to High
High
Read more about our Vigilance Plan
on page 109
Our stakeholders
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Proud to be one of the most ethical
companies
Present in over 100 countries with diverse standards, values, and practices, Schneider Electric is committed
to behaving responsibly in relation to all its stakeholders. Convinced that its responsibility extends beyond
compliance with local and international regulations, the Group is committed to doing business ethically,
sustainably, and responsibly. Schneider’s business actions and decisions run on trust.
Trust Charter, Schneider Electric’s
Code of Conduct
Schneider Electric Trust Charter acts as the Group’s Code of
Conduct and demonstrates its commitment to ethics, safety,
sustainability, quality, and cybersecurity. Schneider Electric
believes that trust is a foundational value. It is earned. It serves as a
compass, showing the true north in an ever more complex world
and Schneider Electric considers it to be core to its environment,
sustainability, and governance commitments.
Trust powers all Schneider Electric’s interactions with stakeholders
and all relationships with customers, shareholders, employees, and
the communities they serve, in a meaningful, inclusive, and positive
way. It is implemented via the Ethics & Compliance program with
responsibilities at Board, executive, corporate, and operational
levels.
TRUST
T
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a
m
s
C
u
s
t
o
m
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r
s
a
n
d
P
a
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t
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r
s
I
n
v
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s
t
o
r
s
C
o
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m
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n
it
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y
Q
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ai
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t
y
Read our Trust Charter on se.com
and on page 102 of this report
Access our Trust Line
on www.se.com
Our Speak Up Mindset
Schneider Electric employees must feel free and psychologically
safe to share their ideas, opinions, and concerns, without fear of
retaliation, this is the basis of our Speak Up mindset. All
stakeholders may report concerns either by contacting an
appropriate person internally or by using the Trust Line, our
whistleblowing system, which is available online globally, at all
times, and protects the anonymity of the whistleblower.
To ensure the effectiveness of that Speak Up mindset and related
whistleblowing system, the Group created two specific committees:
the Group Operational Compliance Committee (GOCC) which
detects and manages cases of non-compliance and reviews
monthly the effectiveness of the system, and the Group Disciplinary
Committee which levies sanctions and remediation actions on
serious non-compliance cases to guarantee a fair and transparent
disciplinary policy.
All employees are invited to express whether they are comfortable
to “report an instance of unethical conduct without fear” each year.
In 2024, 83% of employees surveyed answered “yes”, a 1 point
progress versus 2023. The Group’s ambition is to raise its
employee’s confidence to 91% by 2025 (SSI #7).
Training and empowering
all employees
Every year, a global campaign of mandatory trainings is run for
all employees, called Schneider Essentials, and is available in
18 languages. In 2024, the trainings focused on Trust,
Cybersecurity, Data, and Inclusive Mindset, along with additional
courses based on function or location. Other trainings are provided
to specific businesses or service teams according to their roles
and positions, such as anti-corruption. The course dedicated to
Trust was completed at 99.4%, and the course on Anti-Corruption
at 99.5%.
In 2024, a Trust Week was organized to further raise awareness
among employees. This internal campaign aims to bring together
all pillars of Trust into one comprehensive event, which consisted of
3 global live events, alongside local events, gathering over 2,500
attendees across the globe.
2024 achievements
30+
languages in which
the Trust Charter
is available
99%
of all employees
completed the
Schneider Essentials
training on Trust
83%
of employees are
confident to report
unethical conduct
Ethisphere Institute –
One of the World’s Most
Ethical Companies for the
14th year in 2024
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Stakeholders’ top expectations
The four following main concerns of Schneider Electric’s stakeholders were used by the Group to build its 2021 – 2025 sustainability
objectives.
Sharing sustainable value
with our stakeholders
Schneider Electric is committed to open and continuous communication with its ecosystem and uses the
feedback to analyze its market and define areas of progress. The Company aims to enhance its positive impact
on the planet and society at large by promoting responsible growth that is shared with all its stakeholders.
Stakeholders in our ecosystem
By building long-term partnerships with a wide range of global and local players, Schneider works directly with many types of suppliers,
contractors, and end-customers, and has developed the industry’s largest network of distributors. The Group is continually strengthening
its local connections in all regions to deliver the best customer experience and co-develop sustainable effective solutions. Alongside
business partners, the Group is involved in various local and international organizations that promote sustainability alongside key
stakeholders from its ecosystem.
Suppliers
The Group established an ambitious
sustainable procurement strategy
providing guidelines to its 53,000
suppliers to ensure that all are aligned
with the Group’s ambitions to build an
inclusive and carbon-neutral world, where
ecosystems and resources are
preserved, and people have access to
economic opportunities and decent lives.
Customers and
end-users
Customers are offered efficient, safe,
and decarbonized solutions through
digitalization and electrification,
providing them with high environmental
performance products and full
transparency on environmental impact.
The Group insists on high quality and
strong cybersecurity to deliver on
customer experience.
Financial partners
Our business model delivers consistent,
sustainable, and strong financial
performance, offering our financial
partners attractive returns. The Group
actively participates in innovative
sustainable finance initiatives, such as
sustainability-linked revolving credit
facilities.
Employees and
social partners
Schneider Electric empowers its people
across regions and generations offering
equal opportunities. The Group motivates
its employees and promotes their
involvement by making the most of
diversity, supporting professional
development, and ensuring safe, healthy
working conditions.
Institutions and
technical bodies
The Group is involved in various local and
international organizations supporting
sustainability. Schneider Electric makes it
its priority to maintain a transparent and
constructive dialogue with policymakers
and regulators so that its views are
represented on issues affecting our
industry.
Communities
and civil society
Schneider Electric acts to empower local
communities by promoting local initiatives
and enabling individuals and partners
to make sustainability a reality for all,
everywhere. The Group strives to have
a positive impact by delivering education
on energy management and through
investments supporting high social
and environmental impact.
Schneider Electric
Our stakeholders
1.
Leading climate action
in our ecosystem with
our partners.
2.
Pioneering circular
economy and being
efficient with resources.
3.
Ensuring a fair transition
and guaranteeing high
ethical, social and
environmental
standards along our
value chains.
4.
Leveraging digital in
cybersecure solutions
to boost positive impact.
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Revenue breakdown by stakeholder
Every year for the last 19 years, Schneider Electric has published a diagram showing its revenue distribution and financial flow for its various
stakeholders.
Employees:
Wages
€10,714M
States:
Income taxes
€1,398M
Non-governmental
organisations:
Donations(1)
€36M
Shareholders:
Dividends
€1,963M
Bank:
Finance costs, net
€261M
Procurement
and other
€23,781M
2024 total revenue: €38,153M
Investment capabilities
R&D: €2,260M
Net external financing(2) including capital change
€339M
Operating Cash Flow after dividend payment
€3,617M
Investments and
development
€1,364M(3)
Net financial
investments
€623M(4)
Change in cash
€2,158M
(1) Unaudited declarative amount.
(2) Borrowings, capital increases, treasury stock disposals and buybacks.
(3) Of which €358 million in R&D.
(4) Of which €80 million for long-term pension assets.
Schneider Electric is an
active member of the World
Business Council for
Sustainable Development,
participating in its 3 main
Imperatives: Equity, Climate
and Nature. The Group is
highly engaged with the
Business Commission to
Tackle Inequality (BCTI) and
actively involved in the
works on supply chain
decarbonization (The
Climate Drive), Scope 3 and
Climate Transparency
(PACT), and avoided
emissions. In 2024,
Schneider Electric also
contributed to the Built
environment workstream.
Schneider Electric joined
the UN Global Compact in
2002, and its Chairman was
appointed to the worldwide
Board in 2018. The Group
aligns its sustainability
strategy with the UN’s 10
principles on human rights,
labour, environment and
anti-corruption. As a
signatory, Schneider
Electric upholds its
responsibility to act and
aims to contribute to all 17
UN Sustainable
Development Goals. The
Group is a Patron of the
UNGC Labour and Decent
Work as well as a Sponsor
on Climate.
Since 2017, Schneider
Electric is a Strategic
Partner of the World
Economic Forum, where our
CEO is a member of the
International Business
Council and the CEO
Alliance of Climate Leaders
– and our Chairman a
member of the Community
of Chairpersons since 2023.
Schneider engages with a
wide range of partners to
progress on common world
challenges, by joining
public-private dialogues
and peer-to-peer
workgroups, sharing
insights and use-cases
leading to new frameworks
and toolboxes.
The Schneider Electric
Foundation renewed its
commitment to the Solar
Impulse Foundation at
COP28 in 2023. The
foundation selects more
than 1,000 clean and
profitable solutions that
contribute to the
achievement of at least 5
SDGs. These solutions are
then promoted to corporate
and political leaders
worldwide, and are selected
based on their technical
feasibility, environmental
benefits, and economic
viability.
Read more on our dialogue with
stakeholders on page 108
Committed with our partners
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Impact starts with us
The world is transforming at an unprecedented speed and there is a greater need for us at Schneider Electric
to play to the emerging opportunities. “Impact starts with us” is a promise the company makes to each of its
employees, and it is also an invitation for outside talent to join us and make an impact on the world we share.
Our Culture
To reach our Next Frontier ambition and become the industrial tech
leader, it’s time to accelerate our culture toward growth.
Culture matters. It matters to our customers, partners, investors,
and all of us at Schneider. Research tells us that great cultures yield
a stronger business performance and create a more engaged and
productive workforce. We also know strong cultures do not happen
by accident, requiring constant design and care. Culture is the
collective beliefs, values, and attitudes of an organization.
Culture is also about how we behave when no one is watching.
At Schneider, every aspect of our work, like how we interact with
customers, run business reviews, create our offers and services,
manufacture our products, and take decisions are all ingredients of
our culture.
IMPACT Values
Values anchor the way we work at Schneider Electric and help
bring our growth culture and EVP promise to life. They are the
principles that lie at the heart of our cultural evolution, forming the
reasons why people join, engage, and stay with us. Our six IMPACT
Values are derived from our transformative growth ambitions,
People Strategy, and the voice of our employees and customers.
These values represent the essence of our current strengths and
aspirations to shape Schneider Electric’s growth culture.
•
Inclusion: We embrace diverse perspectives, co-creating a
place where everyone belongs and thrives.
•
Mastery: We count on our expertise and know-how to deliver
the highest quality innovations.
•
Purpose: We aspire to build a sustainable future for our people,
customers, communities, and planet.
•
Action: We get things done with accountability, speed and
integrity, always with the customer in mind.
•
Curiosity: We love to think deeply and differently, challenging
the status quo and learning every day.
•
Teamwork: We achieve together with our teams, collaborating
with trust and openness.
Employee Value Proposition
Our new EVP, “Impact starts with us”, is rooted in our foundational
belief that impact can only be possible with a collective effort from
an ecosystem of customers, partners, employees, suppliers,
and communities.
“Impact starts with us” is a promise our company makes to each of
its current employees, and it is also an invitation for outside talent to
join our company and make an impact on the world we share. It is a
call to connect one’s career with the ambition of achieving a more
resilient, efficient, and sustainable world.
Read more about our people programs on
page 203
2024 achievements
81%
of employees feel they
have the flexibility to
modify their work
arrangements as needed
(stable since 2022)
x1.59
hiring opportunities for
interns, apprentices,
and fresh graduates
79.5%
employees’ received
digital upskilling thanks
to the Digital citizenship
program
62%
subscription in our
yearly Worldwide
Employee Share
Ownership Plan
(WESOP)
Our stakeholders
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Sustainable relations with suppliers
With a network of more than 53,000 suppliers around the world, Schneider Electric is committed to developing
lasting relationships, while supporting its partners to progress and embrace more sustainable social and
environmental practices.
Supply chain and procurement vision
Our world-class supply chain is driven by the following principles
and objectives:
• Customer satisfaction and quality is our number one priority. Our
supply chain is market driven and tailored to the customer.
• Sustainability is at the core of procurement actions with focus on
the impact that the operations of our suppliers generate on the
environment and society.
• Competitive landed costs and optimized cash, driving a high
level of productivity and Schneider Electric’s top-line growth
and margin.
• An agile and secure supply chain, that is a competitive
advantage in the market, throughout the product lifecycle.
• World-class competencies and talents with values of
accountability, collaboration, and simplification.
Read more about our sustainable relationships with
suppliers on page 236
Building a sustainable procurement strategy
Schneider Electric aims to collaborate with its global supplier
network for an inclusive and carbon neutral world, where
ecosystems and resources are preserved, and people get access
to economic opportunities and decent lives. To achieve this,
the Group:
• Provides a Supplier Code of Conduct with fundamental
requirements that all suppliers delivering goods or services to
Schneider Electric are expected to adhere to.
• Integrates sustainability criteria in day-to-day operational
procurement actions. The qualification process focuses on
people, social responsibility, and environmental management.
Sustainability criteria accounts for a significant part of the
evaluation. These criteria were revised and enhanced in 2023,
in line with the latest and most demanding internal requirements.
• Has set ambitious targets for the suppliers as part of a five
year-engagement plan, based on their progress in each of the
following areas:
−Climate action, addressed by The Zero Carbon Project
(SSI #3), aiming to reduce operational emissions from 1,000
suppliers
−Enhancement of circular supply chain by increasing the use
of green materials (SSI #4) and sustainable packaging (SSI
#5)
−Upholding of social commitment related to conflict minerals
and extended minerals (cobalt and mica)
−Upholding of human rights and inclusive workplaces by
implementing best-in-class practices through the Decent
Work program (SSI #6)
Holistic monitoring approach
To complete the Group’s commitment to environmental and social
topics, it established a transversal governance mechanism to
proactively screen, identify, and mitigate sustainability risk from
suppliers and embed preventive controls into the procurement
processes and integrate these controls in day-to-day operations.
Strategic suppliers are subject to the Group’s ambition to promote
continuous improvement based on the ISO 26000 standard
evaluation, and our Vigilance program aims at auditing 4,000
suppliers by 2025.
On their hand, suppliers can report any misconducts from the
Group through Schneider Electric’s alert system, the Trust Line,
which will be thoroughly and confidentially investigated.
2024 achievements
40%
operational CO2
emission reduction in
the Zero Carbon Project
(vs. 27% in 2023)
+2.5pts
increase of suppliers’
ISO 26000 score vs.
2023 (+9.6pts since
2019)
63%
strategic suppliers
conform to Schneider’s
Decent Work
requirements (vs. 21%
in 2023)
Highly Commended by
CIPS in 2024 for Best
Initiative to Deliver
Social Value through
Procurement
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Sustainability for Customers
As the digital partner of its customers for Sustainability and Efficiency, Schneider Electric delivers products
and services, empowering customers to make the most of their energy and resources. To do so, the Group
relies on the highest standards of product quality and safety, as well as digital trust and security.
Strive for environmental transparency
In 2024, Schneider Electric launched the Environmental Data
Program, its product environmental transparency framework
designed to measure, categorize, and compare the environmental
attributes and footprint of our products.
The program uses a fact-based methodology to provide different
categories of environmental data for all our products, covering
the entire product lifecycle. It is Schneider Electric’s commitment
to be the most transparent company in the industry and empower
customers to make better-informed decisions.
The Environmental Data Program has been build on the foundation
of Schneider Electric’s former Green Premium™ label and is the
testimony of 15 years of experience in product environmental data
management, connecting innovation by design and environmental
transparency. The Environmental Data Program is available online
on se.com for all Schneider Electric products.
Strive for premium quality
Schneider Electric’s priority is to delight customers with an
outstanding end-to-end experience. Its ambition is to earn the
reputation as the safest supplier in its industry. This vision is built on
trust; the Group is committed to ensuring the safest experiences for
its customers and believes this is the personal responsibility of
every employee. Safety is at the heart of innovation at Schneider.
Industry standards are not the goal – they are the baseline.
Schneider innovates beyond standards and believes that
technology helps people work safer. Safety demands active
engagement of all, without exception. The Groups rises to new
challenges. Moreover, to better fulfill customers’ needs and improve
their satisfaction, Schneider Electric relies increasingly on data
analytics and digital interlocks to secure a zero-defect mindset at
the core of our processes from design, to execution and services.
The Group’s commitment to quality and customer satisfaction is
illustrated in its ambition to have zero offers recalled from
customers, by 2025.
From 2022, Schneider has introduced a Customer First
performance criteria in the incentive goals for Group executives,
measured with its Net Satisfaction Score (NSS) through real-time
digital customer surveys covering six critical touchpoints as part of
its customer operational interactions. In 2024, the NSS once again
reached a record-level, confirmed by a continuous improvement
performance in most of critical touchpoints.
All results are available in the Customer Feedback Management
Platform where all employees are engaged to act on the customer
experience.
Strive for resiliency
Resiliency is the capacity to quickly recover from difficulty.
Schneider uses a risk centric framework to reduce our exposure to
technological, environmental, process, geopolitical, and health
risks that might disrupt its business. Schneider Electric has
standardized issue-escalation processes in place, as well as risk
assessment and business impact analysis, and is prepared to
manage any crisis with disaster recovery and business continuity
plans, if needed. The Group’s local leaders are empowered to
assess risks, increase their preparedness, and handle all types of
crises with a rapid and effective response, thanks to processes
and tools in place to support them.
Strive for trust in cybersecurity,
data privacy and protection
Schneider Electric’s cybersecurity strategy encompasses people,
processes, and technology across the operational lifecycle. By
following globally recognized standards and complying with
certified “secure by design” development processes, the Group
safeguards the digital ecosystem and delivers secure offers,
systems, solutions, and services.
The right to privacy and protection of personal information is a
fundamental human right. Schneider considers fairness,
transparency, data integrity, quality, security, and trust as core
principles of how it handles data and uses it in the products,
systems, and services they deliver. In 2024, the Group was
awarded a Platinium Medal in CyberVadis’ assessment, underlining
its commitment to cybersecurity. By leveraging digital technologies
based on human centered design with a “do no harm” oversight,
Schneider’s solutions benefit customers’ sustainable future.
2024 achievements
679M
tonnes of CO2 saved
and avoided for
customers since 2018
(+126M vs. 2023)
rated Platinum by
CyberVadis as part
of 2024 assessment
100%
of Schneider Electric
products included
in the Environmental
Data Program
5
safety recalls
(vs. 23 in 2023)
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25% absolute reduction
across our entire value chain and
“Net-zero ready” in our operations
Carbon neutral in
our operations
Net-zero CO2 emissions
across our entire value chain
2021 – 2025 initiatives to act for climate and preserve resources
Suppliers
Operations
Customers/Society
SSI #3
Reduce CO2 from suppliers
operations
SSE #4 Improve CO2 efficiency in
transportation
SSE #1 Transition to Zero-CO2 sites
SSE #3 Source renewable electricity
SSE #5 Improve energy efficiency
SSE #7 Switch to electrical vehicles
SSI #1
Grow our impact revenues
SSI #2
Save and avoid CO2 emissions
for customers
SSE #2 Substitute products using SF6
SSI #4
Use green materials in our
product
SSI #5
Switch to sustainable packaging
SSE #10 Avoid primary resource use
SSE #8 Deploy local biodiversity programs
SSE #9 Make waste a resource
SSE #11 Deploy water conservation
action plans
SSE #6 Product revenues covered by
Green Premium™ eco-label
Acting for a climate-positive world
and preserving resources
Climate change and nature loss are two of the greatest global challenges of the 21st century. They are inextricably
linked and require joint efforts and solutions to tackle them. Schneider Electric’s climate and resources strategies
converge to minimize its environmental footprint and to maximize the environmental benefits its offers bring.
Climate and resources strategy
Urgent action and a system-wide transformation are needed to
deliver the enormous emission cuts necessary to limit greenhouse
gas (GHG) emissions. With its climate programs, the Group aims to
limit its carbon emissions by implementing its own Energy
Management and Industrial Automation solutions and develop
offers that will help its customers do the same.
Schneider Electric was one of the first companies to have its
Net-Zero targets validated by the most recent SBTi “Corporate
Net-Zero Standard” in August 2022. The Group is committed to be
“Net-Zero Ready” in its operations and to reduce its scope 3
emissions by 25% by 2030, and to be Net-Zero across its full value
chain by 2050. In addition, as an intermediary milestone, by 2040,
the Group will be carbon neutral along its full value chain. With its
resource programs, the Group aims to minimize the volume of
resources it needs and optimize the use of these resources. The
existing systems and infrastructure are not adequate to maintain,
collect, and redistribute materials effectively for a global circular
economy. As a result, waste, including plastics and e-waste,
pollutes our land, and the world continues to deplete the limited
natural resources. Schneider Electric embraces circular economy
principles all along the lifecycle of products and offers.
The keystone of Schneider’s circularity approach is EcoDesign
Way™, a process that is applied to the development of all new
products. EcoDesign Way™ enables the right trade-offs between
the environmental impact along the lifecycle of products, allowing
to co-ordinate the efforts over the whole value chain.
2024 achievements
74%
of our revenues are
impact revenues
(vs. 74% in 2023)
78%
of our primary and
secondary packaging
is free from single-use
plastic and use
recycled cardboard
(vs. 63% in 2023)
Climate A
part of CDP Climate
A List for the 14th year
in a row
154
Zero-CO2 sites
helping decarbonize
Schneider’s operations
(vs. 101 in 2023)
2025
2030
2050
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Delivering social impact for
a fair transition
Around the world, Schneider Electric gives people access to energy and education through initiatives that
combine training, technological innovation, social innovation, and entrepreneurship. This means thinking
about the world of tomorrow by empowering everyone, regardless of origin, gender, or socio-economic level,
to build a fair future for individuals and families worldwide.
Improving lives through access
to green electricity
Today, around one and half billion people have little or no access
to electricity, representing one in four of the world’s population.
For Schneider Electric, access to energy is both a fundamental
right and a means for social and economic development.
Specifically, access to green electricity offers a chance to live a
better life, as it can have a positive multiplier effect on all socio-
economic dimensions of the individual or community, including
livelihood, health, education, security, and empowerment of women,
while fighting against climate change by replacing fossil solutions.
At Schneider this is called “Electricity for Life” and “Electricity
for Livelihood”:
“Electricity for Life” means delivering access to green electricity as
a fundamental right, answering to essential needs (such as lighting,
social connection, or education) for off-grid households, small
businesses, and the humanitarian sector.
“Electricity for Livelihood” means delivering access to green electricity
as a driver of economic development and poverty reduction for
households connected to an unreliable grid, and for productive
businesses. In fact, many farms, schools, and health centers in
rural areas currently depend on an intermittent grid and are in need
of quality energy with back-up solutions based on solar energy.
Between 2009 and 2024, Schneider’s Access to Energy solutions
benefited more than 50 million people, exceeding the Group’s 2025
ambition.
Empowering youth through education
and entrepreneurship
For over 20 years, training and entrepreneurship have been the
historical mission of the Schneider Electric Foundation, under the
aegis of Fondation de France. The Group’s ambition is to train one
million people by 2025 for energy-related professions. The Youth
Education & Entrepreneurship program aims to give all young
people the means to build solutions for a better life, contribute
to a fairer, low carbon society, and transform the world.
By providing funding, its expertise, volunteering its time, and
collaborating with its partners on the ground, Schneider is
empowering younger generations and the broader community
to achieve a better future through sustainable development.
Its work is divided into three main areas:
1. Support access to qualitative jobs through vocational and
entrepreneurship training in the energy field.
2. Learn new skills for the future, technical and soft, giving younger
generations the boost they need to succeed and build the world
of tomorrow.
3. Create the right ecosystem to spread entrepreneurial spirit and
encourage innovation, enhancing younger generations to define
their future and take part in social and environmental
challenges.
To do this, the Schneider Electric Foundation draws on a network
of around 80 delegates across 100 countries, that was renewed in
2023. Its role is to select local partners in the fields of vocational
training in the energy sector, to support entrepreneurship and
sustainability awareness. The Foundation also leverages its
“VolunteerIn” digital platform to empower employees to be local
actors and ambassadors of the Group’s societal commitments
through volunteering initiatives, particularly around social
mentorship.
Read more about our social impact on
page 292
2024 achievements
75,000+
volunteering days
since 2017 (+17,000
days vs. 2023)
824,404
young people trained
in energy related
professions since 2009
(+245,695 vs. 2023)
53.4M
people connected to
green electricity since
2009 (+7M vs. 2023)
95.8M€
engaged by Schneider
Electric in Impact
Investing Funds
since 2009
Our stakeholders
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Check our local commitments on www.se.com
Local sustainability commitments
As part of the 2021 – 2025 Schneider Sustainability Impact, Schneider promotes local initiatives and enables
individuals and its partners to make sustainability a reality for everyone, everywhere. 100% of Schneider
Electric’s Country and Zone Presidents have defined local commitments that impact their communities in line
with the Group’s sustainability transformation, leading to the deployment of over 200 local programs since
2021. Here are a few examples of initiatives being implemented to drive local and impactful changes.
USA
Schneider Electric volunteers
supported recovery efforts in
western North Carolina after
Hurricane Helene by providing
over 2,000 hours of support,
installing solar microgrids to
deliver sustainable emergency
power to affected communities .
Argentina, Paraguay,
Uruguay
Schneider Electric employees in
Argentina, Paraguay, and Uruguay,
contributed 4,294 volunteer hours
in 2024, to support vulnerable local
communities, notably with
emergency housing and electrical
safety products donations. In
collaboration with local Argentinian
NGO TECHO, they built 8 homes for
homeless people, equipped with
Schneider solar lamps.
Anglophone Africa
In 2024, over 950 beneficiaries
from vulnerable communities in
Kenya, South Africa, and Nigeria
have received trainings on both
soft and technical skills, provided
by Schneider Electric volunteers
in collaboration with local
education partners.
Malaysia
A hundred employees dedicated 150
hours to training on cultivating zero
waste habits at home, work, and
while traveling. Additionally, they
contributed an impressive 483 hours
to beach clean-ups, removing
plastic, glass, and other unnatural
waste from the Malaysian shores.
Poland
65% of Schneider Electric
employees have engaged in
sustainable commuting practices like
carpooling, cycling, and using public
transportation, contributing to a more
sustainable work environment.
India
Over 64,000 students from rural,
less privileged backgrounds
have benefited an uninterrupted,
innovative learning environment
thanks to the installation of
solar-powered digital classrooms,
providing educational programs
on various subjects, including
environmental protection and
energy savings.
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Chapter 1 – Group strategy
Group strategy
1
1.1 Strategy Overview
50
1.2 Megatrends and Driving Trends
51
1.3 Our Vision
58
1.4 Key Focus Areas
59
1.5 Strategy Pillars
61
1.6 Ambition to Impact
65
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1.1 Strategy Overview
Chapter 1 – Group strategy
Schneider Electric is a powerhouse of electrification,
automation, and digitalization.
We are the global leader in achieving holistic efficiency
for our clients; tailored to each customer’s needs.
And we are an industry-recognized ESG champion
with a world-leading portfolio of sustainability solutions.
Our strategy is informed by a comprehensive long horizon market analysis. We believe that
five “megatrends” will impact our customers and consequently our offerings over the next
decade. We refer to the convergence of these megatrends as “The Next Frontier”.
Digitalization
and AI
Climate
Change
Energy
Transition
Evolution
of Wealth
New Global
Equilibrium
The Next Frontier
“Schneider Electric’s ‘future-ready’ strategy has
positioned us well to capitalize on the megatrends
that are impacting all our end markets. We are
committed to being the trusted technology leader of
a sustainable global energy transition. By leveraging
the synergy between electrification, automation, and
digitalization, we empower our customers to make
the most of their energy and resources.”
Jing REN
EVP Strategy, Brand, & Communication
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Schneider Electric has thrived over the years because
we have always embraced a future-ready strategy.
This approach is even more important today, as
we are facing unprecedented changes in our markets.
Every day we hear about the latest trends and predictions for the future. We have sorted through the noise and identified the trends that are
the most relevant to our business over the next decade. A “megatrend” is a long-term pattern that will have significant impact on various
aspects of society, economy, and business. These patterns have the potential to shape the future, creating new opportunities and
challenges. In the context of Schneider Electric, megatrends have been identified and analyzed to develop our corporate, business unit,
and customer segment strategies. They encompass a wide range of factors, including political, economic, social, technological, legal, and
environmental implications.
By understanding and preparing for these megatrends, Schneider Electric can align its strategy with market demands, anticipate customer
needs, adapt to changing landscapes, and provide innovative solutions that address the challenges and opportunities arising from these
trends. This holistic approach enables Schneider Electric to stay ahead of the curve, deliver sustainable and efficient solutions, and
maintain a competitive edge in the market.
Digitalization
and AI
Climate
Change
Energy
Transition
Evolution
of Wealth
New Global
Equilibrium
Harnessing the power
of software-defined
everything,
automation, data
management, and
machine learning
Adapting to the reality
of greenhouse gas
emissions impacts,
while still working
towards a carbon-free
future
Securing,
decarbonizing, and
modernizing the
world’s energy
infrastructure
Refreshing civil
infrastructure, in a
sustainable manner,
for both new and
developed economies
Redesigning
manufacturing and
supply chains to be
resilient
The Five Megatrends Influencing our Strategy
Schneider Electric is positioned well as an Industrial Tech leader. Our “future-ready” approach enables us to anticipate trends, adapt our
offerings, and stay at the forefront of industry, so that we can deliver the sustainable and efficient solutions of the Next Frontier.
Let’s take a closer look at these critical megatrends and the “driving trends” within each that will directly influence the impact and longevity
of their parent megatrend.
1.2 Megatrends and Driving Trends
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1.2.1 Digitalization and AI
AI, and specifically the latest advancements in generative AI, are
driving innovation and efficiency across industries by automating
tasks and improving decision-making. This will lead to increased
productivity, cost savings, and new business opportunities.
Automation is transforming manufacturing, logistics, and service
sectors, streamlining processes, reducing errors, and improving
safety. It also supports industries that suffer from significant,
chronic talent shortages.
(1) McKinsey & Company, “AI power: Expanding data center capacity to meet growing demand”, 29 October 2024
(2) IEA, “Electricity 2024 Analysis and forecast to 2026”, May 2024
(3) IDC, Research forecast on AI Spending, 16 August 2024
(4) World Economic Forum, “How industrial data can help unleash productivity, innovation and sustainability”, 13 May 2022
Big data provides valuable insights for businesses, enabling
data-driven decision-making, personalized marketing, and
improved customer experiences.
Cloud computing allows businesses to access scalable computing
power and storage, enabling cost-effective solutions, remote work,
and collaboration. It accelerates digital transformation.
Cybersecurity becomes even more critical. Protecting people,
data, systems, and infrastructure from cyber threats is paramount
to ensuring trust, privacy, business continuity, and human safety.
4x
Growth in global demand for data center
capacity 2023–2030(1)
2x
Growth in global data center electricity
demand from 460 TWh in 2022 to 1,000
TWh in 2026(2)
168%
Increase in worldwide AI spending from
235 USD billion in 2024 to 630 USD billion
in 2028(3)
Driving Trends to Watch (Digitalization)(4)
Increasing Demand for Data Center Services
Data center demand is predicted to quadruple by 2030, driven
primarily by demand for AI model training and generative AI
applications, as well as long-standing demand for streaming
media, online gaming, and blockchain services(1). Demand for
cloud services in turn generates demand for graphics
processing units, construction of new data centers, and access
to plentiful and reliable energy.
Increasing Criticality of Digital Landscape Data
Governance
Data Governance has become increasingly important due to
recent compliance measures, heightened scrutiny on data
security, as well as the proliferation of complex data by more
teams in their work. By linking data management and
governance, we can gain insights that enhance the customer
experience and drive innovation in products and services.
Converging Information Technology and Operational
Technology for Industrial Internet Applications
Information Technology and Operational Technology (IT/OT)
delivers a full cloud-to-edge capability for data processing and
advanced analytics, tailored to the unique needs of each
industry. A key aspect of this trend is that industrial data is
doubling every other year, significantly expanding the potential
for data-driven insights and innovations.(4)
Providing Ubiquitous Connectivity from the Ocean
Floor to Low Earth Orbit
For the first time in history, we are poised to create a seamless
communications network from the depths of the ocean to
Earth’s surface and up into low Earth orbit. Underserved
regions will soon have baseline cell-phone access that is equal
to that of major cities today, ending major coverage gaps.
Advancements in artificial intelligence, robotics, quantum computing, and other digital
technologies will have profound consequences for the global economy and society. They have
the potential to boost productivity everywhere, by making powerful capabilities such as Large
Language Models available to all. But these advancements require a robust, state-of-the-art
IT infrastructure to function.
Chapter 1 – Group strategy
1.2 Megatrends and driving trends
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Driving Trends to Watch (AI)
Increasing incorporation of AI-enabled features into
products and services
Consumers already experience the power of AI through their
web search results, e-commerce platform product reviews, and
social media algorithms. AI-enabled features are present or
being piloted in a myriad of use cases such as manufacturing
robots, self-driving cars, smart assistants, healthcare
management, automated financial investing, virtual travel
booking agents, social media content development and much
more.
Advancing the state-of-the-art of AI-based insight
generation from analytic, to predictive, and now to
prescriptive capabilities
Schneider Electric’s datasphere, which includes all data from
installed base assets and internal operations, is experiencing
exponential growth. AI helps make sense of this enormous
volume of data by exposing hidden patterns, improving quality,
and boosting efficiency through data value chains.
Increasing ability and demand for automation and
robotics to augment human labor
Driven by the growing need for automation and robotics to
enhance human labor, a new generation of collaborative robots
is emerging to assist with physical tasks in shared workspaces.
Similarly, software robots (e.g. agents and bot networks) will
continue to provide cost-effective solutions for automating
repetitive knowledge tasks especially as new advancements in
AI enter the market.
Widening impact and increasing democratization of
AI in all aspects of business and society
Deployment of AI capabilities does not implicitly mean the
elimination of vast segments of the workforce. It can also lead
to the creation of new roles and make existing jobs easier and
more efficient. Job impact will vary across industries, markets,
and roles, prompting organizations to reimagine the balance of
human-machine collaboration in their staffing strategies.
Customer Relevancy Examples
• Supporting massive data center capacity expansion
• Managing big data explosion
• Adopting digital twin technology
• Advancing digital infrastructure
• Developing trustworthy AI systems with conversational
user interfaces
“The pace of AI development continues to impress me.
Since 2021, our AI Hub has helped us leverage that
progress, at scale, for operational efficiency, product
design, code development, and customer
satisfaction. AI has a key role to play in the Energy
Transition and the decarbonization of all industries.
Schneider Electric will contribute to this by applying
AI for energy efficiency, in all the markets we serve,
and by empowering the next generation of green data
centers.”
Philippe Rambach
Chief AI Officer
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1.2.2 Climate Change
Climate change refers to long-term shifts in global temperatures and weather patterns. Such
shifts can be natural, due to changes in the Sun’s activity or large volcanic eruptions. But since
the mid-1800s, human activity has been the main driver of climate change, primarily due to the
burning of fossil fuels, deforestation, and industrial processes.
Chapter 1 – Group strategy
1.2 Megatrends and driving trends
Rising global temperatures are causing more frequent and intense
heatwaves, droughts, and wildfires, leading to water scarcity and
agricultural disruptions. Sea levels are rising, resulting in coastal
erosion, flooding, and the displacement of vulnerable populations.
Extreme weather events, such as hurricanes and storms, are
becoming more frequent and severe. Climate change also
threatens biodiversity, causing species extinction and disrupting
fragile ecosystems.
Urgent action is needed to mitigate greenhouse gas
emissions, transition to low or zero-carbon energy sources, and
(1) Our World in Data forecast on GHG emissions, June 2024
(2) UN report on net-zero commitments, June 2024
(3) World Economic Forum study on climate change damages, 12 October 2024
implement sustainable practices to safeguard the planet for
future generations.
As we work to minimize the global impact of climate change,
Schneider Electric is focusing on several key areas. We have
already made great progress on our own Scope 1, 2 and 3
emissions, and are supporting customers in their decarbonization
journeys. Our diverse portfolio of EV infrastructure, prosumer,
process electrification, building energy efficiency, and climate
adaptation offers will further address the impact of climate change.
54 bn tons
Global GHG emissions in 2023, up 33%
from 2000(1)
45%
Global GHG emissions reduction needed
by 2030 to stay on track with 1.5°C Paris
Agreement(2)
$1.7–3.4 tn
Projected annual global cost of climate
change damage by 2050(3)
Driving Trends to Watch
Increasing Carbon Dioxide (CO2) Emissions
Global CO2 emissions have been increasing since the 1850s,
driven mainly by consumption of fossil fuels. Governments,
investors, and consumers are all putting pressure on industries
that service the fossil fuel sector or that benefit from the use of
fossil-generated products to mitigate or even eliminate these
emissions.
Increasing Methane (CH4) Emissions
Like CO2, global CH4 emissions continue to rise, largely linked
to oil and natural gas extraction, but also due to livestock
management, agricultural practices, and insufficient organic
waste treatment. The growth in methane emissions
underscores the urgent need for detection, reduction, and
other mitigation solutions.
Decreasing Capacity of Natural Systems that
Sequester CO2
While forests and oceans convert or sequester carbon dioxide
into oxygen as part of their natural cycles, deforestation and
rising ocean temperatures impede this ability. There is a
growing demand for tracking and reducing this impact, along
with increased investments in CO2 capture, conversion,
utilization, and storage technologies.
Increasing Demand for Mitigation and Adaptation
Solutions for Near-term Impacts of Climate Change
The imperative for long-term climate change solutions is clear,
but there is an urgent need for immediate measures to mitigate
and adapt to near-term climate change impacts. Investments
have been made in climate adaptation infrastructure, standards
for “climate-hardened” products, and development of
contingency plans for extreme weather events.
Customer Relevancy Examples
• Incorporating climate-resiliency features into buildings
and power infrastructure
• Growing demand for energy efficient HVAC
• Averting damage to local ecosystems
• Utilizing SF6-free electrical equipment
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1.2.3 Energy Transition
The Energy Transition is a fundamental shift in the way we produce and consume energy,
driven by the need to mitigate climate change and reduce greenhouse gas emissions. This
transition requires significant changes to both the supply and demand sides of the energy
sector.
On the supply side, there has been a notable shift towards
renewable energy sources. Advances in technology and declining
costs have made renewables more economically viable, leading to
increased adoption. Governments and businesses are incentivizing
such projects, leading to a substantial growth in renewable
capacity. Based on today’s policy targets, no/low-emissions
sources (e.g. solar, wind, nuclear, etc.) are set to generate more
than half of the world’s electricity before 2030.(1)
The demand-side shift is driven by the need to optimize energy
usage, reduce costs, and minimize environmental impact.
Energy-efficient appliances, smart grids, and building management
systems are being embraced to monitor and regulate energy
(1) IEA “World Energy Outlook 2024”, October 2024
(2) IEA “Batteries and Secure Energy Transitions”, April 2022
consumption. This is complemented by the electrification of
buildings, homes, transportation, and industrial processes.
The Energy Transition also involves the integration of decentralized
and distributed energy systems. This includes the rise of
microgrids, where communities, campuses, or districts generate
and manage their energy locally. Decentralized systems allow for
greater resilience, energy independence, and the integration of
intermittent renewable sources.
Ultimately, the Energy Transition requires collaboration between
governments, businesses, and individuals to accelerate the
adoption of renewable energy sources, promote energy efficiency,
and drive innovation in the energy sector.
27%
Global electricity demand growth, from 26
PWh in 2023 to 33 PWh, est. in 2030(1)
44%
Global no/low-emission power source
growth 2023–2030, based on Stated
Policies1)
9x
Global installed battery storage capacity
growth from 86 GW to 760 GW in 2030(2)
Driving Trends to Watch
Increasing National-level Adoption of Green Energy
Policies
Governments and priorities change, but we see evidence that
many leaders now view green energy policies as the best
decision for both the well-being of their people and the energy
security of their nations. Legislations such as the US “Inflation
Reduction Act of 2022” and equivalent in China have furthered
national ambitions for both electrification and green energy.
Deploying the “Grid of the Future”
There is a current focus to invest on grid refurbishment,
expansion, and flexibility solutions that will modernize
infrastructure by utilizing AI, public-private partnerships, and
the ability of homeowners to act as prosumers. Beyond
technology, there is a push to modernize grid codes and
standards, contributing to a comprehensive industry evolution.
Increasing Density and Decreasing Cost of
Electrical and Thermal Energy Storage Solutions
Strong investment in R&D for energy storage technology and
associated control systems will continue to have a significant
impact on consumer markets, presenting substantial business
growth opportunities along with notable battery cost
reductions.
Increasing Percentage of Global Energy Production
Mix from No- or Low-Emission Sources
Decades of construction on renewable energy assets
(predominantly solar and wind) have led to an increase of the
overall percentage of the global energy mix that comes from
no- or low-emission sources. We project this growth will
continue for at least the next ten years.
Customer Relevancy Examples
• Expanding electrification across industries
and buildings
• Deploying next-gen power electronics
• Establishing energy efficiency initiatives
• Decarbonizing all industries
• Modernizing and decentralizing the grid
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1.2.4 Evolution of Wealth
The Evolution of Wealth megatrend examines the distinct paths that developing and developed
nations will take to implement modern civil infrastructure, sustainably. This includes food
production, transportation, buildings, and water treatment systems as well as the operational
control systems that allow municipal leaders to make data-driven decisions.
Chapter 1 – Group strategy
1.2 Megatrends and driving trends
In new economies, rising populations, increasing incomes, and
improving living standards are driving demand for basic services,
such as housing, electricity, medicine, and water. As citizens’
purchasing power grows, there is greater pressure put on their
leaders to provide reliable and affordable access to energy. This
leads to significant opportunities for civil infrastructure investments
that can be developed, operated, and maintained sustainably.
As these new economies strive to boost industrialization and
economic growth, there is a growing need for automation and
advanced manufacturing technologies. This presents opportunities
for companies specializing in automation technologies, software,
and artificial intelligence to expand their markets and cater to the
growing demands of these economies.
On the other hand, in mature economies the aging civil
infrastructure (e.g. highways, bridges, and water management
systems) requires significant upgrades, maintenance, and in some
cases full replacement. While declining birth rates and aging
populations are creating intense competition for workers in all
sectors, a new highly-skilled green workforce will be necessary to
refresh civil infrastructure in a sustainable manner.
Additionally, automation technologies can help address labor
shortages resulting from demographic changes. Industries such as
manufacturing, logistics, and healthcare can benefit from the
implementation of robotics and automation systems to fill gaps in
the workforce and improve productivity.
+1.5 bn
Global population growth 2024–20(1)
737 Mn
People without access to electricity in 2024,
80% of which live in sub-Saharan Africa(2)
31%
Growth in global construction spend from
$14.5 trillion in 2024 to $19 trillion in 2028(3)
Driving Trends to Watch
Rising Demand for Affordable and Sustainable
Food Production Systems
Over the past decade, global food insecurity has surged, as
extreme climate events and environmental degradation disrupt
food systems. Both extreme and gradual climate events drive
migration, magnifying social vulnerabilities and human mobility.
Increasing Demand for Safe, Affordable, Reliable,
and Sustainable Transportation
Global light-duty EV sales are set to reach 40% in 2030 and
almost 55% in 2035(4), requiring significant upgrades to the
existing EV infrastructure. Within this driving trend, we foresee
a major push for airports, marine ports and delivery companies
to implement their own sustainability plans.
Growing Necessity of Sustainable, Resilient,
Efficient, and People-oriented Buildings
Global construction spending is projected to rise, mainly driven
by the US, China, and India. As economic and demographic
growth shifts to hotter regions, demand will increase for
building automation and management solutions, high-efficiency
cooling, and climate-resilient buildings.
Declining Reserves and Deteriorating Quality
of Global Freshwater Resources
Over 50% of the world’s population experiences water
scarcity(5), and this will increase as climate change impacts
unfold. This driving trend is a humanitarian crisis that requires
rapid, innovative solutions such as circular water infrastructure
and precision crop irrigation.
Customer Relevancy Examples
• Utilizing green steel, cement, and glass in construction
• Modernizing transportation hubs such as airports and marine ports with automation and energy efficiency solutions
• Reducing environmental impact of food production through controlled environment agriculture (e.g. vertical farming,
container farming, etc.)
• Reskilling workers to fill green jobs
• Building water desalination, treatment, and filtration systems
(1) UN “World Population Prospects 2024”, July 2024
(2) IEA report on global access to electricity, 15 November 2024
(3) S&P “Global Engineering And Construction: 2024 Outlook Update”, 24 July
2024
(4) IEA “Global EV Outlook 2024”, April 2024
(5) WMO report on water scarcity, October 2024
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1.2.5 New Global Equilibrium
The world is experiencing a slowdown in the multi-decade trend of globalization. This is evident
through the rise of protectionist trade policies, armed-conflicts, and the reevaluation of global
supply chains. Countries are prioritizing national interests and self-sufficiency.
In the face of trade barriers, challenges to securing key materials,
climate related natural disasters, and global pandemics,
companies who wish to avoid operational disruptions and cost
increases must consider supply chain resilience strategies.
Diversified sourcing, material substitution, and regionalization are
examples of such strategies. Companies are also investing heavily
in digitalization to ensure continuity, minimize risks, and meet
customer demands effectively.
Some countries, most notably the United States, are pursuing
reshoring in hopes of reinvigorating domestic manufacturing. This
approach may reduce dependency on global supply chains, create
jobs, and enhance national security. However, it creates new issues
in terms of labor costs and workforce availability. Industrial
automation and AI will be critical components of any company
reshoring strategy.
97%
Percentage of global supply chain leaders
who plan to re-engineer some or all of their
supply chain within the next two years(1)(2)
$800 bn
Investment required in mining of key energy
transition metals for governments to both
diversify their supply chains and reach
2040 NZE(3)
34
Countries experiencing active armed-
conflicts in 2023; the highest number of
conflicts since World War II(4)(5)
Driving Trends to Watch
Workforce Shortages from Demographic Shifts and
Migration Impediments
By 2050, the world’s population is projected to reach 9.7 billion,
with significant declines in developed nations and a doubling
population in sub-Saharan Africa(6). The world population aged
60+ will double from 1 billion in 2020 to 2.1 billion by 2050(7).
Automation and training the future workforce will be essential
as competition for skilled labor increases and protectionist
national policies hinder the movement of skilled workers across
borders.
Intertwining of Supply Chain Policies and National
Priorities
The fragility of an over-optimized global supply chain was
exposed during the COVID-19 pandemic. Governments are
monitoring the scarcity of key commodities (notably rare earth
metals, semiconductors, water and fuel). Securing the supply
chain and terms of access of these commodities, has become
a national security priority for many countries, resulting in a
future supply chain that will be resilient, but perhaps not as
open as the vision of Globalization once promised.
Rising Incidence of International Conflicts
It has been a common belief that as national economies
became more intertwined through globalization, economic
incentives and disincentives would be sufficient to prevent
significant altercations between superpowers and their allies.
However, recent armed conflicts have challenged this belief.
Shifting Geopolitical Landscape
The geopolitical landscape has shifted to a multi-polar model
where multiple nations, non-state actors (e.g. terrorist groups,
multi-national corporations, economic alliances, etc.), and even
some extremely wealthy individuals all have meaningful influence
on global trade and politics.
Customer Relevancy Examples
• Building resilient supply chains
• Reconfiguring supply chains, through reshoring, regionalizing, dual-sourcing
• Deploying collaborative automation solutions that take advantage of the strengths of both humans and machines
• Bolstering industrial cybersecurity
(1) Material Handling & Logistics survey on supply chain resilience, 8 October
2024
(2) McKinsey & Company “Supply chains: Still vulnerable”, 14 October 2024
(3) IEA “Global Critical Miners Outlook 2024”, May 2024
(4) World Economic Forum, “Why global cooperation is more important than ever
in a world at war”, 15 January 2025
(5) PRIO, “Conflict Trends: A Global Overview, 1946–2023”, 10 June 2024
(6) UN World Population Prospects 2024, July 2024
(7) WHO report on aging and health, 1 October 2024
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1.3 Our Vision
How is Schneider Electric a Trusted Advisor for our customers?
Residential: We help create sustainable and smart homes of
the future by connecting electricity with digital in individual
homes, apartments, and public housing. We support our
customers to achieve a net zero future, create safe and adaptive homes
with reliable power, use actionable insights to efficiently manage energy
usage and costs, and enjoy personalized living experiences.
Buildings: We are the trusted advisor on sustainability and
efficiency for our building clients across healthcare, hotels,
retail, real estate, and design consultants. Our solutions
combine early engagement, data driven design, building and power
management technologies, and software to create resilient, sustainable,
people-centric, and hyper-efficient buildings. In an increasingly digital
and electric world, our technologies enable customers to design, build,
operate, and maintain future-ready operations, assets, and portfolios.
Cloud and service providers: We recognize that data centers
will continue to be the backbone for digital solutions, with
sustainability integrated into their infrastructure. Our expertise in
power, building, and IT domains uniquely positions us to partner with
clients globally. Through digitalization, we enable sustainability, reliability,
safety, and risk management, thereby improving time to market.
Electric Mobility: We partner with automotive manufacturers
and electric vehicle (EV) battery manufacturers in their
transformation by enabling the digitalization of operations,
developing end-to-end charging infrastructure, and new sustainable
mobility. We also provide solutions for critical transportation
infrastructure, such as railways and metropolitan transport, airports,
and ports for their digitalization, electrification, and decarbonization.
Our solutions include microgrids and Energy-as-a-Service, to help
customers run safe, reliable, efficient, and carbon-free operations.
Power and grid: We help power and grid customers to fulfill
growing low-carbon electricity demand, efficiently and reliably,
and we enable a flexible energy system from power plant to
grid to prosumers. Thanks to a stepwise digitalization and optimized
data management, they can overcome challenges such as increased
intermittent renewables, decentralized generation, and extreme weather
events. We are the trusted partner for our customers to achieve their
sustainability objectives.
Semiconductor: We enable the transformation of the
semiconductor industry through tailored energy management
solutions that integrate digital technologies such as AI, IoT, and
predictive analytics. Our offers can help set new standards for
responsible manufacturing. And our support extends beyond the fabs,
aiding customers in reducing the sector’s carbon footprint while working
to develop a self-sustaining energy hub.
Consumer packaged goods: We provide digital solutions to
help food and beverage and life science companies improve
their competitiveness and profitability. We enable digital
transformation on every step of the value chain, focusing on
decarbonization, manufacturing flexibility, asset performance, product
safety/compliance, and workforce empowerment for better
sustainability, efficiency, and resiliency of the operations.
Water and wastewater: We implement sustainability, resilience,
and efficiency solutions for water cycle and waste management
infrastructure. We support customers from strategy to execution,
by providing innovative digital offers that enhance resource
conservation, climate resilience, and circularity.
Mining, minerals, and metals: We help our resources
industries to contribute to progress, ensure social license to
operate, and build a sustainable mining, minerals, and metals
business that is responsible, efficient, and profitable with digitally
integrated automation, power, and process along a unified value chain.
Energies and chemicals: We are the digital partners for
sustainability and efficiency for the oil, gas, and chemicals
industries. We empower customers to manage the entire
lifecycle of capital projects, achieve sustainability targets, and improve
safety. Our strong field-proven experience enables them to decarbonize
their operations and develop them into new energies businesses.
Chapter 1 – Group strategy
1.3 Our Vision
The megatrends analysis indicates that we have unprecedented opportunities across our end-markets.
Why do these megatrends matter for Schneider Electric? The explosion of digitalization and AI, the accelerated need for concrete solutions
to fight climate change, the ongoing transition of our energy landscape, the evolution of wealth, and the new global equilibrium create
unprecedented tailwinds, pushing us towards The Next Frontier.
Schneider Electric’s mission is to be the trusted digital partner for sustainability and efficiency. We provide energy and automation solutions.
We combine world-leading process control and energy management technologies, real-time automation, software, and services, enabling
“remote-everywhere” integrated solutions that are built with safety, reliability, and cybersecurity for homes, buildings, data centers,
infrastructure, and industries.
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1.4 Key Focus Areas
If we wish to achieve a sustainable Energy Transition, it is critical that we address two key focus areas:
electrification as a primary pathway to decarbonization and digitalization as the primary enabler of energy
efficiency. We refer to the intersection of these two focus areas as “Electricity 4.0,” our term for helping
customers achieve their energy and sustainability goals in all end-markets.
Digital + Electric = Sustainable
1.4.1 Focus Area:
Electrification and the Grid of the Future
(1) Our World in Data Access to Energy, January 2024
(2) IEA report on global access to electricity, 15 November 2024
The Energy Transition is a story of providing sustainable energy
access to all people on Earth, through a resilient, decentralized
power grid. Resilience is essential for power grids of all sizes to
withstand challenges such as extreme weather events, peak
energy demand occurrences, cyberattacks, terrorist threats, and
even military conflicts. The grid of the future will be resilient to the
point of anti-fragility (i.e. failure events are opportunities for a truly
intelligent grid to reconfigure itself and prevent future events of the
same kind). It will be more democratic and decentralized in nature,
with consumers having the opportunity to electrify their buildings
and industrial processes and participate in energy prosumerism.
Shifting global demographics cannot be overlooked when
discussing the Energy Transition. The global population in 1998
was 5.9 billion. It surpassed 8 billion in 2024 and is projected to
reach almost 10 billion by 2050. In parallel, in 1998, more than 1.5
billion people did not have access to electricity.(1) This number
dropped to a historic low of 737 million in 2024.
Unfortunately, most of those who still lack electricity live in
Sub-Saharan Africa, the region projected to have the highest birth
rate in the coming decades. The energy infrastructure of this region
is in need of the innovative electrification solutions offered by
Schneider Electric, so that its people can adapt to the effects of
climate change.
Customer-centric solutions for Power Grids
AVEVA
engineering
Protection & Control
Relays - PowerLogic P5
Advanced
Distribution
Management
System (ADMS)
AVEVA
Unified
Operation
Center
Distributed Energy
Resource Management
System (DERMS)
RM AirSeT
Autogrid –
Virtual Power Plant
Platform
GM AirSeT
Remote
Monitoring Unit
– PowerLogic
T300
ETAP e-Single
Line diagram
ETAP
Electrical
Digital Twin
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Chapter 1 – Group strategy
1.4 Key Focus Areas
1.4.2 Focus Area:
Digitalization and the Data Center of the Future
(1) IDC analysis, May 2024
Beyond the energy demand of a growing global population, we are
also experiencing a multi-decade boom in data creation. Data
usage has increased 100 times between 2010 and 2024, and even
more striking, more data has been created in the past three years
than in all of history.(1) This data explosion has been driven by social
media, cloud-based storage and computing, video streaming,
gaming, and crypto mining. But the artificial intelligence
renaissance we are experiencing, driven largely by generative
AI applications, has accelerated data center demand. With this
comes a significant hunger for electricity and an increase in
carbon emissions.
In a data center, our focus is not only on reliability, but also on
operational efficiency in terms of both energy and water use. Below
is a selection of Schneider Electric products that our customers will
benefit from in the next generation of green data centers.
Customer-centric solutions for Data Centers
Automatic Transfer
Switches
Sensors & Meters
Uninterruptable
Power Supplies
Room/Row/Rack
precisions cooling
Cooling
MV & LV Switchgear
Lighting control
HV/MV & MV/LV
Transformers
EcoCare Services
& Advisors
Access Control,
Environmental
monitoring
Network connectivity &
Cable Management
MV
Switchboards
LV
Switchboards
Busway
Data Center Infrastructure
Management (DCIM)
Racks & Rack Power
Distribution
Through our 2025 acquisition of Motivair, a key global provider of
advanced liquid-cooling solutions, we have accelerated our time to
market in the data center industry and strengthened our leading
position. Our recent collaboration with NVIDIA allows us to
co-design the data centers of the future by offering a robust
framework for implementing their data center computing offers.
And our new Galaxy VXL is a highly efficient, compact, modular,
scalable, 3-phase UPS complete with enhanced cybersecurity,
software, and safety features that serves as a sustainable
backbone for critical infrastructure systems.
Acquisition of Motivair
Collaboration with NVIDIA
New Galaxy VXL
Primarily spurred by the global deployment of AI workloads, the
data center of the future will require more power and much more
cooling for safe operation of the next generation of chips. Our
portfolio of innovations and strategic partnerships has positioned
us well to support global data center growth.
Our solutions cover grid-to-chip and chip-to-chiller infrastructure,
monitoring and management software, as well as other services to
best achieve optimal and sustainable operations.
With our unique portfolio, Schneider Electric is confident that we
are future-ready to make the most of the next wave of data center
industry innovation.
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1.5 Strategy Pillars
Schneider Electric’s ability to capitalize on megatrends, and make our vision a reality, is built upon four pillars
that are emblematic of the core values of our company.
We are:
Technology
leader
Customer
centric
Impact
company
People
company
1.5.1 Technology Leader
We have transformed our R&D processes to be future-ready and developed an integrated architecture that
accelerates the pace of innovation and delivers enhanced value to our customers.
When we say that Schneider Electric is a technology leader, we are referring to key characteristics that make us “future-ready”.
Strategy
Execution
Disruptions
Platforming
Alignment with
Strategic priorities
Digital, Services &
Sustainability
Compelling, differentiated
value propositions
Focus and speed
Design to Cost
Rigor of performance
management
Resilience
Global vs. local
Digitalization
New Energy Landscape
Offer simplification
Faster time to market
Local adaption
Our digital innovation platform, EcoStruxure, is a perfect example
of future-readiness. It is the technology backbone on which
Schneider Electric solutions for all end-markets are built and
delivered. EcoStruxure provides core capabilities for connectivity
and intelligence, an interoperable foundation for smart operations,
and an infrastructure for cloud-connected digital services.
Another great example of our technology leadership is our
CONNECT Industrial Intelligence Platform. It allows our customers
to access trusted intelligence and gain valuable insights across
their industrial ecosystem. With CONNECT, customers are able to
leverage rich, contextualized data through a unified and connected
hybrid cloud experience built for their industry, streamline
execution with real-time intelligence, stay ahead of the curve with
enterprise visualization, collaborate across groups, break down
silos and empower remote teams, and uncover new synergies to
improve efficiency, reduce waste and create opportunities.
Schneider Electric technology leadership spans the entire offer
lifecycle. We strive to ensure that all our products are serviceable
by design, easy to use, and deliver compelling value. Our services
are becoming progressively more digital over time, enabling remote
and self-service capabilities. The inherent connectivity of our
products, combined with data-driven insights for predictive
maintenance, make our products even more resilient.
Hybrid – Cloud
and On-Premises
AI &
Cybersecurity
Software & Advisory
Digital Services
Field Services
Automation & Control
Connected Products
Non-connected Products
Software, Apps,
Analytics and Services
Edge Control
Connected Products
Multiple customer
entrty points
Design
O
P
E
R
A
T
E
D
E
S
I
G
N
O
P
TI
M
IZ
E
V
I
S
U
A
LI
S
A
T
I
O
N
D
A
T
A
S
H
A
R
I
N
G
INDUSTRIAL
INFORMATION
Asset
Performance
Production
Optimization
Engineering
& Execution
Simulation
& Learning
Planning &
Scheduling
Operations
Control
Build
Operate & Maintain
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1.5.2 Customer-centric
We are committed to delivering exceptional user experiences that leverage AI to amplify the value of our
products.
Our customer-centric approach is a fundamental pillar of our
strategy. At Schneider Electric, we strive to be a unified entity for
both our customers and employees. This integration allows our
commercial organization to transform our unique technology stack
into tailored solutions for customers worldwide.
We continuously launch new products and software globally,
embedding AI capabilities to enhance customer value. We believe
that AI can amplify the value we provide to customers through
offering additional capabilities, insights, and personalized
experiences that drive innovation and efficiency.
Historically, we focused on selling our products through partners.
These strong channels remain our priority, even as we evolve to be
more end-user focused. Our partner network, which includes
distributors, points of sale, system integrators, and panel builders,
helps us increase market coverage. Currently, around 50% of our
revenue comes from partners, and around 50% directly from
end-users.
Additionally, we emphasize digital and field services to support our
customers throughout the product lifecycle. Our eco-consulting
activities focus on energy efficiency and sustainability, tailored to
different customer needs. Our EcoCare and EcoFit initiatives further
strengthen our customer relationships by retrofitting existing
installations, ensuring long-term value and support.
6k
Distributors
globally
4k
Certified
partners
>1Mil
Electricians in
our network
+120k
Distributors POS
~20k
platformed
Partners
~50%
Group revenues through
partners
+14pts
Increase in Net Satisfaction
Score 2019–23
Distribution Network
Panel Builders &
System Integrators
Electricians
Committed to a unique ecosystem based on long-term partnerships
Customer centric integrated service offers
to address customers’ needs across the lifecycle
Enablers
Services offering
Design
Build
Operations
Maintenance
Upgrade
EcoConsult
EcoCare
EcoFit
Consulting, Design
Range of consulting services to design
your asset management strategy and
optimize your systems
Recurring Services
Exclusive membership benefits,
condition-based maintenance, 24/7
monitoring for maximum business
continuity, premium support
Circularity, Repairability
Digital modernization and circularity
services to extend the life of assets and
to achieve decarbonization targets
Cutting-edge electrical
distribution assets
Pioneering AI engine &
data models
State-of-the-art IOT
platforms & software
Unique networks of
services experts
Chapter 1 – Group strategy
1.5 Strategy Pillars
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1.5.3 Impact Company
Our guiding principles ensure that we stay committed to the needs of all stakeholders and minimize our impact
on the natural environment, as well as other ESG obligations.
5 Guiding Principles
Performance
the foundation for doing good
All Stakeholders
in our ecosystem
All ESG
dimensions
Business
digital partner for Sustainability & Efficiency
Model & Culture
set up for global and local impact
IMPACT
Company
Schneider Electric is committed to leveraging its business
performance as a driver of impact; embedding Environmental,
Social, and Governance (ESG) principles into our strategy. We
focus on delivering value to all stakeholders and we collaborate
with our entire ecosystem, including governments, to establish
standards for energy efficiency.
We are dedicated to achieving net-zero emissions, with targets
validated by the Science Based Targets initiative (SBTi). Our
comprehensive approach includes Scope 1, 2, and 3 emissions,
ensuring that every product we offer helps customers reduce CO2
emissions. We support our employees and suppliers through
initiatives like the Net Zero Carbon Project, which aims to halve
supplier CO2 emissions, significantly reducing our Scope 3
upstream emissions.
Communities
50M
people
access to green
electricity
1M
people
trained in energy
management
Customers
100Mt
of CO2 per year
saved and avoided,
delivered through
our solutions
Employees
Carbon
neutral
in our operations
Suppliers
÷2
emissions
of highest emitting
1,000 suppliers
Investors
80%
impact revenue
2025 Impact
Mobilizing all stakeholders
Our advanced sustainability practices have been imparted upon
our entire supply chain network. As we approach the final year of
our current strategic sustainability initiative, we remain committed
to meeting our targets and defining new goals for 2030.
Schneider Electric’s strategy of achieving industrial technology
leadership through customer centricity, while leveraging the
abilities of our people and respecting our impact on the
environment and society, ensures that we drive innovation in our
industry and are a global positive force for change.
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1.5 Strategy Pillars
1.5.4 People Company
Our multi-hub operating model places our people close to our customers and suppliers, empowering them to
make swift decisions and tailor solutions to effectively address unique challenges.
% of revenue by geography
% of total employees by geography
2024 Figures
Committed to a multi-hub operating model
Empowering R&D, Supply Chain, Manufacturing, and Sales teams through proximity to customers
North America
36% 26%
Western Europe
24% 25%
Asia Pacific
27% 37%
Rest of the World
13% 12%
Our customer-centric strategy is built on a multi-hub model
established over the past decade. This model creates unique
capabilities in North America, China, India, and Europe, bringing
together leaders from R&D, supply chain, and local commercial
teams to work closely with customers. This approach ensures a
deep understanding of local markets and faster development of
tailored solutions.
Empowering local teams to make decisions without always
reverting to headquarters enhances agility and accountability. This
empowerment helps to attract and retain talent, as employees can
grow within Schneider Electric without needing to relocate to the
headquarters. Our decentralized governance model allows us to
distribute global capabilities while providing opportunities for
employees worldwide.
We maintain a balanced global footprint, aligning our employee
distribution with revenue generation. We continue to invest in key
geographies, like China and France, while focusing our future
investments on the US, India, and the Middle East & Africa.
Engaging employees through initiatives like our employee
shareholding plan, which has a 62% participation rate,
demonstrates their belief in our vision and commitment towards
sustainability.
Our commitment to diversity, including gender diversity, is
reinforced by our multi-hub model, which attracts and retains
diverse talent globally. This approach has positively impacted our
workforce engagement and commitment, ensuring we remain close
to our customers and responsive to their needs.
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1.6 Ambition to Impact
Schneider Electric has been a trailblazer in every industrial revolution over its 180-year history. From the first revolution powered by steam,
to the second with electricity, to the third with automation, we adapted and innovated. The fourth industrial revolution and beyond are
powered by digitalization and information. Schneider Electric is well-positioned to continue our legacy of technology leadership in energy
management and automation solutions.
We do not know yet what direction the latest developments in AI will take. But Schneider Electric will ensure that these technologies are
developed in an ethical, operationally-safe, and sustainable manner that promotes human-machine collaboration. We are committed to
being the technology leaders of this revolution as we have for all previous ones.
Whatever may come in the future, Schneider Electric’s purpose is to create impact by empowering all to make the most of our energy
and resources, bridging progress and sustainability for all. Our success in realizing this purpose has been recognized worldwide.
Our assessment of the megatrends and their driving trends has revealed opportunities for growth, particularly in a volatile short-term
environment. We are uniquely positioned to capitalize on the opportunities in front of us, through our distinct focus on electrification,
automation, and sustainability.
“The success of the energy transition requires
companies like Schneider Electric to set a bold vision
and take decisive action. As the global megatrends
unfold, we are rising to the challenge and positioning
ourselves as the leading digital partner for sustainability
and efficiency. Our ‘Ambitious IMPACT’ focus for 2025
underscores our commitment to empowering customers
with innovative solutions that maximize their energy
and resources. Together, we are shaping a future
where progress and sustainability go hand in hand.”
Olivier Blum
Schneider Electric CEO
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C H 9
Sustainable development
2
2.1 Sustainability vision
69
2.1.1
Sustainability for all
70
2.1.2 Corporate Culture
82
2.1.3 Moving forward collectively
84
2.1.4 Key external framework and ESG ratings
91
2.2 Sustainability statements | CSRD
95
2.2.1 General information | ESRS 2
96
2.2.2 Environmental information | ESRS E1, E2, E5
125
2.2.3 Social information | ESRS S1, S2, S3, S4
203
2.2.4 Governance information | ESRS G1
258
2.2.5 Tables
270
2.3 Sustainable impact for all | Beyond CSRD
280
2.3.1 Being efficient with resources
282
2.3.2 Delivering social impact for a fair transition
293
2.3.3 Advocating responsibly and ensuring compliance
307
2.4 Methodology, external assurance
and indicators
310
2.4.1 Methodology elements on the published indicators
310
2.4.2 TCFD and SASB correspondence tables
322
2.4.3 Reports of assurance
330
2.4.4 Indicators
342
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Chapter 2 – Sustainable development
2.1 Sustainability vision
For over two decades, sustainability has been
at the heart of everything we do at Schneider
Electric. As an Impact Company, we recognize
that creating positive impact goes hand in
hand with achieving business success.
Introduction by the
Chief Sustainability Officer
Paving the way as the Most Sustainable Company
Today, we face unprecedented global challenges, with a population
of 8 billion – almost half living in climate-vulnerable areas. Despite
the global commitment established 10 years ago at COP21 to limit
temperature rise to 1.5°C, we have surpassed this threshold for 12
consecutive months as of January 2024. This shift has resulted in
extreme weather events impacting 3.6 billion people and costing
approximately $451 billion in 2022 and 2023 alone, largely driven
by CO2 emissions from the energy sector.
Our purpose is clear: to create Impact by empowering all to make
the most of our energy and resources, bridging progress and
sustainability for all. A commitment that guides every decision and
action we take to make a tangible difference, through our relentless
pursuit of decarbonization, energy efficiency, automation, digital
innovation, and a just transition.
As a testament to our commitment, in 2024, we were recognized as
the #1 Most Sustainable Company in the World by TIME Magazine
and Statista. In early 2025, Schneider Electric was also honored to
be named the World’s Most Sustainable Corporation by Corporate
Knights as part of its Global 100 index, marking our second time
topping this list and a first for any corporation. This recognition,
alongside key ESG accolades from CDP, S&P Global, EcoVadis,
Moody’s, MSCI, Sustainalytics, and more, underscore the valuable,
long-term positive impact we have.
An IMPACT Company in action
Stepping into the role of Chief Sustainability Officer, my ten years
on the Group’s Executive Committee have highlighted the essential
role leaders have in fostering a sustainable and inclusive future.
In 2021, we established the Schneider Sustainability Impact (SSI)
program – our sustainability roadmap aligned with our six long-term
commitments related to climate, resources, trust, equal
opportunities, all generations, and local communities. Contributing
to the United Nations’ Sustainable Development Goals, the SSI
enable us to drive action and impact through our operations,
partners, customers, and communities.
Reflecting on 2024, we proudly exceeded our 2025 ambition
of providing green and reliable electricity to 50 million people
worldwide, now reaching 53.4 million individuals cumulatively
since 2009. We also trained over 824,000 individuals in energy
management since 2009, moving closer to our goal of one million
by the end of 2025.
Dedicated to achieving our Net-Zero commitment across our
value chain, we have enabled our customers to save and avoid
679 million tonnes of CO2 emissions thanks to our energy-saving
products, software, and services. In parallel, we supported the top
1,000 suppliers engaged in Schneider’s Zero Carbon Project in
adopting energy efficiency initiatives and transitioning to renewable
energy, resulting in a reduction in suppliers operational emissions
of 40% by the end of 2024.
Creating Lasting Impact for All
As we approach the final year of the SSI, we are determined to
continue intensifying our meaningful and lasting impact across all
Environmental, Social, and Governance (ESG) dimensions, for all
our stakeholders at local and global levels.
At the same time, we are preparing for our next sustainability
transformation cycle, which will take us from 2026 to 2030. This
upcoming phase will build upon our foundational successes and
set even more ambitious goals, ensuring that we remain at the
forefront of sustainable innovation. We will continue to weave
sustainable and societal impact into all facets of our business
to create long-term value and deliver profitable growth for all.
Chris Leong
Chief Sustainability Officer
“As an Impact Company, we are
convinced that to do good, we
must do well, and vice-versa.”
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S T R A T E G I C R E P O R T
2.1 Sustainability vision
In this section
Distinctions 2024
2024 highlights
7.55/10
Schneider Sustainability
Impact score,
outperforming 2024
target (7.40/10)
78%
Packaging is
sustainable
(vs. 63% in 2023)
679M
Tonnes of saved and
avoided CO2 emissions
for our customers since
2018 (+126 MT vs. 2023)
53.4M
People have access
to green electricity since
2009 (+7M vs. 2023)
2.1.1.
Sustainability for all
70
2.1.1.1
Strategic vision towards long-term positive impacts
70
2.1.1.1.1
The world is changing
70
2.1.1.1.2
Our strategy as an Impact Company
70
2.1.1.1.3
Creating Impact by empowering all to make
the most of our energy and resources,
bridging progress and sustainability for all
70
2.1.1.2
Long-term commitments and tools to
measure progress
71
2.1.1.2.1
Our tools to measure progress
71
2.1.1.2.2
The Schneider Sustainability Impact:
a unique transformation tool
72
2.1.1.2.3
Schneider Sustainability Essentials:
a continuous improvement tool
73
2.1.1.2.4
Local Sustainability Commitments:
a tool for local impact
73
2.1.1.3
Contribution to the United Nations
Sustainable Development Goals
80
2.1.2
Corporate Culture
82
2.1.2.1
People strategy and vision
82
2.1.2.1.1
Context
82
2.1.2.1.2
Our culture
82
2.1.2.2
Engaging employees
83
2.1.2.3
Recognition is in our DNA
83
2.1.3
Moving forward collectively
84
2.1.3.1
Global and local external partnerships
84
2.1.3.2
Schneider Electric contribution to Standardization
88
2.1.3.2.1
At national level
88
2.1.3.2.2
At European level
88
2.1.3.2.3
At international level
88
2.1.3.2.4
Smart grids and sustainable cities
88
2.1.3.2.5
Circular economy and product
environmental performance
89
2.1.3.2.6
Standardization to accelerate
environmental transformation
89
2.1.3.2.7
Digital transformation and cybersecurity
89
2.1.4
Key external framework and ESG ratings
91
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.1 Sustainability for all
2.1.1.1 Strategic vision towards long-term positive impacts
2.1.1.1.1 The world is changing
The world is facing multiple challenges that require a significant
and rapid response from businesses. The climate crisis is causing
flooding, fires and droughts that have already resulted in billions
of dollars in damage and mass population migrations. It is
jeopardizing access to basic needs and services such as health,
food, water, and energy for millions of people – generating further
social inequalities. The biodiversity crisis, driven by changes in the
usage of land and sea, direct exploitation of natural resources,
pollution, climate change, and invasive species will further
destabilize our economies as the ecological services nature
provides to an ever-growing population are degraded. Meanwhile,
the acceleration of digitization and the rapid adoption of artificial
intelligence (AI) are radically changing the way people interact with
one another, interact with machines, and the way machines interact
with each other.
In the past years, multiple geopolitical crises have also set in
motion a series of global events which have led to significant
disruptions, many of which have impacts across the world.
These include constrained labor availability, global shortages of
raw materials and electronics, unreliable transportation, and
reductions in energy availability, all of which have challenged
supply chains across industries. Some regional challenges towards
environmental, social, and governance (ESG) regulations also
questions how global companies can best contribute to building
a more sustainable future.
At the same time, new expectations and practices have emerged to
help the world adapt to, or mitigate the impacts of this disruption:
• Local dynamics in response to ecological and social
considerations as well as supply chain disruptions;
• The mobilization of new generations, demanding a radical shift
towards a more sustainable economy;
• New ways of working, which are more flexible and more
digital; and
• Circular business models to preserve the planet’s resources.
2.1.1.1.2 Our strategy as an Impact Company
Companies have an important role to play to help solving today’s
more pressing issues, starting with fighting climate change and
supporting the world energy transition.
They can be both developers and users of new solutions with
the resources, talent, technology, and geographic footprint
to make real and fast changes, and use it to drive sustainable
financial performance.
The foundation of Schneider’s sustainability strategy and Impact
Company model is the belief that investing in the transition to a
more sustainable future – in energy sobriety, low-carbon solutions,
or gender equity. It is about future-proofing the Company and to
drive its competitiveness, innovation, and resilience. It secures
sustainable growth because any company’s health is deeply
interconnected with the health of the environmental and social
systems it evolves in. It encompasses continuous improvement of
environmental, social, ethical, and societal dimensions across an
organization’s entire value chain and stakeholders.
This holistic approach allows the Group to greatly mitigate risks and
also brings tangible added value by being more attractive to
stakeholders, while boosting innovation.
The transformation of Schneider Electric reflects this. The Company
has seen its size quadruple, growing from EUR 9 billion in 2003 to
EUR 38.2 billion in revenues in 2024, surfing on the
decarbonization, electrification and energy transition trends.
Schneider Electric products, software solutions, and services help
households, companies, buildings, data centers, infrastructure
projects, and entire industries make the most of their energy and
resources and bolster their energy resilience. With its solutions, the
Group plays a major role in accelerating the energy transition and
fighting the climate crisis, while making a long-term positive impact
on the planet and society.
2.1.1.1.3 Creating Impact by empowering all to
make the most of our energy and resources,
bridging progress and sustainability for all
Schneider Electric is committed to make its purpose to bridge
progress and sustainability for all a reality. The Group has taken
several concrete commitments to contribute to a Net-Zero world,
some of which have been linked to the long-term incentive plan
(LTIP) benefiting the Group Senior Management and over 4,000
selected employees. This positive contribution is also measured
as Impact revenues, which represent 74% of the Group’s total
revenues in 2024. In addition, 100% of Schneider Electric’s
innovation projects are aligned with its purpose, more than 90%
being either strictly green or neutral.
Climate change and rising inequalities are all issues that have
long-term consequences and cannot be addressed with a short-
term mindset alone; solving these issues requires a combination of a
long-term vision and concrete short-term action presented below.
25% absolute reduction
across our entire value
chain and “Net-zero
ready” in our operations
Objectives of the
Schneider Sustainability
Impact (SSI) and
Schneider Sustainability
Essentials (SSE)
Providing access
to energy to
100 million people
Carbon neutral in
our operations
Net-zero CO2 emissions
across our entire
value chain (SBTi)
2025
2030
2050
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2.1.1.2 Long-term commitments and tools to measure progress
In response to the societal, economic, and ecological worldwide
transformations, and in alignment with stakeholder expectations,
its Company Purpose, and the United Nations Sustainable
Development Goals (UN SDGs), Schneider Electric has made six
long-term commitments. By tracking its sustainability performance
and publishing quarterly results, Schneider Electric upholds its
commitments to the SDGs and industry leadership in corporate
social responsibility.
2.1.1.2.1 Our tools to measure progress
The execution of the Group’s 2021–2025 sustainability strategy
is tracked through quantitative key performance indicators (KPIs),
under two complementary tools: the Schneider Sustainability
Impact (SSI) and the Schneider Sustainability Essentials (SSE).
Collectively, the 11 global SSI programs along with its local Impact
program and the 25 SSE programs constitute the Group’s
short-term sustainability roadmap and its contribution to the
17 UN SDGs.
The SSI is the translation of Schneider Electric’s six long-term
commitments into highly transformative and innovative programs,
which are tracked and published quarterly, verified by an
independent auditor annually, and linked to short-term incentive
plans (STIP) for more than 76,000 employees.
The SSE reflects continuous improvement actions taken by the
Group, complementing the SSI. This tool brings balance between
the innovative transformation plans of the SSI and the need to keep
making progress with other long-lasting programs.
A notable addition to the 2021–2025 program 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.
Long-term commitments and tools
Tool
Schneider
Sustainability
Impact (SSI)
Schneider
Sustainability
Essentials (SSE)
Local Sustainability
Impact programs
(SSI #+1)
KPIs
11
25
~200
Scope
Global
Global
Local
Reporting
Quarterly
Annual
Annual
Assurance
Yes
Yes
No
Link to STIP
Yes
No
No
Read more on the SSI and SSE programs and scope
on the next page and throughout the report.
Read more on the local commitments on www.se.com
Act for a climate-positive world
by continuously investing in and developing innovative solutions that deliver
immediate and lasting decarbonization in line with our Carbon Pledge.
Be efficient with resources
by behaving responsibly and making the most of digital technology to
preserve our planet.
Live up to our principles of trust
by upholding ourselves and all around us to high social, governance, and
ethical standards.
Create equal opportunities
by ensuring all employees are uniquely valued in an inclusive environment to
develop and contribute their best.
Harness the power of all generations
by fostering learning, upskilling, and development for each generation,
paving the way for the next.
Empower local communities
by promoting local initiatives and enabling individuals and partners to make
sustainability a reality for all.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.1.2.2 Schneider Sustainability Impact: a unique
transformation tool
Since 2005, Schneider Electric has measured its sustainability
performance each quarter in a dashboard known as the
“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. Each
SSI mobilizes the whole Company around holistic sustainability
goals impacting its ecosystem, shares the Group’s improvement
plans with stakeholders, and creates system value.
A single ESG performance score
The SSI provides an overall measure of the Group’s progress on
its sustainability goals on a scoring scale of 10. This is achieved
by converting each KPI’s performance on a 10-point scale,
considering that base year performance receives a 3/10 score, and
the 2025 ambition translates in 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 KPI’s score with equal weight excluding the local
commitment (SSI #+1). In 2024, the SSI achieved a great score of
7.55/10 (vs. 6.13/10 in 2023), outperforming its 7.40/10 target for
the year.
Transparent quarterly progress disclosure
The results of the SSI are published every quarter together with
financial results and made available to all stakeholders via the
Group’s website. Results are collated and presented to the
Function Committee, which makes decisions on any corrective
actions that may be necessary to reach objectives. The
Governance, Nominations & Sustainability Committee within the
Board of Directors conducts an annual review of the Group’s
sustainability strategy, analyzing, in particular, the performance of
the SSI. The results are also publicly presented to shareholders by
Schneider Electric’s CEO or CFO, demonstrating the Group’s
commitment to making sustainability part of the Company’s
long-term strategy.
In addition, the results of the SSI are released in various external
reports (such as the Universal Registration Document including
the statutory auditors’ reports), and are shared during customers
and investors events. Internally the results are published on the
intranet, and in various communications to employees (including
a quarterly internal video featuring the CEO and the CFO on the
quarter’s results).
Find all quarterly releases on the Financial Results
page on www.se.com
Annual publication and external assurance
The annual publication of the SSI results follows thorough internal
data controls performed by each relevant team and supervised by
the Sustainability team. In addition, the SSI and SSE indicators are
subject to limited or reasonable assurance from an independent
third party verifier (except SSI #+1 and SSE #12), in accordance
with the (revised) ISAE 3000 assurance standard.
See independent verifier’s reports
on pages 336 to 341.
Rewarding employees for performance
Since 2011, the SSI score is included in the variable compensation
of global functions and Company leaders. In France, since 2012,
the SSI has also been included in the profit-sharing incentive plan
for the French entities, Schneider Electric Industries and Schneider
Electric France. From 2019, the weight of the SSI criteria has
increased from 6% to 20% in the collective part of the annual
short-term incentive, further highlighting the importance of
sustainability within Schneider Electric’s business agenda. In 2024,
the SSI performance impacted the short-term incentive plans for
over 76,000 employees (20% of collective share), including the
Executive Committee members and the Chief Executive Officer.
From 2025 onwards, the diversity targets set out in the SSI #8 shall
not impact local incentives in countries or entities prohibiting the
establishment of such targets.
Read further details in the section 2.2.3.1.2 “Working
conditions” on page 207.
SSI and Sustainable Finance
In November 2020, Schneider Electric announced its first
Sustainability-linked convertible bond, due 2026, for a nominal
amount of approximately EUR 650 million. This bond issuance is
linked with three programs of the SSI 2021-25 (SSI #2, SSI #8, and
SSI #11). In 2024, the outstanding convertible bonds were either
converted into shares or repurchased by the Group, resulting in the
full extinguishment of this bond. In 2022, Schneider Electric also
signed EUR 2.7 billion Syndicated Sustainability-Linked Revolving
Credit Facilities with a margin indexed on the annual performance
of the SSI.
Find more information about debt and bonds on the
Debt page on www.se.com
SSI creation process
The SSI is a cyclical process taking place every three to five years.
In 2020, a specific SSI Steering Committee was created,
comprising around 50 members representing each Executive
Committee member, and each geography, function, and business
unit. Three all-hands workshops took place, and the Sustainability
team organized individual follow up interviews with each member
to define precise and measurable programs.
The breadth of stakeholders involved in the design of the SSI, and
the variety of analyses leveraged, makes it a powerful tool to move
the Group forward on its major challenges.
Three scenarios may emerge from one SSI to the next:
• Programs are maintained and their targets are renewed
or increased;
• New and more innovative or better-adapted indicators
are implemented; and
• Programs are removed, if for instance they have reached a
threshold. Any former program may continue to be monitored
internally if relevant.
The Sustainability department presents a draft version of the new
SSI to the Governance, Nominations & Sustainability Committee,
which reports on its work to the Board of Directors, and to the
Function Committee, for validation. This latter Committee includes
seven members, who each have functional responsibilities and
report directly to the CEO: the Chief Sustainability Officer; Chief
Strategy, Brand & Communications Officer; Chief Human
Resources Officer; Chief Global Supply Chain Officer; Chief
Governance Officer & Secretary General; and Chief Financial
Officer. The new SSI is then approved by the CEO.
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During the deployment of the SSI, annual reviews take place
organized by the Sustainability team together with internal experts
and new or complementary programs may be launched or be
evaluated in more depth.
SSI reporting perimeter
The SSI reporting perimeter covers all financially consolidated
entities over which it has operational control, with the exception of
small excluded entities. It is more limited than the CSRD reporting
scope, which is aligned with the scope of the financial statements.
Read further details in the section 2.4.1 “Methodology
elements on the published indicators” on page 311.
2.1.1.2.3 Schneider Sustainability Essentials:
a continuous improvement tool
The SSE reflects continuous improvement actions taken by
the Group, complementing the SSI.
This tool brings balance between the innovative transformation
plans of the SSI and the need to keep making progress with other
long-lasting programs. All SSE KPIs are externally assured each
year, except for SSE #12 which is still under development.
2.1.1.2.4 The Local Sustainability Commitments:
a tool for local impact
A significant element of the 2021-2025 program is the local
dimension, which deploys local actions in the markets where the
Group operates in order to better empower all leaders and
collaborators to unlock meaningful local impacts. 100% of
Schneider Electric’s Country and Zone Presidents have defined
local commitments that impact their communities in line with our
sustainability transformation. Close to 200 local programs have
been deployed since 2021.
In 2024, the local programs have been renewed or extended by
setting more ambitious targets, with the aim of increasing local
impact through employee engagement.
Notable SSI achievements and
challenges in 2024
SSI #2 enabled Schneider Electric customers to save and
avoid 679 MTCO2e, a continuous improvement on 2023
(+126 MTCO2e), mainly driven by good progress in Power
Purchase Agreements services and Variable Speed
Drives sales.
The Zero Carbon Project (SSI #3) helped to reduce CO2
emissions in the operations of top 1,000 top suppliers by
40%, representing a significant improvement on the 27%
recorded in 2023.
SSI #6 also made considerable progress in 2024, with 63%
of strategic suppliers certified as compliant with Schneider’s
Decent Work standards, marking a 41-point increase of in
one year.
The Group has kept progressing on its transition to
sustainable packaging, with 78% of primary and secondary
packaging now free from single-use plastic, using recycled
cardboard (SSI #5), compared to 63% in 2023.
The most significant achievement was delivered by SSI #9,
which has provided access to clean and reliable electricity
for a cumulative 53.4 million people since the program was
launched, including 7 million people in 2024 (versus 6.8
million in 2023), thanks notably to the solarization of health
centers in South Asia and Africa, and the delivery to Impact
Investment Funds. It is the first SSI to meet and exceed its
2025 ambition, a year ahead of schedule.
One of the most ambitious SSI to be achieved by 2025 is to
train 1 million people in energy management (SSI #11). Major
progress was delivered in 2023 with over 824,400 new
people trained, including 64,850 in 2024. However, due to
the delay caused by the pandemic, an acceleration will be
needed in the coming year to reach the ambition. To reach it,
the Group is opening trainings to more OECD countries and
supporting new types of programs for the young people.
Notable SSE achievements and
challenges in 2024
Schneider is committed to accelerating sustainable
transformation in its own operations:
• In 2024, 53 new sites were certified Zero-CO2 sites (SSE
#1), for a total of 154 sites contributing to the Group’s
GHG emissions.
• Corporate vehicle fleet transformation (SSE #7)
accelerated by 15 points in 2024, driven by a strong
performance in Europe and a growing market maturity.
• The Group’s ambition is to deploy local biodiversity
conservation and restoration programs at 100% of its
sites (SSE #8), and to deploy a water conservation
strategy and related action plan at 100% of its sites in
water-stressed areas by 2025 (SSE #11). In 2024, 85%
of sites have put biodiversity programs in place (vs. 66%
in 2023), and 90% of sites in scope have adopted and
implemented water conservation action plans (vs. 73%
in 2023).
• Improving CO2 efficiency in transportation (SSE #4) is
a challenge as it is primarily driven by the mode mix of
the Group’s aggregate freight globally, to best serve
its customers.
With SSE #23, Schneider aims to provide access to
meaningful career development programs for its employees
during later stages of their career. 85% benefited from these
programs in 2024 (vs. 67% in 2023).
Finally, 4,052 suppliers have been assessed under
Schneider’s “Vigilance Program” since its launch, notably
thanks to the increase of remote Vigilance assessments
(SSE #17).
Deploying a ‘Social Excellence’ program through multiple
tiers of suppliers is one of Schneider’s 2021-25 objectives
(SSE #12). This program is still in development.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
Schneider Sustainability Impact
6 Long-term Commitments
aligned to UN SDGs
11+1 Programs for 2021-2025
Baseline(1)
2024 Progress(2)
2025 Ambition
Climate
1. Grow Schneider Impact revenues(3)
2019: 70%
0%
74%
80%
2. Help our customers save and avoid millions of tonnes
of CO2 emissions
2020: 263M
0
679M
800M
3. Reduce CO2 emissions from top 1,000 suppliers’
operations
2020: 0%
0%
40%
50%
Resources
4. Increase green material content in our products
2020: 7%
0%
38%
50%
5. Primary and secondary packaging free from
single-use plastic, using recycled cardboard
2020: 13%
0%
78%
100%
Trust
6. Strategic suppliers who provide decent work to
their employees
2022: 1%
0%
63%
100%
7. Level of confidence of our employees to report
unethical conduct
2021: 81%
0%
83%
91%
Equal
8. Increase gender diversity(4) in:
hiring (50%),
front-line management (40%),
and leadership teams (30%)
2020 : 41%
2020 : 23%
2020 : 24%
0%
0%
0%
42%
30%
31%
50%
40%
30%
9. Provide access to green electricity to 50M people
2020: 30M
0
53.4M
50M
Generations
10. Double hiring opportunities for interns, apprentices
and fresh graduates
2019: 4,939
x1
X1.59
x2.00
11. Train people in energy management
2020: 281,737
0
824,404
1M
Local
+1. Country and Zone Presidents with local commitments
that impact their communities
2020: 0%
0%
100%
100%
(1) The baseline year is indicated in front of each SSI baseline performance.
(2) Each year, an independent third party verifier performs a “limited” assurance engagement on all SSI and SSE indicators (except SSI #+1 and SSE #12 in 2024), in
accordance with (revised) ISAE 3000 assurance standard (see independent verifier’s report on page 336). In addition, SSI #8 was subject to a “reasonable”
assurance engagement in 2024 (see independent verifier’s report on page 340). Please refer to page 311 for the methodological presentation of each indicator.
(3) Per Schneider Electric definition and methodology. Note that for the reporting requirements under the European Taxonomy Regulation, please refer to pages 184 to 202.
(4) From 2025 onwards, diversity targets shall not impact local incentives in countries or entities prohibiting the establishment of such targets.
Read more about the SSI indicators methodology
on pages 313 to 316.
2024 score:
7.55/10
vs. 6.13/10 in 2023 and outperforming 7.40/10
target for the year
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Schneider Sustainability Essentials
6 Long-term Commitments
aligned to UN SDGs
25 Programs for 2021-2025
Baseline(1)
2024 Progress(2)
2025 Ambition
Climate
1. Decarbonize our operations with Zero-CO2 sites
2020: 30
0
154
150
2. Substitute relevant offers with SF6-Free medium
voltage technologies
2020: 26%
0%
69%
100%
3. Source electricity from renewables
2020: 80%
0%
96%
90%
4. Improve CO2 efficiency in transportation
2020: 0%
0%
-0.4%
15%
Resources
5. Improve energy efficiency in our sites
2019: 0%
0%
16%
15%
6. Grow our product revenues covered
with Green Premium™
2020: 77%
0%
82%
80%
7. Switch our corporate vehicle fleet to electric vehicles
2020: 1%
0%
31%
33%
8. Deploy local biodiversity conservation and
restoration programs in our sites
2020: 0%
0%
85%
100%
9. Give a second life to waste in
‘Waste-to-Resource’ sites
2020: 120
0
135
200
10. Avoid primary resource consumption through
‘take-back at end-of-use’ since 2017 (metric tons)
2020: 157,588
0
359,080
420,000
11. Deploy a water conservation strategy and action plan
for sites in water-stressed areas
2020: 0%
0%
90%
100%
Trust
12. Deploy a ‘Social Excellence’ program through
multiple tiers of suppliers(3)
--
--
In progress
--
13. Train our employees on Cybersecurity and Ethics
every year
2020: 90%
0%
99%
100%
14. Decrease the Medical Incident rate to 0.38 or below
2019: 0.79
0.79
0.6
0.38
15. Reduce total number of safety recalls issued to 0
2020: 25
25
5
0
16. Be in the top 25% in external ratings for
Cybersecurity performance
2020: Top 25%
0%
Top 25%
Top 25%
17. Assess our suppliers under our ‘Vigilance Program’
2020: 374
0
4,052
4,000
Equal
18. Reduce pay gap for both females and males
2020: F: -1.73%
2020: M: 1.00%
0%
-0.84% M
0.66% F
<1%
<1%
19. Increase subscription in our yearly Worldwide
Employee Share Ownership Plan (WESOP)
2019: 53%
0%
62%
60%
20. Pay our employees at least a living wage
2019: 99%
0%
100%
100%
21. Multiply the number of employee-driven development
interactions on the Open Talent Market
2020: 5,019
1
x2.3
x4
Generations
22. Support the digital upskilling of our employees
2020: 41%
0%
80%
90%
23. Provide access to meaningful career development
programs for employees during later stages of
their career
2022: 43%
0%
85%
90%
24. Increase our employee engagement level
2020: 69%
0%
73%
75%
Local
25. Increase the number of volunteering days since 2017
2020: 18,469
0
75,461
50,000
(1) See note (1) under the SSI table on the left page.
(2) See note (2) under the SSI table on the left page.
(3) SSE #12 “Social Excellence” program is under development.
Read more about the SSE indicators methodology
on pages 316 to 321.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
SSI 2024
Highlights
Climate SSI #1
Grow Schneider
Impact revenues
Thanks to its offers
supporting energy and
resource efficiency,
electrification,
decarbonization and
circularity, while not
generating any significant
harmful impacts to the
environment, Schneider’s
impact revenues remained
stable at 74% in 2024.
Climate SSI #2
Help our customers
save and avoid
millions of tonnes
of CO2 emissions
Altivar variable speed drives
optimize motor speeds for
different loads, cutting
energy use by up to 30%.
Schneider Electric’s drives
sold from 2018 to 2024 could
save or avoid over 280 million
tonnes of CO2 emissions
during their service lifetimes.
Resources SSI #4
Increase green
material content
in our products
The total volume of
thermoplastic qualified as
Green as per Schneider
definition has more than
doubled in 2024,
progressing from 4.9 tons at
the end of 2023 to over 10kt
expected by the end of 2024.
This achievement is the result
of the commitment of the
Group main Lines of
Business to include Green
Thermoplastics into their
offers at scale. In 2024, the
‘Green Materials’ criteria
became a mandatory
requirement in Schneider
EcoDesign approach to even
accelerate the transformation
toward materials with lower
impact on environment
and people.
Climate SSI #3
Reduce CO2
emissions from
top 1,000 suppliers’
operations
In 2024, a 40% reduction
in the operational GHG
emission intensity of 1,000
suppliers was achieved in
The Zero Carbon Project.
This result, which represents
a 13 points improvement on
the 2023 performance, was
achieved thanks to the
strong implementation
support provided to
suppliers through on-site
visits and local workshops
aimed at improving energy
efficiency and deploying,
renewable energy.
Resources SSI #5
Primary and
secondary packaging
free from single-use
plastic, using
recycled cardboard
In 2024, the sustainable
packaging spend increased
by 15% from 2023, to
progress up to 78%. This
progress is due both to the
fact that total cardboard
spend adhering to the
recycled cardboard
requirements has reached
93%, and to the 5.9% spend
reduction of single-use
plastics compared to 2023.
Trust SSI #7
Level of confidence
of our employees
to report unethical
conduct
83% of Schneider Electric
employees feel confident
to report unethical conduct
without fear, up 1 point from
2023 and reflecting a
steady growth.
Trust SSI #6
Strategic suppliers
who provide decent
work to their
employees
63% of strategic suppliers
were conforming to
Schneider Electric Decent
Work Program in 2024,
which represents a 42%
improvement over 2023
performance. Dedicated
engagement and guidance
sessions organized with
suppliers helped address
chronic challenges and
clarification of doubts about
the implementation.
Equal SSI #8
Increase gender
diversity in hiring
(50%), front-line
management (40%)
and leadership
teams (30%)
This year, Schneider Electric
reached its 2025 ambition
of having at least 30% of
its leadership teams
represented by women
globally (Vice President
and above).
Equal SSI #9
Provide access to
green electricity
Schneider Electric has
reached in 2024 its ambition
of providing access to green
and reliable electricity to
50 million people, a year
ahead of schedule. The
program has benefited
53.4 million people since
its launch in 2009,
predominantly across
Africa and Asia.
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C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Generations SSI #11
Train people in
energy management
Schneider Electric has
supported 824,404
young people through
the Youth Education &
Entrepreneurship program
since its launch in 2009,
enabling youths from
60 countries to take part
in the energy transition.
Generations SSI #10
Double hiring
opportunities for
interns, apprentices
and fresh graduates
The number of opportunities
for the Next Generation was
multiplied by 1.59 in 2024.
Among them, 66% were
roles for students, and 34%
were recent graduates hiring.
Local SSI #+1
Country and Zone
Presidents with
local commitments
that impact their
communities
In 2024, the local programs
has been renewed or
extended by setting more
ambitious targets, with the
aim of increasing local
impact through employee
engagement.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
SSE 2024
Highlights
Resources SSE #5
Improve energy
efficiency in our sites
Thanks to EcoStruxure
solutions and ongoing efforts
on its sites, the Group
achieved 15.8% energy
efficiency in 2024, exceeding
its 2025 ambition of 15%.
Resources #6
Grow our product
revenues covered
with Green Premium™
From a customer
communication standpoint,
we shifted in 2024 from
Green Premium to
Environmental Data Program.
While doing it, we increase
even more the product
revenues covered with
Green Premium or
equivalent.
Resources SSE #8
Deploy local
biodiversity
conservation and
restoration programs
in our sites
Nearly 300 sites globally are
deploying local biodiversity
conservation plans, taking
direct action to address local
ecological risks. 85% of local
actions are complete.
Climate SSE #4
Improve CO2 efficiency
in transportation
To improve its transportation
CO2 footprint, Schneider has
deployed both optimization
and technology opportunities
for freight transport with
continued implementation
of multi-modal solutions
globally and lower/zero
emission transport options
in regional operations.
Resources SSE #7
Switch our corporate
vehicle fleet to
electric vehicles
31% of the company fleet is
composed of electric
vehicles. China is leading
this transformation, as well
as Europe which adopted
a 100% electric vehicles in
the selector of several
countries.
Climate SSE #2
Substitute relevant
offers with SF-Free
medium voltage
technologies
69% of relevant offers have
been substituted with
SF6-Free medium voltage
technologies in 2024,
compared to 60% in 2023.
Trust SSE #13
Train our employees
on Cybersecurity and
Ethics every year
98.7% of Schneider
employees completed their
mandatory Cybersecurity
and Ethics annual training
in 2024.
Trust SSE #14
Decrease the Medical
Incident rate
A “Safety Future” survey was
rolled out to all employees in
2024, with a response rate
of 46%. The resulting local
workshops have resulted
in the creation of 435
improvement actions.
Climate SSE #1
Decarbonize our
operations with
Zero-CO2 sites
By the end of 2024,
Schneider had successfully
certified 53 more Zero-CO2
sites, bringing the worldwide
total to 154 sites, meeting the
2025 ambition of 150
Zero-CO2 sites one year
ahead of schedule.
Climate SSE #3
Source electricity
from renewables
Schneider Electric sites
were supplied with 96%
of renewables electricity
in 2024.
Resources SSE #9
Give a second life to
waste in ‘Waste-to-
Resource’ sites
By 2024, 135 sites achieved
the ‘Waste-to-Resource’
status, joining the effort for
more circularity within
Schneider. Significant
improvements have been
made in waste data reporting
and action plans are in place
to bridge the remaining gap
with the 2025 ambition.
Resources SSE #10
Avoid primary
resource consumption
through ‘take-back at
end-of-use’ since 2017
(metric tons)
In 2024, another 47,851 tons
of material contributed to the
program ambition, in line with
its cumulative goal. In
addition to the existing flows,
additional take back
capabilities across Europe
have been deployed,
contributing to both raw
material resilience, assets
refurbishment and reuse.
Resources SSE #11
Deploy a water
conservation strategy
and action plan for
sites in water-
stressed areas
Water conservation and
action plans are underway
across 76 sites located in
water-stressed areas. 90% of
identified actions are
underway or completed.
Trust SSE #12
Deploy a ‘Social
Excellence’ program
through multiple tiers
of suppliers
As part of the Social
Excellence pilot in Vietnam,
a “Worker Voice” surveys
was completed in 2024 and
feedback sessions with the
suppliers involved were
organized.
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Generations SSE #23
Provide access to
meaningful career
development
programs for
employees during
later stages of
their career
The ‘Senior Talent’ Program
has been recognized by the
OECD in two policies about
aging populations.
Generations SSE #22
Support the digital
upskilling of our
employees
In 2024, over 38,000
employees joined the
“Digital Upskilling” program,
which aims to prepare the
Company workforce for its
digital transformation and
educate them on various
topics such as digital
well-being.
Trust SSE #16
Be in the top 25% in
external ratings for
Cybersecurity
performance
Monitoring performance
enables the Group to
measure its improvement:
from a baseline of 520 in
January 2018, its scored 790
in 2024. Schneider Electric’s
external rating since 2018
has risen by over 65%.
Trust SSE #17
Assess our suppliers
under our ‘Vigilance
Program’
Schneider Electric assesses
it suppliers to reduce risks
within its supply chain. In
2024, the Company reached
its 2025 ambition to assess
4,000 suppliers, a year
ahead of schedule.
Trust SSE #15
Reduce total number
of safety recalls
issued
Only 5 safety recalls have
been recorded in 2024,
a significant reduction
compared to 23 in 2023.
Equal SSE #18
Reduce pay gap
for both females
and males
For the second year in a raw,
the Company has maintained
its 2025 ambition to reduce
the pay gap for both women
and men below 1%.
Equal SSE #19
Increase subscription
in our yearly
Worldwide
Employee Share
Ownership Plan
(WESOP)
Schneider Electric WESOP
reached 62.4% in 2024,
exceeding its 2025 ambition
of 60% for the fourth year
running.
Equal SSE #20
Pay our employees
at least a living wage
100 % of Schneider are paid
at least a living wage, which
was recognized for the
second consecutive year by
the Living Wage Employer
Certification from Fair
Wage Network.
Equal SSE #21
Multiply the number
of employee-driven
development
interactions on the
Open Talent Market
In 2024, the number of
employee-driven
development interactions
increased by 2.3 compared
to 2020, while 90% of
employees registered on the
Open Talent Market platform.
Generations SSE #24
Increase our
employee
engagement level
Measured through the annual
employee engagement
survey, which has a high
response rate of 88%,
Schneider Electric maintains
in 2024 a strong level
of engagement at 73%.
Local SSE #25
Increase the number
of volunteering days
since 2017
The number of volunteering
days exceeded this year the
ambition for 2025 of 70,000
volunteering days by 5,461
days, a trend which was
stabilized compared to 2023.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.1.3 Contribution to the United Nations Sustainable Development Goals
The 17 United Nations Sustainable Development Goals (UN SDGs) are focused on protecting the planet, alleviating poverty, and achieving
worldwide peace and justice. The SSI and SSE programs contribute to those global goals, either directly or indirectly, for all stakeholders
in the Company’s value chain. Schneider Electric is an active promoter of the SDGs and a member of the UN Global Compact (UNGC),
notably with its Chairman being a member of the global Board. Schneider discloses each year its Communication on Progress, and was
one of the 850 participants in the UNGC Early Adopters program in 2022. The following mapping of the Group contribution by SDG and
stakeholder was realized by reviewing all 169 targets and leveraging the SDG Compass tools.
Suppliers
Operations
Customers
Communities
Key SDG
contributions
SDG
Stakeholders
Schneider’s contribution to SDGs
Key programs
Suppliers
Communities
As a responsible employer, manufacturer, and buyer, Schneider
Electric committed to ensuring the well-being of employees
throughout its value chain. Through sustainable procurement, fair
compensation, and development opportunities, the Group ensures
all its stakeholders can live fulfilling and thriving lives.
SSI #9; SSI #10;
SSI #11; SSE #20
Communities
Food is a basic need and a necessity for livelihood. Schneider
contributes to strengthening food security by improving access to
energy in rural areas, through better irrigation, food storage, and
processing.
SSI #9
Operations
Schneider’s holistic view of well-being translates into programs that
support the physical, mental, and emotional well-being of its
people, but also those across its operations by safeguarding the
reliability of the healthcare sector by powering their facilities.
SSI #6; SSE #12;
SSE #14; SSE #17
Operations
Communities
Learning is a Core Value of Schneider Electric. The Group
actively promotes a mentoring culture, connecting generations
together to help tomorrow’s energy leaders to grow and build a
sustainable future.
SSI #10; SSI #11;
SSE #25
Operations
Schneider Electric believes in equality between all genders.
As such, the long-lasting difference in society’s treatment of men
and women is a challenge we face and rise to as we believe that
diversity, equity, and inclusion benefit all.
SSI #8; SSE #18
Communities
Schneider takes great care in ensuring its operations have no
impact on biodiversity and water quality. The Group protects water
on its sites, with a specific conservation strategy and solutions in
water-stressed areas to limit the impact on local communities.
SSE #6; SSE #11
Operations
Customers
Communities
Schneider provides solutions for clean, reliable, and efficient
energy consumption to its customers, and is committed to
helping people in underserved areas gain access to green and
reliable electricity.
SSI #1; SSI #2;
SSI #3 SSI #9;
SSE #1 SSE #3;
SSE #5; SSE #6,
SSE #7
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
SDG
Stakeholders
Schneider’s contribution to SDGs
Key programs
Suppliers
For Schneider Electric, protecting workers’ rights, guaranteeing
their dignity, and creating work opportunities is essential to enable
all its stakeholders to thrive. Its Decent Work program aims to
improve working conditions for its employees and for workers
across its supply chain.
SSI #6; SSI #10;
SSE #12; SSE #14;
SSE #17; SSE #18;
SSE #20; SSE #22;
SSE #23
Operations
Schneider Electric’s identity and legacy drive the Company
towards perpetual innovation and mobilization to make its
infrastructures and products modern and up-to-date with its
commitment to sustainability.
SSI #1; SSI #2;
SSE #1; SSE #2;
SSE #4
Operations
Schneider is devoted to empowering and positively impacting all
employees, customers, and communities. The Group hopes to
bring everyone together on the same level of equality, thus allowing
all to strive individually and collectively.
SSI #8; SSI #10;
SSI #11; SSE #18;
SSE #20
Customers
Schneider offers a solution to ensure sustainability in urban
areas, with smarter homes and buildings. The Schneider Electric
Foundation acts to provide access to sustainable energy to all,
turning our global commitments into local realities.
SSI #1; SSI #12;
SSE #1; SSE #4;
SSE #9
Suppliers
Operations
Customers
Schneider Electric considers that circularity is key for sustainability.
Using fewer resources and producing higher-quality products is
the ideal combination to ensure safety for employees, consumers,
and the environment.
SSI #4; SSI #5;
SSE #6; SSE #9;
SSE #10; SSE #15
Suppliers
Operations
Customers
Schneider Electric has been leading the fight against climate
change for 20 years. Its strategy focuses on acting for climate
protection, preserving resources, and maintaining ethical practices
to fight for the planet.
SSI #2; SSI #3;
SSE #1; SSE #3;
SSE #4
Suppliers
Customers
Resources are essential to Schneider Electric business; preserving
them not only makes good business sense but is also the right
thing to do. Hence, preserving the ocean has become core to its
sustainability engagement and we commit to protecting marine life.
SSI #5; SSE #8;
SSE #11
Suppliers
Customers
Schneider Electric is committed to using fewer natural resources,
living within our planet’s means, and advancing an accelerated
biodiversity strategy. We align with like-minded partners to
prioritize conservation and help create a more sustainable world.
SSI #4; SSI #5;
SSE #8
Suppliers
Operations
Customers
Communities
Sustainability is a job for all; the urgency of the situation is
impossible to ignore. All hands must be on deck and it is crucial to
establish frameworks, programs, and infrastructure to allow a just
and peaceful development.
SSI #6; SSI #7;
SSE #12; SSE #13;
SSE #16; SSE #17
Suppliers
Operations
Customers
Communities
Schneider Electric is a global company that aims to adapt and
ensure cooperation amongst all its stakeholders to create an
environment of trust and prosperity in its operations but also for
its employees’ and local communities’ fulfillment.
SSI #3; SSI #6;
SSI #11; SSI #12;
SSE #2; SSE #11;
SSE #12; SSE #17;
SSE #24; SSE #25
Consult Schneider Electric’s commitments to SDGs on the Sustainability page on www.se.com
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.2 Corporate Culture
2.1.2.1 People strategy and vision
2.1.2.1.1 Context
The world is transforming at an unprecedented speed and there
is a greater need for us at Schneider Electric to play to the
emerging opportunities. While we are known for our strong
industrial base in energy management and automation, with
our digital and software evolution we are now one of the largest
industrial software tech companies.
In the next evolution of our strategy, we aspire to be the Industrial
Tech leader and become a EUR 50 billion revenue company.
Our growth ambitions are supported by five megatrends: the
explosion of digitization and AI, the accelerated need for concrete
solutions to fight climate change, the ongoing energy transition,
evolution of wealth, and the new global equilibrium requiring
reshoring and resiliency.
These underlying megatrends offer many opportunities for growth,
especially in the ambiguous volatile environment we continue to
live, in an ever-evolving world. They not only have an impact on our
business and markets but also have a direct impact on people
and the future of work.
2.1.2.1.2 Our Culture
To reach our Next Frontier ambition and become the Industrial Tech
leader, it’s time to accelerate our culture toward growth.
Culture matters. It matters to our customers, partners, investors,
and all of us at Schneider. Research tells us that great cultures yield
a stronger business performance and create a more engaged and
productive workforce. We also know strong cultures do not happen
by accident, requiring constant design and care. Culture is the
collective beliefs, values, and attitudes of an organization.
Culture is also about how we behave when no one is watching.
At Schneider, every aspect of our work, like how we interact with
customers, run business reviews, create our offers and services,
manufacture our products, and take decisions are all ingredients
of our culture.
IMPACT Values
Values anchor the way we work at Schneider Electric and help
bring our growth culture and Employee Value Proposition (EVP)
promise to life. They are the principles that lie at the heart of our
cultural evolution, forming the reasons why people join, engage,
and stay with us. Our six IMPACT Values are derived from our
transformative growth ambitions, People Strategy, and the voice
of our employees and customers.
These values represent the essence of our current strengths and
aspirations to shape Schneider Electric’s growth culture.
• Inclusion: We embrace diverse perspectives, co-creating
a place where everyone belongs and thrives.
• Mastery: We count on our expertise and know-how to deliver
the highest quality innovations.
• Purpose: We aspire to build a sustainable future for our people,
customers, communities, and planet.
• Action: We get things done with accountability, speed, and
integrity, always with the customer in mind.
• Curiosity: We love to think deeply and differently, challenging
the status quo and learning every day.
• Teamwork: We achieve together with our teams, collaborating
with trust and openness.
Employee Value Proposition (EVP)
Our new EVP, “Impact starts with us”, is rooted in our foundational
belief that impact can only be possible with a collective effort from
an ecosystem of customers, partners, employees, suppliers,
investors and communities.
“Impact starts with us” is a promise our Company makes to each of
its current employees, and it is also an invitation for outside talent to
join our Company and make an impact on the world we share. It is a
call to connect one’s career with the ambition of achieving a more
resilient, efficient, and sustainable world.
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2.1.2.2 Engaging employees
At Schneider Electric, many employees are united by a common
purpose: to drive positive change for our planet and society
through sustainable actions.
The ENGAGE initiative aims to empower them further because
their passion fuels the Company’s sustainability transformation.
To reach that objective, employees are guided to explore the
various avenues to drive sustainability and lead them to decide
on their priorities based on their passions, strengths, and interest,
whether it’s shaping personal behaviors, supporting their
communities, or championing the company’s sustainability
programs. By fostering a culture of sustainability, the Group
inspires collective action and innovation.
Through this initiative, new capabilities have been built, such as:
•
A Sustainability Academy, including awareness modules
covering a large range of environmental and social topics
as well as how the Group sustainability strategy, which is
continually enriched to move from awareness to upskill for
all employees since sustainability should be part of
everyone’s job;
•
An Engagement playbook detailing the various options and
tools available to act on sustainability matters, of which the
Schneider Electric VolunteerIn initiative led by the Schneider
Electric Foundation, enabling employees since 2012 to
participate in volunteering missions through partnerships with
NGOs from all around the world;
•
Numerous sustainability communities have been developed in
countries where the Group operates to tackle local social and
environmental challenges, unleashing an instrumental
collective intelligence;
•
Various international days promoting critical social and
environmental causes are celebrate every year on Schneider
sites worldwide.
2.1.2.3 Recognition is in our DNA
Every day, Schneider Electric employees make important
contributions to help the organization achieve its mission and
business objectives. The global recognition portal “Step Up” –
first launched in 2016 – gives employees a way to formally
recognize and celebrate people who consistently demonstrate
the Company’s IMPACT values and go above and beyond.
Schneider Electric fosters a culture where employees receive
regular feedback and coaching from their managers and
colleagues and encourages the recognition of small and big
achievements by simply saying “thank you”.
Throughout 2024, the recognition culture remained strong,
with many employees across the globe continuing to utilize the
dedicated platform to appreciate and recognize each other.
The Step Up program is available to all employees (non-connected
and connected) with a healthy increase of activation rates and
overall sent and received coverage across employees.
Group Employee Recognition Program Standards were
introduced in 2024, and are aligned the program with the
new IMPACT values.
External recognitions and awards
Schneider Electric is recognized as one
of the LinkedIn Top Companies 2024 in
France, India, Singapore and UAE
Schneider Electric is once again
recognized by Equileap in 2024 as one
of the Top 100 Companies for Gender
Equality Globally
Schneider’s Competencies and Skill
Development programs have been
honored with Gold and Bronze Wins
at the 2024 Brandon Hall Group
HCM Excellence Awards™
Schneider Electric is one of the Top 50
Diversity Leaders in the 2024 Financial
Times ranking for the 6th year in a row,
ranking 1st in its industry
Schneider Electric is recognized by
Glassdoor as Best Places to Work and
Best-Led Companies in the U.S.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.3 Moving forward collectively
2.1.3.1 Global and local external partnerships
Schneider Electric works with over 300 local and international organizations and associations on economic, social, and environmental
issues to foster sustainability in cooperation with various players. The Group confirms its commitment to and participation in discussions on
challenges related to climate change, social equity, and ethics. The main memberships are presented in the following table.
Organization
Description
Key actions with Schneider
Access to energy
Alliance for rural
electrification (ARE)
ARE advocates for a decentralized,
sustainable, and inexpensive renewable
energy sector that generates local
employment and inclusive
economic growth.
Schneider Electric participated in several events including the
Energy Access Investment Forum 2024, in Lagos, Nigeria. The
Group also contributed to the Alliance members’ pioneer
exclusive exchanges as a Co-chair of ARE Technology &
Manufacturer Circle in the Decentralized Renewable Energy
(DRE) sector.
Solar Impulse
Foundation
The Foundation relies on innovation to
propose solutions helping decision makers
harness the economic opportunities of the
ecological transition whilst reducing their
environmental footprint.
The Solar Impulse Foundation selected 1,000 effective solutions
for sustainable development with the help of 50 Schneider
Electric experts, and presented them to decision-makers to
accelerate their implementation. The two organizations are
partnering since 2023 to host the exhibition ‘1000+ Solutions for
Cities’ in Schneider’s Grenoble premises “Intencity”. They also
participated in events such as the COP and Schneider
Innovation Summit. The Group also works with the Foundation
for its products certification.
All digital topics
DIGITALEUROPE
DIGITALEUROPE is a trade association
representing digitally transforming
industries in Europe, advocating for a
regulatory environment that enables
businesses and citizens to prosper from
digital technologies.
Schneider Electric holds leadership positions, including
Chairman of the Board. The group supported flagship events
like the Masters of Digital conference and helped shape their
positions on the twin transition, sustainability, energy, and
cybersecurity.
Hi! PARIS – Paris
Artificial Intelligence
for Society &
Business
Hi! PARIS is the Center on Data Analytics
and Artificial Intelligence for Science,
Business and Society founded by Institut
Polytechnique, HEC Paris, and Inria.
It leads research activities to create a
European data and AI champion for
science, economy and society.
In 2024, Schneider Electric contributed to the writing of the
“Visions of business" white paper. It participated in the
#WomenInScienceDay roundtable and was involved in talent
events such as fairs, hackathons and summer school programs.
Circular economy and Product environmental performance
Product
Environmental Profile
(PEP) ecopassport®
PEP ecopassport® program employs the
LCA approach and will be acknowledged
as a framework and method that are
compatible with the PEF methodology
created by the European Commission.
PEP ecopassport will be a recognized
body for the EU’s upcoming Sustainable
Product Initiative.
The Group is chairing the Steering Committee and the PEP
ecopassport® Technical Committee to ensure the rules to
perform PEP are compliant with international standards and use
in a consistent manner. In 2024, Schneider Electric supported
PEP methodology through the Ecoplatform association. In
addition, the Group participated in the products Lifecycle
Innovation Conference, among other events. By the end of 2024,
80% of Schneider’s products were covered by a PEP, with more
than 100,000 of them showing a digitized carbon footprint,
made available through Schneider Electric Environmental
Data Program.
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Organization
Description
Key actions with Schneider
Climate
Livelihoods
The Livelihoods Funds are impact
investment funds designed to support the
efforts of agricultural and rural communities
to live in sustainable ecosystems which
serve as the foundation for their food
security and provide the necessary
resources for their livelihoods.
In 2024, Schneider Electric reaffirmed its societal commitments
that underpin its 11-year tenure as the title sponsor of the
Marathon de Paris. Since 2019, the event’s CO2e emissions
have been balanced through investments in Livelihoods Funds
projects to help avoid and remove CO2 emissions, benefit rural
communities in Kenya.
Entreprises pour
l’Environnement
(EpE)
EpE is a French association that brings
together some sixty major French and
international companies committed to
lead their own and society’s ecological
transition.
Schneider Electric is part of EpE’s Digital and Environment
Committee Presidency. In 2024, The Group supported in the
publication of several reports, and contributed to a joint
consultation on Biodiversity Certificate with the International
Advisory Panel on Biodiversity Credits (IAPB). Additionally,
Schneider Electric participated in panels organized by EpE at
the UN Biodiversity Conference (CBD COP 16) roundtable and
during COP29.
Cybersecurity and Data
Information
Technology Industry
(ITI) Council
ITI Council is the premier global advocate
for technology, representing the world’s
most innovative companies, which drive
societal and economic growth by
empowering individuals across the globe.
Through this partnership, Schneider Electric promotes policies
that foster the optimal climate for greater digitization, supports
key positions on trade related to IT and software, and monitors
and influence public policy pertaining to cybersecurity and data
amongst other actions. In 2024, Schneider Electric won the ITI
International Advocacy Award.
Confederation of
Europe Data
Protection
Organizations
(CEDPO)
CEDPO promotes the role of data
protection officer, provides advice on
balanced, workable, and effective data
protection, and contribute to better
harmonization of data protection law and
practice in the EU/EEA.
Schneider Electric was involved with CEDPO in several AI
working group activities in 2024. The Group also participated in
the organization of an event in Brussels that brought together
various data protection bodies.
Inclusion and Care
The Valuable 500
The Valuable 500 is a worldwide corporate
alliance of 500 CEOs and their
organizations that collaborates on
innovations for disability inclusion.
The group signed a commitment on inclusive reporting with the
Valuable 500 to integrate the V500 ESG and disability data KPIs
to a strategy based on the following pillars: Workforce
Representation, Goals, Training, Employee Resource Groups
and Digital Accessibility.
Business Disability
Forum (BDF)
BDF is the leading business membership
organization in disability inclusion. It helps
organizations to become "Disability Smart".
The organization provides Schneider Electric with access to
consulting, numerous on-line assets, seminars, events, and a
"Disability Smart" self-assessment. The group is part of their
Steering Committee and is co-creating a Global Disability Smart
tool to be kicked off in 2025.
Education
HEC Paris –
Movement for Social
and Business impact
The goal of HEC Specialization “Movement
for Social and Business impact” is to
achieve a more inclusive economy, in
which companies seek to maximize
their social impact alongside their
economic performance.
HEC and Schneider Electric worked together in 2024, through
events, strategic management workshops, course presentations
and trainings for HEC students. The Group also participated in
an impact game developed as part of the “RISE Our World
Heritage” documentary series, focusing on education about the
social challenges of climate change and local solutions.
Imperial College
London – Imperial
Business College
Imperial College London is a global top ten
university located in London and a
world-leading university for science,
technology, engineering, medicine
and business.
Schneider Electric is defining research projects related to digital
grids and flexibility and collaborates with Imperial College
London through the Imperial Business Partners programme.
It is also engaged with Imperial College London recruitment
channels and participated in the creation of a white paper on
industrial decarbonization.
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Organization
Description
Key actions with Schneider
Energy efficiency / Electric mobility / Digital renewables
European Alliance to
save Energy
(EU-ASE)
This coalition actively advocates to
advance the European energy efficiency
agenda, in particular through more
stringent legislation on energy efficiency
and buildings.
Schneider Electric holds leadership positions in EU-ASE,
including on the Board. The Group participated in their events,
including the Energy Efficiency Day and parliamentary
outreach. It also contributed to their positions on energy system
efficiency and the water-energy nexus, supporting efficiency
across sectors.
Energy Transition
Commission (ETC)
The ETC is a global coalition of leaders
from across the energy landscape who are
committed to a net-zero world by 2050 and
focused on advancing the debate and
solutions to climate change.
Schneider Electric mostly contributed to activities such as
report creation, social media amplification, steering the agenda
through its participation in the different instances of the
organization on electrification, energy productivity and resilient
supply chains topics.
Electrified Processes
for Industry Without
Carbon (EPIXC)
EPIXC is a public-private partnership which
aims to develop and scale innovative
electric heating concepts for advanced
manufacturing, improve flexibility and
enhance the energy efficiency of industrial
process heating.
Schneider Electric brings its extensive knowledge and
experience in process electrification, a proven method to
reduce industrial companies carbon footprint without sacrificing
production or performance.
Human rights
Wage Indicator
Foundation
The WageIndicator Foundation is a global,
independent, non-profit organization that
collects, analyses and shares information
on living wage worldwide.
In 2024, Schneider Electric has advanced its living wage
approach by entering a three-year partnership with the
WageIndicator Foundation. The objective of this new
partnership is to provide insights into wage practices globally
and enable Schneider Electric and its suppliers to make
informed decisions toward the realization of living wages.
Human Resources
Without Borders
(RHSF)
RHSF(Ressources Humaines Sans
Frontières) is an NGO experimenting pilot
prevention solutions and sharing its
expertise with stakeholders to prevent the
risks of child labor, forced labor, and more
broadly indecent labor in supply chains.
Schneider Electric continued its collaboration with RHSF on
the “Lab 8.7” action-research project that gathers pioneer
companies to implement concrete tools to identify forced labor
and child labor situations.
Industry 4.0 and smart manufacturing
OPC Foundation
The OPC Foundation is an industry
consortium that establishes and maintains
standards for automation, open systems,
and equipment connectivity.
Schneider Electric participated in the specification of the next
generation of industrial network OPC UA FX as a unified network
able to replace the existing ones for exchanges between
controlers, communication between controlers to devices and to
the Cloud. The first specification was delivered in 2024 related
to Controler to Controler exchanges.
FieldComm GROUP
(FCG)
FieldComm Group is in charge of industrial
protocols implemented in Process Automation
Systems (HART, FieldBus, FDI).
In 2024, Schneider Electric contributed to the harmonization with
FCG to reduce gaps between Process Automation (PA) and Factory
Automation (FA). This year achievements include a unified network
and data model to cover PA and FA needs, as well as a unified
technology for Device Integration and common Device description.
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Organization
Description
Key actions with Schneider
Philanthropy
Collectif Mentorat
Collectif Mentorat is made up of 75
companies developing mentoring
programmes for young people.
Schneider Electric is part of the Strategic Business
Committee of Collectif Mentorat. In 2024, the collective was
involved in various actions and organized several events
including the 5th edition of the European Mentoring Summit.
Impact Europe –
Youth Alliance
Impact Europe is a network of impact
capital providers who aims at increasing
prosperity for social progress for all, fix
inequalities and injustices and preserve
the planet.
Youth Alliance is a collective of funders, practitioners and
investors committed to accelerate the support to the youth in
Europe. It was co-established in 2022 with Schneider Electric
to foster collaboration and advocacy for empowering youth in
Europe. In 2024, it published a position paper entitled
“Better Together for Youth”.
Smart grids and sustainable cities
T&D Europe
T&D Europe is a grid technology providers
association. It represents electricity
transmission and distribution equipment
and services providers in Europe.
Together with 20 national Electric Associations, Schneider
Electric contributes technically to projects related to the EU Grid
Action Plan, the Green Taxonomy, the Net Zero Industrial Act
(NZIA), and the High Level Forum for Standardization, to ensure
Europe go at the right speed to a full energy transition.
Smart Energy Europe
(smartEn)
SmartEn integrates consumer-driven clean
energy transition solutions. It aims to create
opportunities for companies to integrate
increasingly renewable energy systems.
Regarding the electricity market design (EMD) reform, smartEn
and Schneider Electric worked on Demand Side Energy
Flexibility necessity, and Related Demand Response & Cyber
Network Code. They have also worked hand in hand to publish
different position papers on renewable energy systems
efficiency and other related topics.
Sustainable governance and crossfunctional topics
World Economic
Forum (WEF)
The WEF is a nonprofit organization that
works to improve the status of the world by
bringing together influential figures from
business, politics, academia, and other
sectors of society to help set priorities for
the globe, individual regions, and
various industries.
Since 2017, Schneider Electric is a Strategic Partner of the
World Economic Forum. Schneider engages with a wide range
of partners to progress on common world challenges, by joining
public-private dialogues and peer-to-peer workgroups, sharing
insights and use-cases leading to new frameworks and
toolboxes.
GIMELEC
GIMELEC is a trade association grouping
digital electronics companies in France
promoting efficiency and electrification,
supported by digitization. It has four
Market’s Committees: Smart Building,
Industry 4.0, Smart Grid & Infrastructures,
Datacenters.
In 2024, GIMELEC actively contributed to the French
government’s actions in the field of climate change: national
low-carbon strategy, multi-annual energy planning,
decarbonization of industry and, more generally, electrification
of uses, particularly transport. GIMELEC also plays a key role
in ensuring the flexibility of the French and European
power systems.
National Electrical
Manufacturers
Association (NEMA)
NEMA is a North American trade
association that allows electrical equipment
manufacturers to provide relevant
governments with feedback to on a set of
construction policies and standards.
With Schneider Electric’s input, NEMA has been an advocate for
the Inflation Reduction Act (IRA). Additionally, the Group
supports NEMA’s advocacy for rigorous building code updates,
which aims to introduce much-needed energy efficiency and
climate-driven upgrades into buildings.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
2.1.3.2 Schneider Electric contribution to Standardization
With many experts actively participating in international and
national standardization bodies, Schneider Electric is making a
decisive contribution to the creation and distribution of standards
that ensure the safety and reliability of electric facilities and
equipment. These standards address environmental impacts
throughout lifecycles to prepare for a better circular economy,
support the new energy landscape with the goal of greener energy
integration, ensure safer energy delivery and better integration of
prosumers, support the digital transformation of the industry and
any other customer values, as of course, energy efficiency from
an end-to-end perspective.
2.1.3.2.1 At national level
Schneider’s experts are involved in most National Committees,
including those in the US, China, India, Japan, and European
countries. The French Electrotechnical Institute is a founding
member of CENELEC (European standardization body) and IEC
(International standardization body).
Schneider Electric chairs many French standardization committees
hosted by AFNOR (French standards organization) and sits on
other national committees, such as the chair of the French and
Swedish Committees for environmental standardization. Schneider
was a major contributor to smart manufacturing initiatives such as
the AIF (Alliance Industrie du Futur) in France. Notably, it is a
member of the Council Board and of the IEC Conformity
Assessment Board.
2.1.3.2.2 At European level
CENELEC (European Committee for Electrotechnical
Standardization), CEN (European Committee for Standardization),
and ETSI (European Telecommunications Standards Institute) are
the three official European standardization bodies. They have been
officially recognized by the European Union, and by the European
Free Trade Association (EFTA) as being responsible for developing
and defining voluntary standards.
European Commission DG Grow (Internal Market) decided to
create a High-Level Forum for Standardization launched in 2023.
Schneider Electric, through T&D Europe (European Association
of Transmission & Distribution manufacturers) represents the
European Power System stakeholders, together with Grid
Operators, Manufacturers, national Electricity Associations.
The workstream is dedicated to proposing strategic topics and
standardization moves, to better activate Energy Transition across
Europe through digitalization, green, and resilience.
CENELEC
CENELEC 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 countries, 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 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, and solar (photovoltaic)
electricity systems.
Most Schneider Electric activities and offers are covered by
CENELEC, although CEN and ETSI also benefit. In addition,
Schneider Electric experts are participating in the development
of common works and standards through specific joint technical
committees and joint working groups.
2.1.3.2.3 At international level
IEC – International Electrotechnical Commission
The 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
assessments provide the technical framework that 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 verify that manufacturer promises are kept.
Schneider’s experts contribute through joint technical committees
and joint working groups to ISO (International Organization for
Standardization) and ITU (International Telecommunication Union).
2.1.3.2.4 Smart grids and sustainable cities
Schneider Electric participates actively in the standardization of
smart grids, which are becoming more “active”, leveraging more
bidirectional energy flow and real time timeline. The Company
leads the definition of standards and the data interoperability
standardization roadmap within the European smart grids
coordination group and energy system committees, as well as
being 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 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 interfaces with
other energies). This roadmap also includes cybersecurity and
resilience, as well as the impact of the Internet of Things (IoT).
• It chairs and actively contributes to the definition of prosumer’s
electrical installations, installations integrating local production
such as PV, wind, and storage to ensure they are designed and
erected with a high level of safety and efficiency.
• It chairs the IEC’s Advisory Committee for Energy Efficiency
(ACEE) and chairs the Advisory Committee on Safety (ACOS).
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2.1.3.2.5 Circular economy and product
environmental performance
To support high standards of health and safety, Schneider experts
continuously contribute to standards around materials and
substances. They provide standards on methodology and test
methods, raising the bar on safety and protection against toxicity.
Regarding environmental footprint, our experts ensure fair
comparison, relevance of assumptions, consistency of approach,
interoperability, and meaningful content for our customers.
They are developing standards around:
• Terminology and catalogue data;
• Product Category Rules for Life Cycle Assessment (LCA)
dedicated to electrotechnical products;
• Product Specific Rules for high and low voltage equipment,
• Low voltage switchgear and controlgear, and power electronics;
• Extension of Product Specific Rules and environmentally
conscious design to cover material efficiency or digital
format; and
• Quantification of greenhouse gas (GHG) emission reduction
and avoidance.
Relating to circular economy and eco-design, Schneider chairs
the Ecodesign Coordination Group (CEN-CLC/Eco-CG) and has
contributed to the European Commission’s Circular Economy
package, and with CEN-CENELEC-ETSI developed a set of
published standards assessing factors such as durability,
repairability, reusability, recyclability, and ability to be
remanufactured, which fall within the scope of the Ecodesign
Directive and the new Ecodesign for Sustainable Products
Regulation. Schneider continues to contribute to the evolution of
those standards and their extended scope and has appointed
active experts in each of the existing and new working groups.
For example, our experts are highly involved in the development
of the future standard on circular design: material efficiency within
environmentally conscious design.
As digitalization is a lever for circular economy and environmental
performance, our experts are contributing to standards on
terminology and digital formats.
2.1.3.2.6 Standardization to accelerate
environmental transformation
Since February 2007, Schneider has represented France on the
IEC’s Advisory Committee for Environmental Aspects (ACEA).
ACEA works to advise and coordinate the IEC’s efforts to tackle
environmental issues. At the same time, Schneider Electric is
actively present in ACTAD (Advisory Committee for Transmission
and Distribution) to ensure electricity and environment are
closely considered.
• Schneider is particularly heavily involved in the working groups
on sustainability (chairing environment and circular economy
groups, participating in working groups in product technical
committees (TC) dealing with environmental aspects (IEC TC
121, IEC TC 17, CLC TC 22X) and in the work on the rational use
of energy.
• The Group chairs the IEC TC 111 Committee on Environmental
Standardization of Electric and Electronic Equipment and IEC
TC 23 Electrical Accessories (protection devices, wiring
devices, home and building control systems).
• The Group is the secretary of IEC SC 23K on Energy Efficiency
Products, Systems and Solutions.
• In 2018, Schneider led the UPS manufacturers’ group in the EU
Commission’s Product Environmental 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.
• The Group chairs ISO/TC 184 (Automation systems
and integration).
2.1.3.2.7 Digital transformation and cybersecurity
Digitization is the key driver for advanced manufacturing,
optimizing production with more flexibility, more interoperability,
more predictability, and continuity to provide a new level of system
efficiency and sustainability. Further data, software, and tools
enabling virtual descriptions – known as digital twins – and
creating new capabilities and services are combined with machine
learning and AI, while taking account of safety and cybersecurity.
The global electricity system is going digital as well, focusing on
grids, buildings, industry, households for instance.
The European Data Space for Energy, reinforced per AI technology
and related services, will make the Europe more consistent about
the electricity sector, through appropriate regulation and standards
currently under development.
• In cybersecurity, Schneider is secretary of the Joint Advisory
Group between IEC TC 65 and ISO/IEC JTC 1/SC 27 from
Enterprise level to Field Devices and participates in several
working groups bridging Regulation to Standardization (EU, US).
• The Group is particularly heavily involved in the working groups
on Smart Manufacturing in ISO and IEC technical committees
(Chair of ISO/TC 184, Secretary of IEC TC 65, Chair of
IEC SC 65E).
• Schneider chairs the Industrial Digital Twin Association (IDTA)
to deep dive and deploy the Asset Administration Shell as
standardized digital twin.
• The Group also chairs the UniversalAutomation.org association
to address a more functional and distributed approach for the
orchestration of industrial systems.
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2.1.4 Key external frameworks and ESG ratings
External guidelines
United Nations Global Compact and Sustainable
Development Goals (SDGs)
Parties signing the UN Global Compact commit to ten
fundamental principles in four areas: human rights, labor rights,
the environment, and anti-corruption. By signing the Global
Compact in December 2002, Schneider Electric made a
public commitment to these universal values. In line with the
requirements of the Global Compact, Schneider publishes
an annual Communication on Progress (COP) and meets the
requirements of the Global Compact Advanced Level. Schneider
Electric is committed to contributing to the 17 SDGs through its
sustainability programs.
Consult Schneider’s latest COP on the Global
Compact website www.unglobalcompact.org
International Organization for Standardization
(ISO)
Schneider Electric has worked since 2012 to promote the
adoption of the ISO 26000 principles with its suppliers.
Schneider also adopts other ISO guidelines or certifications:
see ISO 14001, page 116; ISO 50001, ISO 9001, and ISO 45001,
page 285; ISO 27000, page 370; and ISO 14025 and 14021,
page 290.
Global Reporting Initiative (GRI)
Schneider Electric has reported in accordance with the GRI
Standards for the period from January 1 to December 31, 2024.
The Board of Directors has reviewed and approved the reported
information, including the organization’s material ESG topics,
under Disclosure 2-14 in GRI 2: General Disclosures 2021.
A reference table with its indicators and those proposed by the
GRI is available on the Schneider Electric website.
Consult Schneider’s GRI reports on the
Sustainability Reports page on www.se.com
Sustainability Accounting Standards Board
(SASB)
The SASB Foundation was founded in 2011 as a not-for-profit,
independent standards-setting organization. Schneider Electric
provides information in alignment with SASB reporting
guidelines for its sector (Electrical and Electronic Equipment).
A correspondence table can be found on pages 322 et 323
of this report.
Consult Schneider’s ESG reporting according to various external frameworks
(Schneider Sustainability Disclosure Dashboard) on www.se.com
Task Force on Climate-related Financial
Disclosures (TCFD)
In June 2017, the TCFD, a working group led by Michael
Bloomberg under the G20 Financial Stability Board’s (FSB)
mandate, published its recommendations for companies’ climate
action disclosure. CEOs from more than 100 companies signed
a statement of support for the TCFD recommendations and
Schneider Electric’s CEO was among them. Detailed information
can be found in Schneider Electric’s CDP Climate Change public
disclosure and in this report on pages 324 to 329.
Science-Based Targets initiative (SBTi)
Science-Based Targets (SBTs) specify how much and how
quickly companies need to reduce GHG emissions in order to
avoid a 1.5°C or 2°C global temperature increase, compared to
pre-industrial levels. Schneider Electric is part of the 6,000+
companies globally that have committed to reduce GHG
emissions in alignment with prevailing climate science through
and get their targets approved by the SBTi. The Group’s GHG
footprint is calculated following the World Resources Institute
(WRI) Greenhouse Gas Protocol (see page 329). The Group’s
Net-Zero commitment was validated with the Corporate Net-Zero
Standard in 2022.
Organisation for Economic Co-operation and
Development (OECD)
The OECD is an international organization that works to build
better policies for better lives. Schneider Electric is aligned with
the OECD Guidelines for Multinational Enterprises. Schneider
Electric signed the OECD’s Convention on Combating Bribery
of Foreign Public Officials in International Business Transactions,
and established a “Conflict Minerals Compliance program”
based on the OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from conflict affected and high-
risk areas.
International Labour Organization (ILO)
Schneider Electric is a member of the ILO Global Business and
Disability Network (GBDN) and adheres to the principles of the
ILO Declaration on Fundamental Principles and Rights at Work.
The Group’s Trust Charter was inspired in part by the standards
issued by the ILO.
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Chapter 2 – Sustainable development
2.1 Sustainability vision
ESG ratings and awards
Dow Jones Sustainability Index (DJSI)
In 2024, Schneider Electric scored 83/100 on S&P Global’s
Corporate Sustainability Assessment (top 5%). The Group was
included in the DJSI World Index for the 14th year in a row, which
is comprised of 321 corporate leaders in sustainability,
representing the top 10% from around 3,500 companies
qualified for inclusion.
CDP Climate A List
In 2024, Schneider Electric was part of Climate Change A List
companies out of 23,000+ companies assessed by CDP, and
the only one in its sector to achieve this 14 years running.
At the time of writing, it belongs to several STOXX indices,
including Global Low Carbon Footprint, Global Climate Change
Leaders, EURO STOXX 50 Low Carbon, and Global ESG
Environmental Leaders indices.
CDP Water
In 2024, Schneider Electric received a B score for its
participation in CDP’s Water Security questionnaire.
Moody’s Analytics
Following assessment in June 2024 by Moody’s Analytics
(formerly Vigeo Eiris), Schneider Electric achieved an overall
rating of 73/100, with an Energy Transition Score at the highest
level (Advanced). Thanks to this score, as of January 2025, the
Group is part of the Euronext Vigeo World 120, Europe 120, Euro
120, France 20 and CAC40 ESG indices, which are composed
of the highest-ranking listed companies in terms of their
performance in corporate responsibility.
FTSE4Good
Schneider Electric is part of the FTSE4Good Developed,
FTSE4Good Europe, FTSE Environmental Opportunities,
and FTSE EO Energy Efficiency indices.
Sustainability external ratings
DJSI
CDP Climate
Change
Moody’s
Analytics
(Vigeo Eiris)
EcoVadis(1)
MSCI ESG
Ratings
Sustainalytics
2024 Schneider score
83/100
A
73/100
85/100
AAA
Low risk
Industry average score
27/100
C(2)
43/100
50/100
BBB
Medium risk
Progress vs. 2023
-5 pts
Unchanged
Unchanged
-3 pts
Unchanged
Unchanged
Highlights
14th year in
world index
14th year
in A List
World 120 and
Europe 120
Indices
Platinum
medal for
5th year
AAA for
14th year
1st in industry
Assessed universe (# companies)
13,000
23,000
4,800
130,000
10,000
16,000
(1) 2025 score.
(2) 2023 average, as overall results were not available at the time of writing.
EcoVadis Outstanding level and Platinum medal
In 2025, Schneider Electric has achieved Outstanding level with
a rating of 85/100 and obtained a Platinum medal (top 1% of all
companies assessed) for the 5th year in a row.
MSCI industry leader
Schneider Electric has been at AAA grade since 2011, an
industry leader and a member of the MSCI World ESG Leaders,
World Select ESG Ratings & Trend Leaders, and Socially
Responsible indices.
Sustainalytics leader
As of January 2025, Schneider Electric was recognized as an
Industry Top-Rated ESG Performer, ranking 1st out of 302
companies in its industry group with a 10.0 risk rating (Low Risk),
thereby confirming its inclusion in STOXX Global ESG Leaders,
Environmental Leaders, Social Leaders, Governance Leaders,
and EURO STOXX Sustainability indices.
ISS
In 2024, Schneider Electric is at Prime level on ISS-ESG with
an absolute B rating, the best rating in its industry (Electric
Components) out of 200 companies.
Global 100 Most Sustainable Corporations
In January 2025, Schneider Electric ranked 1st on Corporate
Knights’ Global 100 list of the world’s most sustainable
corporations. The Group is the only company to have ever
ranked 1st twice, having also achieved this distinction in 2021,
while consistently placing in the top 10 for the past 5 years.
TIME’s World’s Most Sustainable Companies
Schneider Electric ranked 1st in the TIME magazine and Statista’s
World’s Most Sustainable Companies for 2024.
Terra Carta Seal
In January 2023, the Group was one of 19 companies awarded
the Terra Carta Seal, which recognizes global companies who
drive innovation and demonstrate their commitment to the
creation of genuinely sustainable markets.
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Other awards in 2024
World Economic Forum
World Economic Forum has recognized 2 of Schneider Electric
factories (Monterrey 1 and Shanghai) as new Lighthouses in
2024. This brings the total to 7 factories in the Forum’s Global
Lighthouse Network, a collaborative platform bringing together
industrial organizations leading the charge in adopting Fourth
Industrial Revolution technologies. The Group also counts 4
Global Sustainability Lighthouses out of the 25 identified by the
World Economic Forum.
Climate
Carbon Clean 200 list
Schneider Electric has consistently been included in Corporate
Knights’ Carbon Clean 200 list since ranking began in 2016, for
its revenue devoted to energy transition. In 2025, the Group
ranked 8th worldwide.
RE100 Leadership Awards
Schneider Electric was awarded the 2024 RE100 Changemaker
Award during Climate Week NYC for its significant progress
toward ambitious renewable energy targets.
Supply Chain
Gartner 2024 Supply Chain Top 25
Schneider Electric ranked 1st in 2024 in the Gartner Supply Chain
Top 25 for the second year in a row, and 1st in the Europe Top 15
for the fifth consecutive year, recognizing the exemplary
management of its value chain.
2024 CIPS Excellence in Procurement Awards
In 2024, Schneider Electric was highly commended in the ‘Best
Initiative to Deliver Social Value Through Procurement’ category.
Asia Pacific Procurement Awards 2024
The Group earned the Asia Pacific Environmental & Social
Impact Award from Procurement Leaders, which accredited
Schneider Electric’s Scope 3 decarbonization initiatives.
Social
Workforce Disclosure Initiative (WDI)
In 2024, Schneider obtained a disclosure score of 78%, above
the industry average of 62%, in the investor-backed WDI survey,
which aims to improve corporate transparency and
accountability on workforce issues.
World Benchmarking Alliance (WBA)
In 2024, Schneider Electric ranked 1st in the Social Benchmark
score in its industry by the World Benchmarking Alliance,
underlining sustained efforts to act ethically promote decent
work and human rights.
Equileap Global Gender Equality Ranking
In March 2025, Schneider Electric ranked 79th globally out of
3,547 publicly listed companies assessed based on 19 gender
equality criteria, including gender balance from the board to
the workforce, as well as the pay gap and policies relating to
parental leave and sexual harassment, among other topics.
Financial Times Top 50 Diversity Leader
In November 2024, the Group was recognized as a Top 50
Europe’s Diversity Leader by the Financial Times in their Diversity
Leaders 2025 rankings, for the 6th year in a row, ranking 39th
among 850 companies and 1st in its industry.
Best Place to work for Disability Inclusion
Schneider Electric has been recognized as a “Best Place to
Work for Disability Inclusion” by the Disability Equality Index
in 2024.
Ethics and Governance
Ethisphere
In 2025, Schneider Electric was again recognized as one of
the World’s Most Ethical Companies by Ethisphere, a global
leader in defining and advancing the standards of ethical
business practices.
Grand Prix de la Transparence
In 2024, Schneider Electric received a Transparency Award in
the “Universal Registration Document” category, and was
included in the Top 20 most transparent companies, ranking
4th out of 120 French companies.
Employer awards
Universum Top 50 World’s Most Attractive
Employers
In 2024, Schneider Electric was recognized by students
worldwide as one of the World’s Most Attractive Employers,
ranking 27th in Engineering. Over 550,000 respondents from
the Universum Talent Surveys participated in the ranking.
Fortune’s World’s Most Admired Companies
In 2024, Schneider Electric was recognized by Fortune as one of
the “World’s Most Admired Companies” for the sixth consecutive
year, ranking 4th in the electronics industry sector.
Forbes World’s Best Employers 2024
Schneider Electric was included in Forbes World’s Best
Employers 2024 ranking.
Glassdoor
Schneider Electric received a score of 4.3/5 from Glassdoor as
of January 2025. Based on more than 10,000 reviews, 89% of
surveyed participants would recommend the Group to a friend,
and 93% approve of the CEO.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Comprehensive disclosures are integral to
Schneider Electric’s sustainability strategy,
underpinning our commitment to transparency
and providing a basis for long-term value creation.
Introduction by the
Chief Financial Officer
As an Impact Company, we strive to achieve robust performance
while fostering positive contributions from an environmental, social,
and governance standpoint.
Since 2005 we have been measuring and reporting our
sustainability performance through a dashboard known first as our
“Barometer” and today as our “Schneider Sustainability Impact”
(SSI). In recent years we have published our SSI every quarter
alongside our financial results. These metrics guide us in
measuring progress on our sustainability goals.
This year, we are pleased to further enhance transparency
by providing reporting in accordance with the EU Corporate
Sustainability Reporting Directive (CSRD) and the corresponding
European Sustainability Reporting Standards (ESRS).
As the availability and quality of data remain paramount to providing
reliable and comparable disclosures, we have implemented a
robust governance framework to collect and analyse more than
1,000 data points through a primarily automated and reliable
reporting. We are committed to continuously improving the
standardization and transparency of sustainability information
which, in turn, will further inform the strategy for Schneider Electric’s
next sustainability cycle, which will take us from 2026 to 2030.
This continued focus on sustainability data, coupled with the
ambitious sustainability goals we’ve embedded in our business
practice gives us confidence in our ability to create meaningful
impact and to support a fair energy transition through
electrification, energy efficiency, automation, and digital innovation.
Hilary Maxson
Chief Financial Officer
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2.2 Sustainability statements | CSRD
In this section
2.2.1
General information (ESRS 2)
96
2.2.1.1
Schneider Electric overview, governance
and strategy
96
2.2.1.1.1
Schneider Electric activities and business model
96
2.2.1.1.2
Integrated and transverse governance of
sustainable development
97
2.2.1.1.3
Trust with stakeholders
102
2.2.1.2
Main sustainability impacts, risks and opportunities 109
2.2.1.2.1
Assessment mechanisms: Vigilance plan
and Enterprise Risk Management
109
2.2.1.2.2
Double materiality assessment
114
2.2.1.3
Basis for preparation
124
2.2.2
Environmental information
125
2.2.2.1
Leading on Decarbonization (ESRS E1)
125
2.2.2.1.1
Climate-related governance
125
2.2.2.1.2
Climate risks, opportunities and impact management 126
2.2.2.1.3
Climate change results and financial effect
138
2.2.2.1.4
Energy consumption and mix
146
2.2.2.1.5
Gross Scopes 1, 2 and 3 and Total GHG emissions
147
2.2.2.1.6
GHG removals and GHG mitigation projects
financed through carbon credits
151
2.2.2.1.7
Internal carbon pricing
153
2.2.2.1.8
Financial effects
154
2.2.2.1.9
Contribution to a more sustainable world
155
2.2.2.2
Pollution mitigation (ESRS E2)
159
2.2.2.2.1 Eliminating hazardous substances
159
2.2.2.2.2 Financial effects
166
2.2.2.3
Resource use and circular economy (ESRS E5)
167
2.2.2.3.1 Management of associated IRO in terms of
resource use and circular economy
167
2.2.2.3.2 Resource inflows including resource use
172
2.2.2.3.3 Resource outflows related to products and services
179
2.2.2.3.4 Financial effects
183
2.2.2.4
Methodology elements on EU Taxonomy
184
2.2.3
Social information
203
2.2.3.1
Great people make Schneider Electric
a great company (ESRS S1)
203
2.2.3.1.1
Overall strategy
203
2.2.3.1.2
Working conditions
205
2.2.3.1.3
Employee health and safety
215
2.2.3.1.4
Equal treatment
218
2.2.3.1.5
Training and skills development
227
2.2.3.2
Sustainable relations in the value chain (ESRS S2)
236
2.2.3.2.1 Overall strategy
236
2.2.3.2.2 Policy framework guiding sustainability
in the value chain
237
2.2.3.2.3 Integration of sustainability in the
procurement process
239
2.2.3.2.4 Risk-based approach to sustainability in supply base 239
2.2.3.2.5 Vigilance plan for suppliers and contractors
240
2.2.3.2.6 Continuous improvement based on
the ISO 26000 standard
242
2.2.3.2.7 Other action plan and targets on
sustainable programs
243
2.2.3.3
Ethical relations with affected communities
(ESRS S3)
246
2.2.3.3.1 Context
246
2.2.3.3.2 Policy
247
2.2.3.3.3 Impacts and risks
247
2.2.3.3.4 Local communities living adjacent to
Schneider Electric’s direct suppliers’ sites
248
2.2.3.3.5 People living around mines in Schneider Electric’s
upstream supply chain, including indigenous people 248
2.2.3.3.6 People living adjacent to waste management sites,
downstream Schneider Electric value chain
249
2.2.3.3.7 People living around customer projects, in the
extractive industries sector and power generation
249
2.2.3.3.8 Opportunities
250
2.2.3.4
Consumers and end-users (ESRS S4)
251
2.2.3.4.1
Personal safety of consumers and end-users
251
2.2.3.4.2 Data privacy
255
2.2.4
Governance information (ESRS G1)
258
2.2.4.1
Zero-tolerance for corruption
258
2.2.4.1.1
Context
258
2.2.4.1.2
Impacts, risks and opportunities
258
2.2.4.1.3
Governance
259
2.2.4.1.4
Policy
259
2.2.4.1.5
Action plan
259
2.2.4.1.6
Anti-corruption target and metric
261
2.2.4.2
Supplier Relationship Management
and late payment prevention
262
2.2.4.2.1
Context
262
2.2.4.2.2 Glocal supply chain
262
2.2.4.2.3 Impacts, risks and opportunities
262
2.2.4.2.4 Sustainable procurement framework and strategy
262
2.2.4.2.5 Policy
263
2.2.4.2.6 Action plan
264
2.2.4.2.7 Target and metrics
266
2.2.4.3
Cybersecurity
267
2.2.4.3.1
Impacts, risks and opportunities
267
2.2.4.3.2 Policy
267
2.2.4.3.3 Action plan
268
2.2.4.3.4 Targets
269
2.2.5
Tables
270
2.2.5.1
Disclosure Requirements presentation table
270
2.2.5.2
Regulations correspondence table
273
2.2.5.3
Declaration in terms of due diligence
276
2.2.5.4
Disclosure requirements incorporated by reference 277
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.1 General information (ESRS 2)
2.2.1.1 Schneider Electric overview, governance, and strategy
(1) This figure excludes entities out of the 2024 CSRD reporting scope, please refer to section 2.2.1.3 “Basis for preparation” on page 124 for more details.
(2) The SSI and SSE scope is more limited than the reporting perimeter of the sustainability statement (CSRD), these programs are part of the Group’s 2021-2025 strategy
and are therefore independent from the 2024 double materiality assessment. Read more details about the scope of SSI and SSE in section 2.4.1 on page 310.
2.2.1.1.1 Schneider Electric activities
and business model
Schneider Electric has a curated portfolio that is equipped for
growth on themes enabling a sustainable future, with an expertise
in electrification, automation, and digitalization. The Group serves
four main end-markets: Data Centers and Networks, Buildings,
Industry, and Infrastructure. With the support of 159,000(1)
employees around the world, Schneider Electric leads clients in
their journey to achieve holistic efficiency helping them address
their sustainability challenges; targeting customer groups in areas
such as residential development, cloud and service providers,
mobility, consumer packaged goods, mining, minerals and metals,
water and wastewater management, energy and chemicals, power
and grid, and semiconductors production. As detailed in Chapter
5, in 2024 the total revenue of the Group is EUR 38,153 million.
Schneider Electric’s strategic positioning on electrification,
automation, and digitalization is strongly related to sustainability
matters given its extended value chain influence, dependencies
on resources, and need for a diverse skilled workforce. The
Company’s strategy is intrinsically related to sustainability given its
goal of having a positive impact on the planet and society at large
by promoting green and responsible growth. With presence in over
100 countries encompassing diverse standards, values, and
practices, the Group is committed to behaving responsibly in
relation to all its stakeholders and extending its duty beyond
compliance with local and international regulations. Defined
sustainability goals cover a variety of scopes, from global programs
to targeted local objectives. The Schneider Sustainability Impact
(SSI) and Schneider Sustainability Essentials (SSE) define targets
and measure performance in critical areas of focus(2). While local
sustainability commitments deploy objectives and actions at
national and regional level in the 100+ markets where the
Group operates.
Read more about Schneider Electric’s sustainability
targets in section 2.1.1.2 on pages 74 and 75.
Schneider Electric is committed to open communication with its
value chain and uses feedback to analyze its market and define
areas of progress, aiming to boost its positive impact by promoting
sustainable growth that is shared with all its stakeholders. Building
long-term partnerships with a wide range of global and local
players, Schneider Electric works directly with many types of
suppliers, contractors, and end-customers, and is developing
the industry’s largest network of distributors.
In terms of supply chain, the Group has developed an agile and
secure supply base that is almost evenly distributed across the
world. Material extraction activities provide the necessary raw
materials to a large range of suppliers located in more than 100
geographies which Schneider Electric relies on to process,
transform, and manufacture metals, electronics, and plastics into
components. This supply base represents a combination of mature
companies operating on a global scale, from small and medium
scale enterprises serving local or niche markets and categories
which require simple assembly, to complex manufacturing
activities. The Group established an ambitious strategy that
provides guidance to its suppliers to ensure that all contribute to
creating an inclusive and carbon neutral world, where ecosystems
are preserved and people get access to decent lives. The Group’s
key activities are structured around its two main businesses:
Energy Management and Industrial Automation, each of which has
assets in multiple locations around the world, such as Research
and Development (R&D) facilities, manufacturing plants, and
distribution centers, as well as their own commercial activities.
Through these, Schneider Electric manufactures and delivers its
solutions directly to end-users or via distributors and other
downstream partners like panel builders and system integrators. In
many cases, products and services are combined into systems by
involving additional parties before being commissioned. Schneider
Electric executes these projects through two alternative options:
either selling components to channel partners who build and
deliver the system or building the system directly for the end-
customer, frequently involving project contractors. In addition,
Schneider Electric also provides services to end-users, such as
maintenance, digital capabilities, and software solutions, all of
which can also be potentially performed by contractors. In all
cases, the Group insists on high quality and cybersecurity to
deliver a strong customer experience.
As part of its value chain, the Company interacts with multiple
external stakeholders in the ecosystem including business
partners, key local and international associations, organizations,
local communities, and institutional and technical bodies, aiming
to support the implementation of sustainability in society at large.
For more details on Schneider Electric’s value chain,
please refer to the figure on page 122.
As a result, Schneider Electric’s portfolio delivers high
environmental performance products, software, and services, such
as electrification and digitalization solutions, energy-efficiency
systems, sustainability consulting services, and renewable energy
procurement. These products, software, and services help
customers decarbonize and reduce their environmental footprint,
contributing to the Group’s sustainability-related goals by
advancing saved and avoided emissions, and generating
Impact revenues.
Read more details about Schneider Electric’s business
model and its relation to sustainability matters in
Chapter 1 of this Universal Registration Document;
significant product families in page 26, and pages 22
to 25 for markets and customer groups.
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E S R S 2
2.2.1.1.2 Integrated and transverse
governance of sustainable
development
As of December 31, 2024, the Company’s governance structure
consists of (i) a Board of Directors composed of 17 non-executive
members, (ii) 1 executive corporate officer, the Chief Executive
Officer, who is not a member of the Board of Directors, and (iii) an
Executive Committee. The percentage of independent Board
members was 69.82%(1).
As of December 31, 2024, the diversity of the Board members was
as follows:
• By gender:
−48.20% were women(2);
−51.80% were men.
• By age:
−0.00% were aged under 30 years old;
−24.12% were aged between 30 and 50 years old;
−75.88% were aged above 50 years old.
• By regional nationality:
−63.83% were from Western Europe;
−12.06% were from Asia Pacific;
−24.12% were from North America;
−0.00% were from Rest of the World.
The Board of Directors includes three Employee Directors, two
Employee representatives, namely Mrs. Rita Félix and Mr. Bruno
Turchet, and one Employee Shareholder representative,
Mrs. Xiaoyun Ma.
Pursuant to article L. 225-27-1 of the French Commercial Code, the
number of directors representing employees is at least equal to two
in companies whose number of directors is greater than eight. In
accordance with the procedure provided in Article 11.4 of the
Articles of Association, and in line with the prescription of Article L.
225-27-1 of the French Commercial Code, the French Employee
representative, Mr. Bruno Turchet, is designated by the trade union
which obtained the highest number of votes at the most recent
elections which is as of today, Force Ouvrière (FO), and the second
Director representing Employees, Mrs. Rita Félix, is appointed by
the European Works Council, employee representative body of the
Company set up in pursuance of Article L. 2352-16 of the French
Labor Code, ensuring thereby a higher representation of the Group
employees within the Board.
(1) This percentage corresponds to a weighted average ratio of independent members to all Board members. It differs from the ratio disclosed in section 4.1.1.1 of
Chapter 4 of the Universal Registration Document, which is calculated on the basis of a number of Board members excluding the employee representatives and the
employee shareholder representative in accordance with the provisions of the AFEP-MEDEF Corporate Governance Code, i.e. 14 Board members.
(2) This percentage corresponds to a weighted average ratio of female to male Board members. It differs from the gender ratio disclosed in section 4.1.1.1 of Chapter 4 of
the Universal registration Document, which is calculated on the basis of a number of Board members excluding the employee representatives and the employee
shareholder representative in accordance with the provisions of the French commercial Code, i.e. 14 Board members.
The Director representing the Employee Shareholders is appointed
according to the procedure provided in Article 11-3 of the Articles
of Association which stipulates that when employee shareholders
hold more than 3% of the capital at the close of a given financial
year, their representative is elected by the Annual Shareholders’
Meeting from the candidates appointed by the supervisory boards
of the corporate mutual funds (FCPEs) invested in company shares
or by the employee shareholders when their shares are held
directly and not via FCPEs.
Information about member’s experience relevant to
sectors, products and geographic locations of the
Company is available in section 4.1.1.2 of Chapter 4.
Information about the composition of the Board of
Directors is available in section 4.1.1.1 of Chapter 4.
Information about the composition of the Audit & Risks
Committee is available in section 4.1.3.1 of Chapter 4.
Information about the composition of the Governance,
Nominations & Sustainability Committee is available in
section 4.1.3.2 of Chapter 4.
The roles and duties of each body are defined in the
internal regulations of the Board of Directors available
in section 4.1.5 of Chapter 4.
The Board of Directors reviews, in relation to the strategy it has
defined, the opportunities and risks, such as financial, legal,
operational, social, and environmental risks, as well as the
measures taken accordingly, and to that end receives all
information necessary to fulfill its remit, especially from the Chief
Executive Officer. For more details, please refer to sections 4.1.2.1.1
“Roles and duties of the Board of Directors” and 4.1.5 “Internal
regulations of the Board of Directors” of Chapter 4.
The information about the responsibilities of the Audit & Risks
Committee is available in section 4.1.3.1 of Chapter 4.
The information about the responsibilities of the Governance,
Nominations & Sustainability Committee is available in section
4.1.3.2 of Chapter 4.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Sustainability governance at Schneider Electric
Sustainability Fellows network, volunteers, Schneider Electric Foundation delegates.
Board of Directors
Governance, Nominations &
Sustainability Committee
• Approve the sustainability
strategy and SSI program
• Approve LTIP and STIP
for the CEO
360-degree ESG
implementation
Businesses, operations,
and corporate functions
• Implement strategy and
Company programs
and policies
• Execute sustainability
objectives (SSI, variable
compensation)
• Support awareness
• Innovate
360-degree ESG
vision
SSI program pilots and
sponsors
• Establishes dialogue with the
entire Company to boost
ambition, innovation, and
integrate all challenges
• Co-develops new
SSI programs
• Representatives from Executive
Committee, operational activities
and central functions
Network and expert
committees
Schneider Electric has
expert committees* on
dedicated and material
topics, in particular:
• Climate
• Environment
• Human rights
• Governance
• Ethics
• Citizenship
• Diversity & Inclusion
Executive Committee
Function Committee
Stakeholders Committee
• Validate strategy and alignment
with the United Nations
Sustainable Development Goals
• Challenge and monitor global
sustainability performance
and progress of initiatives
• Participate, challenge, and
oversee the execution of
Schneider Electric’s purpose,
sustainability strategy and
delivery of long- and
short-term commitments
Sustainability department and Global Sustainability Committee
• Coordinates and monitors the sustainability strategy and performance
• Manage innovation projects
• Lead the relationships between internal and external stakeholders
Management oversight
Diffusion
Coordination
and monitoring
All employees
*
Non-exhaustive list: Access to Energy Committee, Carbon Committee, SERE (Safety, Environment, and Real Estate) Committee, Ethics Committee & Fraud Committee,
Duty of Vigilance Committee, the Foundation’s Executive Committee and Schneider VolunteerIn Board, HR Committee, Diversity & Inclusion Committee, SSI pilots and
sponsors.
The Audit & Risks and the Governance, Nominations &
Sustainability Committees report systematically to the Board on
all their work including impacts, risks, and opportunities on
sustainability matters. They prepare the Board of Directors’
decisions in these domains.
In addition, the CEO reports quarterly to the Board during his
business update on the progress made by the Group in its
sustainability journey, notably on the results of the SSI.
Special sessions are also organized with the whole Board on
dedicated subjects relating to sustainability. In June 2024, a special
session on the Corporate Sustainability Reporting Directive (CSRD)
was organized.
The Chief Executive Officer regularly reports to the Board of
Directors in the context of the business update presented at each
Board of Directors meeting. Several Executive Committee members
including the Chief Financial Officer, the Chief Sustainability Officer
and the Chief Governance Officer also report regularly to the
Board and the Audit & Risks and Governance, Nominations &
Sustainability Committees. To that end, the Chief Executive Officer
relies internally on:
• The Executive Committee composed of 17 members which
reviews very regularly the progress made by the Company on
sustainability matters;
• The Function Committee, composed of the Executive Committee
members in charge of key functions: Governance, Global
Marketing, Human Resources, Strategy, Sustainability, Finance,
and Digital;
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• The Chief Executive Officer also relies on the Stakeholder
Committee whose mission is to advise Schneider Electric on
its journey to deliver the long- and short-term sustainability
commitments undertaken by the Company in accordance with
its purpose and sustainability strategy;
• The Group Sustainability department, in charge of Schneider
Electric’s sustainability strategy and rollout of action plans at
Group level with relevant entities, being the central point of
contact for internal and external stakeholders regarding
sustainability at Schneider Electric, and organizing and driving
the work of Global Sustainability Committee.
The Risk Management VP reports to the Chief Governance Officer.
The Internal Control department reports to the Group Chief
Accounting Officer who reports to the Chief Financial Officer.
The Chief Internal Audit Officer reports to the Chief Governance
Officer. Nevertheless, the Chief Internal Audit Officer has direct
access to the Chairwoman of the Audit & Risks Committee and
meets with her on a regular basis throughout the year.
The Chief Financial Officer and the Chief Governance Officer
who are both Executive Committee members, report to the Chief
Executive Officer. Each of them has direct access to the Audit &
Risks Committee and meets with its Chairwoman on a regular basis
throughout the year. They also have direct access to the Board of
Directors and meet with its Chairman on a regular basis throughout
the year.
In 2023, Schneider Electric started to perform its double materiality
assessment in line with the European Sustainability Reporting
Standards (ESRS) as a first step to comply with the CSRD. This
assessment involves the collaboration of various teams, especially
the Sustainability team, the Group Risk Management function, and
the Duty of Vigilance Committee.
The double materiality assessment leverages various internal
analyses and external inputs, including stakeholders’ consultations,
to determine the materiality of relevant sustainability topics for the
Group, both from a financial and/or impact perspective. Material
impacts, risks and opportunities across the value chain are
reviewed and approved by the Audit & Risks Committee and the
Governance, Nominations & Sustainability Committee.
Based on this assessment and in close collaboration with Risk
Overseers and the Group Risk Management team, the Internal
Control function uses a risk-based approach to define the key
controls needed and linked to material impacts, risks and
opportunities. Those key controls are embedded in the processes
and used to monitor the effectiveness of the controls.
In accordance with professional standards governing this activity,
Internal Audit independently assesses the effectiveness of
governance, risk management, and internal control given that,
irrespective of how well they are implemented and how strictly they
are deployed, these procedures can only provide reasonable
assurance, and not an absolute guarantee, against all risks.
After each internal audit, a report is issued setting out the auditors’
findings and recommendations for the business unit, global
function, or operational entity audited. Additionally, the reports
are also shared with Senior Management and the Audit &
Risks Committee.
Since 2005, Schneider Electric has measured its sustainability
performance each quarter in a dashboard known as the 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 Governance, Nominations & Sustainability Committee:
• Ensures that the long-term commitments in terms of
sustainability undertaken by the Company are implemented;
• Reviews the Group sustainability strategy including the climate
strategy and follow up on the progress made on a regular basis;
• Reviews the sustainability risks jointly with the Audit & Risks
Committee.
The Governance, Nominations & Sustainability Committee reports
on its work to the Board of Directors which approves the
sustainability strategy and the SSI.
The results of the SSI are published every quarter together with
financial results and made available to all stakeholders via the
Group’s website. On these occasions, results are collated and
presented to the Function Committee, which makes decisions on
any corrective actions that may be necessary to reach objectives.
The Governance, Nominations & Sustainability Committee within
the Board of Directors conducts an annual review of the Group’s
sustainability strategy, analyzing, in particular, the performance of
the SSI. The results are also publicly presented to shareholders by
Schneider Electric’s CEO or CFO.
Disclosure of how the Board of Directors determine whether
appropriate skills and expertise are available or will be developed
to oversee sustainability matters is available in section 4.1.1.4 of
Chapter 4.
In addition, Directors’ sustainability skills are assessed on the basis
of their respective training, experience and contribution, every year
during the Board of Directors’ self-assessment which includes an
assessment of the individual contribution of each member.
Information about sustainability-related expertise that bodies either
directly possess or can leverage is available in section 4.1.1.4 of
Chapter 4.
In addition, Board members’ knowledge of sustainability issues
is kept up to date through specific training sessions and
presentations organized throughout the year at meetings of the
Board of Directors and its committees, as well as at the annual
Strategy session.
As of December 31, 2024, 11 Directors have sustainability skills,
namely Mr. Jean-Pascal Tricoire, Mr. Léo Apotheker, Mrs. Giulia
Chierchia, Mrs. Clotilde Delbos, Mr. Fred Kindle, Mr. Philippe
Knoche, Mrs. Linda Knoll, Mrs. Anna Ohlsson Leijon, Mr. Anders
Runevad, Mr. Greg Spierkel, and Mr. Lip-Bu Tan.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Directors with environmental skills
Mr. Jean-Pascal Tricoire is currently Chairman of the Board of
Directors of Schneider Electric SE after having been for 18 years
successively Chairman of the Management Board, and Chairman
& CEO, during which time he has made a significant contribution to
sustainable development and the fight against climate change
through his business activities. Mr. Jean-Pascal Tricoire is also
well known for his promotion of sustainable activities and is a
member of the Board of Directors of the United Nations Global
Compact (UNGC).
Mrs. Giulia Chierchia is currently Executive Vice-President Strategy,
Sustainability and Ventures at BP. In 2019, she was appointed as
Senior Partner of McKinsey & Company leading the global
downstream oil and gas practice and advising clients regarding
their decarbonization strategy and how to pivot their existing
portfolio. In April 2020, she was appointed as Executive Vice-
President Strategy and Sustainability of BP, in charge, in particular,
of strategy and sustainability, ethics and compliance, capital
allocation, investment governance for the Company, delivery of its
Net-Zero carbon aims, ESG transformation, external stakeholder
engagement, and group energy transition policy. In March 2022,
she became Executive Vice-President Strategy, Sustainability and
Ventures and was given the additional responsibility for BP’s
ventures arm.
Mrs. Clotilde Delbos has been the Chief Executive Officer of the
New Mobilities (Mobilize), from 2021 to 2023, the Renault group
brand dedicated to new forms of mobility providing the means to
make the shift towards carbon neutrality, by offering solutions for
both emission-free transport and a less carbon-intensive electricity
mix. With this experience, Mrs. Clotilde Delbos has developed a
strong expertise in the field of sustainable energy transition. In
addition, her long experience within the Pechiney group (1992–
2005), and then in the automotive industry within the Renault group
(2012–2023) where she successively held the positions of Chief
Financial Officer, acting Chief Executive Officer, and Deputy Chief
Executive Officer enables Mrs. Clotilde Delbos to advise the Board
of Directors on issues relating to the climate transition.
Mr. Anders Runevad is the current Chairman and former CEO
of Vestas Wind Systems A/S, Danish wind turbine design,
manufacture and installation company, a position he held from 2013
to 2019. Mr. Anders Runevad holds a Master of Science Degree in
Electrical Engineering from the University of Lund (Sweden).
Directors with social skills
Mrs. Linda Knoll is the former Chief Human Resources Officer of
Fiat Chrysler Automobiles. After a career in the Land Systems
Division of General Dynamics, Mrs. Linda Knoll joined CNH
Industrial in 1994. She held various operating positions there,
culminating in her appointment to multiple senior management
positions. In 1999, she became Vice-President and General
Manager of the Company’s Global Crop Production business unit.
From 2003 to 2005, she was Vice-President for North America
Agricultural Industrial Operations. She then served as Executive
Vice-President for Worldwide Agricultural Manufacturing until 2007,
managing 20 plants in ten countries, before being appointed
Executive Vice-President Agricultural Product Development, and
President Parts and Service (ad interim). She served as Chief
Human Resources Officer in CNH Industrial (from 2007 to 2019)
and Fiat Chrysler Automobiles (from 2011 to March 2021).
As former CEO of public companies for a long period of time,
Jean-Pascal Tricoire, Léo Apotheker, Fred Kindle, Philippe Knoche,
Anders Runevad, Greg Spierkel and Lip-Bu Tan have gained
experience and knowledge in social matters.
Directors with governance skills
Mr. Jean-Pascal Tricoire as current Chairman of the Board of
Directors of Schneider Electric SE, after having been for 18 years
successively Chairman of the Management Board, and Chairman &
CEO, and as current Chairman of the Governance, Nominations &
Sustainability Committee has a proven track record contributing to
ethical business practices and governance.
Mr. Fred Kindle is currently the Vice-Chairman & Lead Independent
Director of Schneider Electric SE since April 2020, and the former
Chairman of the former Governance & Remunerations Committee
of Schneider Electric SE. He is the former CEO of ABB. In those
positions, Mr. Fred Kindle gained significant experience in
governance matters.
Mr. Léo Apotheker is the former CEO of SAP and Hewlett-Packard.
Board member of Schneider Electric SE since 2008, Mr. Léo
Apotheker served as Vice-Chairman & Lead Independent Director
from 2014 to April 2020, and as Chairman of the former
Governance & Remunerations Committee of Schneider Electric SE.
In those positions, Mr. Léo Apotheker gained significant experience
in governance matters.
Mrs. Giulia Chierchia is currently Executive Vice-President Strategy,
Sustainability and Ventures at BP in charge, in particular, of
strategy and sustainability, ethics and compliance, capital
allocation, investment governance for the Company, delivery of its
Net-Zero carbon aims, ESG transformation, external stakeholder
engagement, and group energy transition policy.
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Mrs. Clotilde Delbos began her career in California then in Paris at
PricewaterhouseCoopers before joining the Pechiney Group in
1992 where she held various positions in France and in Brussels
notably in Internal Audit. In Constellium, she was Chief Risk Officer.
Mrs. Clotilde Delbos joined Renault group in 2012 as Group
Director of Performance and Control. In May 2014, she was
appointed Director of Alliance, Performance and Control. In April
2016, Mrs. Clotilde Delbos was appointed Chief Financial Officer
of Renault group and Chairwoman of the Board of Directors of
RCI Banque and in 2019 was also assigned responsibility for the
Internal Control Department. In October of the same year, she was
appointed Acting Chief Executive Officer of Renault SA, and then
Deputy Chief Executive Officer in July.
Mrs. Anna Ohlsson-Leijon began her career in 1993 at
PricewaterhouseCoopers where she held various positions
advising high-tech, industrial, and media companies. In 2000, she
joined Kimoda, an e-commerce platform, as Chief Financial Officer,
before joining in 2001 AB Electrolux (Sweden) as Director of Project
Management. Mrs. Anna Ohlsson-Leijon then held various senior
positions in corporate functions including Director Internal Audit &
Global Program Manager Sarbanes- Oxley Act from 2003 to 2005,
Head of Management Assurance & Special Assignments until
2008, Group Treasurer until 2011, and Head of Corporate Control
& Services until 2013.
The skills of Mr. Jean-Pascal Tricoire, Mr. Léo Apotheker,
Mrs. Giulia Chierchia, Mrs. Clotilde Delbos, Mr. Fred Kindle,
Mr. Philippe Knoche, Mrs. Linda Knoll, Mrs. Anna Ohlsson Leijon,
Mr. Anders Runevad, Mr. Greg Spierkel, and Mr. Lip-Bu Tan
serve Schneider Electric as regards its strategic needs and
sustainability challenges.
For details relating to their respective biographies,
please refer to sections 4.1.1.2 “Biographies of the
Chief Executive Officer and Board members” and
4.1.1.4 “Skills and diversity”, sub-section “Skills
within the Board” of chapter 4.
As part of its responsibilities relating to the following-up on the
efficiency of internal control and risk management systems, at least
once a year, the Audit & Risks Committee reviews Enterprise Risk
Management reports including operational risk-mapping and
makes sure that measures exist for preventing or minimizing risks.
A joint session is organized with the Governance, Nominations
& Sustainability Committee to review Corporate Sustainability
Reporting (CSR) risks. The Governance, Nominations &
Sustainability Committee conducts an annual review of the Group’s
sustainability strategy, analyzing, in particular, the performance of
the SSI, which is followed by an annual publication of the SSI
results, in February. Both Committees report the findings of their
work to the Board of Directors for review.
Material impacts, risks, and opportunities are fully integrated in
the decision-making process of the Board of Directors and
systematically taken into consideration. The Strategy session of
the Board of Directors deals with a thorough annual review of the
strategy, including material impacts, risks, and opportunities.
Members of the Stakeholder Committee of the Board participated
in the double materiality assessment to review and verify the
results, while the Audit & Risk Committee validated the results of
the materiality assessment along with its list of material impacts,
risk, and opportunities found in section 2.2.1.2.2 Double materiality
assessment on page 114.
There is no incentive scheme for members of the Board of
Directors, who only receive a fixed base amount and a fee
depending on attendance at Board and committee meetings.
The details provided below relating to incentives schemes and
remuneration policies linked to sustainability matters concern the
Chief Executive Officer and exclude the members of the Board
of Directors.
Two kinds of incentive schemes including sustainability criteria are
benefiting to the Chief Executive Officer: Short-Term Incentive Plan
(STIP) and Long-Term Incentive Plan (LTIP).
For key characteristics of the STIP and LTIP for the CEO, please
see section 4.2.3.1.2 relating to the compensation policy of the
Chief Executive Officer.
Specific sustainability-related targets are used to assess the
performance of the Chief Executive Officer:
• 20% of the STIP depends on the Schneider Sustainability Impact
(SSI) score achieved at the end of the financial year, promoting
the continuous progress towards more sustainability and value
for customers: relating to the Compensation policy of the Chief
Executive Officer;
• 25% of the performance conditions applicable to the LTIP
depend on carbon emission reduction targets aiming at linking
the Chief Executive Officer’s compensation with Schneider
Electric’s greenhouse gas (GHG) reduction targets: see section
4.2.3.1.2, relating the Compensation policy of the Chief
Executive Officer, of chapter 4.
Sustainability-related performance metrics are included
in remuneration policies. They demonstrate how important
sustainability issues are for Schneider Electric and they are aligned
with its strategic priorities. This is the reason why the SSI, which
includes several climate targets, is used as a criterion in the annual
variable compensation of the Chief Executive Officer. In the same
way, the carbon reduction targets criterion used for the LTIP
granted to the Chief Executive Officer aims at aligning his
remuneration with the Group commitment in terms of
climate transition.
For the Chief Executive Officer, the percentage of his annual
variable remuneration dependent on sustainability-related targets
is 20%.
The Board of Directors sets annually the SSI targets to be achieved
in the context of the incentive schemes based on the
recommendations of the Human Capital & Remunerations
Committee and annually reviews the performance achievements.
For the Board of Directors, see sections 4.1.2.1.1
“Roles and duties of the Board of Directors” and
4.1.2.2 “Board of Directors activities in 2024” of
chapter 4.
For the Human Capital & Remunerations Committee,
see section 4.1.3.3 “Human Capital &
Remunerations Committee” of chapter 4.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.1.1.3 Trust with stakeholders
Trust and business conduct governance
Context
Trust is a foundational value, core to Schneider Electric’s
Environment, Social and Governance (ESG) commitments.
Schneider Electric has earned the trust of stakeholders through
its quality products, sustainability commitments, and business
integrity. Trust powers interactions with customers, shareholders,
employees, and communities. It is manifested through trusted
teams, customer/partner relationships, investor trust, and
community engagement. Leaders set the tone and exemplify the
Trust culture, prioritizing equality, well-being, and safety. Schneider
Electric upholds high standards in cybersecurity, anti-corruption,
fair competition, and responsible supplier management, and
remains mindful of the responsibility to prevent insider trading,
deliver accurate financial statements, and protect intellectual
property. The Company acts for a climate positive world, efficient
resource use, and responsible citizenship.
Governance
The Trust programs are managed through a dedicated
governance framework:
Board level: Schneider Electric’s Board of Directors oversees the
maturity level and effectiveness of the governance and organization,
risk management systems, processes and controls, and
communication and training through the Audit & Risks Committee.
Executive level: Schneider Electric’s Executive Committee
decides the Trust agenda, acts as a sounding board for corporate
departments in charge of Trust topics, and coordinates highly
transversal programs such as the SSI.
On a yearly basis, members of the Board of Directors and the
Executive Committee mandatorily attend the Audit & Risks
Committee, which includes risk management education, including
on Trust-related matters.
Corporate level: Schneider Electric has created a standalone
Ethics & Compliance department, chaired by a Chief Compliance
Officer, and reporting to the Chief Governance Officer & Secretary
General, to drive the strategy of the Ethics & Compliance program.
The department works closely with the Legal, Human Resources,
Finance, Digital, Strategy, Quality, and Sustainability departments,
as well as Internal Control and Internal Audit; which are directly
responsible for managing certain specific risks.
Operational level: Regional committees may ensure
implementation of the Trust programs (such as regional Ethics &
Compliance Committees for the Ethics & Compliance program)
in alignment with risks identified. Operationally, they may rely on
regional teams who drive the implementation in the zone, with the
support of Trust Ambassadors and relevant subject matter experts
at local levels.
Executive Committee – Function Committee
Board – Audit & Risks Committee
Corporate departments
Regional, Zone, Cluster,
and Country Committee
Group Operational
Compliance Committee
Regional teams
Group Disciplinary
Committee
Trust Ambassadors
Detect and monitor
the Trust programs
Ensure implementation of Trust
programs accordingly to risks
Detect and manage
non-compliance
Support employees in
navigating Trust programs
Disciplinary review of
non-compliances and levy
sanctions
Support awareness of
employees about Trust topics
in Schneider Electric
Define, explain, and disseminate priorities
Executive
level
Board
level
Corporate
level
Operational
level
Speak Up supervision
Read more on the Whistleblowing Policy and grievance
mechanisms on page 105.
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Trust Charter, Schneider Electric’s Code of Conduct
The Trust Charter (available in more than 30 languages on Schneider Electric’s website), acts as the Group’s Code of Conduct and
demonstrates the Group’s commitment to ethics, safety, sustainability, quality, and cybersecurity. It powers all the interactions with
stakeholders and all relationships with customers, shareholders, employees and the communities Schneider Electric serves, in a
meaningful, inclusive and positive way. It serves as a compass, showing the true north in an ever more complex world. Trust is a
foundational value of Schneider Electric, and it is core to its ESG commitments.
Schneider Electric developed the Trust Charter, owned by the Group Risk Management team, with the support of various internal
teams including Governance, Customer Satisfaction & Quality, Sustainability, Global Human Resources, Global Supply Chain, Global
Finance, Global Marketing, and Corporate Citizenship. This document is made available to stakeholders through Schneider Electric’s
website and is referenced within contractual relationships.
All Schneider Electric employees are expected to comply with Schneider Electric’s Trust programs. They are based on management
commitment which makes its pillars effective and on risk assessment which assists decision making, determining the risks to be
treated and the priority to implement the treatment.
Through its Trust programs, Schneider Electric aims to prevent, detect, and mitigate integrity risks including corruption, fraud, violation
of human rights, health and safety, responsible workplace (including discrimination, harassment, and sexual harassment), anti-
competitive practices, sanctions and export control, tax law, quality, cybersecurity, as well as data privacy and protection. The
program design and operation are influenced by the Group’s risk profile, business model, organizational structure, and culture.
Each section of the Trust Charter states clear Dos and Don’ts and provides clear references to relevant policies and procedures,
which are adapted to meet local legal requirements when necessary. This Code of Conduct applies to everyone working at Schneider
Electric or any of Schneider Electric’s subsidiaries. It is both an individual and collective responsibility to comply and respect laws and
regulations, to apply Schneider Electric policies, and to uphold strong ethical principles to earn trust at all times.
Discover our Trust Charter on www.se.com
TRUST
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Actions and resources
Management commitment
Trust
Programs
Code of
conduct
& Policies
Training &
Awareness
Third parties
integrity
Whistle
blowing
Corrective
actions
Monitoring
& Audit
Risk
Assessment
Management
Commitment
Rules and policies alone do not suffice. Management sets the
Company standards and promotes a culture of integrity and a
“Speak Up” mindset. Leadership at every level of the organization
was involved in the design, creation, and deployment of the Trust
Charter to ensure that everyone at Schneider Electric is aware of
the importance of trust and understands how to get the most out of
the Group’s Code of Conduct.
Top management regularly expressed its commitment through
statements and extensive communication (called “tone from the
top”), such as during the Trust Week organized in September 2024.
Its launch was supported by the CEO in a video in which he notably
reminded colleagues of the importance of business running on
trust and integrity. This integrity is also expressed by middle-
and first-line management (called “tone from the middle”) by
spreading the right message in their teams and supporting
reporting of misconduct.
Management commitment is evidenced by the participation of
Schneider Electric’s Chairman who sits on the global Board of the
United Nations Global Compact. Schneider Electric also works with
other companies and stakeholders to build integrity and common
standards. The Group participates in the initiatives of many
non-governmental organizations (NGOs) and professional
associations, such as Transparency International France,
Le Cercle d’Éthique des Affaires (The Ethical Business Circle),
the International Deontology & Compliance Committee of the
Mouvement des Entreprises de France (Movement of the
Enterprises of France), and the Anti-Corruption Committee
of Business at OECD (BIAC).
Read more on the Whistleblowing Policy and grievance
mechanisms on page 105.
Awareness
Internal communication provides employees with essential
baseline information on Schneider Electric’s integrity commitment
while also raising awareness and understanding of the Trust
programs. To do this, the Group created a dedicated intranet page:
the Trust Portal, which gives access to resources (policies, useful
contacts, sites, guidelines, templates, etc.) to all employees when
they face situations in which they need support. The portal aims at
giving employees the confidence to alert any unethical behavior
they witness and stay informed of new Trust programs or policies.
Schneider Electric also regularly distributes videos and
other communication assets on integrity-related subjects
to its employees.
In 2024, the Trust Week, Schneider Electric’s most extensive global
internal communications initiative, brought the pillars of Trust
together into one comprehensive event. The campaign included
three global live webinars, three daily videos alongside additional
local events, aligned to the Group’s pillars of Integrity,
Transparency, and Resilience. The events drew in more than
2,500 participants across the globe. By providing access to a
range of activities targeted toward all employees, the Group saw
a remarkable level of engagement and influence. In addition,
Schneider Electric fostered a Speak-Up mindset throughout the
year, especially through additional live webinars, global intranet
articles and awareness sessions. As a testament to the rising
awareness and engagement with Trust, the Group experienced a
56% increase in global policy views in 2024 compared to 2023.
The Trust Portal recorded 11,762 unique views, and over 17,500
downloads of the Trust Charter were noted on se.com. These
figures reflect the interest not only from employees but also from
all of the Group’s stakeholders.
External communication informs stakeholders of Schneider
Electric’s integrity and implementation of the Trust programs.
The Group communicates through a dedicated webpage and
specific external communications. Schneider Electric also
responds to several questionnaires from extra-financial rating
organizations related to Trust. In 2024, Schneider Electric was once
again recognized as one of the World’s Most Ethical Companies by
Ethisphere, a global leader in defining and advancing the
standards of ethical business practices.
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Training
Each year a global campaign of mandatory training is run for all
employees, called Schneider Essentials, from March to the end of
September aiming at ensuring that all employees are trained on the
most important topics covered by the Trust Charter. These trainings
are designed in accordance with Schneider Electric’s training
guidelines. The training is available in 18 languages in the Group’s
Learning Management System. In 2024, Schneider Essentials
focused on Trust, Cybersecurity, Data, and Inclusive Mindset,
along with additional courses based on function or location. For
employees exposed to corruption risks, an Anti-Corruption training
is required each year as a functional essential training. The course
dedicated to Trust was completed at 99.4%, The Anti-Corruption
was completed at 98.9%.
Several specific trainings are also delivered: the Trust Programs
include trainings for leaders of acquired companies, as a part of
the integration process. The training entails a specific focus on
what is expected from the leadership teams, including endorsing
the programs and actively following up employees’ completion of
mandatory trainings.
The Group monitors and discloses its completion rate on trainings
on Ethics (Trust Charter and Anti-Corruption for eligible employees)
and Cybersecurity, aiming for 100% completion each year
(Schneider Sustainability Essentials – SSE #13). In 2024, SSE #13
achieved a 98.7% completion rate.
Corrective actions
Deficiencies in the implementation of the Trust programs –
potentially reported through whistleblowing – are analyzed to
identify their cause and remedy them with appropriate measures,
which can take the form of:
• Disciplinary measures decided by the relevant managers
together with Human Resources, or by the Group Disciplinary
Committee for the most sensitive alerts based on the findings of
an investigation and depending on local disciplinary policies
and law;
• Remediation measures (such as launching a specific audit,
reviewing a process, or performing training);
• External actions (such as entering civil litigation or similar
legal proceedings).
In 2024, Schneider Electric has published its first Group
Disciplinary Policy, which aims to achieve and maintain
transparency and consistency by establishing a framework for
Disciplinary Actions in case of violations of the Trust Charter,
associated Group policies, and applicable laws and regulations.
It supports the guidance and recommendations provided by
competent authorities and bodies regarding Disciplinary Actions.
Monitoring and audit
The Trust Charter and programs are an integral part of the Group’s
Key Internal Controls (KICs). In effect since 2022, this KIC
framework has been enhanced by increasing the number of KICs
for the Trust programs aligned with new policies and processes.
Furthermore, the Group’s Internal Audit program includes specific
tasks related to the Trust programs, and to activities or subsidiaries
for which an evaluation of the maturity and effectiveness of the
program will be reviewed. Several internal audits were conducted
in 2024 resulting in recommendations related to the improvement of
the Trust programs.
Read more details about Key Internal Controls and
Group Internal Audit on pages 361 to 370.
Whistleblowing Policy and grievance
mechanisms
Context
Whistleblowing and grievance systems provide employees with
a safe and confidential way to report any unethical behavior,
misconduct, or corruption they may witness within an organization.
By encouraging employees to speak up without fear of retaliation,
companies can detect and address issues early, thereby
upholding their commitment to integrity, ethical conduct, and
compliance with laws and regulations. This fosters a culture of
trust and accountability.
Governance
Schneider Electric employees must feel free and psychologically
safe to share their ideas, opinions, and concerns, without fear of
retaliation. To ensure the effectiveness of that Speak Up mindset
and related whistleblowing system, the Group has created two
specific committees:
• The Group Operational Compliance Committee (GOCC)
detects and manages cases of non-compliance in accordance
with the Whistleblowing Policy and Case Management &
Investigation Policy, and reviews monthly the effectiveness of
the whistleblowing system. The GOCC is composed of the
following members: Chief Compliance Officer (secretary of the
Committee), Chief Business Legal Officer, Group Internal Audit
& Control Officer, Group Compliance Director, Group Human
Resources Compliance Officer, and Head of Fraud Examination
Team. In 2024, the Chief Governance Officer & Secretary
General, reporting directly to the Chief Executive Officer, joined
as a new member of the Committee.
• The Group Disciplinary Committee levies sanctions and
remediation actions on serious non-compliance cases to
guarantee a fair and transparent disciplinary policy upon
request of the GOCC. The Group Disciplinary Committee is
composed of the following members: Chief Governance Officer
& Secretary General, Chief Human Resources Officer, Chief
Compliance Officer (secretary of the Committee), Chief
Business Legal Officer, and one rotating member.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Group policy
Schneider Electric employees have a responsibility to report
potential unethical behaviors, as set out in the Whistleblowing
Policy. To voluntarily report a potential violation of laws and
regulations, and/or of the Group’s Trust Charter and Group policies,
whistleblowers can use all reporting channels available, regardless
whether they are employees, contractors, or external stakeholders
(suppliers, subcontractors, customers, business agents, etc.)
At Schneider Electric, stakeholders, either internal or external, may
report concerns either by contacting an appropriate person in the
Group (manager, Human Resources business partner, Legal
Counsel, or Compliance Officer) and/or by using the Trust Line,
Schneider Electric’s whistleblowing system. The latter is available
online globally, at all times, in 27 languages, and protects the
anonymity of the whistleblower (unless there is legislation to the
contrary). In compliance with local legislation, this system is
provided by an external, impartial third-party company and
proposes alert categories, a questionnaire, and an information
exchange protocol between the person issuing the alert and the
person responsible for the case management.
Schneider Electric’s Whistleblowing Policy is available publicly
on www.se.com
Actions and resources
Case management: a structured process led by Ethics & Compliance
1. Report
2. Assess
3. Investigate
4. Remediate
5. Follow-up
Report potential
violation
By employees, third
parties
Confirm (or not)
validity of alert
Assign investigator(s)
By Ethics &
Compliance
Facts finding process,
interviews, data
analysis
• Allegations
confirmed or not
• Root cause
analysis
By assigned
investigator(s)
Remediation and/or
disciplinary measures
By Ethics &
Compliance and
management
Check implementation
of actions decided
and non-retaliation
At Schneider Electric, the Whistleblowing Policy and process are
operationalized through the Case Management & Investigation
Policy, which sets out the practical rules to follow by the
investigation teams. The triage of misconduct reports is primarily
managed by the Regional Compliance Officer. Upon receipt of
a concern, the Officer evaluates its validity based on predefined
criteria outlined in the Whistleblowing Policy. If the concern
qualifies as a valid alert, it is promptly escalated for thorough
investigation. However, if the concern does not meet the criteria,
it is closed, and the reporter is directed to the relevant organization
for assistance. In cases where the Officer requires further
information to conduct the triage effectively, they may request
additional details from the reporter. However, if there is no response
from the reporter after two reminders and/or three weeks following
the receipt of the concern, the case may be closed.
Furthermore, collaboration with partner organizations such as
Human Resources, Internal Audit and Finance is integral to the
process, especially in cases where their expertise and involvement
are necessary for a comprehensive resolution.
Once a concern is identified as an alert, the Regional Compliance
Officer undertakes two critical actions:
• Firstly, to determine the type of alert based on the definitions
outlined in the Whistleblowing Policy; and
• Secondly, to classify the case according to the severity
criteria specified in an Appendix of the Whistleblowing Policy.
The Regional Compliance Officer does so with impartiality
and confidentiality.
Depending on this classification, low and medium cases are
managed by the relevant Regional Compliance Officer at the
regional level, while high and critical cases are overseen at global
level by a member of the Group Operational Compliance
Committee. It is important to note that the classification of a case
may evolve during the investigation process.
Subsequently, the appointed Case Manager takes charge of
deciding the investigative approach, either by leading it directly,
assigning a dedicated investigation team, or appointing an external
investigator. In order to properly manage all situations, the Case
Management & Investigation Policy sets out rules to make this
decision with impartiality in order to make sure decision-making
is done objectively and in autonomy from chain of management
involved in prevention and detection of corruption or bribery.
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Schneider Electric’s Whistleblowing Policy provides for the
protection of the reporter, reported person, witnesses, and other
involved people by highlighting rights and responsibilities of people
involved. It meets the legal obligations specified by the EU
Whistleblowing Directive 2019/1937. People protection is
emphasized on, in particular:
• A procedure to ensure Schneider Electric’s zero-tolerance
policy against retaliation by prohibiting retaliation or other
discrimination, and a prompt, independent and objective case
management investigation;
• A set of protection and care measures that can be offered
during investigation, if needed and as per local legislation, such
as: security measures (distancing), accommodations, flexible
time management, change of function/service, and
psychological support;
• A possibility of internal or external mediation to help rebuild
respectful collaboration;
• Impartiality rules guaranteed with the appropriate level of case
management when a top leader is the reported employee, and
by the prevention of conflict of interest, notably ensuring that
investigators are separate from change of management involved
in the Ethics & Compliance program when necessary.
Following investigative findings, in the event of a confirmed case,
certain corrective actions may be implemented, which may include
disciplinary measures. Notably, in 2024, Schneider Electric
introduced its first Group Disciplinary Policy, outlining the rules for
disciplinary measures.
Number of concerns received through our whistleblowing
system per region
51.2%
21.1%
11.5%
4.2%
4.8%
7.2%
2,269
concerns
received
North America
Rest of the World
Europe
China
France
India
Status of concerns received*
through our whistleblowing system
Distribution of
confirmed alerts
by type of issue
17%
15%
18%
38%
5%
6%
1%
5%
3%
7%
20%
13%
52%
Valid alerts confirmed after
investigation
Valid alerts not confirmed after
investigation
Valid alerts under investigation
Not valid alert
Ongoing assessment
Inconclusive and insufficient information
No confirmed outcome yet
*as of January 1st, 2025
Discrimination, Harassment,
Sexual harassment
Fraud
Conflict of interest
Bribery and Corruption
Health and Safety
Other
To measure the effectiveness of the Trust Line, Schneider Electric
created Schneider Sustainability Impact (SSI) #7 and added a
question to its annual employee engagement survey, OneVoice:
“I can report an instance of unethical conduct without fear”. In
2021, 81% of employees surveyed answered “yes”. Since then, the
Group is working to increase this measurement by 10 points by
2025 as part of the SSI. In 2024, 83% of employees surveyed
answered “yes” which constitutes an improvement of +2 points over
a three-year period.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Open dialogue with stakeholders
Schneider Electric engages in open and continuous dialogue with
each of its stakeholders. In particular, the Sustainable Development
department takes into account comments, ratings, and evaluations
from stakeholders on the Group’s sustainability strategy and
programs. This feedback is integrated into the drawing up of the
Universal Registration Document, improvement plans, and in the
design of the core sustainability strategy programs which takes
place every three to five years, with the next iteration to be
deployed in 2026. As such, for the current reporting year, no
significant amendments have been made to the Group’s business
model and strategy.
Schneider Electric’s stakeholders express their main concerns and
expectations, which are used by the Group to build its sustainability
strategy, including the 2021 – 2025 sustainability objectives. These
include four main points: leading climate action in our ecosystem
and with our partners; pioneering circular economy and being
efficient with resources; ensuring a fair transition and guaranteeing
high ethical, social, and environmental standards along our value
chains; leveraging digital in cybersecure solutions to boost
positive impact.
Stakeholder
Engagement Channel
Outcome and Value Creation
Achievements 2024
Suppliers
• Duty of Vigilance program
• Environment, Social, and
Governance (ESG) Questionnaire
• Decent Work program
• Trust Line grievance mechanism
• Direct Business to Business
communication channels
The Group established a sustainable
procurement strategy providing guidelines to
its 50,000 suppliers to ensure that all are
aligned with the Group’s ambitions to build an
inclusive and carbon-neutral world, where
ecosystems and resources are preserved, and
people have access to economic opportunities
and decent lives.
63% of strategic
suppliers who
provide decent work
to their employees
Employees and
social partners
• OneVoice annual survey
• Focus groups to develop new Group-
wide sustainability commitments
• Development of local sustainability
programs with regional teams
• Trust Line grievance mechanism
Schneider Electric empowers its people across
regions and generations offering equal
opportunities. The Group motivates its
employees and promotes their involvement by
making the most of diversity, supporting
professional development, and ensuring safe,
healthy working conditions.
83% of employees
are confident to
report unethical
behavior
Customers,
end-users, and
partners
• Training program on sustainability
and decarbonization
• Technology stewardship
• Ad-hoc requests
• Trust Line grievance mechanism
Customers are offered efficient, safe, and
decarbonized solutions through digitalization
and electrification, providing them high
environmental performance products and full
transparency on environmental impact. The
Group insists on high quality and strong
cybersecurity to deliver on customer
experience.
679 M tons of CO2
emissions saved
and avoided for
our customers
Investors, analysts,
and financial
partners
• Ad hoc direct communication with
management
• Periodic meetings with shareholders
• Ongoing dialogue with investors
and analysts
• Questionnaires and request
for information
• Feedback collection on conferences,
seminars, events, etc.
• Regulatory compliance verification
• Public financial information
and ratings
Schneider Electric’s sustainability-focused
business model delivers consistent,
sustainable, and strong financial performance,
offering financial partners attractive returns.
74% Impact
revenues
Governments,
institutions and
technical bodies
• Participation in industry associations
• Involvement with technical working
groups
The Group is involved with various local
and international organizations supporting
sustainability. Schneider Electric makes
it a priority to maintain a transparent and
constructive dialogue with policymakers
and regulators so that the Group’s views are
represented on issues affecting the industry.
300+ associations
and organizations
Schneider
Electric takes part
in worldwide
Local communities,
NGOs, and civil
society
• Responsible business
working groups
• Local, regional, and local coalitions
• Established committees with
external partners
Schneider Electric acts to empower local
communities by promoting local initiatives and
enabling individuals and partners to make
sustainability a reality for all, everywhere.
The Group strives to have a positive impact by
delivering education on energy management
and through investments supporting high social
and environmental impact.
100+ local
commitments that
positively impact
communities
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A Stakeholder Committee was created in 2021 in order to reinforce
sustainability governance further with solid external insights.
The primary mission for the Stakeholder Committee is to advise
Schneider Electric on its journey to deliver the long- and short-term
sustainability commitments undertaken by the Company in
accordance with its purpose and sustainability strategy. More
precisely, the mandate of the Stakeholder Committee is:
• To present the regulatory framework, customer expectations,
best practice sharing, insights of the possible future
opportunities, and possible business positioning on two topics
defined each year by the Board;
• To monitor the progress of the current SSI and support in the
next SSI cycle;
• To give advice on any questions submitted by the Board
or management.
The Stakeholder Committee has a joint session once a year with the
Board’s Governance, Nomination & Sustainability Committee to
discuss its recommendations and findings.
In 2024, members of the Stakeholder Committee participated in
the Corporate Sustainability Reporting Directive (CSRD) double
materiality assessment to review and approve the results of the
material sustainability matters found in section 2.2.1.2.2 on pages
118 to 121.
Read more about the composition of the stakeholder committee in
section 4.1.7.1 of Chapter 4.
2.2.1.2 Main sustainability impacts,
risks and opportunities
2.2.1.2.1 Assessment mechanisms:
Vigilance plan and Enterprise Risk
Management
To identify and assess Impacts, risks and opportunities, Schneider
Electric leveraged two main existing internal analyses: the Vigilance
plan matrix and the Enterprise Risk Management framework. These
exercises formed the basis of the double materiality assessment
provided their depth and completeness in assessing the criticality
of various topics to the Group.
Vigilance plan
Context
Schneider Electric seeks to be a role model in its interactions with
customers, partners, suppliers, and communities on ethics and
the respect and promotion of human rights. The Group strives to
have a positive impact on the planet and the environment by
contributing to limit climate change by being more efficient with
natural resources.
(1) A “risk” as referred to in the Vigilance Plan corresponds to the risk of causing an impact on society and the environment, as opposed to the financial risk perspective
covered by the ESRS.
The Group’s vigilance plan complies with the 2017 French law on
Corporate duty of vigilance and has been adapted to also comply
with requirements from other regulations (Norwegian and German
Duty of Vigilance Laws). The plan includes:
• A risk(1) analysis specific to vigilance risks that Schneider
Electric poses to the ecosystem and environment
(i.e., externalities)
• A review of the key actions implemented to remediate or mitigate
these risks;
• An alert system;
• Governance specific to vigilance.
In this Universal Registration Document, Schneider Electric reviews
the risk analysis and describes the related mitigation actions.
Readers are also directed to other sections of the report for relevant
and detailed information. The full Vigilance plan of the Group is
available as a standalone document and can be downloaded from
Schneider Electric’s website at www.se.com.
Impacts, risks and opportunities
Risk assessment methodology
Schneider Electric has developed a specific vigilance risk matrix,
using a methodology consistent with other risk evaluations
performed at Group level, but focused specifically on adverse
impacts Schneider Electric has or may have on its environment and
ecosystem. The methodology is based on interviews with internal
experts from areas such as Health and Safety, Social Relations,
Environment, and Data Privacy. These interviews are conducted
every year, to take risk level evolutions into account. The Group has
progressively improved its risk assessment methodology, by
overseeing new risk categories that include local communities
living close to Schneider Electric locations and customer project
sites. To better apprehend risks from several different stakeholders’
perspectives, specific workshops that include members of the
European Work Council have also been implemented. In 2024, to
converge towards the requirements of the CSRD, the risk analysis
performed has further detailed two dimensions: severity and
likelihood. As a result, the Vigilance risk assessment is now a pillar
of the double materiality approach at Schneider Electric.
The scope of work covers Schneider Electric and its subsidiaries,
joint ventures, suppliers, and subcontractors. A review of the
downstream value chain is performed on a sample of
customer projects.
Risk categories
For a granular assessment of the risk level and the magnitude of the
impact on Schneider Electric’s ecosystem, the Group has identified
more than 60 natures of risks relating to different risk areas, which
can be grouped into four risk categories.
Human rights:
• Decent workplace
• Health and safety
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Environment:
• Pollution and specific substances management
• Waste and circularity
• Energy, CO2, and other Greenhouse Gases (GHG)
Business conduct:
• Ethical business conduct
• Alert system, protection, and non-retaliation
Offer safety and cybersecurity:
• Offer safety
• Cybersecurity and data privacy
Risk location
The Group has focused on four areas where risks may occur:
• Schneider Electric sites: these have been segmented based on
categories that present a specific level of risk. For example,
office buildings, R&D laboratories, and production factories
each carry a different level of risk. The scope of this review
includes Schneider Electric’s own sites and the ones belonging
to its subsidiaries.
• Suppliers: the level of risk differs based on the type of process
and technologies used, and the Group has therefore segmented
the analysis by component category of purchase. The risk level
is an average assessment. The geographical location is
factored in when selecting suppliers for the audit plan.
• Contractors: when implementing a customer project, such as
building a large electrical system at a customer’s site, Schneider
Electric works with contractors, leveraging their expertise (civil
work, electrical contracting, etc.). This “off-site” project work
bears specific risks for contractors. A separate “off-site and
projects execution” category for contractors has therefore been
defined for the assessment.
• Local communities: Schneider Electric has identified two distinct
segments: communities located around Schneider Electric sites
and communities located around customer project sites.
Communities have been assessed against three risk categories:
human rights, environment, and business ethics.
Risk evaluation and scale
The evaluation combines the probability of occurrence of the risk,
with the seriousness of potential impacts. The risk level displayed in
the matrix is an evaluation before impact of mitigation actions
(“gross risk”). After taking into consideration the impact of these
mitigation actions, the level of risk may be significantly reduced.
However, this “net risk” is not reported in the matrix. Risks are
assessed on the following scale:
0 – Non-existent; 1 – Low; 2 – Medium; 3 – High; 4 – Very high.
In this 2024 risk assessment, no “very high” risks were
identified.
Key findings
The risk matrix built by Schneider Electric gives an overall and
synthetic view of the risks that are present on the vigilance radar
screen. From a global and high-level perspective, the following
risks are the highest:
Human rights
Forced labor, migrant workers
According to the 2021 Global Estimates of Modern Slavery,
approximately 28 million people are estimated to be in forced labor,
a number alarmingly increasing since 2016. 63% of all forced labor
(17 million people) is estimated to be imposed by private actors.
The report estimates that services (excluding domestic work), and
manufacturing are the sectors most exposed, accounting for
respectively 32% and 19% of total forced labor. The report also
identifies that for manufacturing, most forced labor cases occur in
production in the lower tiers of domestic or global supply chains.
This analysis shows that there could be risks of forced labor in the
lower tiers of Schneider Electric’s supply chain, especially for
migrant workers. Although cases have not been identified during
internal or supplier audits, Schneider Electric is committed to
further investigate and better mitigate this risk.
Working hours, mental health
The second category of risk in this section is linked to long working
hours, work pressure and the consequent psycho-social and
mental health risks. Here, the risk is rather well captured, both
internally and at suppliers and contractor’s place of operations.
Following the COVID year, this risk has been increasing in a rather
regular way. However, the set of actions deployed to reduce its
negative impacts has also been enlarged, especially within
Schneider Electric’s own operations.
Environment
Carbon emissions and climate
Among the different items in this section, CO2 emissions and their
consequence on climate warming are the highest risk. For several
years now, Schneider Electric has been measuring its carbon
footprint in Scopes 1, 2, and 3, and now has a detailed, more
accurate view of this footprint. Schneider Electric’s total carbon
emissions (56 million tons in 2024) are mostly originating from
Scope 3, with 86% coming from downstream usage (emissions at
customer’s operations) and 14% coming from upstream suppliers
(raw materials and suppliers’ operations), while the Company’s own
operations are very low in carbon emissions (<1%). As described
later in this chapter, the challenge of GHG emissions and climate
change remains significant and the pace of actions needs to
be sustained to converge towards the Group’s target to reach
Net-Zero emissions by 2025, as per Schneider Electrics’s
public commitment.
Pollution and water use from raw materials
extraction or transformation
Pollution and water-related risks are difficult to evaluate precisely
in the supply chain, as they are most likely to occur at sites far
upstream, during raw material extraction and transformation, which
makes data difficult to obtain. Obtaining precise information for
suppliers operating far upstream is challenging and will take time.
However, pollution and water usage from industries involved in
materials extraction or transformation could have significant
impact on water, biodiversity or local communities.
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A specific study of a list of raw materials, such as copper, has
started to better understand the impact of these industries, so
that their risks can be further apprehended in the risk mapping
exercise. As a precautionary approach, Schneider Electric is
accelerating its policy of reusing, recycling, and expanding product
life span to limit the consumption of raw materials, and thereby
potential associated risks. The Company is also progressing well
on its Schneider Sustainability Impact (SSI) #4 objective to use
50% green materials in its products by 2025, which focuses on
steel, aluminum and plastics.
Ethical business conduct
Risks linked to Ethical Business Conduct are the subject of
particular attention by the Group. Schneider Electric is exposed
to this type of risk due to several factors. First, its geographical
presence in countries exposed to corruption. This is especially
true when managing large and complex projects including
subcontractors. Specific caution and stringent rules are applied,
particularly when dealing with public authority or agents. Second,
geopolitical tensions have significantly increased the number of
sanctions and export control rules. Several actions were
implemented to raise awareness and tighten control, both internally
and with external commercial partners. Finally, Schneider Electric
is aware that tensions on suppliers of certain raw materials may
increase risks of unethical business conduct in the procurement
chain. This risk is more difficult to mitigate, especially as the
procurement of such materials is often not done by Schneider
Electric but by suppliers. However, Schneider Electric is taking this
subject seriously and is striving to develop better understanding
and control across its supply chain.
Local communities
One last category of risks to mention is the local communities.
Although Schneider Electric is not often operating in an
environment where its presence is having a significant impact on
communities (both through its direct operations or that of its
suppliers), it may happen that customer projects may be located in
sensitive environments. Therefore, Schneider has started a review
of its main projects to better identify the type of risk that may arise,
and the possible mitigations. As mentioned in the “pollution from
raw materials” section, the extraction and processing phases of the
metals used by Schneider Electric may have negative impacts on
local communities.
Offer safety and cybersecurity
Schneider Electric’s offers of products, solutions, services, and
software allow customers to pilot their operations with efficiency
and productivity, and to optimize their energy consumption, hence
their carbon footprint. These offers are highly digital, and often
related to the core of the customer’s process, for example a factory,
a chemical plant, a power generation plant, or an office building.
Therefore, any breach or event with cybersecurity may have
important consequences for customers, from a material or safety
and security perspective. For this reason, cybersecurity is on the
top of Schneider’s agenda, not only from a vigilance point of view,
but also from a strategic point of view. As this topic is highly
technical, we invite the reader to refer to the Universal Registration
Document (URD) dedicated section, as well as the specialized
reports available on Schneider Electric’s website.
Comparison of the 2024 analysis with 2023
In 2024, to converge towards the requirements of the CSRD, the
risk analysis performed has further detailed two dimensions:
severity and likelihood. The calculation of the matrix has therefore
been improved, leading to slight modifications in the ratings of
certain scores, although these risks have not fundamentally
changed compared to last year.
Yet, following items have evolved:
• In the Decent Workplace section, the level of Human Rights
risks for Migrant Workers was revaluated in 2023, as a
consequence of the increased migration flows. The origins
of these displacements are multiple, from climate change to
conflicts or economic hardship. They are not a consequence
of Schneider Electric’s policies. However, Schneider Electric,
like other companies, is confronted by that reality. In 2024,
following the reevaluation, this risk remains a top priority.
• Psycho-social risks remain high as a result of a complex
business environment and the pressure it entails. This is having
consequences on employee well-being and mental health and
Schneider Electric has deepened its actions to prevent such
risks. Fighting all types of harassment has been the object of
specific programs for several years, including awareness
actions, a Speak Up program and a reinforcement of the alert
system Trust Line. Over the last two years, the analysis of data
from the alert system and other alternative tools such as
Workers Voice have allowed a much better qualification of the
risk level, mainly on sexual harassment and work harassment.
The granularity of the findings will lead us in 2025 to perform two
specific assessments, one for sexual harassment and the other
for worker harassment, as likelihood and severity differ
significantly between the two. Schneider Electric’s efforts and
commitments on these topics will remain unchanged.
• Globally in 2024, the overall business ethics risk remains
unchanged from 2023. Export control laws derived from
sanctions have made the environment more complex for
business, calling for extra caution when selecting partners or
customers in sensitive areas. As for raw materials, the situation in
2024 remains consistent with what was experienced last years.
• Schneider Electric keeps a top focus on cybersecurity and data
privacy as the level of external threat remains very high. Several
events and attacks occurred and confirmed the necessity to
maintain a very proactive and strong posture that allows to
protect employees, customers, and stakeholders.
• In 2024, extreme weather events like droughts and floodings
have emphasized the need to protect water ecosystems.
Although Schneider Electric is not a massive user of water in
its operations, a specific attention is given to water quality and
consumption level, both on own premises and through the
solution that the Group provides to water utilities and users.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
German Law on Supply Chain Due Diligence
(Lieferkettensorgfaltspflichtengesetz – LFKSG): Schneider Electric
has significant operations in Germany and is subject to the
vigilance law implemented in 2023. In 2024, several actions were
taken to fully comply to the German law, such as full disclosure to
the BAFA authority and the implementation of several trainings and
education actions to Schneider Electric employees, suppliers and
customers. Several trainings and education actions to Schneider
employees, suppliers and customers were also undertaken. No
specific challenge nor request for clarifications were received from
the authorities and German government.
Schneider Electric 2024 vigilance risk matrix
The risk matrix below summarizes Schneider Electric’s risk analysis:
Very high risk
High risk
Medium risk
Low risk
Schneider Electric sites
Suppliers
Contractors
Communities
Offices
Travelers, sales forces
Factories low voltage and electronics
Factories medium voltage
Project centers
Field services
Travels and hospitality
Transportation and shipping
Raw materials
Metal transformation and treatment
Plastics
Batteries
Other components
On Schneider Electric sites
Off site and projects execution
Around Schneider Electric sites
Around customer’s project sites
Human rights
Decent workplace
Health and Safety
Environment
Pollution and
specific substances
management
Waste, water, and
circularity
Energy CO2 and GHG
Business
ethics
Ethical business
conduct
Alert system,
protection and,
non-retaliation
Offer safety
and
cybersecurity
Offer safety
Cybersecurity and
data privacy
Governance
The plan is governed by the Duty of Vigilance Committee, set up
in 2017. The steering committee meets twice a year in normal
circumstances. Overall, since its inception, 19 Committee meetings
have been held. The Committee’s objective is to provide a
discussion on strategic orientation and prioritize initiatives and the
resources allocated to their implementation. This Committee also
reviews the actions in progress and their results and defines
decisions on next steps for action.
Composition of the Duty of Vigilance Committee
Chairman:
• Executive Vice-President, Global Supply Chain (Executive
Committee member)
Management:
• Global Duty of Vigilance Group coordinator
• Duty of Vigilance Coordinator for German Law Deployment
• Senior Vice-President (SVP), Sustainability
• SVP, Corporate Citizenship
• SVP, Global Safety and Environment
• SVP, Global Procurement
• SVP Sustainable Supply Chain & Safety
• SVP, Global Customer Projects
• SVP, Human Resources
• SVP, Ethics and Compliance
Experts:
• Environment Performance Measurement
• Sustainable Procurement
• Human Rights
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Group policy
The Group has designed a Vigilance plan that covers all areas
specified by the United Nations (UN) Guiding Principles on
Business and Human Rights, Organisation for Economic
Co-operation and Development (OECD), International Labour
Organisation (ILO) and by the existing hard laws (2017 French Law,
UK and Australia Modern Slavery Acts, 2023 German Law, etc.).
This plan is also fully consistent with human rights major actions
included in Schneider Electric’s Decent Work program.
The ambition of the Vigilance plan is to be at the forefront of
all these important topics, and from one single corporate
program, being able to answer the different requests from all
laws and regulations.
Actions and resources
The following measures are the main actions implemented to mitigate the highest risks identified in the vigilance risk matrix.
Key Topics
Risk Categories
Policies Implemented and Mitigation Actions
Pages
Schneider Electric sites
Human rights
Decent workplace
See section 2.2.3.1 “Great people make Schneider Electric a great company (ESRS S1)”
for more details on the deployment of decent working conditions, health, safety, and
human rights actions on Schneider Electric sites and section 2.2.3.2.2 “Policy framework
guiding sustainability in the value chain – Human Rights Policy”. It covers, notably:
• Schneider Electric’s employees’ safety;
• Human rights and people development policies;
• Well-being programs.
(i) page 203;
(ii) page 237
Health and Safety
Environment
Pollution and specific
substances management
See section 2.2.2 “Environmental information” for more details on the deployment of
environmental actions on Schneider’s sites. It covers, notably:
• Certification of its sites to ISO standards;
• Schneider Electric specific programs to reduce CO2 emissions;
• Reduction of SF6 emissions;
• Schneider Energy Action program for energy efficiency;
• Reduction of waste and increased circularity.
page 125
Waste and circularity
Energy CO2 and GHG
Business
ethics
Ethical business conduct
See (i) section 2.2.1.1.3 “Trust with stakeholder” and (ii) section 2.2.4.1 “Zero-tolerance
for corruption” for more details on the deployment of business ethics actions on
Schneider Electric sites. It covers, notably:
• Internal and external alert systems;
• Third-party relationship management;
• Specific Anti-Corruption actions.
(i) page 102;
(ii) page 258
Alert system, protection,
and non-retaliation
Offer safety
Offer safety
See section 2.2.3.4.1 “Personal safety of consumers and end-users” for more details on
the deployment of offer safety actions. It covers, notably:
• Sustainability Quality Excellence;
• Reliability.
page 251
Cybersecurity
and data
privacy
Cybersecurity
See (i) section 2.2.3.4.1.2 “Data Privacy” and (ii) “2.2.4.3 Cybersecurity” for more details
on the deployment of data privacy and cybersecurity actions. It covers, notably:
• Cybersecurity by design approach;
• Personal data protection;
• Training and awareness on cybersecurity.
(i) page 255;
(ii) page 267
Data privacy
Suppliers
Suppliers
Supplier vigilance
See section 2.2.3.2 “Sustainable relations in the value chain” for more details on the
deployment of actions towards Schneider Electric’s suppliers. It covers notably:
• Decent Work program for strategic suppliers;
• Vigilance plan for suppliers;
page 236
Subcontractors
Sub-
contractors
Subcontractors vigilance
See section 2.2.3.2.5 “Vigilance Plan for suppliers and contractors” for more details on
the deployment of actions towards Schneider Electric’s subcontractors (or solution
suppliers). It covers notably:
• Vigilance plan for project contractors.
page 240
Local communities
Local
communities
Around Schneider Electric
sites
See section 2.2.3.3 “Ethical relations with affected communities” for more details on the
deployment of health, safety, and human rights actions around Schneider Electric and
customer projects sites. It covers, notably:
• Risk mitigation around Schneider Electric sites;
• Risk mitigation around customer project sites;
• Integration of ESG into the project decision making.
page 246
Around customer project
sites
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Enterprise Risk Management
Schneider Electric is committed to managing risks in a proactive
and systematic manner to increase resiliency, guided by the
following principles:
• Increasing Risk Maturity by monitoring and reviewing risks on
an ongoing basis to understand its risk maturity and the
effectiveness of mitigation strategies.
• Reducing Risk Exposure by developing and implementing
strategies to mitigate or eliminate identified risks.
• Containing Incidents with a focus on protecting lives, minimizing
negative impact to assets, sustaining critical operations, and
continuously improving from its investigative findings.
• Manage Controversies involving the legal and communication
teams, to ensure financial and reputational impacts are limited
and that controversies are dealt with in an ethical way.
The Group uses a hybrid risk management model. It means that
while there is a Group Risk Management function and experts in
charge of setting risk management mechanisms, establishing
policies, and other activities, ownership of the risks belongs to the
business units, Operating Divisions, or global functions who are
responsible for deploying the central framework to manage
their risks.
The Enterprise Risk Management (ERM) framework, consisting of
specific methodologies and processes to identify, assess, and
mitigate risks, is deployed across the organization by the Group
Risk Management department, ensuring a systemized approach to
addressing risks.
Schneider Electric’s risk assessment approach involves identifying,
analyzing, and evaluating potential risks to the organization. This
includes assessing the likelihood and impact of each risk, prioritizing
them, and implementing strategies to manage and mitigate these
risks effectively. The aim is to proactively address challenges and
uncertainties to support the Company’s overall objective. The key
risks are assessed in terms of potential impact for the Group.
The Group’s relies on three types of assessments:
• Zone or country risk reviews, where the leadership team and
risk owners review the top risks affecting their territory and
legal entities, as well as the mitigation in place.
• Function or risk category reviews, where the leadership team
and Risk Overseers review the risks affecting their domain of
expertise, as well as the mitigation they put in place.
• Leadership risk assessment, also called risk matrix, where the
leadership team is interviewed about the full Group risk
universe, to gain an understanding of the perception of the risk
exposure and level of mitigation.
Additionally, the Internal Audit and Internal Control departments
perform consolidated reviews and audits aiming, in particular, to
assess the internal control framework and risk management
system effectiveness.
The agenda of the Audit & Risks Committee includes once a year
dedicated sessions to review in depth the risk matrix, ERM and
internal control. The internal audit results are reviewed three times
per year by the Audit & Risks Committee. The Audit & Risks
Committee reports systematically to the Board of Directors on
its work.
Read more about the principal risks, mitigation
strategies, and more details on the risk management
framework in Chapter 3 of this Universal Registration
Document.
The data gathered through the Vigilance plan matrix and the
Enterprise Risk Management framework serve as primary sources
for conducting the double materiality assessment. In order to
enable Schneider Electric to respond effectively to CSRD
requirements, the Group has aligned data collection mechanisms
and addressed identified Risk Taxonomy gaps.
2.2.1.2.2 Double materiality
assessment
Schneider Electric carried out a double materiality analysis based
on the guidance provided by EFRAG and the ESRS considering an
inside-out perspective (impact materiality), meaning the actual and
potential impacts the Group has on society and the environment; as
well as the outside-in perspective (financial materiality), which
refers to the financial risks and opportunities Schneider Electric is
exposed to. The work performed covers ESG topics addressed by
the standards, as well as additional topics that are significant to
Schneider Electric’s context. The assessment was conducted
considering Schneider Electric and its value chain, as well as the
stakeholders that may be affected by the Group’s activities, directly
and indirectly. To manage the double materiality assessment,
a steering committee was established with leaders from
sustainability, financial reporting, risk management, and vigilance
teams. Throughout the process, to assess material impacts, risks,
and opportunities, several review meetings were held with the
Committee to gather feedback and define next steps. A CSRD
Committee was also put in place with top management to provide
periodic progress reports on the assessment. In addition, review
sessions were conducted with several representatives of
stakeholder groups to present and evaluate the results of the
exercise. The final results of the double materiality assessment
were validated by the Executive Committee, then reviewed and
approved by the Audit & Risk Committee and the Governance,
Nominations & Sustainability Committee.
The processes presented in this section for identifying, assessing,
and managing impacts, risks and opportunities are key parts of the
management framework of the Group, playing a crucial role in
evaluating the overall risk profile and informing strategic decisions.
Together they allow Schneider Electric to effectively manage risks
across all levels of the organization. As such, Schneider Electric’s
strategy and business model are informed by these annual
assessments of impacts, risks and opportunities, along with
the resulting double materiality assessment.
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Methodology
The main sources used to conduct the impacts and risks
identification and assessment were the Vigilance plan matrix and
the Enterprise Risk Management (ERM) process. Given that these
exercises are thorough assessments which refer to expert studies
and consult internal stakeholders about the relevance of a variety
of topics to the Group, they formed the foundation of the analysis.
More concretely, the Vigilance plan matrix was assessed as
suitable to score impact materiality, as it focuses on the impacts of
the Group on people and the environment. While the ERM
assessment was determined as adequate to evaluate mainly
financial materiality, as it provides insight into the risk exposure of
the Group activities from a business perspective. Complementary
workshop sessions with internal subject matter experts were
conducted to review, adjust, and validate the existing evaluation
of IROs (Impacts, Risks and Opportunities).
In addition, to complete the assessment other internal and external
sources at country and sector level were leveraged, including the
2020 Schneider Electric materiality matrix, peers’ benchmarks, and
various other climate, water, biodiversity, and suppliers’ analyses.
As well, a new stakeholder consultation process to review and
validate the materiality level of sustainability topics for the Group
from both financial and impact perspectives.
Vigilance plan
Schneider Electric’s Vigilance plan matrix targets to identify and
assess the adverse impacts on its ecosystem. The scope of the
assessment extends to Schneider Electric’s operational sphere and
value chain, including suppliers and contractors. The Group has
meticulously identified a wide array of potential impacts primarily
relying on the Responsible Business Alliance (RBA) consortium,
initially numbering over 60, across various operational areas. Each
area carries a unique risk profile calling for a tailored approach to
evaluation, with varying levels of risk which consider probability of
occurrence and magnitude of impact (ranging from very low to very
high). Read more on the assessment of impacts through risk
categories, risk locations, main findings, and details about
Schneider Electric’s Vigilance plan in section 2.2.1.2.1 on page 109.
The Group used the Vigilance plan matrix to evaluate impact
materiality by comparing through workshops with subject matter
experts the existing evaluation of each impact to the severity
criteria outlined by the ESRS (scale, scope, and irremediable
character for negative impacts; scale and scope for positive
impacts) and likelihood of occurrence, and adjusting its relative
assessment score as necessary.
Enterprise Risk Management
Schneider Electric’s Risk Management framework considers the
Group’s dependencies, as well as impacts, on the use of natural,
human, and social resources to determine several of the risk
categories included in the Enterprise Risk Management process.
The risks identified are ranked by a risk score, which combines the
probability of occurrence over a three-to five-year period (ranging
from improbable to probable) with the magnitude of the potential
effects to determine the level of risk which the Group is exposed to
(ranging from very low to high). This gross risk assessment is made
prior to the effect of any mitigation actions, and although mitigation
actions can significantly reduce the level of risk, the resulting net
risk was not considered for the double materiality assessment.
This ERM exercise initially considers all types of business risks,
however for the double materiality assessment, only those risks
related to sustainably matters are prioritized. Read more details
on Schneider Electric’s ERM in Chapter 3 of this Universal
Registration Document.
As part of its double materiality analysis, Schneider Electric used
the ERM results to evaluate financial materiality by comparing the
assessment of each risk to severity criteria which reflect the
potential magnitude of financial effects and are categorized into
three areas (financial, reputational, and market effect), and
measured in four levels (from weak to strategic).
Megatrends and driving trends analysis
The Group leveraged the in-house megatrends and driving trends
analysis to identify opportunities as part of the double materiality
analysis. This analysis provides Schneider Electric with global
strategy and sustainability trends that are the most relevant to the
Group’s business over the next decade, providing a relevant
overview of potential opportunities related to sustainability and ESG
topics for Schneider Electric. The identified opportunities were
additionally discussed and evaluated in the additional workshop
sessions conducted with subject matter experts.
Read more details on Schneider Electric’s megatrends
and driving trends analysis in section 1.2 of Chapter 1.
Impacts, risks, and opportunities
assessment
In addition to the Vigilance plan matrix and the ERM framework,
Schneider Electric leveraged multiple existing and ongoing
assessments to evaluate the materiality of topical impacts, risks,
and opportunities.
To understand sources of GHG emissions, the Group performed a
complete review of its activities as well as of its supply chain. Also
included were the physical-risk assessments conducted on the
most critical industrial sites for loss prevention, with strategic
updates to the Group’s risk profiles and adaptation measures to
mitigate these risks. Schneider Electric’s assessments are based
on Intergovernmental Panel on Climate Change (IPCC) scenarios
(Representation Concentration Pathway (RCPs) and Shared
Socioeconomic Pathways (SSPs) and hence include short-,
medium-, and long-term time horizons, account for different
emission pathways, ranging from a 1.5°C to a greater than 4°C
temperature rise by the year 2100. The analysis performed with the
IPCC scenarios allows to consider the likelihood, magnitude, and
duration of the hazards. In addition, the Group’s supply chain is
also considered by collaborating closely with suppliers to integrate
sustainability risks, including natural and climate-related hazards,
into the supplier risk assessment. Through the double materiality
assessment of climate-related transition risks and opportunities
within its own operation and along the value chain, Schneider
Electric has identified several transition events and assessed their
potential impact on the Group’s operations, considering the
likelihood, magnitude, and duration of these events.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Further along in the process, the Group’s main sites have been
considered as locations where pollution could be an important
issue. To screen this, Schneider Electric has undertaken a
comprehensive vigilance risk assessment focusing on the 30
largest sites within its operations. This assessment was designed
to evaluate the potential impacts on affected communities and on
the environment surrounding these sites. The Group’s findings
indicated that the level of risk to affected communities and on
the environment was “low” for most sites. Nonetheless, as its
manufacturing and service activities may be associated with
other material impacts, risks, and opportunities, the Group has
implemented a Vigilance plan for suppliers, which requires
an annual risk evaluation of the entire supply base. This
comprehensive evaluation encompasses sustainability risks and
specific parameters such as suppliers’ industrial processes,
technology, and geographic location. A third-party independent
database that employs the RBA methodology has also been
utilized since January 2018 to complement the analysis. No direct
consultation was conducted with communities on pollution issues,
however, stakeholder representative consultations performed in
2024 validated the results of the assessment as non-material.
Schneider Electric additionally screens its assets and activities
for water and marine resources–related impacts, risks, and
opportunities using a structured process. This includes ISO
14001-certified environmental risk analysis at main sites, the World
Resource Institute (WRI) Aqueduct Water Risk Atlas Tool for
identifying water-stressed sites, and the Property Damage and
Business Interruption process for extreme weather risks. The
company also assessed its Corporate water footprint across the
value chain, identifying significant water use in raw materials and
product use phases. These methodologies ensure comprehensive
identification and mitigation of water-related risks and
opportunities, with the Group mainly focusing on water
conservation in the identified water-stressed areas. No direct
consultations with affected communities on water and marine
resources were conducted, however, stakeholder representative
consultations were performed in 2024, validating the results of the
double materiality assessment.
The non-materiality of water and exclusion of marine resources
from the double materiality assessment were presented during
these consultations, with no disagreements from the
representatives.
Read more information about Schneider Electric’s
targets and approach to Water in sections 2.1.1.2 on
page 71 and 2.3.1.1.2 on page 284.
To identify and assess impacts on biodiversity and ecosystems
at its own sites and throughout its value chain Schneider Electric
has implemented a comprehensive process. Using the Global
Biodiversity Score tool, the Company conducted a biodiversity
footprint assessment (BFA) in 2020 and 2023 to scope its value
chain, which scopes its value chain including upstream processing
and raw material extraction, own operations, and downstream
GHG emissions to identify potential impacts and dependencies on
biodiversity and ecosystems. Revealing key hotspots and impacts
mainly from land use and climate change, which guide Schneider
Electric’s biodiversity commitments and actions to mitigate those
impacts. In addition, the Company used the Integrated Biodiversity
Assessment Tool (IBAT) to understand site-specific proximity to
biodiversity sensitive areas. In 2021, the results of the IBAT
Multi-site Report included all Schneider Electric sites and showed
that, within a 1-kilometer radius 21% of the Group’s sites were in
proximity of a protected area as defined by the IUCN (International
Union for Conservation of Nature). Among the sites in proximity of
a protected area, 33% are either industrial sites or distribution
centers; the remaining 66% are office buildings. As per Schneider
Electric’s approach to ISO 14001 to mitigate environmental
industrial sites, all sites are monitored via ISO 14001. Schneider
Electric’s sites are mainly located in urban or industrial areas; none
of the Group’s businesses involve extraction or land farming.
Therefore, not generating significant deterioration or disturbance
of the identified sensitive biodiversity areas. Furthermore, the
Group has evaluated climate transition and physical risks and
opportunities as part of its sustainability strategy; this assessment
used scenario-based analysis and a digital twin to quantify these
risks. Considering the potential to present systemic risks,
Schneider Electric also includes biodiversity and ecosystem
services in its Vigilance plan and ERM framework, with ongoing
efforts to develop mitigation approaches to combat climate
change. Internal and external stakeholder consultations are also
performed every three to five years, with the last in 2024; no
direct consultations were conducted with affected communities
on biodiversity and ecosystems, however, the stakeholder
representative consultations performed in 2024 validated the
results of the double materiality assessment.
Despite the non-materiality of biodiversity and ecosystems,
Schneider Electric remains committed to their protection and
restoration. The Group committed to achieving no net biodiversity
loss in its operations by 2030. This goal is supported by five
actionable commitments under the act4nature international pledge.
Read more information about Schneider Electric’s
targets and approach to Biodiversity in sections 2.1.1.2
on page 71 and 2.3.1.1.1 on page 282.
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To evaluate resource use and circular economy, numerous insights
were leveraged through the constant bottom-up communication
between on-site teams and internal experts. Material impacts, risks,
and opportunities related to the topic were identified through the
application of circular economy strategies which require the
consideration of the value chain, such as Schneider Electric’s
Waste-to-Resource program, through which sites are encouraged
to work collaboratively within their internal supply chains, alongside
external suppliers and waste management providers, to find
innovative solutions to optimize resource use. Similarly, insights are
constantly gathered by sales teams who identify opportunities of
improvement in terms of resource use optimization. No direct
consultations with affected communities on resource use and
circular economy have been conducted, however, stakeholder
representative consultations were performed in 2024, validating
the materiality of resource inflows and outflows, as well as the
non-materiality of waste.
In the social dimension, through the Vigilance plan matrix the
Group’s own workforce and value chain are shown to be exposed
to risks associated mainly with working conditions, while the
absence of dialogue can exacerbate issues, leading to strikes,
productivity loss, and reputational damage. Significant risks and
opportunities were identified in line with the Group’s necessity to
attract, develop, and retain talent with critical skills, which is a
cornerstone of Schneider Electric’s strategy and business model.
As the Group navigates global expansion and digital
transformation, it is dependent on establishing ideal working
conditions to secure top talent in technology, software, services,
sustainability, supply chain, and electronics. Similarly, diversity,
equity, and inclusion are prioritized as the Group aims to provide
equal opportunities across its workforce, committed to fostering
an environment where equal treatment is not just a policy, but a
practice. This commitment also extends to address working
conditions, which can result in significant reputational and legal
impacts, as well as affect the Group’s ability to maintain a top-
quality workforce if not properly managed.
Furthermore, the Group has conscientiously carried out a risk
assessment to evaluate the impacts and risks arising from its
impacts and dependencies on communities. This evaluation was
conducted for the top 30 Schneider Electric sites worldwide and
a selection of 40 customer projects. The Group has identified that
certain risks are more likely to relate to specific groups of affected
communities rather than to all communities uniformly, such as
communities near industrial sites or near administrative sites, and
communities living in areas impacted by the development of large
and very large projects.
In relation to the end-users of Schneider Electric’s solutions, the
Vigilance plan matrix points to the significance of consumers’
safety and data privacy given the Group’s offer of industrial and
digital solutions. If not properly managed, the use of Schneider
Electric’s solutions could result in physical harm, property damage,
or leaks of sensitive information.
Through the Group’s Vigilance plan matrix, ERM framework, and
additional workshops with subject matter experts, various impacts,
risk and opportunities were identified and evaluated as material in
relation to the governance topic. The potential impact on Schneider
Electric’s suppliers, as well as the financial risks of corruption and
bribery cases were underlined as critical. The Group added
cybersecurity as an additional sustainability matter given the
major negative impacts that could results from the risk of
security breaches.
Scoring
To assess impact and financial materiality, the existing scores from
the Vigilance plan matrix and the ERM were extracted and
leveraged as the basis of assessment. Afterwards, workshops
were organized with subject matter experts to review and adjust
as necessary the assessment of impacts, risks and opportunities.
The workshops were also used to score items which did not have
a corresponding evaluation in Vigilance plan matrix or in the ERM;
by using scoring scales to assess impact and financial severity
(evaluated with four risk levels) and likelihood (evaluated from
improbable to probable), the Group’s experts performed a
separate evaluation of additional impacts, risks and opportunities.
To determine final materiality, a threshold was set at the high-risk
mark according to the severity and likelihood of occurrence of
related impacts, risks and opportunities. After an iterative process
to define the most appropriate threshold, the high-risk level was
selected given that it reflects the most critical topics to the Group
from a strategic point of view aligned with business transition
objectives. Subject matter experts were finally consulted in a
second round to verify the results of the double materiality
assessment; adjustments were implemented according to their
remarks if necessary.
Stakeholder engagement
Considering that various stakeholders are involved in the
assessments previously outlined, a direct stakeholder consultation
process was performed as the final phase of the double materiality
assessment, with the purpose of presenting the results to affected
stakeholder groups and gathering their feedback, to then validate
or adjust the results as necessary. The consultation was performed
through workshops with four external and one internal stakeholder
group representatives in two steps: first, a general discussion
about the most critical sustainability topics they envision for the
Group and their expectations on how those priorities should be
addressed, followed by the presentation of the double materiality
assessment results, with comments, questions, and feedback from
the representatives. The topic of “forced labor in the value chain”
was the only one that resulted in various discussions about the
uncertainties in evaluating the matter, increasing its awareness
within the Group.
Based on the stakeholder consultation process, Schneider Electric
was able to verify the materiality results for the sustainability
matters along with its identified impacts, risks and opportunities.
As validated by the stakeholder representatives, the double
materiality assessment is an exercise with continuous improvement
for which the Group plans to further investigate the potential
impacts, risks and opportunities in its value chain, as well as
update the leveraged analyses according to business and
market changes.
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2.2 Sustainability statements
Double materiality assessment results
The following matrix presents the resulting material sustainability matters for Schneider Electric aggregated at the appropriate level
of relevance for the Group.
Materiality matrix
Impact Materiality
High
16
17
18
19
5
6
8
7
9
11
12
10
13
14
15
1
2
Environmental
Social
Governance
Materiality threshold
Middle
27
28
25
20
21
3
Low
31
32
29
30
22
23
24
Very low
34
35
36
33
26
4
Very low
Low
Middle
High
Financial Materiality
Sustainability Matters
1 Energy
2 Climate change mitigation
3 Corruption and Bribery
4 Climate change adaptation
5 Health and safety (VC)
6 Working conditions
7 Working conditions (VC)
8 Affected communities’ rights
9 Cybersecurity
10 Personal safety of consumers
11 Training and skills development
12 Data privacy
13 Substances of concern
14 Equal treatment and opportunities for all
15 Forced labor (VC)
16 Health and safety
17 Resource inflows
18 Resource outflows
19 Management of relationships with suppliers
20 Direct impact drivers of biodiversity loss
21 Protection of whistle-blowers
22 Forced labor
23 Political engagement and lobbying activities
24 Corporate culture
25 Equal treatment and opportunities for all (VC)
26 Illegal and undeclared work
27 Pollution of soil
28 Pollution of water
29 Social inclusion of consumers and end-users
30 Child labor (VC)
31 Water
32 Waste
33 Child labor
34 Pollution of air
35 Impacts and dependencies on ecosystem services
36 Microplastics
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E S R S 2
Material sustainability impacts, risks and opportunities
The table below presents the material impacts, risk and opportunities for Schneider Electric. The Group’s approach to sustainability
is characterized by a forward-looking perspective. Hence, all the following impacts, risks and opportunities were evaluated, and are
expected, in the short- (current) and medium- term (<5 years). Furthermore, the long- term was evaluated, and is expected, in areas where
the Group foresees a significant market change differentiated from what is expected in the medium term. Such is the case for all impacts,
risks and opportunities under climate change adaptation, climate change mitigation, energy, resources inflows including resource use, and
resource outflows related to products and services. These time horizons have been defined as per ESRS 1, paragraph 6.4 Definition of
short-, medium- and long-term for reporting purposes.
Environment
Sustainability Matter
Type of IRO
Description
Climate change
adaptation
Financial Risk
Business disruption and asset damage in own operations and over the value chain:
Climate change is increasing the frequency and intensity of extreme weather events exposing the
Company to potential revenue losses and over costs due to business discontinuity and asset damages
in own sites or over the value chain.
Financial Risk
Failure to adapt to climate-transition market and technology changes:
New development expenditure, technical and economic resources.
Financial Opportunity
Help customers adapt to climate change:
Building HVAC (heating, ventilation and air-conditioning), data centers energy efficiency, weather-
resistant buildings, emergency weather warning systems, desalination and filtration systems, and
weatherized electrical equipment.
Climate change
mitigation
Negative Impact
(Actual)
Accelerate climate change through greenhouse gas emissions:
The majority of Schneider Electric’s GHG (greenhouse gas) emissions come from the use of sold
products, the purchased goods and services, and the end-of-life emissions from sold products.
Positive Impact
(Actual)
Contribute to climate change mitigation through solutions related to energy efficiency,
electrification, and renewable energy production:
Schneider Electric’s portfolio of offers is uniquely positioned to help mitigate climate change, by
reducing GHG emissions through energy efficiency, electrification, and renewable energy productions
These offers are integrated digitally, which fosters a higher mitigation potential.
Financial Opportunity
Develop new solutions to help customers and value chain use their energy and resources
more efficiently:
Climate change is one of the key mega-trends that underpin Schneider Electric’s strategy. For climate
change mitigation, Schneider Electric can help customers become more energy efficient, electrify their
operations, as well as explore new concepts, including carbon capture, utilization, and storage (CCUS),
electrification of mobility and heating.
Energy
Positive Impact
(Actual)
Generate energy savings:
By accelerating the switching to digital, smarter, and more efficient consumption through Schneider
Electric products and services.
Positive Impact
(Actual)
Decarbonize market and value chain:
By electrifying energy consumption in line with a greener electricity mix through Schneider Electric
products and services.
Financial Opportunity
Develop new businesses related to renewable energy and energy efficiency:
The energy transition is one of the key mega-trends that underpin Schneider Electric strategy.
Schneider Electric can help customers become more energy efficient, electrify their operations, as well
as explore new power generation concepts, including hydrogen, microgrid, nuclear, and prosumerism.
Substances
of concern and
very high concern
Negative Impact
(Actual)
Threaten human health and/or the environment by using hazardous substances:
Like most manufacturing companies, Schneider Electric’s products portfolio is concerned by
substances of very high concern (SVHCs) and substances of concern (SoCs) with, for instance,
the presence of lead in some metallic alloys, brominated flame retardants in PCBs, cobalt in surface
treatments, per- and polyfluoroalkyl (PFAS) substances in various parts. With a protective willingness,
Schneider Electric applies the most advanced chemical restrictions on a worldwide basis and
communicates on the presence of Substances of Very High Concern (SVHC) in the entire
product portfolio.
Resources inflows,
including resource
use
Negative Impact
(Actual)
Contribute to scarcity of resources through use of critical materials:
Schneider Electric is dependent on certain conflict minerals/metals for its products or in manufacturing,
such as the 3TG, copper, cobalt, coltan, mica, lithium, cerium, and erbium.
Positive Impact
(Actual)
Incentivize suppliers to provide green materials:
Objective to increase content of green materials in Schneider Electric’s products (thermoplastics, steel,
and aluminum) as part of the strategy to address climate change, resource depletion, and pollution.
Resource outflows
related to products
and services
Negative Impact
(Actual)
Generate a significant outflow of materials:
Schneider Electric outputs different types of products and packaging which contain materials that need
to be processed, including electronics, semi-conductors, transformers, and batteries. Those products
and packaging have an impact on the environment, and create the need to improve product durability,
recycling, and circularity.
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2.2 Sustainability statements
Social
Sustainability Matter
Type of IRO
Description
Working conditions
Negative Impact
(Potential)
Affect the mental and physical health of employees:
Poor working conditions (excessive working hours, poor work-life balance, etc.) may emerge in any kind
of workplace if a comprehensive human resource strategy is not in place, and can result in psycho-
social risks, absenteeism increase, and injured workers.
Health and safety
Negative Impact
(Actual)
Damage the physical integrity of employees:
The main potential risks of the industrial sector are connected to the Top 5 Hazards: falls, powered
industrial trucks (PIT), machine, road, electrical.
Equal treatment and
opportunities for all
Positive Impact
(Potential)
Improve employees’ well-being and feeling of belonging:
The Group’s strategy is to foster a diverse and inclusive workplace to create a feeling of belonging,
where they feel included, respected, and cared for.
Training and skills
development
Positive Impact
(Potential)
Improve employability of employees:
Resulting from the Group’s human capital strategy to continuously develop the skills of its workforce.
Working conditions
(in the value chain)
Negative Impact
(Potential)
Affect the mental and physical health of value chain workers:
If overlooked by management, excess overtime and low wages contribute to declining physical and
mental health of workers in the value chain and can lead to forced labor in the value chain.
Negative Impact
(Potential)
Risk detriment to physical health of value chain workers (injuries, diseases, or death):
Exposure to long working hours is the number one risk factor leading to death according to the
International Labour Organization (ILO) Call for Safer and Healthier Working Environment.
Negative Impact
(Potential)
Risk poor working conditions in the value chain due to lack of dialogue:
If overlooked by management, lack of dialogue between management and employees – and/or their
representatives – might lead to absence of negotiated working conditions or deteriorated work
conditions, with potentially declining physical and mental health, and even business discontinuity
and/or forced labor.
Health and Safety
(in the value chain)
Negative Impact
(Actual)
Damage the physical integrity of workers in the value chain:
Health risks in the value chain mainly related to occupational health and safety (including road
accidents, electrical accidents, accidents related to falls, PIT, machine injuries).
Forced labor
(in the value chain)
Negative Impact
(Potential)
Jeopardize fundamental human rights and damage the physical or psychological integrity of
workers in the value chain:
Without proper vigilance, workers in the value chain of Schneider Electric are at risk of being exposed
to forced labor, resulting in physical harm, psycho-social risks, and violation of human rights.
Affected
communities’ rights
Negative Impact
(Potential)
Violate rights of local communities:
Schneider Electric’s operations in the value chain are at risk of being involved in violation of
communities’ rights, such as: breach on indigenous people right, displacement of population,
potential conflicts over resource use, and denial of basic human rights (e.g., freedom of expression,
freedom of assembly).
Personal safety of
consumers and/or
end-users
Negative Impact
(Actual)
Trigger physical harm or property damage:
The Group’s product usage risks and defaults in implementation may results in physical harm or
property damage, threatening consumers/end-users’ safety.
Data privacy
Negative Impact
(Actual)
Risk private and sensitive information leaks:
In case of a data breach which would impact the Group’s connected products, information about
customers could be compromised. Internet of Things activities may have a critical negative impact
on end-users in case of data breach and data theft.
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E S R S 2
Governance
Sustainability Matter
Type of IRO
Description
Corruption
and bribery
(prevention and
detection including
training, incidents)
and bribery
Financial Risk
Debarment from public tenders or public funds:
In case of corruption and/or bribery cases.
Financial Risk
Potential legal proceeding, prosecutions, sanctions, and fines:
Related to non-compliance with laws and regulations (e.g., French Sapin II law, up to EUR 500 million)
Financial Risk
Reputational damage:
Corruption and bribery cases can lead to negative media exposure and public relations backlash.
Financial Opportunity
Strengthen legal compliance and public reputation.
Financial Opportunity
Reinforce stakeholder engagement and loyalty:
Including customers, partners, suppliers, and local communities.
Management of
relationships with
suppliers including
payment practices
Negative Impact
(Potential)
Compromise suppliers’ financial stability:
If overlooked by management, unfair/unethical payment practices towards suppliers may lead to
financial insolvency as well as poor employee working conditions within suppliers’ workplace.
Cybersecurity
(entity-specific)
Negative Impact
(Potential)
Risk health and safety impacts on people through industrial accidents:
A Schneider Electric product could be used as a vector of entry/attack to IT systems of customers/
partners. A compromise of firmware and software on fields services operations affecting customer
installations can introduce safety risks by disrupting control mechanisms (systemic risk) and lead to
industrial accidents.
Negative Impact
(Potential)
Damage the natural environment through industrial accidents:
A Schneider Electric product could be used as a vector of entry/attack to IT systems of customers/
partners. A compromise of firmware and software on fields services operations affecting customer
installations can introduce environmental risks by disrupting control mechanisms (systemic risk) and
lead to industrial accidents.
Negative Impact
(Actual)
Risk theft of intellectual property and/or customers’ sensitive data:
A Schneider Electric product could be used as a vector of entry/attack to IT systems of customers/
partners or as a vehicle for intellectual property theft and customer data stealing (stand-alone risk).
Even though so far most of the identified material risks and potential negative impacts have not materialized in a substantial manner, the
Group recognizes sustainability is a shifting domain and works to continuously improve and adapt its strategy to maintain a robust business
model. It does so by constantly evaluating its resilience in relation to impacts, risks and opportunities through the various assessments that
have been described previously in this section, such as the ERM framework, Vigilance plan matrix, megatrends and driving trends analysis,
climate scenario analysis, climate risk assessments, biodiversity and water footprint assessments, among others. The effects of these
impacts, risks and opportunities on the Company’s business model and strategy, along with the consequent policies and actions that shape
part of the resilience strategy of the Group, are explained in each related section the sustainability statements. In the past, Schneider
Electric’s transformational programs and strategy have evolved in response to sustainability issues, and will continue to do so, to anticipate
significant changes in the market.
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2.2 Sustainability statements
A S S E T S
• Factories
• Distribution
centers
• R&D centers
• Commercial
offices
15
1
T I E R X
S U P P L I E R S
Others
T I E R 1
S U P P L I E R S
Plastics
T I E R 1
S U P P L I E R S
Metal transformation
& treatment
T I E R 1
S U P P L I E R S
Electronic
component,
batteries
T I E R 1
S U P P L I E R S
Fabricated
components
T I E R 1
S U P P L I E R S
Others
T I E R X
S U P P L I E R S
Raw Materials
UPSTREAM
4
2
8
7
9
11
1
3
Industrial Automation
2
Investors, analysts and
financial partners
NGOs and civil society
12
Local communities
Social partners
SCHNEIDER ELECTRIC OWN OPERATIONS
1
MAIN STAKEHOLDERS
4
5
4
Governments, institutions,
and technical bodies
5
3
W O R K E R S
Employees
B U S I N E S S E S
Energy Management
3
3
2
4
2
2
6
6
5
5
W O R K E R S
Contractors 13
6
6
5
5
2
4
3
P A R T N E R S & C U S T O M E R S
• Distributors
• Other partners (Panel
builders, electricians…)
8
11
7
9
E N D - U S E R S
• Building
• Data centers & Networks
• Infrastructure
• Industry
1
2
14
13
3
18
16
17
DOWNSTREAM
1
1
4
2
Our value chain
The following illustration is a simplified representation of Schneider Electric’s value chain including a mapping
of the material Impacts, Risks and Opportunities.
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E S R S 2
1 Accelerate climate change through greenhouse
gas emissions
2 Threaten human health and/or the environment by
using hazardous substances
3 Contribute to scarcity of resources through use
of critical materials
4 Generate a significant outflow of materials
5 Affect the mental and physical health of employees
related to working conditions
6 Damage the physical integrity of employees through
health and safety issues
7 Affect the mental and physical health of value chain
workers related to working conditions
8 Risk detriment to physical health of value chain workers
(injuries, diseases, or death) from long working hours
9 Risk poor working conditions in the value chain due to
lack of dialogue
10 Damage the physical integrity of workers in the value
chain through health and safety issues
11 Jeopardize fundamental human rights and damage the
physical or psychological integrity of workers in the
value chain through forced labor
12 Violate rights of local communities
13 Trigger physical harm or property damage through
the misuse of the Group’s products
14 Risk private and sensitive information leaks
15 Compromise suppliers’ financial stability
16 Risk health and safety impacts on people through
industrial accidents related to cybersecurity
17 Damage the natural environment through industrial
accidents related to cybersecurity
18 Risk theft of intellectual property and/or customers’
sensitive data
Legend
1 Business disruption and asset damage in own
operations and over the value chain from extreme
weather events
2 Failure to adapt to climate-transition market and
technology changes
3 Debarment from public tenders or public funds
4 Potential legal proceedings, prosecutions, sanctions,
and fines related to non-compliance
5 Reputational damage related to corruption and bribery
Risks
1 Help customers adapt to climate change
2 Develop new solutions to help customers and value
chain use their energy and resources more efficiently
3 Develop new businesses related to renewable energy
and energy efficiency
4 Strengthen legal compliance and public reputation
5 Reinforce stakeholder engagement and loyalty through
prevention of corruption and bribery
Opportunities
Negative impact
1 Contribute to climate change mitigation through
solutions related to energy efficiency, electrification,
and renewable energy production
2 Generate energy savings
3 Decarbonize market and value chain
4 Incentivize suppliers to provide green materials
5 Improve employees’ well-being and feeling of
belonging through equal treatment and opportunities
6 Improvement employability through training and
skills development
Positive impact
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.1.3 Basis for preparation
Sustainability statements basis for preparation
Sustainability disclosures are part of the legal and regulatory
requirements arising from the transposition of the European
Directive on Corporate Sustainability Reporting (CSRD).
As foreseen in the standard ESRS 1 – General requirements,
paragraph 7.2 Sources of estimation and outcome uncertainty,
challenges on data collection beyond the control of Schneider
Electric have been faced during this first year of CSRD
implementation, thus requiring certain estimates, mainly on the
following topics:
• Some assumptions and extrapolations were used to assess
the quantitative outputs for resources inflows and outflows.
Corporate Scope 3 accounting follows GHG protocol best
practice and Schneider Electric aims to go beyond this by
working to capture more primary data that would improve
the granularity and actionability of the reporting. Please refer
to section 2.2.2.1.5 on page 147 for more details on
the methodologies.
• On substances of concern and very high concern (SoC and
SVHC), data availability is restricted by the reliance on suppliers’
declarations and voluntary Full Material Disclosures (FMDs),
which are not always comprehensive. Additionally, assumptions
are made regarding average percentages and quantities due
to incomplete data. Similarly, and as stated in section 2.2.2.1.9
related to the Group’s approach to the EU Taxonomy, on
substances listed in Article 57 of Regulation (EC)1907.2006
but not identified under Article 59(1), due to the difficulty in
obtaining material declarations and data from suppliers beyond
tier one, the Group cannot fully quantify the impact of excluding
products containing substances not yet on the REACH
candidate list.
Regarding disclosures related to specific circumstances when
presenting metrics, assumptions in measurements and relative
planned actions to improve the level of accuracy are detailed in
each related section of the sustainability statements.
In 2024, the Group has implemented a digital reporting system to
collect, track and report adequately CRSD-related information by
connecting all relevant ESG IT systems, including the Schneider
Electric tool EcoStruxure Resource Advisor.
Scope
The standard ESRS 1 requires companies to align the scope of the
sustainability statement to the scope of the financial statement
(ESRS 1-62). It should also be noted that value chain information is
required when necessary to allow readers to understand material
impacts, risks, and opportunities (ESRS 1-63, ESRS 1-64).
To rationalize the effort of reporting and to consider the current
limits of the Group’s reporting processes (e.g., progressive
deployment of IT tools to all entities), Schneider Electric is
excluding specific entities from its sustainability statements
even though these entities are part of the financial statements.
Each excluded entity is selected based on its IT landscape
and materiality for the Group and on its statements, so that
the final coverage is representative of the Group’s activities
and performance.
The number of employees in an entity as well as the amount of
gross value of property, plant and equipment are used as a proxy
and compared to Group values to consider the materiality of the
entity in the Group. This exclusion process ensures that the
sustainability statement remains fair to the reader and provides an
accurate understanding of Schneider Electric. Excluded entities
represent a total of approximately 2,000 employees, hence less
than 1.5% of the Group’s employees, and 0.6% of the Group’s
assets. The resulting coverage is deemed representative. These
exclusions do not affect the Group’s double materiality assessment
process results.
When disclosing information on greenhouse gas (GHG) emissions
in ESRS E1, the scope of reporting must include joint ventures
under operational control (ESRS E1 – 46, ESRS E1 – AR 40). All joint
ventures are excluded from Schneider Electric sustainability
statements and Scope 1 and 2 GHG reporting since Schneider
Electric has no operational control on its joint ventures.
Throughout the sustainability statements, actions and targets linked
to Schneider Electric sustainability matters refer to Schneider
Sustainability Impact (SSI) and Schneider Sustainability Essentials
(SSE). SSI and SSE programs are part of the Group’s 2021-2025
strategy, define the Group’s sustainability targets and measure
sustainability performance in critical areas of focus. Unlike
sustainability statements (CSRD) perimeter, SSI and SSE scope
excludes agnostic software companies, Luminous, Lauritz
Knudsen, ProLeiT and EcoAct. For more details about the reporting
perimeter of SSI and SSE, please refer to the section 2.4.1 on
page 310.
Similarly, all policies detailed in this report cover 91% of the scope
of reporting entities in headcount and 93% in revenue. Equivalent
policies are in place across the rest of the scope, notably in
agnostic software companies.
Value chain
The standard ESRS 1 requires companies to extend sustainability
statement information to include information on the material
impacts, risks, and opportunities connected with the Company
through its direct and indirect business relationships in the value
chain (ESRS 1-63 to 67). Schneider Electric has considered
potential impacts, risks and opportunities associated with the value
chain described in section 2.2.1.1.1 “Schneider Electric activities
and business model”, including upstream tier 2 and above for
mining activities and metal extraction, with upstream tier 1
activities, with its own operations, with contractors (on-site and
off-site), with downstream distributors who supply system
integrators and contractors, and with main stakeholders such as
local communities, civil society, financial partners, lobbies,
non-governmental organizations (NGOs) and institutions.
Other
A consultation with the Schneider Electric Social and Economic
Committee on CSRD information is planned for April 2025.
Article L 2312-25 of the French Labor Code provides that the
sustainability report (CSRD) and the external auditors’ certification
report are made available to the Committee for this consultation.
During the consultation, the sustainability statements, process of
information collection and means implemented for this collection
will be discussed.
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2.2.2 Environmental information
This section presents comprehensive information on the European
Sustainability Reporting Standards (ESRS) E1, E2, and E5. These
standards guide the reporting on climate change, pollution,
resource use and circular economy. The alignment with these
standards creates a robust framework to address the pressing
environmental challenges of our time.
This section is divided in three subsections:
1. “2.2.2.1 Leading on Decarbonization (ESRS E1)” where the
objective is to specify disclosure requirements that enable
stakeholders to understand how Schneider Electric impacts
climate change, including material positive and negative
impacts, mitigation efforts, and adaptation strategies. It covers
greenhouse gas emissions, energy consumption, and the
financial effects of climate-related risks and opportunities.
2. “2.2.2.2 Pollution mitigation (ESRS E2)” where the objective
is to provide information on how Schneider Electric impacts
pollution of air, water, and soil, including actions to prevent or
mitigate negative impacts. It addresses substances of concern,
and the financial effects of pollution-related risks and
opportunities.
3. “2.2.2.3 Resource use and circular economy (ESRS E5)”
where the objective is to specify disclosure requirements
related to resource use and circular economy, focusing on
sustainable sourcing, waste minimization, and maintaining the
value of products and materials. It aims to help users
understand the impacts, risks, and opportunities related to
resource use and circular economy principles.
2.2.2.1 Leading on
Decarbonization (ESRS E1)
2.2.2.1.1 Climate-related governance
Since 2005, Schneider Electric has been measuring and
demonstrating its progress against sustainability goals with a
unique transformation dashboard that the Group now calls
Schneider Sustainability Impact (SSI).
The scope of Schneider Sustainability Impact (SSI) and Schneider
Sustainability Essentials (SSE), defining the Group sustainability
targets and measuring sustainability performance in critical areas
of focus, is more limited than the reporting perimeter of the
sustainability and Sustainability statements (CSRD). SSI and SSE
programs are part of the Group’s 2021-2025 strategy and are
therefore independent from the 2024 double materiality
assessment. For more details about the reporting perimeter of SSI
and SSE, please refer to the section 2.4.1 Methodology elements on
the published indicators.
The SSI is the translation of the Group’s six long-term commitments
into a selection of 11 highly transformative and innovative programs
executing the 2021 – 2025 sustainability strategy. It has been
designed to focus on the most material issues, leveraging internal
and external stakeholders’ feedback.
Every quarter, the SSI provides, on a scoring scale of 10, an overall
measure of all the programs’ progress, which is shared with all
stakeholders together with financial results. To ensure robustness,
the SSI’s performance undertake a limited assurance process
annually by an independent third party and obtain a “limited”
assurance report, in accordance with (revised) ISAE 3000
assurance standard (except for SSI #+1).
Since 2011, the SSI score has been included in the variable
compensation of company leaders. In France, since 2012, the SSI
has also been included in the profit-sharing incentive plan for the
French entities, Schneider Electric Industries and Schneider
Electric France. As of 2019, the weight of the SSI criteria has
increased from 6% to 20% in the collective part of the annual
short-term incentives, further highlighting the importance of
sustainability on Schneider Electric’s business agenda. In 2024,
the SSI performance impacted the short-term incentive plans for
76,000 employees (20% of collective share), including the
Executive Committee members and the CEO. The Board does not
currently have specific climate targets.
In August 2022, Schneider Electric was one of the first companies
to see its greenhouse gas (GHG) reduction targets validated by
the Science Based Target initiative (SBTi), in alignment with its
“Corporate Net-Zero Standard” published in October 2021. As part
of its Net-Zero commitment, the Group has defined mid- and
long-term targets. Ultimately, the Group is committed to be
Net-Zero across its entire value chain by 2050, which means that
the Group aims to reduce its 2021 footprint by an absolute 90% by
2050 and neutralize residual emissions with high-quality and
durable carbon removal credits.
The Group aims to:
• By 2030, reduce value chain emissions by 25% and be
“Net-Zero ready” in operations.
• By 2050, reach Net-Zero CO2 emissions across the entire
value chain.
• From 2025, make a contribution to high-quality carbon removal
for an amount corresponding to operational (Scope 1 and 2)
residual emissions on the path to Net-zero ready.
The Chief Executive Officer remuneration includes climate targets
in three elements of his remuneration: (1) Performance Shares (i.e.
Long-term incentive plan; LTIP); (2) annual variable compensation;
and (3) complementary payment for pension building (variable).
1. 25% – Performance Shares
25% of the performance conditions of the performance shares
are related to carbon emissions reductions targets. This is
further broken down into: 12.5% Scope 1 & 2 carbon emissions
targets and 12.5% Scope 3 upstream carbon intensity target.
These climate targets in the Long-Term Incentive Plan have
been designed to be in line with the climate target of the Group
for 2030.
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2. 12.73% – Annual variable compensation
20% of the annual variable compensation are related to the SSI
which consists of 11 targets. Seven(1) out of these 11 targets
(63.64%) are carbon related. Overall, 12.73% from the annual
variable compensation is climate related.
3. 12.73% – Complementary payment for pension building (variable)
20% of the complementary payment for pension building
(variable) are related to the SSI which consists of 11 targets.
Seven out of these 11 targets (63.64%) are carbon related.
Overall, 12.73% from the complementary payment for pension
building (variable) is climate related.
This results in 15.62% of the Corporate Officers’ (CEO and
Executive Committee members) remuneration being
climate-related.
2.2.2.1.2 Climate risks, opportunities,
and impact management
Impacts, risks and opportunities
Climate change adaptation
Risk
Business disruption and asset damage
in own operations and over the
value chain
Risk
Failure to adapt to climate-transition
market and technology changes
Opportunities
Help customers adapt to climate change
Climate change mitigation
Negative Impact
Accelerate climate change through
greenhouse gas emissions
Positive Impact
Contribute to climate change
mitigation through solutions related to
energy efficiency, electrification, and
renewable energy production
Opportunities
Develop new solutions to help
customers and value chain use their
energy and resources more efficiently
Energy
Positive Impact
Generate energy savings
Positive Impact
Decarbonize market and value chain
Opportunities
Develop new businesses related to
renewable energy and energy efficiency
(1) The seven targets are: SSI-target #1) Grow Schneider Impact revenues; SSI-target #2) Help our customers save and avoid millions of tonnes of CO2 emissions;
SSI-target #3) Reduce CO2 emissions from top 1,000 suppliers’ operations; SSI-target #4) Increase green material content in our products; SSI-target #5) Primary and
secondary packaging free from single-use plastic, using recycled cardboard; SSI-target #9) Provide access to green electricity to 50M people; SSI-target #11) Train
people in energy management. Other members of the Board of Directors do not receive variable remuneration.
The Intergovernmental Panel on Climate Change (IPCC) indicates
the last decade has witnessed temperatures higher than any in the
past 125,000 years. This is affecting every region of the world,
manifesting as rising sea levels, increasingly extreme weather
events, rapidly melting sea ice, and declining biodiversity and
natural resources. The changes in climate are unprecedented
when compared to patterns observed in past centuries and
millennia, and further warming will continue to amplify these
changes. Beyond environmental consequences, climate shifts also
impact society, contributing to the loss of livelihoods and
businesses, escalation of health emergencies, and displacement of
populations. Schneider Electric has embedded climate-related
risks reviews into its decision making, to mitigate risk exposure and
ensure resilience.
The Group has performed a complete review of its activities as
well as of its supply chain to understand sources of GHG
emissions. In addition, a deep knowledge of the Group’s future
operations allows to identify potential future sources of emissions.
Thanks to this understanding of its emission sources, the Group
systematically calculates, discloses and manages its end-to-end
carbon footprint, across Scopes 1, 2, and 3, in alignment with the
Standards from the Greenhouse Gas Protocol: The Corporate
Accounting Standard and the Corporate Value Chain (Scope 3)
Standard. Independent third-party verification ensures the
accuracy of GHG emissions data.
Schneider Electric has integrated climate-related scenario analysis
into its risk management framework. This process is designed to
inform the identification and assessment of physical and transition
risks and opportunities over the short, medium, and long term.
The Group has engaged with Risilience, a specialist in climate
scenario analysis and resilience planning, to conduct a forward-
looking climate risk and vulnerability assessment. This
comprehensive analysis aims to identify and evaluate the
materiality of physical and transition climate risks that may impact
the Group’s operations, sites, and extended value chain, both
upstream and downstream, as well as the broader economic
activities. The assessment encompasses a wide range of climate-
related factors, including acute and chronic physical risks, legal
and regulatory risks, and opportunities associated with current and
emerging climate regulations. Additionally, market, technology, and
reputational risks and opportunities are considered, particularly in
relation to changes in customer behaviors. For more information
please refer to the subsequent section “IROs interaction with
strategy and business model”.
To ensure a robust analysis, the Group has developed a scenario-
based approach, applying climate-related risk scenarios that
reflect different pathways. These pathways range from a 1.5°C to a
greater than 4°C temperature rise by the year 2100. The Group
utilizes a digital twin of the Company, which includes financial
projections, market breakdown, supply chain, and carbon footprint,
to quantify the financial implications of physical and transition risks.
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Five emission pathways have been considered in the analysis,
using a macroeconomic input-output model based on data from
the Network for Greening the Financial System (NGFS):
• Paris Aspiration (Shared Socioeconomic Pathways – SSP1-1.9)
based on Net Zero 2050 scenario from NGFS, an ambitious
scenario that limits global warming to 1.5°C through stringent
climate policies and innovation, reaching Net-Zero CO2
emissions around 2050. This scenario assumes that ambitious
climate policies are introduced immediately. Carbon dioxide
removal (CDR) is used to accelerate the decarbonization but
kept to the minimum possible and broadly in line with
sustainable levels of bioenergy production. Net CO2 emissions
reach zero around 2050. Physical risks are relatively low, but
transition risks are high, policy risk in particular.
• Paris Limit (SSP1-2.6) based on Below 2°C from NGFS, which
gradually increases the stringency of climate policies, giving a
67% chance of limiting global warming to below 2°C. This
scenario assumes that climate policies are introduced
immediately and become gradually more stringent though not
as high as in Net-Zero 2050. CDR deployment is relatively low.
Net-Zero CO2 emissions are achieved after 2070. Physical and
transition risks are both relatively low.
• Stated Policy (SSP2-4.5) based on Nationally Determined
Contributions from NGFS, which includes all pledged policies
even if not yet implemented. This scenario assumes that the
moderate and heterogeneous climate ambition reflected in the
conditional NDCs at the beginning of 2021 continues over the
21st century. Emissions decline but lead nonetheless to 2.5°C of
warming associated with moderate to severe physical risks.
Transition risks are relatively low.
• Current Policy (SSP3-7.0) based on Current Policies from NGFS,
which assumes that only currently implemented policies are
preserved, leading to high physical risks. Emissions grow until
2080 leading to about 3°C of warming and severe physical risks.
This includes irreversible changes like higher sea level rise. This
scenario can help central banks and supervisors consider the
long-term physical risks to the economy and financial system if
we continue on our current path to a “hot house world”.
• No Policy (SSP5-8.5) based on SSP5, is a scenario in which
development is driven by exploitation of fossil fuels, rapid
growth of the global economy, and the adoption of resource and
energy-intensive lifestyles around the world. A peak in global
population is reached and begins to decline in the 21st century.
This projection is considered a worst-case scenario.
These scenarios are evaluated with respect to their potential
impacts by the end of 2025, 2030, and 2050. The scenario analysis
enables the Group to price the risks and opportunities associated
with climate change and to develop strategies that are resilient
across a range of possible futures.
The assumptions, uncertainties, and constraints within the
scenarios used to model climate risk are directly linked to the
Representative Concentration Pathway (RCP), Socio-economic
Pathways (SSP), and NGFS scenarios used to define the model
narratives. Alongside the inherent assumptions, uncertainties, and
constraints within these scenario frameworks, similar assumptions
are brought in for each individual model.
Although, climate risks are assessed under each of the five
emission pathways, climate physical risk quantification retained to
support resilience strategic decisions is based on the Current
Policy scenario, a high-emission climate scenario designed to
consider the long-term physical risks to the economy and financial
system if we continue on our current path to a “hot house world”.
Through this rigorous climate-related scenario analysis, Schneider
Electric demonstrates its commitment to proactive climate risk
management and to aligning its strategic planning with the goal of
mitigating climate change and advancing sustainability. The
Group’s approach ensures that it is well-positioned to navigate the
complexities of a transitioning economy and to capitalize on the
opportunities that arise from the global shift towards a low-carbon
future. The scenario analysis quantifying the influence of climate
change on the exposure of Schneider Electric’s sites towards
extreme weather events and natural hazards is combined with
on-site audits conducted by external consultants, the development
of site vulnerability profiles and the implementation of
recommendations to reduce site climate vulnerabilities.
Climate-related scenario analysis is also used by the corporate
Finance team to conduct a sensitivity analysis on the annual
impairment test of all the Groups of CGUs’ assets, assessing the
potential impact of climate physical and transition risk on the
Group’s future cash flows.
Schneider Electric identifies and measures climate-related risks
and opportunities to assess impacts on its business and value
chain over short (3-5 years), medium (5-10 years), and long-term
(10-30 years) horizons. These time horizons are carefully chosen to
align with the expected lifetime of the Group’s assets, strategic
planning cycles, and capital allocation plans.
Schneider Electric’s short-term vision corresponds to its
sustainability strategic plan, by 2025, to reach the 12 ambitions of
the 2021-2025 Schneider Sustainability Impact (SSI) and the 25
ambitions of the 2021-2025 Schneider Sustainability Essentials
(SSE). These programs are tracked and reviewed at least annually.
Not all SSI and SSE are related to climate. Specifically, 7 out of 12
SSI are climate-related (for details, see section 2.2.2.1.1 on
Climate-related Governance), and 9 out of 25 SSE also pertain
climate matters.
Schneider Electric’s mid-term vision is defined in its 2030
objectives of its Net-Zero commitment, to reach Net-Zero ready on
its operations and drop by 25% its Scope 3 GHG emissions from a
2021 baseline.
The Group’s long-term vision is aligned with climate science to limit
global warming under 1.5°C increase by end of the century, in
reaching the Group’s Net-Zero commitment and reducing absolute
Scope 1, 2 and 3 GHG emissions by an absolute 90% by 2050 from
a 2021 baseline.
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2.2 Sustainability statements
Climate-related physical risks in Schneider Electric’s own
operations and along the value chain are managed through an
end-to-end process spanning from upstream value chain, own
operations, down to logistic and transportation activities to ensure
supply chain flexibility and resilience is continually improved. A
comprehensive strategy has been deployed to identify and
measure the risk, prevent and protect against incidents, detect in
advance any potential event, and respond appropriately in case of
crisis to contain impact and ensure business continuity.
On its upstream value chain, the Group has engaged in a multi-tier
mapping of its supply chain combining real-time, supplier-validated
data with advanced AI algorithms to increase supply chain visibility
and quantify risks. To determine the share of procurement
spending supplied from countries exposed to natural hazards,
Schneider assessed the impact of natural hazards on five key raw
material streams with a scenario analysis, leveraging from the multi-
tier suppliers mapping to locate its supply chain. For all its
purchasing material, the Group has developed a risk mitigation
approach with strategic stocks in the short term and a double
sourcing strategy within three years after having qualified the risk.
The quantification of short-term climate risks is primarily done
based on catastrophe risk modeling, with an evaluation on-site of
the climate physical risks. Each critical site is assessed regularly by
independent global risk experts, thereby defining potential financial
impacts as well as the cost of response. Critical sites are the top 59
sites, representing more than 80% of the revenue of the Group.
Those sites are surveyed every 2 years, while the other industrial
sites are audited less frequently.
In those audits the risks experts from Global Risk Consultants
(GRC) measure and weight:
• passive (exogenous) threats relating to floods, hurricanes
(windstorms), earthquakes, construction, occupancy, and
• active (endogenous) risks relating to physical protection, human
exposure, natural hazards, and business continuity plan.
Risk profiles of each site are then regularly updated, and
recommendations of adaptation measures are made to mitigate
and adapt to identified risks. For example, Schneider committed
for 100% of its sites in water-stressed areas to have a water
conservation strategy and related action plan by 2025.
In 2023, several factories in France were identified with exposure
to riverine flooding. As a result, the Group took the appropriate
adaptation measures to mitigate risk exposure and enhance
resilience:
• Development of a flood emergency response plan.
• Implementation of a flood warning protocol, including the
monitoring of local weather forecast and river levels.
• Assignment of responsibilities, including designations for safe
de-energization and shut-down procedures should an event
occur.
• Development of a recovery and clean-up plan with personnel
designated responsibilities in coordinating post-flood salvage
and arranging emergency utility equipment.
In 2024, the Group assessed how those risks might evolve in
likelihood and potential severity due to climate change through a
forward-looking climate risk and vulnerability assessment with
Risilience. This climate scenario analysis reinforces the short-term
risk identification and enables to quantify medium- and long-term
climate physical risks to support decision-making processes
impacting those time horizons.
On its operations, the analysis includes 521 sites ranging from
factories to logistic and third-party distribution centers, covering all
industrial sites. The impact from extreme weather events on
business activities considered in the study is not limited to on-site
potential damages but includes as well the risks from enabling
activities like transportation and infrastructure failures or power
plant offline.
Schneider Electric built a virtual representation of its business,
physical footprint, and supply-chain. The dependency Schneider
Electric has on each of its sites has been quantified as a proportion
of the Group’s overall revenues, based on the cost and margin
associated with each site. This digital twin is then confronted to a
bias corrected multi-model mean derived from 18 individual global
climate models (GCMs, or ‘General Circulation Models’) from the
Coupled Model Intercomparison Project (CMIP6).
To assess physical climate risk under various potential future
climate scenarios, a range of emission pathways are considered.
These pathways define possible future emission scenarios that
explore how global society, demographics, and economics will
affect global GHG emissions, and resultant radiative forcing and
global temperature rise. These scenarios are derived from the
Shared Socioeconomic Pathways (SSPs), which form the basis of
the Sixth Assessment Report (AR6) from the Intergovernmental
Panel on Climate Change (IPCC).
To define the effect of climate change on the likelihood of climate-
related extreme events, including heatwave, freeze, drought,
flooding, and windstorms up to 2050, Schneider Electric is relying
on the Climate Hazard Atlas developed by Risilience in partnership
with the Cambridge Centre for Risk Studies at the Judge Business
School in the University of Cambridge. The likelihood is defined for
the present day using recent historical observations, and in the
future period, up to 2050, using a series of climate models.
Physical risks to Schneider Electric’s value chain are qualified by
applying the climate Hazard Atlas in physical risk models, which
each assess the change in expected financial losses associated
with changes in the frequency of extreme weather events.
Physical climate risks have the potential to cause financial impact
through:
• Losses and damages to Schneider Electric operations and
enabling infrastructures;
• Business disruption due to logistics bottlenecks; and
• Cost increase, risks of scarcity, and insecurity of raw materials
supply.
In each case, the probability of a hazard event at a given location is
combined with a specified vulnerability function to define the
expected disruption and loss for each extreme weather event.
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To date, the magnitude of impact is considered medium-low and
there has been no material loss over the past ten years, however
the Group is proactively monitoring this risk.
The scenario analysis done with Risilience provides an
understanding of the potential evolution of this exposure across five
different pathways, to quantify the earning value at risk from asset
damage and business discontinuity due to natural hazards.
Under a Current Policy pathway (based on SSP3-7.0) and without
any risk mitigation considered, out of 521 sites assessed, 269 will
have a high likelihood of being exposed to natural hazards by
2050. Schneider Electric quantified its earning value at risk over the
next five years, ten years and by mid of the century, under high
emission pathways.
Adaptation measures aiming at reducing site vulnerabilities are
defined during on-site audits and taken within the year following
those recommendations. Over the last ten years, Schneider Electric
has been invested in engineered and built environment adaptation
solutions to mitigate any potential loss.
Governments, public institutions, and investors are responding to
the climate crisis by implementing more stringent regulations and
redirecting investments toward low-carbon alternatives. Regulatory,
legal, and behavioral changes, and the evolving competitive
landscape can present risks for companies delaying their transition
to a low-carbon economy or companies highly exposed to sectors
slowing down this transition.
Schneider Electric has a comprehensive process for identifying
and managing climate-related transition risks and opportunities,
both in its own operations and along its value chain. This process is
informed by scenario analysis and is integrated into the Company’s
ERM framework. In line with the Task Force on Climate-related
Financial Disclosures (TCFD) recommendations, Schneider Electric
launched a prospective approach on climate change and energy
transition five years ago, by setting up a dedicated organization,
the Schneider Electric™ Sustainability Research Institute. This team,
the Company think-tank on the Climate and Energy Transition,
reports to the Chief Strategy Officer and informs strategic priorities
across businesses and operations.
Schneider Electric has identified several transition events that
could potentially impact its cash flows and reputation in medium-
and long-term time horizons if the necessary mitigations are not
engaged. These events could trigger:
• Policy risks: The company actively monitors evolving climate
policies and regulations to anticipate potential impacts on its
business, including the assessment of carbon pricing
mechanisms with the potential to increase direct and indirect
operating costs due to Schneider Electric’s direct and indirect
GHG emissions. Schneider Electric is using a carbon pricing
database for 180 countries with future carbon price scenarios
for each country and sector, based on government climate
policy ambitions, to estimate the policy impact to its future
cash flows.
• Market risks: Schneider Electric recognizes that the market for
low-carbon products and services is rapidly growing and
identifies the development of offers with lower environmental
impact throughout the lifecycle as a potential market
differentiator, and a competitive advantage. The company is
adapting its product portfolio to meet this demand and is
developing new business models that support a sustainable
economy. The Group is strategically positioned to capitalize on
the acceleration of digital adoption and the transition to cleaner,
more electric, and decarbonized energy and industrial systems.
Schneider Electric’s EcoStruxure platform and Resource
Advisor tool are examples of how the Group is addressing the
demand for energy-efficient solutions and providing customers
with actionable data to manage their emissions.
• Reputational and liability risks: The company understands that
its reputation is closely tied to its performance on climate
change. Schneider Electric manages this risk by setting
ambitious emissions reduction targets, implementing robust
sustainability practices, and communicating its progress
transparently.
• Technology risks: The company recognizes that technological
advancements play a critical role in the transition to a low-
carbon economy. The company invests more than 5% of its
revenues in R&D to bring innovative, low-carbon solutions to
market and is prepared to adapt to a changing technological
landscape.
Schneider Electric used its climate scenario analysis to quantify its
medium (ten years) and long-term (2050) earning value at risk from
climate transition events under low-emissions pathways and with
and without considering climate mitigation actions.
Specific mitigation and adaptation strategies have been engaged
to avoid those transition events expected to affect Schneider
Electric assets and business activities, including decreasing our
GHG emissions along the value chain, accelerating the Eco-design
our products, driving the transition towards a sustainable economy
within our value chain, avoiding locked-in emissions and the risk of
stranded assets.
In the short term, the growth of digitalization and AI, the
accelerated need for concrete solutions to fight climate change, the
ongoing transition of our energy landscape, the evolution of wealth,
and the new global equilibrium create unprecedented tailwinds in
Schneider Electric’s markets. As a result of those five megatrends,
the Group anticipates that its markets will experience significant
growth in the coming years where we see an increase in market
growth CAGR (Compound Annual Growth Rate) to between +6%
and +7% between 2023-2027 (4-year CAGR).
By understanding and preparing for these megatrends, Schneider
Electric can align its strategy with market demands, anticipate
customer needs, adapt to changing landscapes, and provide
innovative solutions that address the challenges and opportunities
arising from these trends.
By identifying transition events and assessing the exposure of its
assets and business activities to these events, Schneider Electric
ensures that it is prepared for the transition to a climate-neutral
economy. The Group’s approach aligns with climate-related public
policy goals and considers long-term time horizons that may
extend beyond ten years.
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2.2 Sustainability statements
In addition, the eligibility of Schneider Electric’s business activities
with the EU Taxonomy (Commission Delegated Regulation (EU)
2021/2139) has been assessed and 90% of the Group’s revenue
in 2024 are contributing to at least one environmental objectives
of the regulation. This includes 50% that supports climate
change mitigation and 39% that supports the transition to
a circular economy.
The potential impacts from the climate-related matters on the
Group’s assets and liabilities measurement as well as on
significant judgments and estimates, have been analyzed through
both climate transition risk and opportunities, physical risks
perspective, and climate external commitments perspective.
The Group is committed to have Net-Zero CO2 emissions in its
operations by 2030 and be Net-Zero along the whole value chain
by 2050. Those objectives are concretely defined in the Group’s
sustainability strategy through the SSI and SSE programs that are
externally reported on a quarterly and annually basis, respectively.
To achieve its emission reduction objectives and meet its Net-Zero
commitments taken, the Group has defined a roadmap and key
actions to enable both its own operations and its supply chain’s
decarbonization, leading to direct consequences on processes,
sites transition, Research and Development (R&D), and investment
priorities:
• Redesign of the investment monitoring and approval tool in
December 2022 to support internal and external reporting,
monitor investments allowing our sites to transition to Zero-CO2
sites and prioritize low-carbon investments. In 2024, trainings
and change management have been performed to ensure
adoption.
• Significant investments on both industrial processes (sites
electrification) and real estate portfolio (electric vehicle
chargers’ installment) planned to decarbonize operations by
2030 (Scopes 1 and 2) in line with Company-wide energy
climate targets (150 Zero-CO2 sites by 2025, 100% of electricity
from renewables by 2030, shift 100% of corporate vehicle fleet
to electric vehicles by 2030). Specifically on manufacturing and
distribution centers, the Group has defined a priority list and has
planned to invest progressively on more electrification,
sustainable and efficient systems (e.g., heat pumps, microgrids,
solar panels, thermal insulation) between 2024 and 2030, to
achieve Net-Zero ready operations by 2030.
• Implementation of a process to follow carbon footprint evolution
at an early stage of new product development to reduce the
footprint of future generations of products. The Group committed
on a step up in R&D in coming years, from a circa 5% of Group
revenues dedicated to strategic R&D investment pre-covid to a
future circa 7%, with a strong focus on sustainability. In total,
around EUR 13 billion have been invested by the Group in R&D
between 2017 and 2024. The actual and potential financial links
and effects of the Group’s external commitments or the specific
climate risks identified are detailed as follows:
−The Group has performed an evaluation of physical risks on
its sites with an independent expert. No material impact to
disclose, notably on evaluation and useful life of tangible
assets or in the impairment tests performed at Group level.
The Group is not a capital-intensive company, the majority of
its sites are leased and not owned, and the individual
residual value of its tangible assets in the most at-risk
locations is not material. Additionally, the multi-hub position
of the Group with agile capacity to relocate its production in
case of climate disaster is a way to significantly mitigate risks
and potential effects. Also, the Group has a low dependence
on water in its production processes, and its sites are slightly
located in flood zones or coastal zones. Finally, the Group
has an opportunity to build on the world’s drive towards
electrification and increasing Net-Zero commitments. In
2024, the Group has worked on quantifying investments and
additional costs, as well as opportunities to achieve
long-term Net-Zero carbon commitments, taking into
consideration several scenarios in order to integrate them
into the Group’s impairment tests. The Group has not
identified any risk of impairment at December 2024.
−The Schneider Sustainability Impact (SSI), which
encompasses several climate objectives, serves as a factor
in the annual short-term variable compensation of 76,000
employees, including the Executive Committee members
and the CEO. For more information on climate targets
included in remuneration please refer to section 2.2.1.1.
−To further tie climate-related issues to financial planning,
Schneider Electric has linked in 2022 its bank fundings with
the SSI performance with the signature of a KPIs linked
facility.
Considering the above risk assessment and Net-Zero
commitments, the Group has performed a sensitivity analysis to its
impairment tests at groups of Cash Generating Units (CGUs) level
and did not identify impairment risk on its assets from climate risks.
For more information on climate change-related
impacts, risks, and opportunities (IROs), please refer
to section 2.2.1.2 “Main sustainability impacts, risks
and opportunities” on page 109.
IROs interaction with strategy and
business model
Schneider Electric proactively identifies and measures climate-
related risks and opportunities, to assess existing and potential
impacts to its business, operations, and value chain. The risks and
opportunities assessment covers acute and chronic climate
physical risks, legal and regulatory risks and opportunities linked to
current and emerging climate regulations, as well as market,
technology, liability, and reputational risks and opportunities linked
to changes in customer behaviors.
Climate physical risks
Acute physical risk
The immediate effects of climate change, known as acute physical
risks, can manifest as more frequent and severe natural hazards,
such as intensified hurricanes or floods. Extreme weather events
not only directly affect the Group’s operations but also impact
crucial infrastructures like power plants, electrical grids, data
centers, and transportation networks.
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Chronic physical risk
In the long term, the severity of physical impacts will vary based
on society’s ability to reduce human-induced climate change.
However, even with mitigation efforts, the IPCC is highly confident
that climate change will lead to numerous risks for natural and
human systems beyond 2040. It’s crucial to prepare for potential
intensifying impacts by considering various scenarios,
understanding that some degree of impact is inevitable despite
efforts to combat climate change, and consider adaptation
measures.
Schneider Electric has over 300 industrial and logistics sites
globally and is exposed to the physical effects of climate change in
the form of more frequent and severe acute weather events. In
addition, impacts from chronic environmental changes like average
temperature increase could expose some of our sites and
employees to drought and increased water stress.
These impacts could result in damage to assets, disruption to
business operations, as well as human and environmental
consequences.
Physical risks resulting from climate change can have financial
implications for the Group. As a result, climate and weather-related
risks are part of the Group’s Business Continuity and Risk
Management program, leading to preventive investment to secure
assets and adapt to material climate and weather risks.
Climate transition risks
Climate transition risks stem from the shift to a low-carbon economy
and include:
Policy risk
As climate urgency intensifies, regulation appears as a key lever in
driving a faster and more coordinated transition. The outcome of
climate regulations may result in additional requirements and fees,
or restrictions on certain activities or materials, impacting primarily
companies slowing down the transition and creating opportunities
for companies leading the transition towards a low-carbon economy.
Schneider Electric anticipates possible financial impacts of future
carbon emission costs by working to address both its operational
and value chain footprints. Given the relatively low share of the
Group’s Scope 1 and 2 emissions in its carbon footprint, carbon
pricing mechanisms primarily present the potential for impact on
the Group’s value chain. Among others, it could result in higher raw
materials and manufactured components costs, and increasing
costs incurred by consumers during the use of sold products.
Schneider Electric could benefit from these regulations compared
to slower-moving competitors.
Market risk
The growing demand for low-carbon products and services
generally presents a significant business opportunity for Schneider
Electric. The Group already explores ways to improve the efficiency
and emissions profile of existing products with innovations, such as
SF6-free medium voltage switchgears. The low-carbon transition
can present risks with potential financial impacts for companies
delaying the transition, as well as opportunities for sustainability
leaders. For example, consumer preferences may change and
further veer toward environmentally sustainable alternatives. This is
a critical element of the Group’s sustainability impact goals and
eco-design strategy.
Reputational risk
Customer trust can be influenced by companies’ actions or inaction
to mitigate and adapt to climate change. Schneider has been
working to reduce its own GHG emissions for 20 years setting
ambitious targets for both its operations and its value chain. The
Group actively manages this risk by building and executing
detailed roadmaps for its targets and collaborating with its
stakeholders. The Group remains diligent in protecting brand
reputation through accurate and transparent communication and
marketing. In 2024, as litigation and legislative developments
surrounding green claims rose, and public focus on greenwashing
heightened, Schneider Electric sharpened its focus on
environmental claims and language used regarding sustainability,
and evolved concepts, guidance and commitments in line with
new requirements.
Technology risk
As the global economy transitions towards a low-carbon future,
technological innovation will accelerate the impairment of fossil-fuel
intensive assets.
Given the relatively low share of Schneider Electric’s Scope 1 and 2
emissions in its corporate carbon footprint, financial risks from
stranded assets are not material for the Group.
Resilience and adaptation towards climate
physical risks
Schneider Electric conducts comprehensive resilience analysis on
both climate-related physical and transition risks, to inform its
strategies and adapt its business models, with the goal of covering
material climate physical and transition risks on both its own
operations and value chain.
Schneider Electric identifies and measures climate-related risks
and opportunities over short (3-5 years), medium (5-10 years), and
long-term (10-30 years) horizons. These time horizons, detailed in
section “2.2.2.1.2 Climate risks, opportunities and impact
management”, are carefully chosen to align with the expected
lifetime of the Group’s assets, strategic planning cycles, and capital
allocation plans. The quantification of potential impacts, risks, and
opportunities to its businesses and value chain over those different
time horizons enable the Group to adapt both its supply chain
strategy and corporate strategy and adjust its business model.
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Climate-related physical risks in Schneider Electric’s own
operations and along the value chain are managed through an
end-to-end process spanning from upstream value chain, own
operations down to logistic and transportation activities to ensure
supply chain flexibility and resilience is continually improved. A
comprehensive strategy has been deployed to identify and
measure the risk, prevent and protect against incidents, detect in
advance any potential event, and respond appropriately in case of
crisis to contain impact and ensure business continuity.
On its upstream value chain, the Group has engaged into a
multi-tier mapping of its supply chain to increase supply chain
visibility and quantify risks. The Group has developed a risk
mitigation approach with strategic stocks in the short term and a
double sourcing strategy in the medium term.
On its operations, the quantification of short-term climate risks is
primarily done with an evaluation on-site of the climate physical
risks. Risk profiles of industrial sites are regularly updated, and
adaptation measures are taken accordingly. The Group leverages
on climate scenario analysis to reinforce the short-term risk
identification and quantify medium- and long-term climate physical
risks, thus supporting decision-making processes impacting those
time horizons.
To date, the magnitude of impact is considered medium to low, as
there has been no material loss over the past ten years, however
the Group is proactively monitoring this risk.
The scenario analysis done with Risilience provides an
understanding of the potential evolution of this exposure across five
different pathways, to quantify the earning value at risk from asset
damage and business discontinuity due to natural hazards. Under
a Stated Policy pathway (based on SSP2-4.5) and without any
mitigation considered, out of 521 sites assessed, 269 will have a
high likelihood of being exposed to natural hazards by 2050.
Climate risk exposure and vulnerability are part of the Site
Resilience Index, a key indicator to define Schneider Electric
supply chain strategy, investment decisions, and current and
planned mitigation actions.
Decarbonize our activities and value chain to
transition towards a low-carbon economy
Regulatory, legal, and behavioral changes, and the evolving
competitive landscape can present risks for companies delaying
their transition to a low-carbon economy.
Schneider Electric has a comprehensive process for identifying
and managing climate-related transition risks and opportunities,
both in its own operations and along its value chain.
Five years ago, Schneider Electric set up a team dedicated to the
analysis of climate change and energy transition and to inform
strategic priorities across businesses and operations. Schneider
Electric has identified several transition events that could potentially
impact its cash flows and reputation in medium- and long-term time
horizons if the necessary mitigations are not engaged.
Schneider Electric leveraged on its climate scenario analysis to
quantify its medium (ten years) and long-term (2050) earning value
at risk from climate transition events under low-emissions
pathways.
Specific mitigation and adaptation strategies have been engaged
to avoid those transition events expected to affect Schneider
Electric assets and business activities. These encompass:
• Decreasing our GHG emissions along the value chain, exposing
the Group to carbon pricing mechanism;
• Accelerating the eco-design of our products, improving its
efficiency and emissions profile, and the adaptation our offer
portfolio to meet the growing demand for low-carbon products
and services;
• Driving the transition towards a sustainable economy within our
value chain, reducing risk from inaction; and
• Avoiding locked-in emissions and the risk of stranded assets.
As detailed in the section 2.2.2.1.3, paragraph decarbonization
actions and resources
In the short term, the Group anticipates that its markets will
experience accelerating growth between 2023 and 2027 with an
increase in market CAGR to between +6% and +7%, with a
dominant role of:
• Electrification: the world is becoming more electric, with
demand growing potentially up to 3x by 2050; and
• Digitalization: with the increase in connectivity, digital
technologies play a major role in reaching decarbonization
targets while augmenting economic productivity, notably around
efficiency in energy and resource use and circularity, as well as
increased resiliency and security.
By understanding and preparing for these megatrends, Schneider
Electric can align its strategy with market demands, anticipate
customer needs, adapt to changing landscapes, and provide
innovative solutions that address the challenges and opportunities
arising from these trends, ensuring the resilience of the Group
strategy and business model.
The megatrend analysis and associated market risks and
opportunities are updated on a yearly basis to inform the strategy
of the offer and business development teams as well as the
businesses and strategic segments organizations.
This market trend analysis and the Group’s ability to capture those
opportunities has been used to define the assumptions of the
transition risks models in the quantification of climate transition
risks based on climate scenarios.
To accelerate the decarbonization of its value chain, Schneider
Electric engages with its top 1,000 suppliers to reduce their CO2
emissions and help its customers manage their energy
consumption and reduce their emissions with Schneider Electric’s
EcoStruxure platform, providing them with real-time data and
insights to optimize energy use and reduce their environmental
footprint.
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Schneider Electric transition plan and
climate change adaptation
Schneider Electric proactively identifies and measures climate-
related risk and opportunity to assess existing and potential
impacts to its business, operations, and value chain. This approach
encompasses ERM and climate risk, and vulnerability assessments
leveraging on scenario analysis. The ERM of climate-related risk
and opportunity is a domain specific review led by environmental
experts, and overseen by the Group Risk Management department
and the Internal Audit department. The risk and opportunity
assessment covers acute and chronic climate physical risks, legal
and regulatory risks and opportunities linked to current and
emerging climate regulations, as well as market, technology, and
reputational risks and opportunities linked to changes in customer
behaviors.
In 2024, the Group performed a forward-looking climate risk and
vulnerability assessment with an independent third party
(Risilience) to identify and price the materiality of physical and
transition climate risks that may affect the Group’s operations and
sites, its extended value chain (upstream and downstream), and
overall economic activities in the short term, medium term, and
long term using scenario analysis. In this study, climate risks are
quantified under different emissions pathways between 1.5°C and
>4°C temperature rise by 2100. As described in section 2.2.2.1.2 of
climate risks, opportunities and impact management – sub-section
“IROs interaction with strategy and business model”,, five
emissions pathways based on the IPCC’s socioeconomic pathways
(SSP5-8.5, SSP3-7.0, SSP2-4.5, SSP1-2.6, and SSP1-1.9) were
considered by 2025, 2030, and 2050.The Group identifies
climate-related risks and opportunities and devise measures for
management and mitigation. Schneider references guidance from
the Task Force on Climate-related Financial Disclosures (TCFD) to
classify its climate-related risks and opportunities into two major
categories:
• Transition: risks and opportunities related to the transition to a
lower-carbon economy; and
• Physical: risks and opportunities related to the physical impacts
of climate change.
Based on the physical and transition risks and opportunities
identified, concrete actions for the 2021-2025 period were defined
and are monitored and shared transparently in Schneider
Sustainability Impact, and Essentials. They are overseen by various
dedicated Committees up to the Board of Directors.
The Group’s climate strategy has been defined in alignment with
Science-Based Target Initiative’s (SBTi’s) “Corporate Net-Zero
Standard” published in October 2021, including the validation of a
2050 target in line with limiting global warming to 1.5°C. In August
2022, Schneider Electric was one of the first companies to see its
GHG reduction targets validated by the SBTi. As part of its
Net-Zero commitment, the Group has defined mid- and long-term
targets. Ultimately, the Group is committed to be Net-Zero across
its entire value chain by 2050, which means that the Group aims to
reduce its 2021 footprint by an absolute 90% by 2050 and
neutralize residual emissions with high-quality and durable carbon
removal credits. This long-term target is accompanied by a clear
roadmap which includes milestones in 2025 and 2030, with a plan
to develop intermediary milestones for 2035. As part of its 2030
SBTi targets, the Group is committed to:
• Reach “Net-Zero ready operations”, reducing its scope 1 and 2
emissions by 90% absolute, and neutralizing residual emissions
with high quality and high durability carbon removals.
• Reduce its value chain emissions by 25% absolute from a 2021
baseline, across its upstream and downstream.
In addition, the Group has intermediary targets in 2025 as part of
the Schneider Sustainability Impact and the Schneider
Sustainability Essentials. The Group has also made specific
commitments for energy efficiency, electrification, and renewable
electricity under the EP100, EV100, and RE100 initiatives of the
Climate Group. Each of these initiatives define specific targets by
2030. Schneider Electric also aims to deliver to its customers 800
million to 4,000 of saved and avoided CO2 emissions between 2018
and 2025 thanks to EcoStruxure™ solutions.
Schneider Electric’s climate targets for Scopes 1 and 2 in 2030 are
validated by the Science Based Targets initiative (SBTi), with a
“temperature alignment” (as per SBTi terminology) of a global
warming limited to 1.5°C. For the same time horizon, Scope 3 target
is aligned with a global warming limited to well-below 2°C level,
also as per SBTi framework. These targets have been developed
by using the absolute contraction approach that SBTi is defining.
Indeed, in the absence of sector-specific trajectory for Schneider
Electric’s business, the SBTi is using a cross-sectorial trajectory to
define compatibility of GHG emissions with different levels of
temperature rises. For Scope 3, a target aligned with 1.5°C would
have been a 42% reduction over the same time period.
Over the longer term, Schneider Electric’s Net-Zero targets for 2050
have been approved by the SBTi against their “Corporate Net-Zero
Standard” which is a framework for corporate Net-Zero target
setting in line with climate science and consistent with limiting
global temperature rise to 1.5°C.
During the reporting period capital expenditures (CapEx) in fossil
fuel-related economic activities are limited, as the Group does not
invest in major coal, oil, or gas-related economic activities.
Although this indicator holds limited relevance to the Group, data
was collected to ensure transparency.
Based on Schneider Electric’s business activities, significant
investments might occur in electric power generation (NACE
D.35.1) or heat generation (NACE D.35.3). Significant investments
are defined as those in equipment for heat/cooling or co-
generation, including power, that produce direct GHG emissions
exceeding 270 gCO2e/kWh. This primarily involves electricity
generators.
Aligning with CSRD, Schneider Electric has begun systematically
tracking such investments by region with site level details, yielding
the following results:
2024, in millions
of euros
Significant CapEx for coal-related
economic activities
0
Significant CapEx for gas-related
economic activities
2.8
Significant CapEx for oil-related
economic activities
1.2
of which for emergency use
(e.g. backup-power)
100%
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While a total of 1.214 millions of euros has been invested in
oil-related power/heat generating equipment in 2024, it is used for
backup power in case of emergency use. The majority of
investments occurred in Mexico and India. With the grid quality
improving in the coming years in those regions, backup power will
no longer be needed at Schneider Electric’s sites.
Policies related to climate change
mitigation and adaptation
Getting to Net-Zero is going to take more than commitments, and
technologies. Policies underpin the pace and the progress that the
world will be able to make towards decarbonization. The Group will
use its voice to speak out on public policy issues that Schneider
Electric thinks can advance the world’s carbon efforts:
• Public policy initiatives that accelerate the electrification,
digitalization, and decarbonization of the economy.
• The removal of regulatory barriers to help catalyze markets to
enable carbon-reduction and carbon removal technologies to
scale more quickly.
• The use of market and pricing mechanisms so people and
businesses can make more informed carbon decisions.
• The empowerment of consumers through transparency based
on universal standards to inform purchasers about the carbon
content of goods and services.
In 2024, Schneider Electric has integrated its two former policies
(the Energy Policy and the Environmental Policy) in one
Environmental Sustainability Policy, to address the various
dimensions of the environment as well as their interconnectedness.
The policy defines our readiness and ambition to go beyond the
regulatory requirements and achieve voluntary sustainability
commitments and targets.
In its Environmental Sustainability Policy, Schneider Electric
commits to carry out periodical risk reviews and audits to
strengthen risk management systems and reduce environmental
risks. The ERM of climate-related risk and opportunity is a
domain-specific review led by environmental experts, and
overseen by the Group Risk Management department and the
Internal Audit department. The risk and opportunity assessment
covers acute and chronic climate physical risks, legal and
regulatory risks and opportunities linked to current and emerging
climate regulations, as well as market, technology, and reputational
risks and opportunities linked to changes in customer behavior.
The Group commits to:
• Reduce its energy and environmental footprint, via the
prevention and mitigation of environmental impacts, including
GHG emissions, energy, pollution of air, water, and soil,
substances of concern, water, biodiversity, and resource use.
• Avoid locked-in emissions: any new investment project on
operations must not lead to residual emissions from fossil fuels
for long-lived assets.
• define and deploy environmental best practices in operations,
offices, and properties; aligning its approach with major energy
and energy efficiency programs.
• strive for resilience, adapting our operations, supply chain, and
investments to mitigate risks from climate change and nature
depletion.
This engagement goes beyond Schneider Electric’s own
operations, as the Group:
• engages with suppliers, contractors, partners, and customers in
our energy and environmental excellence journey by
participating in global coalitions that advance environmental
sustainability and adopting frameworks that promote
responsible practices;
• selects partners, contractors, and suppliers compliant with
environmental regulations;
• regularly assesses environmental risks in our value chain and
works to reduce these risks relying on relevant third-party
certifications or ratings;
• develop key technology and processes that mitigate negative
environmental impact and climate change while creating
positive environmental contributions to pivot into the green
market and circular economy.
The policy focuses on reducing GHG emissions, enhancing energy
efficiency, increasing the use of renewable energy, and
implementing climate adaptation strategies. It includes specific
targets for the journey towards Net-Zero emissions, as well as
initiatives for energy-saving technologies and sustainable
practices.
It was developed with input from key stakeholders, including
employees, customers, suppliers, and regulatory bodies, ensuring
that their interests and concerns are addressed.
It ensures compliance with international standards such as the
Paris Agreement, ISO 50001 for energy management, ISO 140001
for environmental management systems, and other relevant
environmental regulations and best practices.
The Global Environment team oversees the policy’s implementation,
with senior management and the Board of Directors actively
involved in the governance.
All relevant stakeholders are informed about the policy, including
employees from the businesses, global supply chain, the
operations and corporate functions, suppliers, partners, and
customers, through internal communications, training programs,
and public disclosures, ensuring that those affected and
responsible for implementation are well-informed.
Actions and resources in relation to
climate change policies
Description of actions
This section gives an overview of the actions and resources in
relation to climate change policies. For Schneider Electric these
can be split into four areas: (1) Long-term sustainability goals, (2)
SSI and SSE, (3) Climate change mitigation and energy, (4) Climate
change adaptation.
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Long-term sustainability goals
The key actions to support climate change mitigation are aligned
with Schneider Electric’s long-term sustainability goals. For further
information related to our commitments please refer to section
2.2.2.1.3 “Targets related to climate change mitigation and
adaptation”.
To support climate change adaption, on a shorter time horizon, the
STRIVE strategy that focuses on enhancing supply chain resilience
and flexibility was a three-year plan started in 2021 and has been
replaced by IMPACT in 2024 also a three-year action plan.
Schneider Sustainability Impact (SSI) and
Schneider Sustainability Essentials (SSE)
The Global Environment team has the responsibility to define and
deploy the Group climate and environmental policies, actions, and
strategies.
The Schneider Sustainability Impact (SSI) and Schneider
Sustainability Essentials (SSE) programs act as our roadmap,
tracking our environmental, social and inclusion transformation.
The execution of the SSI and SSE is ensured by operational
managers or “pilots”, and sponsors at SVP-level to ensure proper
oversight and efficient program implementation. Actions apply to
all Schneider Electric operations, including manufacturing sites,
offices, and the supply chain. It ensures a consistent approach to
climate change adaptation, mitigation, and energy management
across the Company.
Several committees and organizations drive progress on all pillars
of the sustainability strategy, including:
• Global Supply Chain organization, with responsibilities including
safety and the environment;
• Human Resources organization;
• The Ethics and Compliance organization; and
• The Corporate Citizenship department and the Schneider
Electric Foundation.
Climate change mitigation and energy
Schneider Electric employs several decarbonization levers and key
actions to mitigate climate change.
For Scopes 1 and 2 emissions, our decarbonization levers are:
• Energy sufficiency and efficiency actions at sites: this lever
encompasses actions resulting in a decrease of energy
consumption of a site, with either (i) no change of the form of
energy that is consumed, or (ii) a change from a fuel to another
fuel (e.g., from fuel oil to natural gas) but not to electricity
(captured through another dedicated lever).
• Electrification projects at sites: this corresponds to actions
resulting in a change of the form of energy that is consumed for
a site, from fuel or gas consumption initially towards electricity
consumption after implementation of the action.
• Renewable electricity sourcing: this lever consists in acquiring
renewable electricity through various means; bundled or
unbundled renewable electricity certificates, or on-site
generations.
• Electrification of fleet: this is specifically for company vehicles,
and this corresponds to transitioning from fossil-based vehicles
(gasoline, diesel, or LPG) towards electrified vehicles (could be
plug-in hybrids or 100% pure electric vehicles).
• Reductions in SF6 leaks: this lever captures any action that
results in a decrease of the SF6 leakage happening in sites, due
to a reduction of leakage rate (e.g., better monitoring in place)
and/or the impact of the SF6 phase-out plan (less products
being sold with SF6 gas).
Since the action plan on climate change mitigation on Scopes 1
and 2 heavily relies on a shift towards lower GHG emissions from
energy consumption, the action plan on energy consists of the
same actions described above, except the ones related to SF6,
since they address other GHG sources than energy consumption.
For Scope 3 emissions, the main reduction levers are the following:
• On the upstream Scope 3 emissions specifically, the
decarbonization lever is suppliers’ engagement, to help them
reduce their emissions; Schneider Electric has developed a
robust supply chain engagement, called The Zero Carbon
Project where it works with its top 1,000 suppliers to achieve
and reduce their operational (Scope 1 and Scope 2) GHG
emissions by 50% by 2025.
• On the downstream Scope 3 side specifically, the
decarbonization lever is to phase-down the use of SF6 in
Schneider Electric products, thanks to the technological
innovation of the AirSeT range of circuit breakers, which only
rely on vacuum air for electrical insulation.
• Transversally to upstream and downstream Scope 3 emissions,
another decarbonization lever is the eco-design of products to
lower their carbon and environmental footprint: on the upstream
side, this means to design products with lower volumes of
materials, and replacement of some materials with lower-impact
materials; on the downstream side, eco-design allows to reduce
emissions during product’s use phase by improving product
energy efficiency.
From a systemic perspective Schneider Electric collaborates with
stakeholders to promote the transition to low-carbon sources of
electricity, in order to decarbonize the grids.
Climate change adaptation
Schneider Electric has implemented a wide range of actions and
allocated resources to address climate change adaptation with
different time horizons.
Schneider Electric acknowledges the acute and chronic risks
associated with the physical impacts of climate change and has
adopted a proactive and science-based climate risk management
approach, including the use of scenario analysis. The company
integrates physical risk assessment and adaptation solutions
across strategies and investments to enhance climate resilience
and continuously improve supply chain flexibility and agility.
Schneider Electric’s climate physical risk assessment and climate
adaptation actions can be categorized as follows:
1. Risk identification and assessment:
−Scenario analysis: Schneider Electric conducts forward-
looking climate risk and vulnerability assessments using
scenario analysis to understand how the exposure of its
sites and value chain may evolve with climate change.
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This climate physical risk quantification is performed on all
industrial sites, the main tertiary building in which the Group
is operating and critical purchasing categories. For each site
a threat severity index and the value at risk are calculated to
assess short (0-5 years), medium (5-10 years), and long-term
exposure (until 2050). By 2050, out of 521 sites assessed,
269 will have a high likelihood of being exposed to natural
hazards, including flash flood, heatwave, water stress,
temperate, or tropical windstorm.
−Site risk assessments: Recognizing the unique exposure and
vulnerability of different sites, Schneider Electric performs
on-site audits and assessments to evaluate the specific risks
and vulnerability profile of individual sites. These
assessments are conducted by independent risk experts.
Between 60 to 80 site audits are performed per year, to
review each key manufacturing site every three years.
−Supply chain risk assessment: Schneider Electric assesses
the climate risks within their supply chain with a multi-tier
supply chain mapping, considering factors such as the
geographical location of suppliers, the potential for
disruptions to transportation and logistics, and the availability
of critical resources to manufacture its products.
2. Adaptation measures to detect and protect against climate risk:
−Technological adaptation solutions: Schneider Electric
leverages technology to enhance climate resilience, such as
implementing early warning systems for extreme weather
events and using climate data to inform site protection
decisions. Those risk detection measures cover all Schneider
Electric’s manufacturing and distribution sites as well as
major logistic hubs.
−Engineered and built environment adaptation solutions:
These solutions include measures like flood gates, water
storage and pump storage, or improved drainage to protect
physical assets from climate-related hazards. Those
adaptations measures aiming at reducing site vulnerabilities
are taken within the year following recommendations from
on-site audits of key industrial sites. In 2023, several factories
in France were identified with exposure to riverine flooding.
As a result, the Group took the appropriate adaptation
measures to mitigate risk exposure and enhance resilience.
Over the last ten years, Schneider Electric has been invested
in engineered and built environment adaptation solutions to
mitigate any potential loss.
−Ecosystem-based adaptation solutions: These solutions
focus on protecting and restoring natural ecosystems that
provide valuable services, such as flood protection, water
regulation, and carbon sequestration. Examples include
wetland restoration, reforestation.
−Educational adaptation solutions: The company focuses on
raising awareness and building knowledge about climate
change adaptation through internal and external educational
programs, participation in coalitions and research networks
like WBCSD Adaptation and Resilience. The Group has also
deployed trainings to all its employees and with its partners.
−Behavioral adaptation solutions: Schneider Electric
implements business continuity plans and crisis
management standards to prepare for potential natural
hazards, minimizing disruptions and ensuring the safety of its
workforce. Business continuity planning is a Company-wide
process covering all industrial sites and all tertiary sites with
more than 50 people.
3. Supply chain resilience:
−Power of Two in Manufacturing: This initiative focuses on
qualifying alternate factories for the same products and
suppliers for all critical parts and components, ensuring the
continuity of supply and mitigating the risk of bottlenecks.
Supply risks are qualified and both short- (<1 year) and
long-term (by 3 years) risk-mitigation measures are
implemented.
−Out of the 269 sites with a high likelihood of enduring
extreme weather events by 2050 under the Stated Policy
scenario, 140 (52%) have a back-up site able to take
between 2% and 98% of its load. The Power of Two strategy
has proven its efficiency on many occasions, including
storms and over outage in North America and floods in
Europe. By 2025, 100% of critical distribution centers will be
able to redirect more than 80% of their flow in less than five
day(s), and 90% of critical offers will be covered by at least
a dual manufacturing set up.
−Dynamic control towers: The company utilizes dynamic
control towers to monitor traffic and events in real-time across
its logistics network and partners, allowing for proactive
adjustments and responses to potential disruptions.
Risk management and resilience
Climate physical risks management and adaptation are integrated
into Schneider Electric’s ERM framework and its Global Supply
Chain strategies, which include an increased focus on adaptation
and resilience to continuously improve supply chain flexibility
and agility.
The company’s Schneider Performance System monitors the
adoption of these strategies, including climate adaptation and
supply chain resilience actions, ensuring a holistic approach to risk
management across key industrial sites.
To assess and manage climate risks, Schneider Electric conducts
periodic site audits, climate risk and vulnerability assessments, and
scenario analysis to identify potential vulnerabilities, quantify
financial impacts, and implement adaptation measures.
The aim is to secure a full end-to-end approach on:
• Logistics network and partners with dynamic control towers
monitoring traffic and events in real time.
• Manufacturing with global design and at least two sites to
supply, and site risk prevention.
• Upstream with dedicated resources to map risk and address
high business impact risks to continuously reduce risk
exposure; through dual source, change source, or inventory.
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Collaboration and engagement
Schneider Electric recognizes the importance of collaboration and
stakeholder engagement in climate change adaptation, actively
participating in industry initiatives and working with its suppliers to
enhance resilience.
The company’s efforts include supply chain multi-tier mapping and
proactively working to qualify alternate suppliers for all critical parts
and components to improve continuity of supply regardless of
potential business disruptions.
Expected/Achieved GHG emission
reductions
This section links the previously mentioned actions to the achieved
and expected emission reductions.
In reporting year 2024, implementation of decarbonization actions
in Scopes 1 and 2 resulted in a reduction of 268,033 tonnes of
CO2eq and will abate 36,000 tonnes of CO2eq over a 10-year
period as compared to emissions that would happen in the
absence of the actions. These decarbonization actions mainly
pertain to the levers of electrification projects at sites and
renewable electricity sourcing.
Allocated financial resources
This section gives an overview about the financial resources
allocated to the actions.
Considerations
The implementation of decarbonization actions is not materially
dependent on the availability and allocation of resources. However,
the rate at which Schneider can implement emission reductions is
dependent on many other factors that can change over time; these
include business growth and geographic distribution, supplier mix
and suppliers’ decarbonization journeys, and the rate of
decarbonization of the grids that power the Group’s products.
Type of current and future financial and
other resources allocated
Climate change mitigation and energy
Financial resources allocated to the action plan on climate change
mitigation are both operational expenditures and capital
expenditures. Capital expenditures are needed to fund the
installation of heat pumps and EV chargers in order to decarbonize
sites and the Company fleet. Capital is also being spent on
industrial processes of manufacturing sites, in order to transition
from SF6-based to SF6-free products (the AirSeT range of offers).
Lastly, the Company measures the research and development
expenses on eco-design projects that have a significant climate
impact. On the front of operational expenses, the most material
type of expenses are related to sourcing renewable electricity,
especially for unbundled renewable electricity certificates, and
also expenses related to SF6-free transition.
Since the action plan on climate change mitigation on Scopes 1
and 2 heavily relies on a shift towards lower GHG emissions from
energy consumption, the action plan on energy consists of the
same types of expenditures, and the financial resources disclosed
below applies to the action plan on energy as well, except the
ones related to SF6, since they address other GHG sources than
energy consumption.
Also, for the reduction of Scope 3 emissions the bulk of the
reductions, coming from eco-design efforts, will not trigger
specific additional expenditures, since the reduction of the lifecycle
carbon footprint of Schneider Electric products is rather a question
of framing appropriately the purpose of eco-design efforts, and
not necessarily an increased spend on research and
development efforts.
Current financial resources allocated to action
plans related to climate change mitigation
and energy
In 2024, capital expenditures allocated to the climate change
mitigation plan consists of:
• EUR 39.8 million on electrification projects at sites; and
• EUR 14.4 million on manufacturing sites to support SF6
phase-down in the portfolio.
These categories of capital expenditures are included in the
“Buildings” classification in Note 11 of the financial statements (see
Chapter 5 of this URD).
The operational expenditures over the same time period for
sourcing unbundled renewable certificates are not considered as
material, and EUR 35 million have been spent on the transition to
SF6-free products.
Future financial resources allocated to action
plans related to climate change mitigation
and energy
Anticipated financial resources allocated for the climate change
mitigation plan are being estimated for the trajectory towards 2030
climate targets. In terms of capital expenditures, this represents:
• EUR 200 million on electrification projects at sites;
• EUR 90 million for installing EV chargers at sites.
The future operational expenditures of sourcing renewable
electricity, and both operational and capital expenditures to
support the transition to SF6-free products for meeting climate
targets and renewable electricity commitments are assessed to be
not material over the 2025-2030 period.
Climate change adaptation
Schneider Electric acknowledges that climate change adaptation
requires financial investments, including CapEx for infrastructure
upgrades and OpEx for risk assessments, training, and
implementation of adaptation measures. Hence, it allocates
both capital expenses and operating expenses to identify
climate risks and support its Business Continuity and Risk
Management program.
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2.2 Sustainability statements
Current financial resources allocated to action
plans related to climate change adaptation
Schneider Electric allocates both capital expenses and operating
expenses to identify climate risks and support its Business
Continuity & Risk Management program.
Investments to support end to end supply chain resilience and
climate change adaptation are reflected within the note 11 of the
2024 financial statements (see chapter 5 of this URD) and relate to:
• The CapEx contributing to build multi-manufacturing capabilities
and the regionalization of our supply chain, mitigating business
disruption risks.
• The part of the Safety, Security, Environment CapEx dedicated
to the implementation of recommendations done during on-site
risk assessments, reducing site vulnerability towards climate
physical risks.
The company incurs operating expenses for project
implementation, certification costs, and various activities related to
identifying, detecting, and responding to climate risks. This
includes climate scenario analysis and real-time predictive weather
analysis and alerts, which enhance preparedness for extreme
weather events and enable at-risk sites to proactively activate their
business continuity plans.
Future financial resources allocated to action
plans related to climate change adaptation
The company recognizes that failure to adapt to climate change
can lead to financial losses, such as damage to assets, business
disruptions, and increased costs due to supply chain disruptions
and resource scarcity.
By proactively investing in climate change adaptation, Schneider
Electric aims to mitigate these risks and enhance the long-term
resilience and sustainability of its operations.
The Group will continue to invest in climate adaptation to secure a
full end-to-end approach towards supply chain resilience.
Relationship of significant CapEx and OpEx
The Group’s significant CapEx and OpEx required to implement
actions related to climate change mitigation, energy, and climate
change adaptation are closely linked to the KPIs mandated by
Commission Delegated Regulation (EU) 2021/2178.
CapEx related to assets, processes, and business combinations
associated with EU Taxonomy activities are meticulously calculated
based on eligible and aligned revenue per business and
operations, ensuring that the associated CapEx is accurately
attributed to eligible and aligned measures.
CapEx and OpEx for product-related R&D projects is considered
Taxonomy-eligible and aligned under activity Climate Change
Mitigation CCM 3.6 (manufacture of other low carbon technologies).
These projects contribute significantly to carbon footprint reduction
through the development of more efficient products and systems.
This highlights how the Group’s CapEx and OpEx are strategically
allocated to support actions in climate change mitigation, energy
efficiency, and climate change adaptation, ensuring alignment with
the required KPIs.
The main differences between expenditures disclosed under ESRS
E1 and KPIs disclosed under Commission Delegated Regulation
(EU) 2021/2178 are due to investments made for Schneider Electric
supply chain resilience and climate adaptation but not reflected
under any economic activity of the EU Taxonomy. Similarly,
investments linked to building rental contracts signed as part of a
climate change mitigation approach but not aligned with EU
Taxonomy criteria, and the replacement of industrial machines
consuming less energy, are currently not covered by any economic
activity of the EU Taxonomy.
Progress
Schneider Electric has reported substantial progress in its
Sustainability Reports. The company has achieved a 10% reduction
in energy consumption and a 15% decrease in GHG emissions
over the past five years.
For more information on progress-related metrics,
please refer to section 2.1.1.2 “Long-term commitments
and tools to measure progress” on page 71.
The company has enhanced its resilience to climate impacts
through adaptive measures including dual sourcing, manufacturing
with global design and at least 2 sites to supply, logistics network
and partners with dynamic control towers monitoring traffic and
events in real time, and site risk prevention.
Our “Power of Two” strategy has consistently demonstrated its
efficiency in various situations, including storms and power outages
in North America, as well as floods in Europe. Each time, our
backup sources have proven invaluable. Schneider is proactively
qualifying alternate factories for the same products and suppliers
for all critical parts and components, thereby enhancing supply
continuity despite potential business disruptions, such as natural
disasters. We are moving towards in terms of local sourcing,
targeting up to 90% sourcing and manufacturing within regional
hubs.This approach not only reduces shipping and transportation
costs, thereby lowering CO2 emissions, but also aligns with local
procurement requirements, creating additional opportunities and
enhance supply chain system resilience. Reducing risk exposure is
an ongoing effort in Schneider Electric, where the goal is to secure
a full end-to-end approach towards supply chain resilience.
2.2.2.1.3 Climate change results and
financial effect
Decarbonization actions and resources
Based on the nature of the greenhouse gas (GHG) emissions from
Schneider Electric’s activities across the three scopes, several
decarbonization levers and key actions have been identified to
mitigate climate change. While some of these levers are quite
generic from one company to another (especially on Scopes 1
and 2 emissions), the specificities of Schneider Electric are being
factored in (e.g., the specific emission sources of SF6 in Scopes 1
and Scope 3,
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the existing sustainability programs, and how the emissions from
energy are being tackled by leveraging the portfolio of solutions
of Schneider Electric).
For Scopes 1 and 2 emissions, our decarbonization levers are:
• Energy sufficiency and efficiency actions at sites: this lever
encompasses actions resulting in a decrease of energy
consumption of a site, with either (i) no change of the form of
energy that is consumed, or (ii) a change from a fuel to another
fuel (e.g., from fuel oil to natural gas) but not to electricity
(captured through another dedicated lever).
• Electrification projects at sites: this corresponds to actions
resulting from a change of the form of energy that is consumed
for a site, from fuel or gas consumption initially towards
electricity consumption after implementation of the action.
• Renewable electricity sourcing: this lever consists in acquiring
renewable electricity through various means; bundled or
unbundled renewable electricity certificates, or on-site
generation.
• Electrification of fleet: this lever is specifically for company
vehicles, and it corresponds to transitioning from fossil-based
vehicles (gasoline, diesel, or LPG) towards electrified vehicles
(could be plug-in hybrids or 100% pure electric vehicles).
• Reductions in SF6 leaks: this lever captures any action that
results in a decrease of the SF6 leakage happening in sites, due
to a reduction of leakage rate (e.g., better monitoring in place)
and/or the impact of the SF6 phase-out plan (less products
being sold with SF6 gas).
For Scope 3 emissions, the main reduction levers are the following:
• On the upstream Scope 3 emissions, the decarbonization lever
is suppliers’ engagement, to help them reduce their emissions.
• On the downstream scope 3 side, one of the decarbonization
lever is to phase-down the use of SF6 in Schneider Electric
products, thanks to the technological innovation of AirSeT range
of circuit breakers, that only rely on vacuum air for electrical
insulation.
• Transversally to scope 3 emissions, another decarbonization
lever is the eco-design of products for lower carbon footprints:
on the upstream side, this means to design products with lower
volumes of materials, and replacement of some materials with
lower environmental impact materials; on the downstream side,
eco-design allows to reduce emissions during product’s use
phase by improving product energy efficiency.
• The decarbonization of the grids is factored in the forecasts of
scope 3 GHG emissions, due to the emissions from the use
phase of products resulting from the carbon intensity of the
electricity where the products are used.
From a systemic perspective Schneider Electric collaborates with
stakeholders to promote the transition to low-carbon sources of
electricity, in order to decarbonize the grids.
The significant operational expenditures and capital expenditures
required for implementation of action plan are disclosed above, in
the section about the types of current and future financial
resources allocated for Climate Change Mitigation. During the
reporting year Schneider Electric invested 41.6 millions of euros
CapEx and 0.8 millions of euros OpEx to support the
implementation of its transition plan. These spendings are
classified in alignment with the Company-wide decarbonization
levers, however tracking currently only covers Scope 1 and 2 on a
company-wide basis.
A more nuanced differentiation on additional spending and the link
with financial statements can be found in the aforementioned
section which presents material financial resources for the
decarbonization levers. Overall, to implement the objective of
achieving the “Net-Zero ready” target in operations by 2030 on
Scopes 1 and 2, it is estimated that around EUR 400 million will be
invested from 2024 by 2030, in technologies such as heat pumps to
substitute comfort gas or electric vehicles (EV) chargers, and for
supporting the shift towards SF6-free products. For more details
please refer to section “Type of current and future financial and
other resources allocate” on page 137.
In order to ensure there are no severe pitfalls for successfully
implementing the decarbonization actions, Schneider Electric has
looked into material locked-in GHG emissions in the activities of the
Company. Since there is no asset operated by Schneider Electric
that would represent more than 5% of the Scopes 1 and 2
emissions of the Company, hence there is no key asset with
material locked-in emissions. In addition, although there are some
manufacturing sites with gas-intensive manufacturing processes,
the Group is actively looking for ways to electrify these processes
and there is no impediment to implement the transition plan.
On the Scope 3 side, the locked-in GHG emissions from Schneider
Electric’s activities are on the downstream side, with Scope 3
categories 11 and 12 in GHG Protocol framework, respectively use
phase and end-of-life emissions of sold products. In conformance
with GHG Protocol standards, these emissions are being estimated
based on the sales happening in the reporting year, with a
forward-looking perspective on what will be the GHG emissions in
the future of the products, from a lifetime perspective. Hence, these
Scope 3 categories encompass GHG emissions that will occur in
the coming decades, since some of Schneider Electric products
have lifetimes of 10, 20, or even 30 years. By design, the way the
GHG inventory of the Company is done does not result in locked-in
emissions that would jeopardize achievement of GHG emission
reduction targets, and then would result in transition risks, since the
reduction targets are based on a similar accounting approach for
GHG inventories of future years. In other words, the Scope 3 GHG
emissions that we will be reporting in 2030 will also be based on
the sales of reporting year 2030, and factoring the carbon intensity
of the electricity consumption of our customers in 2030, and after.
Schneider Electric’s purpose is to create impact by empowering all
to make the most of its energy and resources, bridging progress
and sustainability for all. 90% of the Group’s revenue comes from
economic activities supporting either climate change mitigation, the
transition to a circular economy or the preservation of water
resource, as defined in the European Union Taxonomy, and the EU
commission delegated regulation 2021/2139. In 2024, Taxonomy-
eligible and -aligned revenues with at least one of the climate
environmental objectives amounted to 90% and 28% respectively,
representing EUR 34,328 million and EUR 10,737 million
respectively out of EUR 38,153 million total 2024 consolidated
revenue, as disclosed in the consolidated statement of income
on page 504.
Schneider Electrics’ activities supporting those climate
environmental objectives are described on page 186.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
• Schneider Electric has developed a robust supply chain
engagement, called The Zero Carbon Project where it
works with its top 1,000 suppliers to reduce their
operational GHG emissions by 50% by 2025; The ambition
of The Zero Carbon Project is to collaborate with 1,000
suppliers and reduce their operational (Scopes 1 and 2)
GHG emissions intensity by 50% by 2025 (SSI #3).
The participating suppliers are required to quantify their
operational carbon footprint (Scopes 1 and 2; Scope 3 is
optional), make public commitments for their reduction
targets, implement action to achieve reduction, and share
the emissions reduction progress with Schneider Electric.
• The participating companies in the program are based in
more than 50 countries, cover more than 65 procurement
categories, and vary in terms of carbon maturity and size.
To adapt to this diversity, the participating suppliers are
allowed flexibility to customize their reduction plans by
defining their own base year and baseline and adopting
relevant reduction targets and time frames; During 2024,
a range of tailored solutions were implemented to provide
decarbonization implementation support to the suppliers
across different regions:
−Local Action Capsule: on-site implementation support via
sustainable procurement experts to handhold suppliers
and accelerate deployment of the emission reduction
roadmap. ~120 supplier site visits were conducted
across China, India, East Asia, Europe, Mexico, and the
US to identify bottle necks and provide remediation.
−The local/regional focus included horizon scanning and
market analysis to support suppliers in identifying
specialized agencies for implementation support,
wherever required and facilitating connections and
introductory meetings with suppliers.
−Renewable Energy Week: digital consultation with
experts on renewable energy adoption by suppliers.
−Renewable Energy Workshop: Workshops for
customized deepdive with experts on renewable
adoption by suppliers.
−Local “The Zero Carbon Project” (TZCP) Workshop:
country/province level supplier workshops to find
tailored solutions for local implementation challenges
faced by suppliers. There were 8 sessions organized in
different countries reaching ~170 different suppliers.
−Thematic webinars: 22 live webinars with experts on a
range of decarbonization levers. These webinars
reached out to 1,000 suppliers.
−Sustainable Supply Chain Finance solution, to ensure
immediate payment to the suppliers who perform above
certain threshold instead of regular payment duration,
providing easy capital access (launched in selected
country).
−Supply Chain Renewable Initiative to raise the
awareness of suppliers on a host of renewable energy
instruments and potentially create supplier cohorts to
access renewable energy instruments.
TZCP Supplier Support Framework
Western Europe
North America
China
Asia Pacific
iAccelerate Zero
Carbon Day
Local action
capsule
Renewable
energy week
Renewable
energy workshop
Local TZCP
workshop
Webinars
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The Group will continue to develop its portfolio of offers providing
energy and resources efficiency to its customers, while continuing
to proactively substitute the use of hazardous substances in its
products, thus supporting climate change mitigation while not
harming significantly any of the other environmental objectives.
With its climate programs, the Group aims at limiting its carbon
emissions by implementing its own Energy Management and
Industrial Automation solutions and developing offers that will help
its customers do the same, increasing mechanically its share of
revenue coming from offers contributing significantly to climate
change mitigation. In 2024, 25% of Schneider Electric revenue is
contributing substantially to mitigate climate change, while not
significantly harming any of the other environmental objectives of
the EU Taxonomy (Commission Delegated Regulation 2021/2139).
Schneider Electric’s end-to-end circularity strategy, part of its
resource programs, aims at minimizing the volume of resources it
needs and optimizing the use of these resources. The keystone of
Schneider Electric’s circularity approach is EcoDesign Way™, a
process that enables the right trade-offs between the
environmental impact along the lifecycle of products. Those
programs are part of the transformations along our value chain
needed to contribute substantially to the transition to circular
economy in the manufacturing of electrical and electronic
equipment. In 2024, 3% of Schneider Electric revenue is
contributing substantially to transitioning to a circular economy,
while not significantly harming any of the other environmental
objectives of the EU Taxonomy.
Finally, Schneider Electric’s commitment to continue to prioritize the
management and substitution of hazardous chemicals from its
products, processes, and supply chain, is also contributing to align
economic activities with the criteria established in the Commission
Delegated Regulation 2021/2139.
Schneider Electric is not excluded from EU Paris-aligned Benchmarks.
The transition plan is reviewed through different leadership steps,
and ultimately by both the Executive Committee and the Board at
least once a year, as Long-term incentive package targets are set
for the following year. The adjusted gap to target, and actions to
close the gap are reviewed and approved during these meetings.
Also, it is worth noting that during its Annual General Meeting in
May 2023, the Group gave shareholders the possibility to vote on
the Company’s climate transition plan and 97.67% of voters
approved it.
Since 2021, emissions from Schneider Electric’s operations
(Scopes 1 and 2) have decreased by 51% in absolute terms, as
compared to a target of -76% by 2030, while Scope 3 emissions
have decreased by 19% in absolute terms as compared to a target
of -25% by 2030.
More specifically, emissions from Scopes 1 and 2 have decreased
in 2024 by 29% as compared to 2023, and the overall reduction
since 2021 are largely due to energy efficiency initiatives,
electrification of the Group’s on-site processes and fleet, and
the outstanding progress on sourcing more and more
renewable electricity.
Induced: 0.1 MtCO2e in 2024
0.3% of total carbon footprint
2020
2022
2021
2024
2030
2023
0
0.05M
0.15M
0.2M
0.25M
0.1M
0.3M
Electricity
and heat
Energy fuels
Company cars
SF6 leaks
Target
Operations
Scope
1 and 2
-29%
GHG emissions
reduction in Scopes 1
and 2 vs. 2023
On Scope 3, upstream emissions have decreased by 2.7% since
2021, due to the reduction of volume of commodities being
purchased, and the efforts of the decarbonization programs in the
supply chain (e.g., Green Materials program which contributes to
source materials with low carbon footprint, and The Zero Carbon
Project which supports the decarbonization of top 1,000 suppliers).
Downstream emissions, the majority of which come from the use of
sold products, have decreased by 21% since 2021. This is due to
both the decarbonization of the grids that the Group’s consumers
rely on, and the evolution of the geographic split of sales. As
explained in the section above, when calculating these emissions,
the Group considers the products’ lifetime and the projected
carbon intensity of the grids where consumers are located.
Suppliers
Scope 3
upstream
2020
2022
2021
2024
2030
2023
0
2M
4M
6M
8M
10M
Induced: 8 MtCO2e in 2024
14% of total carbon footprint
Purchases
Freight
Employee
commuting
Other Scope 3
upstream
Target
3.2%
CO2e emissions in
Scope 3 upstream
vs. 2023
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2.2 Sustainability statements
2020
2022
2021
2024
2030
2023
0
20M
40M
60M
80M
Induced: 47 MtCO2e in 2024
85% of total carbon footprint
Use of products
End-of-life products
Freight
Target
-2.8%
CO2e emissions in
Scope 3 downstream
vs. 2023
Customers
Scope 3
downstream
The financial implications of the transition plan and the forecasted
GHG emissions until 2030 are reviewed in different leadership
instances, and ultimately by both the Executive Committee and the
Board, at least on an annual basis.
Delivering on the transition plan is by essence tied to the overall
business strategy, since it is the very purpose of Schneider Electric
to support customers in their decarbonization journeys.
Being our customers’ digital partner for Sustainability and
Efficiency, Schneider Electric must lead by example, constantly
looking to reduce energy consumption and GHG emissions in
absolute terms, leveraging technological, process, and
behavioral transformations.
In practical terms, this means the decarbonization approach is
similar to what is being facilitated for customers. Schneider Electric
helps its customers to strategize on their approach to Net-Zero and
to implement the operational steps required to achieve their
trajectory using all relevant levers, including energy efficiency,
electrification, renewable energy sourcing, and more. Schneider
Electric also offers cutting-edge managed services and digital
solutions to tackle climate change through digitalization. The Group
helps its customers collect the data needed to both design their
strategy and then help show progress against emissions, both for
internal purposes and for disclosure against
prevailing sustainability frameworks.
Even more concretely, the Group is using the portfolio of
EcoStruxure solutions to reduce GHG emissions from Scopes 1
and 2 sources, by leveraging products and software to
foster energy efficiency, electrification, and sourcing of
renewable electricity. To deliver its “Net-Zero ready” target on these
emissions by 2030, the Group leverages its Power and Building
EcoStruxure™ IoT architectures, to monitor and optimize energy
consumption, manage assets and grid infrastructure, manage
distributed renewable energy resources and electricity load,
and power EVs.
Targets related to climate change
mitigation and adaptation
Schneider Electric’s Net-Zero commitment is defining ambitious
targets to reduce the impact of the Group’s operations and overall
value chain on climate change, and to remove residual emissions in
line with science. Through these targets, Schneider Electric is
aiming to reduce its climate transition risks related to regulatory,
legal, and behavioral changes, and anticipate the evolving
competitive landscape that can present risks for companies
delaying their transition to a low-carbon economy.
The greenhouse gas (GHG) reduction targets have been set in
August 2022, when Schneider Electric was one of the first
companies to have validation of the targets by the Science-Based
Target initiative (SBTi), in alignment with the “Corporate Net-Zero
Standard” that the SBTi published in October 2021.
The three milestones towards Schneider Electric’s Net-Zero
commitment are presented on a graph with the key
decarbonization levers:
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Scope 1 and 2
Decarbonizing our
operations with:
•
Energy conservation measures
•
Sites and vehicle fleet electrification
•
Sourcing and generation of
renewable power
Residual emissions from
Scope 1 and 2:
•
As of 2025, contribution to
high-quality carbon removal
for an amount corresponding
to yearly residual emissions in
Scope 1 and 2
Scope 3
Decarbonizing our
upstream value chain in:
•
Engaging and supporting suppliers
to decarbonize
•
Eco-designing safe and high-
quality products with lower lifecycle
CO2 footprint
•
Sourcing of low-carbon materials
Decarbonizing our
downstream value chain by:
•
Influencing for global
decarbonization
•
Innovating with more efficient
products and SF6-free medium
voltage equipment
Carbon credits
Progressively balance residual
emissions with high-quality carbon
removals
The more GHG emissions are reduced,
the less residual emissions there are.
Residual emissions must be balanced
with high-quality and high-durability
removals.
In 2050, high-durability carbon
removal credits shall equal residual
value chain emissions.
2025
Carbon
neutral
operations
2030
“Net-Zero ready” operations
25% GHG absolute reduction
across the value chain
2050
Net-Zero
value chain
2021
Baseline
Scopes 1 & 2
Scope 3
Scopes 1 and 2 emissions
Scope 3 emissions
Carbon removals
Supply chain resilience and flexibility
Recognizing the vulnerability of supply chains to business
disruptions, due to multiple factors including extreme weather
events, Schneider Electric has launched strategies to adapt to
climate change, and enhance resilience and flexibility. These
strategies include:
•
Qualifying alternate suppliers for critical parts and components,
setting the objective of having 100% of purchasing components
with high supplier risk and business impact covered by a
mitigation plan within three years after threat being qualified.
•
Qualifying alternate factories for the same products
manufacturing, with an objective of 90% of critical offers
covered by at least a dual manufacturing set up by 2025.
•
Qualifying alternate supply chain flows, aiming at 100% of
critical distribution centers able to redirect more than 80% of
their flow in less than five days by 2025.
•
Regionalization of manufacturing activities to mitigate disruption
risks over the supply chain, moving towards up to 90% sourcing
and manufacturing within regional hubs.
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2.2 Sustainability statements
By having multiple sourcing options in different geographical
locations, Schneider Electric can better adapt to disruptions
caused by extreme weather events or other unforeseen
circumstances. Schneider Electric utilizes dynamic control towers
to monitor traffic and events in real time across its logistics network
and partners, allowing for proactive adjustments and responses to
disruptions.
By 2030, the Group aims to:
• Reduce Scopes 1 and 2 emissions by 76% as compared to
2021 (which is equivalent to reduce by 90% as compared to
2017, which is referenced as our commitment of being “Net-Zero
ready” in operations); and
• Reduce Scope 3 emissions by 25% as compared to 2021.
By 2050, the Group aims to reach Net-Zero CO2 emissions across
the entire value chain, which implies to reduce Scopes 1 and 2
emissions by 90% on the one hand, and Scope 3 emissions by
90% on the other hand. The reference years for both these
reductions targets are 2021.
These targets are expressed in absolute terms (as opposed to
intensity terms), in the absence of dedicated sectorial pathways
that would be adapted to the broad portfolio of Schneider Electric,
comprising products, equipment, services, and software. When
developing its science-based targets, the Group has taken into
consideration reasonable evolutions in sales volumes, and external
factors such as regulatory factors and development of new
technologies.
The targets cover all types of GHGs and all the applicable
emissions sources under their respective scopes (i.e., either under
Scopes 1 and 2, or under Scope 3). In other words, they consist of
the overall GHG inventory that is being reported by Schneider
Electric. They do not include GHG removals, carbon credits, nor
avoided emissions from sold offers. The targets on Scopes 1 and 2
are applicable with Scope 2 being calculated under a market-
based accounting approach.
The corresponding absolute values for target years 2030 and 2050 are shown in below table:
Milestones and targets
2021 (Base year)
2030
2050
2030: Annual % target/Base year
Total Scope 1 +
Scope 2
293,832
70,520
29,383
8.44%
Total Scope 3
68,737,485
51,553,114
6,873,748
2.78%
Within the Group, AVEVA has specific targets which were
developed prior to the full acquisition by the Schneider Electric
Group. These targets are:
• Near-Term Targets:
−Reduce absolute scope 1 and 2 GHG emissions 90% by
2030.
−Reduce absolute scope 3 GHG emissions 50% by 2030 from
a 2020 base year.
• Long-Term Net-Zero Targets:
−Net-zero GHG emissions across the value chain by 2050.
−Maintain at least 90% absolute scope 1 and 2 GHG emission
reductions from FY2030 through 2050.
−Commits to reduce absolute scope 3 GHG emissions 90%
by 2050 from a 2020 base year.
Similarly to the Group’s targets AVEVA’s targets cover all types
of GHGs and all the applicable emissions sources under their
respective scopes (i.e., either under Scopes 1 and 2, or under
Scope 3). In other words, they consist of the overall GHG inventory
that is being reported by AVEVA. They do not include GHG
removals, carbon credits, nor avoided emissions from sold offers.
The targets on Scopes 1 and 2 are applicable with Scope 2 being
calculated under a market-based accounting approach.
Schneider Electric has made progress in meeting the targets
before the current base year, as indicated above for climate
change mitigation.
Schneider Electric’s climate targets for Scopes 1 and 2 in 2030 are
validated by the Science Based Targets initiative (SBTi), with a
“temperature alignment” (as per SBTi terminology) of global
warming limited to 1.5°C. For the same time horizon (2030), the
Scope 3 target is aligned with global warming limited to well-below
2°C level, also as per the SBTi framework. These targets have been
developed by using the absolute contraction approach that SBTi is
defining. Indeed, in the absence of sector-specific trajectory for
Schneider Electric’s business, the SBTi is using a cross-sectorial
trajectory to define compatibility of GHG emissions with different
levels of temperature rises. For Scope 3, a target aligned with 1.5°C
would have been a 42% reduction over the same time period.
For a description of detailed decarbonization levers please refer to
the section 2.2.2.1.3 “Decarbonization actions and resources” on
page 138.
In summary, Schneider Electric’s decarbonization levers for Scopes
1 and 2 emissions are: energy sufficiency and efficiency actions at
sites, electrification projects at sites, renewable electricity sourcing,
electrification of fleet, and reductions in SF6 leaks.
For Scope 3 emissions, the levers cover: upstream supplier
engagement, downstream SF6 phase-down, AirSeT circuit
breakers, and eco-design.
The quantitative contributions of these levers to achieve GHG
emissions targets by 2030 are shown in the below graphs:
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Decarbonization actions on Scopes 1 and 2
towards 2030 target
2024
emissions
ca. 145 ktCO2
Fleet
electri-
fication
Renewable
electricity
Others
2030
emissions
ca. 70 ktCO2
Site
electri-
fication
Decarbonization actions on Scope 3 towards
2030 target
2024
emissions
ca. 56 million
tCO2
Eco-design
of products
for lower
carbon
footprints
Growth
and
external
factors
Gap to
target
2030
target
ca. 52 million
tCO2
Others
Scope 3
decarbon-
ization
SF6
phase-
down
Schneider Electric’s climate targets were approved by the SBTi in
2022, hence they are based on the latest available reporting year,
which was 2021, as per the SBTi’s recommendations. 2021 is a
representative base year, as compared to 2020 which was the year
of the COVID pandemic.
Since the development of the SBTi-approved targets in 2022, there
has been no change in the baseline value.
To deliver its “Net-Zero ready” target on the emissions from Scopes
1 and 2 by 2030, the Group’s approach has four pillars:
• Save: foster energy conservation and avoid SF6 leakages.
• Electrify: switch from gas or car fuel to electricity.
• Decarbonize electricity: use renewable energy, either from
on-site generation, or through external procurement of
renewable power.
• Balance residual emissions with high-quality and high-durability
carbon removal.
To make progress on these 4 pillars, specific targets for 2025 and
associated programs have been set as part of the Schneider
Sustainability Essentials (SSE) programs. SSE ambitions and
programs are:
• Reach 150 Zero-CO2 sites by 2025 (SSE #1);
• Source 90% of electricity from renewables by 2025 (SSE #3),
and 100% by 2030 (RE100);
• Increase energy efficiency in its sites by 15% by 2025 (SSE #5),
and double energy productivity by 2030 compared to 2005
(EP100); and
• Shift one-third of corporate vehicle fleet to EVs by 2025 (SSE
#7), and 100% by 2030 (EV100).
Similarly for Scope 3 emissions, targets and programs have been
set as part of the SSE but also the Schneider Sustainability Impacts
(SSI) programs. The relevant SSI and SSE programs are:
• Engage top 1,000 suppliers to reduce their operational CO2
emissions by 50% with The Zero Carbon Project (SSI #3).
• Increase green material content in products to 50% (steel,
aluminum, and plastics) by 2025, (SSI #4). According to
Schneider Electric, a green material has a lower environmental
and social footprint, meaning low GHG emissions, high recycled
content, and minimized impact on people and the planet.
Performance can be achieved, either through selecting material
and/or supplier with a proven lower environmental footprint (e.g.,
proof of a material produced out of a 100% recycled content), or
strengthening the traceability of sustainable initiatives in the
value chain. In 2024, the scope of green materials focused on
three types of commodities covering around a third of
purchased materials in volume:
−Thermoplastics (including both direct and indirect
procurement) – Thermoplastics are qualified as “green”
when the supplier provides evidence of a minimum recycled
content, biobased content (the minimum threshold depends
on whether the compound is halogenated or not) or is using
a green flame retardant.
−Steel (direct purchases) – Steel is qualified as “green” when
the supplier provides evidence that the mill of origin is an
electric arc furnace or has a green certificate such as the
ones delivered by Responsible Steel.
−Aluminum (direct purchases) – Aluminum is qualified as
“green” when the supplier provides evidence that the
product carbon footprint is below 8 tonnes of CO2 per ton of
aluminum, is using a minimum of 90% of recycled content in
its product, or that the mill of origin has a green certificate
such as the ones delivered by the Aluminium Stewardship
Initiative.
• Improve the end-to-end lifecycle environmental footprint of its
offers with EcoDesign Way™.
• Have 100% of primary and secondary packaging free from
single-use plastic and using recycled cardboard (SSI #5);
• Propose SF6-free alternatives for all medium voltage
technologies by 2025 (SSE #2).
• Increase CO2 efficiency in transportation of goods by 15% by
2025 (SSE #4), and replace at least 5% of conventional jet fuel
use with SAF by 2030 (WEF First Movers Coalition).
• Reduce CO2 emissions from waste management and reach 200
“Waste-to-Resource” sites (SSE #9).
On the achievements of these SSI and SSE programs, Schneider
Electric has a discipline of transparent progress disclosure. For
instance the results of the SSI are published every quarter together
with financial results and made available to all stakeholders via the
Group’s website. On these occasions, results are collated and
presented to the Function Committee (previously known as Group
Sustainability Committee), which makes decisions on any
corrective actions that may be necessary to reach objectives.
Schneider Electric annually discloses its progress through a
dedicated webpage and specific external communications.
Regulatory, legal, and behavioral changes, and the evolving
competitive landscape can present risks for companies delaying
their transition to a low-carbon economy.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Schneider Electric has a comprehensive process for identifying
and managing climate-related transition risks and opportunities,
both in its own operations and along its value chain. Schneider
Electric leveraged on a climate scenario analysis to quantify its
medium (10 years) and long-term (2050) earning value at risk from
climate transition events under low emissions pathways and with
and without considering climate mitigation actions. Specific
mitigation and adaptation strategies have been engaged to avoid
(1) High climate impact sectors are those listed in NACE Sections A to H and Section L (as defined in Commission Delegated Regulation (EU) 2022/1288).
those transition events expected to affect Schneider Electric assets
and business activities and capture business opportunities.
For the purpose of making projections on future GHG emissions,
Schneider Electric takes into account future decarbonization of the
grids, which is a major driver for Scope 3 emissions, in category 11
of the GHG Protocol framework (i.e., GHG emissions during use of
sold products). These projections are based on the stated policies
scenario from the International Energy Agency.
2.2.2.1.4 Energy consumption and mix
The table below contains the details on Schneider Electric’s energy
consumption and mix. This table provides a comprehensive
overview of the various energy sources we utilize and their
respective contributions to our overall energy usage.
By examining this data, it is possible to understand Schneider
Electric’s energy footprint and identify opportunities for
improvement and sustainability. Consumption values are expressed
in MWh LHV (Lower Heating Value).
Energy consumption and mix
2024
(1) Fuel consumption from coal and coal products (MWh)
0
(2) Fuel consumption from crude oil and petroleum products (MWh)
245,557
(3) Fuel consumption from natural gas (MWh)
198,342
(4) Fuel consumption from other fossil sources (MWh)
0
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
87,850
(6) Total fossil energy consumption (MWh)
531,750
Share of fossil sources in total energy consumption (%)
36.75%
(7) Consumption from nuclear sources (MWh)
11,836
Share of consumption from nuclear sources in total energy consumption (%)
0.82%
(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste
of biologic origin, biogas, renewable hydrogen, etc.) (MWh)
0
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
871,915
(10) The consumption of self-generated non-fuel renewable energy (MWh)
31,251
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
903,166
Share of renewable sources in total energy consumption (%)
62.43%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7, and 11)
1,446,752
The company’s non-renewable energy production is 13,419 MWh.
The amount of renewable energy production for 2024 is 34,034 MWh.
Schneider Electric monitors energy consumption at its 900+ sites
worldwide by either directly measuring or estimating energy use for
each site. Sites are classified as either industrial (e.g.factory),
logistics (e.g. warehouse, distribution center), or commercial
(office, laboratories, service, hubs). The largest ~260 sites measure
their energy consumption monthly through invoices via Schneider
Electric’s proprietary software Resource Advisor. These sites
account for more than 70% of the Group’s surface area and global
energy consumption. The energy consumption of the remaining
sites is derived via extrapolation. Leveraging data collected at the
measured sites, company-specific energy intensity factors per
square meter are applied for the reported energy sources, tailored
to site type as well as countries and regions. Thus, for each of the
estimated sites, a granular energy consumption breakdown is
available internally by energy source. This granularity informs the
GHG emission calculation as outlined in the next chapter.
Energy intensity based on net revenue
Energy intensity is the ratio between total energy consumption and
net revenue. This metric indicates how efficiently a company
converts energy into revenue, such being a benchmark for
comparison and operational efficiency.
In the context of CSRD this metric is linked to high climate impact
sectors, a statistical European classification for industry sectors(1).
Both energy consumption and net revenue can be categorized
based on their origin from high climate impact sectors (HCIS) and
non-high climate impact sectors (nHCIS).
Within the CSRD scope selected software focused subsidiaries
(AVEVA, ETAP, RIB, ProLeit) are categorized as “Software
Publishing” under “Information and Communication” (NACE Code
J) resulting in a classification of their energy consumption and net
revenue as nHCIS. Consequently, Schneider Electric considers all
activities of the remaining legal entities falling under HCIS since
they can be classified as “Manufacturing” (NACE Code C).
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This classification includes companies involved in the
transformation of raw materials into finished products, which
aligns with Schneider Electric’s operations in producing
electrical equipment, automation solutions, and energy
management systems.
(1) To calculate the energy intensity ratio the following formula has been used:
Total energy consumption from activities in high climate impact sectors (MWh)
Net revenue from activities in high climate impact sectors (Monetary unit)
The below table shows the energy intensity per net revenue.
Energy intensity per net revenue
2024
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high
climate impact sectors (MWh/millions of euros)(1)
39.87
2021
2020
2023
2022
2025
2
2030
2
2024
0%
20%
40%
80%
60%
100%
80%
100%
90%
96%
88%
85%
82%
Contracted unbundled renewable energy credits (3)
Contracted bundled renewable energy credit (3)
Onsite renewable electricity
Target
The underlying net revenue for the above calculation cannot directly
be cross referenced to a line item in the financial statement because:
• Schneider Electric does not differentiate HCIS and nHCIS within
the financial statements.
• Schneider Electric is excluding specific entities from its
sustainability statement even though these entities are part of
the financial statements (please refer to 2.2.1.3 “Basis for
preparation” for further details).
For a quantitative reconciliation please refer to the below table:
in millions
of euros
Net revenue from activities in high climate impact
sectors used to calculate energy intensity
35,799
Net revenue (other)
2,354
Total net revenue (in financial statements)
38,153
2.2.2.1.5 Gross Scopes 1, 2 and 3 and Total GHG emissions
Purchased goods
and services
6.6 MtCO2e
Freight
0.8 MtCO2e
Other (e.g., business
travels, commuting,
upstream emissions
from the energy sector)
0.6 MtCO2e
Energy consumption
at sites (market-based
approach for
electricity)
0.08 MtCO2e
Company cars
0.06 MtCO2e
SF6 leakage
<0.01 MtCO2e
Use of sold products
42.6 MtCO2e
End-of-life
(mostly SF6)
4.5 MtCO2e
Freight
0.6 MtCO2e
Suppliers
Scope 3
upstream
Schneider’s
Operations
Scopes 1 and 2
Customers
Scope 3
downstream
14%
<1%
85%
The Group calculates its carbon footprint across the three scopes,
in conformance with the Standards from the GHG Protocol: the
Corporate Accounting Standard and the Corporate Value Chain
(Scope 3) Standard.
For Scopes 1 and 2, the GHG emissions are coming from two types
of sources: either stationary sources (i.e., sites) or mobile sources
(i.e., the Company fleet). Under the accounting approach of the
operational control, the Group considers all assets (i.e., sites or
Company vehicles), that are operated, regardless of being owned
or leased.
• For sites, the GHG emissions are derived from SF6 leakages that
are measured, and energy consumption that is either measured
or estimated. Indeed, for the most material sites of the Group
(ca. 250 sites that are meeting specific thresholds in terms of
employees), global, regional, and site SF6 and energy reporting
are delivered with the EcoStruxure™ Resource Advisor software
suite. EcoStruxure™ Resource Advisor provides a data
visualization and analysis application that aggregates volumes
of raw energy data into actionable information. The energy
consumption that is measured for the largest sites is then
extrapolated to the whole portfolio of sites that Schneider
Electric occupies, based on their square meters and the type of
building. The energy consumption, or SF6 leakages, are then
converted into GHG emissions, by using various sources of
emission factors, such as IPCC (Intergovernmental Panel on
Climate Change), IEA (International Energy Agency), ADEME
(French Agency of Environment and Energy), RE-DISS (Reliable
Disclosure Systems for Europe), and EPA (Environmental
Protection Agency).
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• For fleet, most of the GHG emissions are calculated based on
the reports from leasing companies, which either provide the
fuel consumption, or the driven distance and the carbon
intensity of driving over 1 kilometer. This allows to derive energy
consumption and GHG emissions, using emission factors from
ADEME for fuels, and IEA for electricity. In the absence of
complete data from leasing companies, the GHG emissions are
estimated based on default values for distances, carbon
intensities, or using extrapolations based on fleet size and the
type of powertrains.
For Scope 3, the methodology that is used is specific to each
Scope 3 category:
• Purchased goods and services: the methodology is compliant
with ISO 14069 principles and takes into account the wide
heterogeneity of our procurement portfolio: raw materials,
electronic and electrical products, printed circuit board
assembly, fabricated components, along with non-production
purchases (e.g., services such as insurance and banking
services). As per the principles of carbon accounting,
calculations are based on physical quantities as much as
possible, using the tonnes of metals and plastics we purchased.
For the remaining part of procurement, calculations are based
on the spend, to make sure all procurement activity is captured.
Emission factors from various sources are being used, mainly
from EIME (Life Cycle Analysis tool), EPA, Ecoinvent, and
ADEME Base Carbone®.
• Capital goods: in the industrial context of Schneider Electric,
these emissions correspond to the embodied CO2 emissions in
equipment and assets that have an extended life and are used
for manufacturing processes, logistics purposes and hosting
the operations of the Company. In practice, capital expenditures
on construction , production and industrial suppliers are taken
into account, and converted into GHG emissions by using
spend-based emissions factors from EPA.
• Fuel- and energy-related activities: these emissions are derived
from energy consumption data that are used for Scope 1 and 2
emissions; the upstream emissions methodology is dependent
on the type of energy: for all energy types, a constant share of
Scope 1 or Scope 2 emissions is taken into account (for
instance approximately 20% for natural gas or oil); for electricity,
the upstream emissions are based on a complete lifecycle
perspective, including upstream emissions for the fuels of the
power plants, transport and distribution losses of electricity
generated, and embodied emissions of infrastructures. These
emissions for electricity are calculated on a “by country” basis,
based on external data from the International Energy Agency.
• Upstream transportation and distribution: emissions from freight
that is paid by Schneider Electric are calculated in a dedicated
tool with a detailed and comprehensive methodology. Using
emission factors from DEFRA (Department for Environment,
Food and Rural Affairs), ADEME, and EcoTransIT, the emissions
are calculated from the activity data directly collected from the
main transport suppliers of the Company, covering a large
majority of spending on transportation services. It allows to
calculate emissions for every single shipment from these
suppliers. Emissions are calculated on a well-to-wheel
perimeter, also include the radiative forcing of condensation
trails from planes, and finally the emissions are extrapolated to
capture the overall spending on transportation services.
• Waste generated in operations: this category includes the
emissions for the waste treatment of industrial waste, recycled
industrial waste, and office waste. Using average emission
factors from Ecoinvent and IPCC, the emissions from office
waste are derived from the number of employees (using a
default ratio of office waste/employee/year); the emissions from
industrial waste, either recycled or not, are derived from
environmental reported data on waste volumes (in tonnes) and
recycling rate for large industrial and tertiary sites.
• Business travel: GHG emissions are being calculated based on
all types of business travels and for the different modes of
transportation, by a third-party software solution. Emissions
factors are coming from DEFRA. For air travel more specifically,
the GHG emissions methodology considers the distance that is
flown and the class inside the plane. Finally, the emissions are
calculated on a well-to-wheel perimeter and also include the
radiative forcing of condensation trails from planes.
• Employee commuting: the emissions are based on the
headcount of employees of Schneider Electric by geographic
regions. For a given region, the individual emissions are derived
based on assumptions on commuting distances (kilometer
traveled per year for commuting), and commuting mode (car,
public transport, train, walk, or bicycle). These assumptions
were chosen based on literature review and the experience of
the consulting company Carbone 4; they are based on public
statistics by country (e.g., ADEME for France). Finally, the
emissions are calculated on a well-to-wheel perimeter. and also
include the radiative forcing of condensation trails from planes.
• Downstream transportation and distribution: these emissions
correspond to freight that is not directly paid by Schneider
Electric. Therefore, the emissions are derived from an
assumption on the share of transportation indirect cost in the
procurement of commodities. For instance, based on previous
carbon footprint experience and literature review, freight cost
represents approximately 7% of cost of metals procurement.
The indirect spend on freight is then translated into CO2
emissions using an average split on freight types (either
domestic or international freight) and the CO2 intensity of these
freight types (using Schneider Electric’s own CO2 intensity on
paid freight). Finally, the emissions are calculated on a well-to-
wheel perimeter
• Use of sold products: these emissions correspond to the
electricity consumption of Schneider Electric’s products, mainly
due to heat dissipation (Joule effect) during their whole lifetime.
It must be noted that these emissions are not the volume of CO2
emitted in the reporting year due to the use of all offers sold in
the past, rather it is emissions of offers sold during the year and
cumulated over their expected lifetime. We base our calculation
on Environmental Product Declarations (EPD), leveraging our
work on Product Environmental Profiles (PEP) as part of the
PEPecopassport® program. These are Life Cycle Assessments
(LCA) that go beyond carbon footprints (encompassing a more
comprehensive range of environmental impacts) and cover 80%
of our revenue from products. LCAs are performed with the
EIME software and its database (Environmental Impact and
Management Explorer), and they are based on service life of
products (e.g., ten years), use phase assumptions during
active, idle, and off phases.
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The PEPs are conformant with ISO 14025:2006 type III and
ISO 14040. Using the data in PEPs, we can estimate for each
category of products the use phase electricity consumption,
and this is aggregated at Group level based on the structure of
the sales in base year 2021. Since 2021, the evolution of sold
products is taken into account at Group level, assuming same
structure across the categories of products, but adapting to the
actual geographic split of sales among the various countries
where the Group is present. This electricity consumption is then
combined with GHG intensity of the grid, on a country-by-
country basis. This electricity consumption is then combined
with GHG intensity of the grid, based on the country-by-country
geographic split of Schneider Electric’s activity. The GHG
intensities of electricity in each country are forward-looking (and
not static during the lifetime of the products), based on a
scenario from the International Energy Agency (IEA) that
considers the future decarbonization of the grids. In addition,
they include multiple GHG (factored in a CO2-equivalent unit),
and they are based on a lifecycle perspective, i.e., including
upstream emissions for the fuels of the power plants, transport,
and distribution losses of electricity generated, and embodied
emissions of infrastructures. In 2022, the scenario that is used
for modeling future decarbonization of the grids is the “Stated
Policies Scenario” (SPS, aka STEPS) from the World Energy
Outlook (WEO) released in end of 2022, which is based on
current policies, as well as policies announced by governments
at the time of publication of the World Energy Outlook (end of
2022). It’s worth noting that our products are part of larger
electricity architectures, which lead to two essential
considerations (1) the energy consumed by our products is
mostly negligible with respect to the architecture in which they
are installed (i.e., the overall electricity consumption of the
facility or application on which our products are installed is way
higher than the electricity that is actually being dissipated in our
products), and (2) the architecture often enables to deliver
efficiency through energy management and automation. Also,
most of Schneider Electric’s products have long lifecycles (even
up to a couple decades). This directly translates into high use
phase emissions, compared to other industries with shorter-
lifespan products, such as consumer electronics. Looking solely
at use-phase induced absolute emissions therefore generates a
strong bias in the evaluation of the sustainability performance of
offers, as companies producing durable products are penalized
compared to other sectors. Therefore, when it comes to use
phase Scope 3 emissions, it is important to account for the
emissions in the use phase of our products and engage in their
reduction, but it is essential to underline the role that they are
playing in the decarbonization of the economy. Which is why
Schneider Electric has launched an innovation in 2018: we are
reporting externally on a quarterly basis how much CO2 our
solutions enable our customers to save and avoid, as part of our
Schneider Sustainability Impact programs. Our ambition is to
quantify the positive impact of our offers on climate change. We
set the target to save and avoid 800 Mt CO2 on our customers’
end thanks to our products cumulated on the 2018-2025 period.
The annual performance of this indicator is audited by an
independent third party.
• End-of-life treatment of sold products: using our Product
Environmental Profiles (PEP), based on Life Cycle Assessments
(LCA), we know that the end-of-Life phase of our products is not
significant as compared to their total carbon impact. One
exception is products that contain SF6 gas. SF6 is a gas used as
an insulator in medium voltage devices. It is a powerful GHG
and therefore requires special treatment to prevent atmospheric
emissions to occur. That is why this category of emissions,
which includes the end-of-life treatment emissions for all
products (either with or without SF6), is so significant in the
overall carbon footprint. It must be noted that this figure is not
derived from the volume of SF6 released in the reporting year
due to the end of life of all products sold in the past, but the SF6
gas used by Schneider Electric in products annually that may
be released at end of product life. For all products of the
Company, either with or without SF6, the emissions from the
end-of-life are calculated as for the emissions for use phase
(using LCA in PEP). But more specifically for SF6, the emissions
are derived from SF6 gas purchased by Schneider Electric and
installed, as per the sales data of the Company and the
specifications of the products. The Global Warming Potential of
SF6 is an external data provided by the IPCC and has been
recently updated in the 6th Assessment Report. An assumption
is made on the release in the atmosphere of SF6 at product
decommissioning, based on Schneider Electric’s research,
considering that some SF6 in equipment is being recycled, while
the majority is not recycled.
Additionally, on Scope 1 and 2 GHG emissions, as Schneider
Electric does not consume or combust biomass on sites, the
biogenic emissions of CO2 from the combustion or bio-degradation
of biomass not included in Scope 1 GHG emissions are then 0.
Similarly and for the same reason, the biogenic emissions of CO2
from combustion or bio-degradation of biomass not included in
Scope 2 GHG emissions are 0 and the biogenic emissions of CO2
from combustion or bio-degradation of biomass that occur in value
chain not included in Scope 3 GHG emissions are also 0.
To reduce GHG emissions from Scope 2, Schneider Electric is
sourcing an increasing share of electricity from renewable sources.
The approach is leveraging the multiple ways to get access to
renewable electricity, based on local context and the availability of
renewable opportunities. While a growing share of electricity is
self-produced, the renewable sourcing also consists of getting
renewable energy credits, either bundled or unbundled, because
the space available on sites is not enough to cover the overall
electricity consumption of Schneider Electric’s facilities, especially
for some locations with intense manufacturing processes.
Overall in 2024, the Group sourced 41.97% of its electricity
consumption from contracted unbundled renewable energy
credits, and 44.77% from contracted bundled renewable energy
credits, hence, the overall percentage of contractual instruments,
Scope 2 GHG emissions is 86.73%, which is a very significant
increase as compared to 78% in 2023.
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Downstream emissions are by far the largest category of emissions.
They represent approximately 85% of Schneider Electric’s footprint,
and largely come from the electricity consumption by the Group’s
customers during the use phase of the products.
Schneider’s strategy to decarbonize its downstream emissions is
articulated around 4 main pillars:
• Innovating and ecodesigning in product development:
ecodesign principles aim at reducing the environmental impact
of products, including the product carbon footprint, for instance
by increasing the energy efficiency of products in use phase.
• Substituting all relevant offers with SF6-free medium voltage
technologies by 2025: since end-of-life emissions from sold
products are predominantly due to their SF6 content, this
substitution will result in a significant drop in the downstream
carbon footprint.
• Using the Group’s voice for influencing the transition towards a
more electric, digital, and decarbonized world.
• Supporting customers in their own decarbonization journey by
providing products and services that drive significant
decarbonization of their operations.
The following Scope 3 GHG emissions categories have been
excluded, since they are not relevant for the nature of the activity of
Schneider Electric, or due to the accounting approach that is used
(i.e., operational control approach):
• Category 8. Upstream leased assets: Schneider Electric uses
the operational approach to calculate its carbon footprint;
emissions due to energy consumption in leased assets are
therefore already included in Scope 1 and 2 emissions.
• Category 10. Processing of sold products: Schneider Electric
does not sell intermediary products to third parties
(manufacturers). This source of emissions is therefore
not relevant.
• Category 13. Downstream leased assets: Schneider Electric
does not lease assets to third parties (lessor’s point of view).
This source of emissions is therefore not relevant.
• Category 14. Franchises: Schneider Electric does not operate
with a franchisor business model (no licenses are granted to
other entities to sell Schneider Electric’s products in exchange
for payments such as royalties). This source of emissions is
therefore not relevant.
• Category 15. Investments: Schneider Electric uses the
operational approach to calculate its carbon footprint; therefore
emissions due to equity investments in subsidiaries where
Schneider Electric has the operational control are included in
Scopes 1, 2, and 3 emissions, depending on emission sources.
The percentage of GHG Scope 3 calculated using primary data is
1.37 and this arises predominantly from GHG emissions of paid
freight, for which shipment-per-shipment data is collected from the
main freight suppliers, and also from GHG emissions of aluminum
procurement, when some supplier-specific data is collected
through the efforts of the Green Materials program.
The list of Scope 3 GHG emissions categories included in inventory
is as follows:
• Scope 3 category 1 – Purchased goods and services
• Scope 3 category 2 – capital goods
• Scope 3 category 3 – fuel- and energy- related activities
• Scope 3 category 4 – upstream transportation and distribution
• Scope 3 category 5 – waste
• Scope 3 category 6 – business travel
• Scope 3 category 7 – employee commuting
• Scope 3 category 9 – downstream transportation and
distribution
• Scope 3 category 11 – use of sold products
• Scope 3 category 12 – end-of-life treatment of sold products
2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions
(tCO2eq)
106,360
Percentage of Scope 1 GHG emissions
from regulated emission trading
schemes (%)
0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG
emissions (tCO2eq)
433,505
Gross market-based Scope 2 GHG
emissions (tCO2eq)
37,348
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG
emissions (tCO2eq)
55,649,186
1. Purchased goods and services
6,562,746
2. Capital goods
161,033
3. Fuel- and energy-related activities
(not included in Scope 1 or Scope 2)
100,126
4. Upstream transportation and
distribution
816,302
5. Waste generated in operations
38,747
6. Business traveling
161,046
7. Employee commuting
177,665
8. Upstream leased assets
0
9. Downstream transportation
570,959
10. Processing of sold products
0
11. Use of sold products
42,598,039
12. End-of-life treatment of sold
products
4,462,523
13. Downstream leased assets
0
14. Franchises
0
15. Investments
0
Total GHG emissions
Total GHG emissions (location-based)
(tCO2eq)
56,189,052
Total GHG emissions (market-based)
(tCO2eq)
55,792,894
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Further considerations on GHG emissions
Please refer to the “Basis for preparation” section for more details
about the scope of reporting.
Scope 1 and Scope 2 emissions cannot be separated between the
consolidated account group and investees that fall outside this
group, as the latter are not included in the scope of the
sustainability statements (CSRD). Further details on this rationale
can be found in section 2.2.1.3 Basis for preparation on investees
such as associates, joint ventures, or unconsolidated subsidiaries
that are not fully consolidated in the financial statements of the
consolidated accounting group, as well as contractual
arrangements that are joint arrangements not structured through an
entity (i.e., jointly controlled operations and assets), for which it has
operational control.
There has been no differences between reporting dates of the
entities within Schneider Electric’s value chain and the date of the
Group’s general purpose financial statements.
No significant changes in definition of what constitutes reporting
undertaking and its value chain for this year.
GHG intensity based on net revenue
GHG intensity is the ratio between total GHG emissions and net
revenue. This metric indicates how efficiently a company produces
goods or services while managing its carbon emissions.
The below table shows the GHG intensity per net revenue:
2024
Total GHG emissions (location-based) per net
revenue (tCO2eq/millions of euros)
1,494
Total GHG emissions (market-based) per net
revenue (tCO2eq/millions of euros)
1,483
The underlying net revenue for the above calculation cannot
directly be cross-referenced to a line item in the financial
statement because:
• Schneider Electric is excluding specific entities from its
sustainability statement even though these entities are part of
the financial statements (please refer to 2.2.1.3 “Basis for
preparation” for further details).
For a quantitative reconciliation please refer to the below table:
2024
Net revenue used to calculate GHG intensity
37,610
Net revenue (other)
543
Total net revenue (in financial statements)
38,153
2.2.2.1.6 GHG removals and GHG
mitigation projects financed through
carbon credits
Our commitments with regards to GHG
removals and GHG mitigation projects
financed
To halt global warming and keep the temperature rise below 1.5°C,
the world must cut emissions quickly and deeply. However, this
won’t be enough. Scientific consensus (including the IPCC) is clear
that in addition to reducing emissions, the world will need to remove
carbon dioxide already (and accumulating) in the atmosphere. Both
the IPCC and SBTi, emphasize the importance of carbon removals
in achieving Net-Zero emissions by 2050. Carbon removals are
necessary to balance residual emissions (particularly those hard to
abate) and to remove historical emissions.
Schneider Electric’s public claims on GHG neutrality are closely
tied to its ambitious GHG emission reduction targets and removal
targets. As mentioned in the section related to our climate
commitments, the Group is committed to achieving Net-Zero
across its entire value chain by 2050. This commitment involves a
significant reduction of its 2021 footprint by an absolute 90% by
2050, and balancing residual emissions with high-quality and
high-durability carbon removal credits. In addition, the Group
committed to having “Net-Zero ready” operations by 2030, which
means reducing absolute emissions from Scopes 1 and 2 by 76%
from a 2021 base year (equivalent to a 90% reduction compared to
2017) and balancing residual emissions from its operations with
high-durability carbon removal credits. Accelerating emissions
reductions is our priority and our commitment to science based
targets (SBTi), with a science based reduction and removals
trajectory, ensures that these public claims of GHG neutrality,
which involve the use of carbon credits, are an integral part of
Schneider Electric’s broader sustainability strategy and that they do
not impede or delay the achievement of its GHG emission reduction
targets, on the contrary it ensures progress towards the Group’s
Net-Zero target, in line with science.
Our strategy
This year has seen important developments related to policies
clarifying standard definitions regarding high-quality criteria for
carbon removal (e.g., EU Carbon Removal Certification
Framework), guidance related to the use of credits for balancing
residual emissions (proposed Green Claims Directive), as well as
updates to voluntary guidelines from SBTi and Oxford Principles on
Beyond the Value Chain Mitigation and scaling carbon removal in
line with the latest science, all of which will help guide and advance
the Group’s work to define the nature and composition of its carbon
removal portfolio. The Group is also following the work by SBTi, on
neutralization milestones (with carbon removal), alongside clear
reduction targets, for companies with science-based targets,
aiming to ensure the world can scale carbon removal in line with
scientific projections and in time to avoid unsafe temperature
overshoot.
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2.2 Sustainability statements
The strategy we are building focuses on achieving durable
Net-Zero, in line with science, which recommends to balance
residual emissions with credits that are have similar origin and
lifetime of emissions (like- for-like removals). For Schneider Electric,
emissions come from fossil fuels, and stay permanently in the air.
This means gradually moving towards balancing with high-
durability carbon removal, generally offered by novel/ engineered
solutions. These will need to scale to achieve the volume and
quality the world needs, therefore working with others to support
building the market will be essential.
Schneider Electric’s SBTi commitments include clear
decarbonization targets on the path to Net-Zero. The regulatory
and external policy guidance and evolution over the past year has
allowed us to work on building a carbon removal strategy that
allows us to continue our current efforts (Nature based Solutions),
and to further work on the building blocks that we still need, in
order to achieve our SBTi commitments, particularly reflecting on
the high-durability carbon removal solutions we need to bring to
our portfolio. The SBTi is working to define clear neutralization
milestones within companies’ Net-Zero trajectories, and the Group
expects that this will add twin carbon removal targets on the path to
Net-Zero, ensuring that both drastic reductions and crucial
removals are prioritized on the journey. Schneider Electric has
been advocating for public policies setting separate, ambitious
targets for carbon reduction and carbon removal, that nations and
private organizations can work towards in parallel.
Carbon removal
The Group does not have GHG removals and storage or reversals
in metric tonnes of CO2eq resulting from projects developed in its
own operations, or contributed to in its upstream and downstream
value chain. Hence, calculation assumptions and disclosures on
GHG removals and storage resulting from our own operations is not
applicable.
Nevertheless, from 2025, the Group aims to invest and contribute to
carbon removal stored in coming years in the geosphere to
progressively match, by 2030, the volume of residual emissions in
our operations (what we call “Net-Zero ready” operations). Initially,
our carbon removals contribution portfolio will include a mix of
nature-based and engineered solutions, with a gradually increasing
share of engineered solutions, as guided by science and
regulation, and considering market availability.
As of 2030, to fulfill Schneider Electric’s Net-Zero ready operations
target, the Group aims to use “like-for-like” carbon removal to
increase the share of like-for-like removals to balance the
Company’s operational residual emissions.
Investments in projects that avoid or reduce emissions, or that
remove carbon with nature-based solutions still play an important
role, through the wide social and environmental benefits they bring,
and the Group will continue to support them as a contribution to
beyond the value chain mitigation in our strategy.
Carbon credits outside the value chain
financed by Schneider Electric
Since 2011, Schneider Electric has invested in the Livelihoods
Carbon Fund (LCF) and renewed its engagement with the LCF2
and LCF3 funds. These funds leverage the carbon economy to
finance ecosystem restoration, agroforestry, and rural energy
projects with tangible social, environmental, and economic added
value for rural communities.
LCFs provide upfront financing to project developers for large-
scale project implementation and maintenance over periods of 10
to 20 years. The funds receive result-based payments for the risks
they bear in the form of carbon credits. This investment model is
made possible thanks to long-term commitments from the
investors.
These funds invest into three kinds of projects generating both
reduction and removal credits and combining climate change
resilience with strong social and economic impact:
1. Agroforestry and regenerative agriculture (which combines
productivity and biodiversity restoration).
2. Reforestation and restoration of key natural ecosystems,
including mangrove restoration (mangroves are powerful carbon
sequestration agents and natural barriers to coastal areas).
3. Rural energy (the fuel-efficient cookstoves distributed by
Livelihoods decreases wood consumption by half, preserves
forests, and mitigates climate change).
The return of the fund is measured in carbon credits from the
highest available standards (VERRA and Gold Standard). To date,
those credits have not been used to balance the Group’s GHG
emissions, but some reflected contribution investments connected
to the Schneider Electric Paris Marathon and the Paris Olympics
and have been canceled by those respective entities.
For AVEVA
In parallel, AVEVA has established clear guidelines for their
procurement of voluntary carbon credits. Beginning with
certification and verification by third-party entities, AVEVA ensures
the integrity of chosen credits. AVEVA supports five distinct
projects through Patch.io, each contributing to AVEVA’s
sustainability goals in terms of beyond the value chain mitigation.
This diverse portfolio of projects showcases the commitment to
making a positive impact across different regions and sectors.
In 2024, the AVEVA portfolio included five diverse carbon credit
projects, each contributing to climate resilience and community
benefits. Carboneers India Biochar enables Indian farmers to
create biochar, sequestering carbon for over hundreds of years,
improving soil health, and supporting sustainable agriculture with
an annual CO2 sequestration target of 75,000 tonnes. In China, the
Huadu Afforestation project plants native species on barren land,
reducing greenhouse gases and creating 25,615 jobs, 60% of
which are for women, with a projected removal of 21 million tonnes
of CO2e over 30 years. In France, the Bio Agri Energies Agricole
Biogas project transforms organic waste into biogas, producing
low-carbon energy for over 5,000 households and avoiding
34,000 tonnes of CO2 emissions over five years.
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The Mekong River Delta Water Purifier project in Vietnam
distributes efficient water purifiers to reduce wood-burning and
emissions, contributing to both public health and reduced
deforestation. Finally, CarbonCure’s technology, deployed globally,
injects CO2 into concrete to create low-carbon concrete, achieving
permanent CO2 storage and demonstrating scalability as a climate
solution.
For the future, the AVEVA portfolio features seven innovative
projects, each contributing to climate resilience, biodiversity, and
community wellbeing. The Banni Grassland Biochar project in India
converts invasive biomass into biochar using KonTiki kilns,
improving soil health and locking away carbon while doubling local
wages and boosting economic growth. In Pakistan, the Delta Blue
Mangrove Restoration reforests degraded Indus Delta areas,
enhancing biodiversity, sequestering carbon, and improving
livelihoods for forest-dependent communities. The Brandon Carbon
Mineralization project in the UK transforms CO2 emissions into solid
building materials, permanently storing 144 kg of CO2 per tonne of
aggregate. Cambodia’s HUSK Biochar project creates biochar-
based fertilizers that sequester carbon for 1,000 years while
increasing crop yields by 40% and reducing farming costs. Kenya’s
SunCulture Solar Water Pumps enable smallholder farmers to
switch from diesel pumps to solar-powered irrigation, reducing
emissions and enhancing climate resilience. The ruumi Farmland
Regeneration platform supports farmers in adopting sustainable
grazing practices, creating high-quality carbon credits while
improving soil and ecosystem health. Finally, Sky Harvest Deferred
Timber Harvesting leverages tonne-year accounting to accelerate
carbon storage, benefiting biodiversity, rural communities, and
global climate goals.
Carbon credits canceled in the reporting year
2024
Total (tCO2eq)
475
Type of quality standard
Total carbon credit that are recognized against
quality standard II (GOLD) (%)
0.00
Total carbon credit that are recognized against
quality standard I (VERA) (%)
68.42
Total carbon credit that are recognized against
quality standards (others) (%)
31.58
Type of project
Total from reduction projects (%)
63.16
Total from removal projects (%)
36.84
Origin and adjustment metrics
Total from projects within the EU (%)
10.53
Total from carbon credits that qualify as
corresponding adjustments (%)
0.00
The current investments from Schneider Electric in Livelihood funds
and the investments of AVEVA are projected to deliver, over the
next 20 years (see table).
Total amount of carbon credits outside value chain
planned to be canceled in future
Amount of years
(20)
Total (tCO2eq)
1,908,709
On our own operations
As aforementioned, and because Schneider Electric does not have
GHG removals and storage in metric tons of CO2eq resulting from
projects it may have developed in its own operations, or
contributed to in its upstream and downstream value chain,
reversals are 0.
Similarly, and for the same reasons, GHG emissions associated
with removal activity is also 0; GHG removals and storage activity
by undertaking scope (breakdown by own operations and value
chain) and by removal and storage activity is 0 for the former and 0
for the latter.
2.2.2.1.7 Internal carbon pricing
Schneider supports the implementation of carbon pricing, given
the relevance of putting a value on GHG emissions in order to
internalize the costs of generating GHG emissions (or conversely,
benefits of avoiding them), and to factor in these costs in decision-
making processes. Hence, the Group calls for policymakers to
define robust and predictable carbon pricing for companies,
enabling companies to integrate collaterals on climate into their
strategy. A high and stable price for carbon will strengthen
incentives to invest in sustainable technologies and to
change behaviors.
Internally, the Group is incorporating internal pricing systems, with
purposes to inform the Group’s climate strategy and incentivize
low-carbon decisions.
On the one hand, carbon prices are used in the context of the
climate risk assessment, in order to characterize the resilience of
the Group’s portfolio of activities under different external carbon
pricing and different climate scenarios. As an example, carbon
pricing policies are expected to be made more stringent and
expanded, in efforts to drive a transition to a low-carbon economy,
and as a consequence, costs faced by emitting companies will
rise. Future carbon prices are being determined based on a
thorough assessment of current country-level carbon pricing data,
taken from several databases (including International Energy
Agency IEA, World Bank, and Network for Greening the Financial
System). These current prices are being projected across various
climate futures based on academic research. Depending on the
scenario, the carbon price applied ranges from 0 to 647 EUR per
ton of CO2eq. The carbon prices are then applied to the GHG
footprint of the Company, on all emissions from Scopes 1, 2, and 3,
in order to estimate the exposure to transition risks. These
additional costs are yet mitigated by the anticipated response of
the Company dynamics and its markets (e.g., ability to absorb an
extra cost from fossil energy by reducing energy consumption;
ability to pass the extra cost to an extra price on products).
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2.2 Sustainability statements
On the other hand, the Company is using analysis of Marginal
Abatement Cost Curves (MACC) for the carbon-intensive raw
materials that are sourced and make a significant contribution to
the upstream Scope 3 emissions of the Group. A MACC presents
the costs or savings expected from different opportunities,
alongside the potential volume of emissions that could be reduced
if implemented. By incorporating the respective costs and CO2
savings from various options to source metals and plastics with
lower carbon footprint, this assessment allows to inform and adapt
the implementation of the decarbonization of procurement
emissions in the long term. Due to the nature of this work, there is
no inherent value of a carbon price that is used, since the goal is
precisely to seize all the different marginal costs that could arise
from procurement decisions. By prioritizing the most significant raw
materials for Schneider Electric, this works applies to nearly 4% of
the total Scope 3 emissions, but around a quarter of upstream
categories.
Types of internal carbon prices
Volume at stake
(tCO2eq)
Minimum price
applied €/tCO2eq)
Maximum price
applied (€/tCO2eq)
Volume of Gross
scope 1 covered by
scheme (tCO2eq)
Volume of Gross
scope 2 covered by
scheme (tCO2eq)
Volume of Gross
scope 3 covered by
scheme (tCO2eq)
Carbon prices used in the context
of the climate risk assessment
55,792,899
0
647
106,365
37,348
55,649,186
Marginal abatement Cost Curve
2,540,000
0
0
0
0
2,540,000
2.2.2.1.8 Financial effects
As a global company, the Group is exposed to the increased
severity and frequency of extreme weather events, translating into
operational risks.
In this context, the Group assess risks of natural hazard. Out of 214
sites assessed, 30 sites (14%) are exposed to risks of flooding,
especially in Thailand, Vietnam, the Philippines, China, Brazil,
Colombia, India, and France, and seven sites (3%) are exposed to
risks of windstorms, especially in India, China, Hong Kong, and
Taiwan.
To date, the magnitude of impact is considered medium to low, and
likelihood about as likely as not, as there has been no material loss
over the past ten years, however the Group is proactively
monitoring this risk.
The scenario analysis done with Risilience provides an
understanding of the potential evolution of this exposure across five
different pathways, to quantify the earning value at risk from asset
damage and business discontinuity due to natural hazards.
Under a Current Policy pathway (based on SSP3-7.0) and without
any risk mitigation considered, out of 521 sites assessed, 269
(52%) will have a high likelihood of being exposed to natural
hazards by 2050.
Schneider Electric has developed a comprehensive climate
adaptation and resilience strategy to mitigate risks associated with
climate change. At global level, the Property Damage and Business
Interruption program, aligned with ISO 22301 standard, maps
substantive risks of financial impact on the business, including
asset destruction (buildings, equipment, inventories) and profit loss
due to business interruption, and ensures crisis management from
the initial phase following an incident all the way to the recovery of
critical activities. By 2025, 100% of critical distribution centers will
be able to redirect more than 80% of their flow in less than 5 day(s),
and 90% of critical offers will be covered by at least a dual
manufacturing set up.
Adaptation measures aiming at reducing site vulnerabilities are
taken within the year following recommendations from on-site
audits.
Recognizing that climate risks extend beyond the Company’s own
operations, Schneider Electric has implemented various initiatives
to ensure supply chain resilience, engaging in mapping its
suppliers beyond tier 1 to gain visibility and qualifying alternative
sources for critical components to mitigate potential disruptions
from events such as extreme weather events.
Regulatory, legal, and behavioral changes, and the evolving
competitive landscape can present risks for companies delaying
their transition to a low-carbon economy.
Schneider Electric has a comprehensive process for identifying
and managing climate-related transition risks and opportunities,
both in its own operations and along its value chain.
Schneider Electric has identified several transition events and
opportunities that could potentially impact its cash flows and
reputation in medium- and long-term time horizons if the necessary
mitigations are not engaged.
In the short term, the Group anticipates that its markets will
experience outsized growth in the next 3 years driven by
electrification and digitalization.
In medium- and long-term time horizons, under the most likely
climate pathways, Current Policy and Stated Policy, and without
considering any additional climate mitigation action, 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%.
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Specific mitigation and adaptation strategies have been engaged
to avoid those transition events expected to affect Schneider
Electric assets and business activities.
Considering the above risk assessment and its Net-Zero
commitments, the Group has performed a sensitivity analysis to its
impairment tests at groups of CGUs level and did not identify
impairment risk on its assets from climate risks.
Schneider Electric’s real estate portfolio consists of 963 buildings
representing overall 4.9 million square meters.
Commercial buildings weight 24% of global footprint, the rest
comes from R&D, Logistics and Industrial segments (76%).
The ambition for the real estate portfolio is to reduce operational
carbon to zero by 2030 with an intermediate objective to reach 150
Zero-CO2 sites by 2025 (zero(1) fossil emissions from Scope 1 and
2). To that end, the Group has reached 154 Zero-CO2 sites in 2024.
The Group sets annual objectives to drive energy efficiency of the
top energy consuming sites globally. The Group achieved 15%
energy efficiency in 2024 vs. a 2019 baseline, which exceeds its
2024 target of 12%.
Reporting wise, the Group has established measured site reporting
for the top 263 buildings of portfolio (representing 3.6 million
square meters, i.e., 79% of overall portfolio) with energy efficiency
tracking across both commercial and industrial segments in
Schneider Electric’s commercially available software Resource
Advisor.
Precisely, the Group reports an average energy efficiency of 134
kWh/sqm/year for its 71 commercial buildings, an average energy
efficiency of 352 kWh/sqm/year for its 162 industrial buildings, and
an average energy efficiency of 66 kWh/sqm/year for its 33
logistics buildings.
The Group plans to expand its measured energy reporting process
across the entire portfolio (everywhere where Schneider Electric
pays the energy invoice) in the next two years to get the full visibility
of its actual energy consumption and efficiency efforts.
Levers to reach operational decarbonization are to first improve
energy efficiency everywhere, then electrify buildings and
processes, and finally switch to renewable energy.
(1) Exceptions where no feasible fossil-free solution exist are allowed for up to 3% of the site’s total energy consumption. The most common exception today is emergency
diesel generators. 13 sites are claimed as Zero-CO2 sites today under this exception.
2.2.2.1.9 Contribution to a more
sustainable world
Schneider Electric has been an early adopter of transparent
disclosures concerning sustainable revenues, consolidating
revenues from offerings that promote higher efficiency and
sustainability for customers, while excluding revenues from
carbon-intensive segments and equipment containing SF6. This
metric serves as an important gauge of the Company’s progress
toward a low-carbon transition. It highlights how our offerings
contribute to climate change mitigation by enhancing energy and
resource efficiency for our customers. Additionally, it underscores
Schneider Electric’s dedication to continually improving its circular
practices through the EcoDesign Way™ process and the end-to-
end circularity program.
Reporting requirements under the
EU Taxonomy Regulation
The implementation of the Taxonomy Regulation in 2020 has
established an EU-wide classification system to identify economic
activities deemed environmentally sustainable, aligning with the
EU’s overarching objective to integrate finance with sustainability
targets. The dedicated Delegated Acts (DA) delineate, for six
identified environmental objectives, the economic activities
encompassed within the EU Taxonomy (eligibility). They also outline
the screening criteria to assess their significant contribution to at
least one environmental objective, while ensuring they Do No
Significant Harm (DNSH) to the remaining objectives, and comply
with minimum standards related to human rights, corruption, fair
competition, and taxation (alignment).
In compliance with Article 8 of the regulation, the disclosure of the
proportion of turnover, CapEx, and OpEx derived from products,
systems, software, or services linked to sustainable economic
activities is set to be progressively implemented across the fiscal
years (FY) 2021 to FY 2024. For FY 2024, large undertakings are
required to disclose these three KPIs for eligible and aligned
activities related to all the six environmental objectives. Schneider
Electric has been already reporting the eligibility and alignment of
its economic activities across all six environmental objectives in its
FY 2023 reporting, as a leader in sustainability, the Group is
dedicated to transparent and consistent communication regarding
its sustainable economic activities. The proactive reporting ensures
KPI comparability, delivering the transparency sought by all
stakeholders, with the results being audited this year at a limited
assurance level.
Disaggregated data is disclosed in section 2.2.2.4
“Methodology elements on EU Taxonomy” on
pages 192 to 200.
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2.2 Sustainability statements
The phased implementation of reporting mandates and their
dynamic characteristics implies that the KPIs revealed in this report
may undergo changes to align with evolving regulatory and
reporting standards. Routine revisions of the DAs are anticipated to
encompass omitted activities and fortify the technical screening
criteria and DNSH (Do No Significant Harm) requirements for
current activities, in accordance with technological advancements,
EU policy priorities, or usability obstacles. Consequently, the
proportion of Schneider Electric’s eligible and aligned revenues is
projected to rise incrementally, as the EU Taxonomy framework
progresses toward full maturity and as companies enhance their
data collection and reporting competencies.
There are notable challenges with the usability of the taxonomy.
Specifically, certain provisions of the text are open to varying
interpretations, and obtaining essential data to assess specific
criteria is either unavailable or difficult. For instance, the Group
faces difficulties in evaluating the alignment of its remote monitoring
and predictive maintenance systems with technical screening
criteria for activity CE 4.1. This is due to the lack of detailed data
regarding the use of its systems or software by customers for
managing engines powered by fossil fuels. While efforts are
underway to collect this information, the Group has adopted a
conservative approach to interpreting and calculating its activities’
Taxonomy alignment in such instances. Consequently, the reported
proportion of Taxonomy-aligned revenues may be lower than if
comprehensive usage data had been accessible.
Read more on Schneider Electric’s EU Taxonomy
assessment methodology and the full list of activities
eligible under the current EU Taxonomy on pages 184
to 186.
Schneider Electric’s approach to the
EU Taxonomy
Schneider Electric adopts a pragmatic approach to Taxonomy
reporting to ensure company’s focus their efforts on true actions to
impact sustainability. While the Taxonomy is already fully
implemented, it is essential to recognize it as a dynamic regulation
with ongoing reviews of Technical Screening Criteria (TSCs), the
addition of further activities to the framework, and anticipated
changes to the Do No Significant Harm (DNSH) criteria.
Leveraging its experience in early-stage mapping of sustainable
business activities, Schneider Electric is actively engaged with the
European Commission, directly and through trade associations, as
well as with the Platform for Sustainable Finance, participating in
the drafting of economic activities and associated technical
screening criteria supporting the environmental objectives defined
in the Taxonomy.
Schneider Electric remains committed to actively participating in
discussions aimed at enhancing the framework, focusing on
expediting the completion of the framework with the inclusion of
missing sustainable technologies, and enhancing the usability and
practical implementation of the technical screening criteria.
Furthermore, the Group will continue to engage with its peers
through industry bodies to discuss the interpretation of the
technical screening criteria.
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E U T A X O N O M Y
2024 EU Taxonomy reporting covers all six environmental objectives
Climate change mitigation
(CCM)
Transition to a circular economy
(CE)
Climate change adaptation
(CCA)
Pollution prevention and
control (PPC)
Sustainable use and protection
of water and marine resources
(WTR)
Protection and restoration of
biodiversity and ecosystems
(BIO)
Climate environmental objectives
Non-climate environmental objectives
1. Schneider Electric’s main eligible activities
Energy efficiency
equipment and
services in buildings
• Energy efficient building automation and control systems
• Smart monitoring and regulation of electricity or heating systems
• Zoned thermostats and devices for the smart monitoring of electricity loads or heat loads
• Energy efficient cooling systems
• Service plans related to building management and power metering systems
• Technical consultations such as energy audits, simulations, and trainings
Low CO2 mobility
end segment
• Electric vehicle charging stations and grid reinforcement technologies
• Electrical infrastructure for urban and suburban public transport
• Port infrastructure for shore-side electrical power to vessels at berth and electrification and efficiency of ports’ operations
Medium and low
voltage equipment
for electrical
transmission and
distribution
• Low voltage electrical products equipment, systems and services increasing energy efficiency
• SF6-free medium voltage switchgears and control gears
• Communication and control technologies for the controllability and observability of the electricity system
• Demand response and load shifting equipment, systems and services that increase flexibility of the electricity system and
support grid stability
• Transmission and distribution wiring devices that improve energy efficiency and Tier 2 transformers
Electrical and
electronic equipment
• Manufacture of electrical and electronic equipment
IT/OT data-driven
solutions and
software
• Asset performance management
• Remote monitoring and predictive maintenance systems
• Lifecycle performance management software
• Design and engineering software
Services and
activities supporting
the circular economy
• Repairing, refurbishing, or remanufacturing products that have already been used
• Sale of spare parts beyond legal obligations
• Product-as-a-service and other circular use- and result-oriented service models
Eligible activities
90% of revenue | 71% of CapEx | 49% of OpEx
2. Evaluation of eligible activities against alignment criteria
Alignment criteria
Conclusions of the assessment
Reference for details
1. Substantial contribution to environmental objectives?
(Technical Screening Criteria)
• 44% of revenue not compliant with technical
criteria
• 5% of revenue not compliant due to exclusions
(revenues from fossil sector, products with SF6)
Section 2.2.2.4 page 184
2. Compliance with DNSH?
• Climate change mitigation (CCM)
Compliant
Section 2.2.2.1 page 125
• Climate change adaptation (CCA)
Compliant
Section 2.2.2.1 page 125
• Sustainable use and protection of water and marine resources
(WTR)
Compliant
Section 2.3.1.1.2 page 284
• Transition to a circular economy (CE)
Compliant
Section 2.2.2.3 page 167
• Pollution prevention and control (PPC)
14% of revenue not compliant
Section 2.2.2.2 page 159
• Protection and restoration of biodiversity and ecosystems (BIO)
Compliant
Section 2.3.1.1.1 page 282
3. Compliance with minimum safeguards?
Compliant
Section 2.2.2.4 page 184
Aligned activities (complies with all three criteria)(1)
28% of revenue | 22% of CapEx | 49% of OpEx
(1) Due to the impact of rounding on individual elements within this disclosure table numbers may not exactly sum to the Group total.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Calculation of Taxonomy-eligible
and -aligned revenue
Schneider Electric identified several Taxonomy-eligible business
activities, contributing to at least one of the six environmental
objectives defined in the corresponding Delegated Acts. The list of
those activities is provided in our methodological notes on pages
184 to 186.
In 2024, Taxonomy-eligible and -aligned revenues amounted to
90% and 28% respectively, representing EUR 34,328 million and
EUR 10,737 million respectively out of EUR 38,153 million total 2024
consolidated revenue, as disclosed in the consolidated statement
of income on page 504. Schneider Electric’s Taxonomy-eligible
revenues saw a slight increase compared to 2023. The 1% rise,
achieved without any new activities supporting environmental
objectives this year, was driven by changes in Schneider Electric’s
offer portfolio and the revenue generated by these offers in our
market dynamics.
There are four reasons for the difference between Schneider
Electric’s Taxonomy-eligible and -aligned revenue.
Firstly, challenges in evaluating the alignment of economic activities
with the technical screening criteria for the manufacturing of
electrical and electronic equipment (CE 1.2) have resulted in a
conservative disclosure, where all revenues eligible under this
activity have been reported as non-aligned (constituting 35% of
total revenues). These challenges stem from ambiguities in certain
terminology (e.g., “superior recyclability”) and the lack of
applicable requirements for certain criteria (e.g., no clarifications
on how hardware can qualify as being designed for long lifetime).
Schneider Electric is continuously enhancing its circular practices
through its EcoDesign Way™ process and end-to-end circularity
approach to further reduce the environmental impact of its
products along its lifecycle. See more details in section 2.3.1
“Being efficient with resources” on page 282.
Secondly, SF6-insulated switchgears are eligible but not aligned
due to non-compliance with technical screening criteria for activity
Manufacture of high, medium, and low voltage electrical equipment
for transmission and distribution aimed at GHG emissions
reductions (CCM 3.20). Notably, the exclusion of SF6 switchgears
from Taxonomy-aligned revenues is in line with the Group’s
methodology for calculating Schneider Impact revenues (SSI #1).
Thirdly, eligible revenues derived from activities with fossil fuel
sectors are not aligned. This affects alignment under activities
including but not limited to activity Manufacture of high, medium,
and low voltage electrical equipment for transmission and
distribution aimed at GHG emissions reductions (CCM 3.20). This
exclusion is also in line with the Group’s Schneider Impact revenues
methodology.
Finally, the non-compliance to specific requirements, more
stringent than current EU regulations, and outlined in the generic
criteria for Do No Significant Harm (DNSH) regarding pollution
prevention and control, contributes to 14% of Schneider Electric’s
total revenues being non-aligned. This non-alignment stems from
exclusions based on two specific grounds.
• The EU Restriction of Hazardous Substances (RoHS) Directive.
RoHS Directive grants exemptions for hazardous substances
used, up to a certain threshold, in specific applications, where
no alternative solutions are currently available and there is no
risk of exposure to humans and the environment. These
exemptions are not taken into account when assessing the
generic criteria for Do No Significant Harm DNSH regarding
pollution prevention and control.
• The Regulation concerning the Registration, Evaluation,
Authorization and Restriction of Chemicals (REACH). This
Regulation allows the use of substance identified in the REACH
candidate list if communicated to customers, while the generic
criteria for Do No Significant Harm DNSH regarding pollution
prevention and control doesn’t allow their usage except when no
other suitable alternative substances or technologies were
available.
• Regarding substances listed in Article 57 of Regulation
(EC)1907/2006 but not identified under Article 59(1), the Group
acknowledges the difficulty in obtaining material declarations
and data from suppliers beyond tier one, as there is no legal
obligation for suppliers to disclose the presence of these
substances. As a result, the Group cannot fully quantify the
impact of excluding products containing substances not yet on
the REACH candidate list. The Group is gradually improving the
traceability of product components beyond tier one and is
working towards obtaining more detailed information, however
achieving this will require legislative progress.
• Schneider Electric has dedicated significant resources to
measure and enhance its proactive adherence to REACH and
RoHS, extending these efforts beyond the EU as part of its
environmental programs. The company is consistently working
to replace hazardous chemicals present in its products,
processes, and supply chain. In instances where substitution is
not technically feasible, Schneider Electric ensures that the risks
associated with these chemicals are under control across all
lifecycle phases, thereby mitigating potential harm to the
environment and people’s health.
All other eligible activities comply with technical screening criteria,
do not cause any significant harm to any of the other environmental
objectives, and respect the minimum safeguards as specified in
the respective Delegated Acts.
Read more about the calculation method of Taxonomy-
eligible and -aligned revenue on page 184.
Read more about the DNSH checks performed on
page 186.
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Calculation of Taxonomy-eligible
and -aligned CapEx and OpEx
In 2024, Taxonomy-eligible and -aligned CapEx amounted to 71%
and 22% respectively, representing EUR 1,744 million and EUR 542
million respectively out of EUR 2,473 million total 2024 consolidated
CapEx, as per EU Taxonomy definition.
To compute the Group’s Taxonomy-eligible and -aligned CapEx,
CapEx related to assets, processes, and business combinations
associated with Taxonomy-eligible and -aligned activities were
calculated with a high level of granularity using allocation keys of
eligible and aligned revenue per business and operations, except
for CapEx from R&D and IFRS 16 long-term leasing of buildings,
which have been qualified through the prism of CapEx for eligible
and aligned individual measures.
The allocation keys methodology is considered a conservative
approach as it is based on the current activity of each product line,
which does not consider transformations driven by the product
lines’ investments in the calculation of Taxonomy-eligible and
-aligned CapEx KPIs. Meanwhile, CapEx associated with product-
related R&D projects are considered Taxonomy-eligible and
-aligned under the activity CCM 3.6 (manufacture of other low
carbon technologies). This is because each product-related R&D
project of the Group enables a substantial carbon footprint saving
through more efficient products and systems. Those improvements
are measured with a lifecycle assessment (LCA) shared publicly in
the Product Environmental Profile, aligned with ISO 14067 and
verified by an independent third party. This is described more
exhaustively in section 2.3.1.2.3 Leading with tranparency:
Environmental Data Program and Product Environmental Profiles
– subsection “PEP ecopassport PCRed4“ page 291.
The difference between eligibility and alignment in revenue, as
explained in the previous section, also applies to CapEx. In
addition, the fact that CapEx based on IFRS 16, related to
long-term leasing of buildings, is fully eligible but not aligned
increases the difference between the Group’s Taxonomy-eligible
and -aligned CapEx.
In 2024, Taxonomy-eligible and -aligned OpEx amounted to 49%,
representing EUR 979 million out of EUR 2,009 million total 2024
consolidated OpEx, as per EU Taxonomy definition.
To determine the Group’s Taxonomy-eligible and -aligned OpEx,
only non-capitalized costs related to R&D are analyzed for the
establishment of the numerators of the OpEx KPIs. This includes
non-capitalized costs relative to product-related R&D projects but
also, among others, costs incurred in relation with support and
platforming, costs of IT global applications dedicated to R&D, and
costs relative to continuous engineering costs for quality,
productivity, and obsolescence. As mentioned for CapEx, each
product-related R&D project of the Group demonstrates a
substantial carbon footprint saving and therefore the numerators of
the KPIs correspond to OpEx directly associated to Group’s
product-related R&D projects. These OpEx are both Taxonomy-
eligible and -aligned under activity CCM 3.6 (manufacture of low
carbon technologies).
Read more about the calculation method of Taxonomy-
eligible and -aligned capital and operating
expenditures on pages 184 to 186.
2.2.2.2 Pollution mitigation
(ESRS E2)
This chapter is split in two overarching sections, “2.2.2.2.1
Eliminating hazardous substances” and “2.2.2.2.2 Financial
Effects”. The former overarching section contains sub-sections on
(1) Risk, Impacts, and Opportunities, (2) Policies, (3) Actions,
(4) Targets, and (5) Metrics. The latter overarching section
encompasses financial effects from material pollution-related
risks and opportunities.
The scope of Schneider Sustainability Impact (SSI) and Schneider
Sustainability Essentials (SSE), defining the Group sustainability
targets and measuring sustainability performance in critical areas
of focus, is more limited than the reporting perimeter of the
sustainability and Sustainability statements (CSRD). SSI and SSE
programs are part of the Group’s 2021-2025 strategy and are
therefore independent from the 2024 double materiality
assessment. For more details about the reporting perimeter of SSI
and SSE, please refer to the section 2.4.1 Methodology elements on
the published indicators.
2.2.2.2.1 Eliminating hazardous
substances
Impacts, risks and opportunities
Substances of concern and very high concern
Negative Impact
Threaten human health and/or the
environment by using hazardous
substances
For more information on IROs please refer to
section 2.2.1.2 “Long-term commitments and tools
to measure progress” on page 71.
Long-term commitments
Within its Environmental Sustainability Policy, Schneider Electric
sets operational goals related to chemical substances control and
reduction:
• Continuously improve the environment management system and
meet compliance obligations.
• Continuously protect the environment, preventing pollution,
limiting emissions, and promoting biodiversity.
• Decouple our supply chain from natural resource consumption.
• Minimize the environmental and health impacts of our products,
processes, solutions, and services over their lifecycle.
• Protect our employees, customers, business partners, and the
planet against exposure to chemicals of concern.
• Communicate transparently on substances used in our products
and their footprints.
Since 1950, chemical production has increased fiftyfold and is
expected to triple from 2010 to 2050, with only a small number of
the 350,000 chemicals in use fully assessed for safety. To minimize
the potential harm to the environment and human health, Schneider
Electric continues to prioritize the management and substitution of
hazardous chemicals from its products, processes, and supply
chain. This proactive approach is driven by a combination of
policies, directives, and internal programs aiming at ensuring
responsible sourcing, handling, and disposal of substances of
concern and substances of very high concern.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Policies
• The Environmental Sustainability Policy addresses the
Company’s commitment to managing environmental impact,
risks, and opportunities. It frames the Company’s ambition to go
beyond regulatory requirements and achieve voluntary
sustainability commitments and targets. The policy is approved
by the Chief Sustainability Officer and made externally available
with yearly updates.
• Materials and Chemicals Directive: This directive defines the
Company’s rules and strategies for materials and chemical
substances. It aims to ensure compliance with existing
environmental regulations and anticipate new ones. The directive
outlines commitments that directly address the requirements of
the EU Taxonomy Appendix C for pollution prevention and
control regarding the use and presence of chemicals.
• Global Environment Health and Safety Directive on Hazardous
Substances Management (GEHSD001): This directive provides
guidance for the implementation of hazardous substance
management systems at each Schneider Electric site. It frames
the process for chemical purchasing and selection for the plants.
The Schneider Electric Health and Safety Policy puts a strong
emphasis on eliminating hazards and reducing risk, to prevent
occupational accidents and illnesses, and connects with the goal
of providing a safe working environment for all employees. This is
achieved by engaging employees, encouraging the reporting of
health, safety and environment observations and ensuring
managers role model safety at every opportunity. All incidents are
reviewed by the Health, Safety and Environment teams and
investigated to ascertain the root cause and implement action
plans when required. Sites have developed their own emergency
plans which are tested to ensure the impact of an incident to people
and environment is minimized.
Programs for managing SoCs and SVHCs
Schneider Electric has implemented a robust data collection
process and tools to gather information on hazardous substances
from its suppliers. A dedicated team reviews this data to ensure
quality and adjust the level of verification required for specific
suppliers, particularly where deviations have been detected.
The Group goes beyond the requirements of the European REACH
(Regulation on the Registration, Evaluation, Authorisation and
Restriction of Chemicals) and RoHS (Restriction of Hazardous
Substances) regulations in committing to implement a proactive
approach across its entire product portfolio and supply chain,
regardless of geographic origin. It continuously works on
substituting hazardous chemicals from its products, processes,
and supply chain. When substitution is not technically possible,
Schneider Electric ensures that risks posed by such chemicals are
under control at all lifecycle stages to minimize potential harm to the
environment and human health. For instance, Schneider Electric
has developed new medium voltage switchgears without SF6, one
of the most potent and persisting GHGs. The company aims for
substituting its SF6-based offers with SF6-free medium voltage
technologies.
Furthermore, Schneider Electric engages with its suppliers on
environmental initiatives, rolling out eco-responsible programs and
working towards a more sustainable supply chain. The company
collaborates with industry partners to find alternative solutions for
substances of concern, participating in research programs to
identify and implement substitutes.
Schneider Electric’s rules and strategies for materials and chemical
substances, managed at the corporate level, are defined in the
Materials and Chemicals Directive. This directive aligns with
Schneider Electric’s broader Environmental Sustainability Policy
and supports the Company’s commitment to sustainability.
The objective of the directive is to ensure compliance with
environmental regulations related to materials and chemicals and
proactively anticipate future regulatory changes to secure the
supply chain and maintain compliance. The directive emphasizes
minimizing environmental and health impacts throughout the entire
product lifecycle.
The Materials and Chemicals Directive applies to all Schneider
Electric activities globally, including manufacturing sites, offices,
and the distribution centers and is intended to be used in
conjunction with the Company’s global purchasing strategy, which
addresses social sustainability aspects like conflict minerals. It
ensures a consistent approach to managing resources used and
resource outflows across the Company.
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The directive provides detailed guidelines on materials and
chemical substances, specifying prohibited substances, restricted
materials, and preferred alternatives. It also outlines commitments
aligned with the EU Taxonomy Appendix C for pollution prevention
and control regarding the use and presence of chemicals.
The directive outlines specific commitments, including:
• EU-REACH (EC 1907/2006): Schneider Electric commits to
complying with REACH restrictions, prohibiting the use of
Annex XIV substances after their sunset dates, and avoiding
the use of SVHCs in the candidate list and potential SVHCs
whenever possible.
• EU-RoHS (2011/65/EU): The company commits to complying
with the RoHS Directive for all product categories, avoiding
RoHS exemptions whenever possible, and refusing to use
exemption 8(b) related to cadmium in electrical contacts.
The directive also includes commitments to comply with regulations
on Persistent Organic Pollutants (POPs), ozone-depleting
substances, F-gases, and local substance regulations. Schneider
Electric prohibits the use of halogenated flame retardants, injected
PVC, and phenolic resin in new parts.
Finally, the directive emphasizes a materials strategy focused on
increasing recycled plastics content, reducing thermoset
polyesters content, increasing bio-sourced plastics content,
minimizing thermoplastic waste, maximizing reuse, and promoting
material circularity.
Substances of concern
The Group commits to avoid at the maximum the use of SoCs,
when a risk of exposure throughout the product lifecycle is
identified.
The concept of substance of concern is recent, and the electrical
equipment manufacturing industry faces three main challenges
towards developing a similar level of visibility than for substances of
very high concern:
• No mandatory regulatory communication duty on substance of
concern in the supply chain;
• No clear harmonized definition of substances of concern which
allows to build an exhaustive list of substances;
• Limited availability on the market of tools that can be used to
assess the presence of substances of concern.
Despite these challenges, Schneider Electric remains committed to
proactively managing substances of concern and SVHCs,
continuously improving its processes and systems, and
collaborating with stakeholders to drive positive change. Obtaining
material declarations and data from suppliers beyond tier 1
remains a challenge. Schneider Electric plans to gradually improve
the traceability of components beyond tier 1 and make this
information digitally available to customers. The Group can already
provide visibility on a limited number of substances of concern
present in its products.
Substances of very high concern (SVHC)
The Group commits to complying with REACH Annex XVII
restrictions on a worldwide basis and to communicate transparently
and report on the presence of SVHCs in all products, on a
worldwide basis.
Schneider Electric has developed a proactive substitution strategy
focusing on substituting SVHC, before their introduction in an
authorization process (REACH Annex XIV before sunset date)
instead of requesting for derogations to ECHA (European Chemical
Agency) to continue to use it (REACH derogation process).
The Group commits to restrict globally the use of substances listed
in RoHS and POPs (Annex I and II), except when under official
exemption. As an example Schneider Electric managed in due time
the substitution of the four phthalates required through an
amendment of RoHS regulation in 2015 with a deadline in 2019.
When no alternative solutions are available on the market,
Schneider Electric continue to use substances under RoHS
exemptions such as lead in metal alloys or electronics, (exemptions
6(a), 6(b) or 6(c) for metal alloys, and 7(a) or 7(c)-1 for electronics),
while working with its suppliers on the development and test of
alternative solutions.
The Global Environment team oversees the directive’s
implementation, with senior management and the Board of
Directors actively involved in governance. A dedicated purchasing
organization oversees supplier data collection, and a network of
more than 60 trained Eco-referents are overseeing product
analysis. The Procurement department supervises the application
of the strategy in the supply chain.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Standardization engineers and research teams are working in
collaboration with the Group’s suppliers to propose alternative
solutions to the design teams. A dedicated network is in place to
share updates on the strategy, the roadmaps, the evolutions, and to
follow key KPIs, and they are reporting on a monthly basis.
Schneider Electric ensures that its products comply with
substances requirements through a robust data collection process
and tools to gather and store information on hazardous substances
from its suppliers at part level, and to extrapolate the compliance
status of its products through its bill of material. Those compliance
results are then communicated transparently externally on the
product detail page of Schneider Electric websites.
The Materials and Chemicals Directive has been developed with
input from key stakeholders, including employees, customers,
suppliers, and regulatory bodies, ensuring that their interests and
concerns are addressed. This directive also ensures compliance
with ISO 14001 standards and other relevant environmental
regulations and best practices. The Group’s product compliance
assessments are following IEC 63000 standard.
Finally, the directive is communicated to all relevant stakeholders
through internal communications, training programs, and public
disclosures, ensuring that those affected and responsible for
implementation are well-informed. Tools are deployed to inform
stakeholders and support them in compliance assessment.
Conflict minerals
Our Company is deeply committed to responsible sourcing and
ensuring that our purchasing decisions do not contribute to conflict.
This commitment is reflected in our comprehensive strategy, which
includes updating our Procurement Terms and Conditions to clearly
communicate our expectations to suppliers. Central to this strategy
is our Conflict Minerals Compliance program, which is supported
by our top leadership and developed based on the OECD Due
Diligence Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas (CAHRA) and other
international standards.
We have a publicly available policy that addresses the sourcing of
minerals from conflict-affected and high-risk areas. This policy
underscores our dedication to responsible metal sourcing and is an
integral part of our procurement practices.
To ensure the integrity of our supply chain, we have established
formalized processes to track minerals and assess risks associated
with conflict-affected and high-risk areas. This involves engaging
with our suppliers to secure timely compliance evidence and
participating in smelter outreach programs. Our efforts are further
supported by collaborations with expert third parties to gather
detailed information from our suppliers, ensuring that the minerals
we use are recognized as conflict-free according to established
international standards such as the Responsible Minerals Initiative
(RMI) and the London Bullion Market Association (LBMA).
In addition, we have developed a robust risk management plan at
the smelter or refinery (SOR) and supplier levels to mitigate or
remediate any identified risks. This proactive approach helps us
maintain a conflict-free supply chain and aligns with our long-term
commitment to responsible sourcing.
Our ongoing initiatives to label our products as conflict-free
demonstrate our dedication to this cause. By the end of 2024, the
Group achieved significant progress, with 99% of identified
smelters and refiners in our supply chain being designated as
compliant with recognized third-party validation schemes. This
achievement reflects our continuous efforts to work closely with our
suppliers and monitor our supply chain to meet both regulatory
requirements and our customers’ expectations.
Through these comprehensive measures, our Company strives to
contribute positively to global efforts in responsible sourcing and to
ensure that our products do not support conflict in any form. For
more information please refer to chapter 2.2.3.2.7 “Other action
plans and targets on sustainable programs”.
Actions and resources related to pollution
Actions related to pollution across the value
chain (upstream and downstream)
Schneider Electric engages in a range of collaborative actions with
its suppliers to be able to substitute hazardous substances to
ensure compliance with regulations and exceeding industry
standards.
Schneider Electric’s Supplier Code of Conduct sets clear
expectations for suppliers regarding their environmental and social
performance. Suppliers are required to comply with all applicable
laws and regulations, including REACH and RoHS. They are also
expected to adopt best practices for substance management,
prioritize the use of green materials, and minimize environmental
impact throughout their operations.
Schneider Electric’s Vigilance Plan (for more information please
refer to section 2.2.1.1.1 Assessment mechanisms: Vigilance plan
and ERM) for suppliers involves audits of suppliers to identify
potential gaps and suggest areas for improvement. These audits
assess supplier compliance with environmental and social
standards, including the management of hazardous substances.
Schneider Electric uses a risk-based approach to prioritize
suppliers for audits, focusing on those operating in high-risk
countries or using high-risk technologies or processes. Non-
conformances identified during audits are addressed through
corrective action plans, guidance, and training. In cases of severe
non-compliance, Schneider Electric may terminate the business
relationship.
Schneider Electric has chosen to go beyond the requirements of
the European REACH and RoHS regulations. It implements a
proactive approach to compliance across its entire product
portfolio and supply chain, regardless of geographic origin. The
company has implemented a data collection process to gather
information on hazardous substances from its suppliers and a
review process to guarantee its quality.
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Additionally, Schneider Electric discloses the existence of
monitoring procedures for managing risks associated with the
inclusion of harmful chemicals in products. To ensure product
compliance and proactively manage the use of materials and
substances, the Company has implemented a robust data
management system. This system is continuously refined to adopt
safer approaches and to efficiently meet the declaration
requirements of the European Substances of Concern in Products
database. This is achieved through direct links or structured data
exchange formats such as IEC 62474 and IPC 1752.
Schneider Electric actively participates in industry working groups
and initiatives to address challenges related to substance
management. These collaborations focus on identifying alternative
solutions for substances of concern, developing industry
standards, and promoting best practices for responsible sourcing
and production.
Finally, Schneider Electric incorporates sustainability criteria into its
supplier evaluation process. Suppliers with strong environmental
performance, including the use of green materials and responsible
substance management, are prioritized in sourcing decisions.
In terms of downstream value chain, and particularly end of life,
Schneider Electric is building a robust governance to drive
compliance with local regulations, such as the Waste of Electric
and Electronic Equipment (WEEE) Directive, the Batteries and
Battery Waste Directive and Regulation. These EU legislations
contain Extended Producer Responsibility (EPR) provisions, which
obligate Schneider Electric to take measures ensuring products in
scope do not end up in the landfill at their end-of-life. Schneider
Electric is creating a compliance strategy to fulfill its EPR
obligations as well as internal mechanisms that will adapt and
evolve as requirements change. EPR also promotes the reuse of
components, products, and packaging and the adaptation of
design and production to increase circularity.
End-of-life instructions on our Electric and Electronic Equipment
(EEE) products provide guidelines to our customers on how to
manage and dispose of them safely when they become WEEE.
Actions related to substances of concern
and very high concern
Continuous actions are carried out to remove halogenated flame
retardants from plastics or to find alternative solutions to remove
lead from metal alloys/electronics still exempted from the RoHS
regulation. Schneider is an active member of an industrial
consortium (REACH consortium) working on the substitution of
substances of very high concern and led by CETIM (French
Technical Center for Mechanical Industry). The following topics
were treated in 2024 with proposals for substitution: PFAS, flame
retardants, borates, lithium, and siloxanes.
The substitution of substances of very high concern is a
continuous process.
Except for some specific cases (SF6), a large part of the substitution
actions are within the Group’s supply chain and the efforts cannot
be easily quantified. Substitution is often part of other actions (e.g.,
productivity, quality, supplier strategy) and cannot be isolated.
Schneider Electric’s Vigilance Plan covers their own operations,
suppliers, and subcontractors on a worldwide basis. The plan aims
to prevent negative impacts on people and the planet within its
value chain whatever the geographical location of our activities.
The key actions are part of Schneider Electric’s 2021-2025
sustainability strategy, with specific targets set for 2025. The
Vigilance plan is reviewed and updated annually to ensure
continuous improvement and adaptation to new regulations and
stakeholder expectations. SF6 substitution is one of the key actions
of this plan.
Schneider Electric is at the forefront of transitioning to SF6-free
medium voltage products, demonstrating leadership in this area. In
addition, the Company is actively working to eliminate halogenated
flame retardants from plastics (a specific action on PFBS was
carried out with polycarbonate suppliers in 2024) and seeking
alternative solutions to remove lead from metal alloys and
electronics, even in the applications still exempted from RoHS
regulation. A dedicated team (Technology Standardization
Management) is in charge to propose “RoHS exemption free”
electronic components and “lead free” metal alloys to design teams
for incorporation in new projects. A strategic project is conducted
with Accenture to identify and prioritize the substitution actions for
the next 5 years, considering the substance of very high concern
currently identified and the corresponding product revenues. As a
member of the REACH consortium headed by CETIM, Schneider is
engaged in substances of very high concern substitution
evaluation, the last studies considered including PFAS, flame
retardants, borates, lithium or siloxanes. Those macro synthesis
include a regulatory watch, an evaluation of the existing
substitutions and their criticity (pros/cons), a strategic analysis, but
do not consider specific applications.
This substitution process is ongoing and integrated into broader
initiatives such as productivity, quality, and supplier strategy,
making it challenging to quantify the effort separately.
In addressing the impacts of harmful materials, Schneider Electric
is committed to providing remedies for those affected. The
company ensures that its transition away from hazardous
substances not only meets regulatory requirements but also
prioritizes the health and safety of its stakeholders.
By actively participating in industry consortia and leading efforts to
find safer alternatives, Schneider is mitigating the risks associated
with harmful materials. This proactive approach includes
continuous monitoring and improvement of supply chain practices
to prevent exposure to hazardous substances. Furthermore,
Schneider Electric’s comprehensive strategy encompasses both
immediate actions and long-term commitments to sustainability,
ensuring that any material impacts are addressed responsibly and
effectively.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
The Group is defining its 2025-2030 plan to reduce substances of
concern in its products, including financial resource allocation.
Efforts are taken to ensure comprehensive reporting and
transparency in this area.
Targets related to pollution
Pollution can refer to both pollution occurring on-site as well as
pollution related to the end-of-life treatment of our products. Both
may result in pollution of water, soil, and air, as well as pollution
stemming from substances of concern, and from substances of
very high concern.
Targets with regards to pollution on-site
With regards to pollution on-site, Schneider Electric is subject to the
local regulatory frameworks.
Regarding end-of-life treatment and the related targets, Schneider
Electric is subject to Extended Producer Responsibility (EPR)
obligations in various regions of the world. EPR makes Schneider
Electric responsible for the entire lifecycle of its products (batteries
and packaging), including the post-consumer phase: the waste
collection and recycling. In Europe, EPR provisions can be found,
among other, in the EU “Waste Electrical and Electronic Equipment
Directive” (WEEE Directive), the EU Batteries and Battery Waste
Regulation and the EU Packaging Waste Directive (and soon to be
published Regulation). These laws set targets for Member States
for the collection, recovery, and recycling of in-scope products,
batteries, and packaging. Member States then create producer
requirements and waste schemes to meet these targets. By
complying with local EPR requirements, Schneider Electric is
ensuring that there is a financed system for the sound disposal of
the products, batteries, and packaging waste and avoiding
consumers landfilling it at the end-of-life. EPR also promotes the
reuse of components, products, and packaging and the adaptation
of design and production to increase circularity.
Targets with regards to SVHC and SOC
The targets concerning substances of very high concern in
products are defined in the Materials and Chemicals Directive.
The business units are assessing their product portfolio against the
main regulations defined in the directive and store the results in a
dedicated database, named “Check a Product”.
Reports are available for Schneider Electric line of business to
follow-up on their progress on compliance review of their products.
They have the visibility on the coverage of their portfolio with
compliance data and can leverage this information to build their
analysis roadmap. They can also access compliance details (RoHS
exemption, REACH SVHC to be declared) and identify the next
actions needed in line with the Group’s commitments (e.g., obsolete
data that needs to be updated, substitution action to be launched
with design team).
Schneider Electric’s Sustainability Essentials (SSE) targets related
to pollution include SSE #2, which focuses on substituting relevant
offers with SF6-free medium voltage technologies, and SSE #6,
which aims to grow product revenues covered by the Green
Premium program.
For more information on SSI and SSE please refer to
section 2.1.1.2. “Long-term commitments and tools to
measure progress” on page 71.
Schneider Electric aims for 100% of its products to comply with
RoHS substance restrictions globally, whether or not exemptions
are used. End of 2024, 76% of products globally (94.4% of revenue)
are compliant with RoHS restrictions, among which, 48% are
without directive exceptions. RoHS substances are considered
either SVHCs or SoCs. For SVHCs not listed under RoHS, the goal
is to identify and communicate their presence, which is already a
challenging task. Additionally, Schneider Electric targets the
removal of SVHCs under authorization (Annex XIV, a subset of the
candidate list) before their sunset dates. Currently, 80% of our
revenue comes from products meeting these three criteria: RoHS
compliance, SVHC communication, and no SVHCs under
authorization. For other SoCs not listed under RoHS or REACH
SVHC, there is no target due to the lack of mandatory legal
communication requirements in the supply chain).
Metrics on substances of concern and
substances of very high concern
Considerations
Substances of very high concern
REACH regulation article 33 requests EU manufacturers or
importers to declare the presence of SVHC above 0.1% at smallest
article level in products put on the EU market. The real percentage
or amount of SVHCs in products is not mandatory to disclose (cf
official text below). This means that this information is not available
in our database despite a strong supplier data collection process,
recent compliance management tools, and a more than 15 years’
experience.
Since 2012, Schneider Electric put in place a robust compliance
declaration collection process and compliance management tools
under the responsibility of a dedicated procurement team.
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Our standard parts and materials database is currently covered by
39% full material disclosures (FMDs) and we have a strategy to
highly increase this coverage in the future. In addition, our current
compliance tool is not supporting FMD aggregation at product
level. That’s one of the reasons why we are in the process of
changing our compliance tool in 2025. This being said, it is clear
that a “Bottom-Up“ approach to calculate the total amount of
SVHCs that leave our facilities as products from Bill of Materials
(BOM) analysis, which contains a detailed examination of the list
of materials, components, and subassemblies required to
manufacture a product, is not feasible automatically and, even
would give a highly under-estimated result due to the low coverage
of FMDs. Here a “Bottom-Up” approach would refer to collecting
the exact amounts of SVHC via BOM at the lowest level – this is not
feasible due to aforementioned limited coverage as well as due to
technical limitations in the current tool, resulting in a highly manual
exercise. As such, Schneider Electric has favored for the 2024
reporting year a conservative assessment to ensure best-
possible coverage.
Substances of concern
There is currently no regulation which enforces SoC information
sharing along a supply chain for articles. The only mandatory
shared information on SoCs is through Safety Data Sheets (SDS)
on substances and preparations. But there is nothing at article
level. This means that, when a company manipulates internally
substances or preparations, the SoC information is available, but
when this company is buying articles for assembling, the SoC
information is not shared (except in the case of FMDs which is
not mandatory).
Compared with SVHCs, the coverage is much lower (no Regulatory
Compliance Declarations) and there is currently no tool on the
market which can assess a BOM (Bill of Material) against SoC
presence (some tools propose a partial assessment mainly for
CMRs “Carcinogenic, Mutagenic and Toxic for Reproduction”, but
not a complete assessment under the 13 hazard classes or hazard
categories as classified in ESRS document Table 2 (page 279)
referring to Part 3 of Annex VI to Regulation EC No 1272/2008).
As for SVHCs, another approach needs to be considered waiting
for more FMDs, a new compliance tool with complete SoC
assessment module, and a better coverage of corporate tools
(PDM/CSM).
The situation for SoC is not specific to Schneider Electric but global
for whole assembling manufacturing industry.
Main limitations and assumptions
The main limitations and assumptions in the reporting process stem
from several factors. Data availability is restricted by the reliance on
supplier declarations and voluntary Full Material Disclosures
(FMDs), which are not always comprehensive. The current tools
used for compliance do not support full data aggregation,
necessitating significant manual effort for data extraction and
analysis. This manual process involves opening each FMD to
determine the percentage of Substances of Very High Concern
(SVHC) and Substances of Concern (SoC) in parts, which is
time-consuming and prone to inaccuracies. Additionally,
assumptions must be made regarding average percentages and
quantities due to incomplete data. These limitations highlight the
need for improved tools and processes to enhance the accuracy
and efficiency of the reporting.
Calculation methodology
The calculation methodology for reporting Substances of
Very High Concern (SVHC) and Substances of Concern
(SoC) involves several steps. For SVHCs, the process begins
with identifying the SVHCs declared in products using the
“Check a Product” (CAP) database. The next step is to
determine the most impactful technologies or parts that
contain these substances above 0.1% using the ERIS
database, which holds supplier compliance declarations.
The average percentage of SVHCs in these technologies or
parts is then calculated from Full Material Disclosures
(FMDs). This step is manual and involves opening each FMD
to extract the relevant data. The yearly purchased quantities
of these technologies or parts are obtained from the
procurement database. These quantities are then multiplied
by the average percentage of SVHCs to calculate the total
amount. The substances are grouped by their hazard
classifications to complete the reporting.
For SoCs, the methodology is similar but more challenging
due to the lack of mandatory communication and tools for
SoC management. The process involves identifying major
chemicals used in production and their purposes, such as
epoxy resins, oils, and cooling systems. The quantities of
these chemicals are reported based on procurement data.
However, comprehensive data on SoC emissions and their
presence in products is limited, requiring assumptions and
manual data extraction.
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2.2 Sustainability statements
SOC and SVHC metrics
In the table below, Schneider Electric accounts for the amounts of substances of concern and very high concern that leave facilities as
emissions, as part of products, as products, and as services, broken down per hazard class.
Total SOCs that leave facilities
Total SOCs that
are generated
or used
As emissions
As products
As part of
products
As services
TOTAL
carcinogenicity categories 1 and 2
0
23
0
0
23
0
chronic hazard to the aquatic environment categories
1 to 4
0
0
0
0
0
68,200
reproductive toxicity categories 1 and 2
0
2,528
0
0
2,528
0
respiratory sensitisation category 1
0
0
0
0
0
1,281,469
skin sensitisation category 1
0
0
0
0
0
1,637,117
TOTAL
0
2,551
0
0
2,551
2,986,786
Total SOVHCs that leave facilities
Total SVHCs
that are
generated
or used
As emissions
As products
As part of
products
As services
TOTAL
carcinogenicity categories 1 and 2
0
1,734
0
0
1,734
0
endocrine disruption for human health
0
130
0
0
130
0
reproductive toxicity categories 1 and 2
0
97,184,045
0
0
97,184,045
76,612,556
respiratory sensitisation category 1
0
0
0
0
0
25,125
Persistent, Bioaccumulative and Toxic or Very
Persistent, Very Bioaccumulative properties
0
7,925
0
0
7,925
0
TOTAL
0
97,193,833
0
0
97,193,833
76,637,681
2.2.2.2.2 Financial effects
Schneider Electric has put in place a comprehensive process
to avoid environmental incidents related to the use of hazardous
substances, but also to manage and report them in case
they happen.
Managing hazardous substances in our sites
Schneider Electric has a Global EHS Hazardous Substances
Management Directive (GEHSD 001) to provide global oversight
for requirements related to hazardous substance management.
This directive outlines best practices for managing hazardous
substances, including establishing an approved chemical list,
conducting chemical risk analyses, and implementing training
programs on chemical safety and spill response. It also provides
guidance on proper chemical storage, transfer, and disposal
procedures to minimize environmental risks.
Reporting and managing observations and
environmental incidents
The Group requires all facilities using, handling, transporting,
or disposing of chemicals to have a system for reporting and
managing environmental incidents. All significant environmental
issues must be reported to the regional environment leader within
48 hours through using the reporting process defined by the
region. A significant environmental issue is defined as an event that
could pose a significant environmental risk,
taking into account the frequency, quantity, hazard, and sensitivity
of the event. Regional Schneider ElectricRE (Safety, Environment,
and Real Estate) teams are responsible for defining a process for
reporting environmental events for their region, leveraging on the
Company-wide reporting tool to declare, escalate and keep track
of environment, health, and safety observations and incidents.
Depending on the severity of the incident, the Global Environment
team is also notified to ensure appropriate actions are taken.
All Schneider Electric sites with more than 50 employees (for
manufacturing) and more than 500 employees (for offices) are
certified under ISO 14001. This certification supports continuous
improvement in tracking and addressing non-conformities related
to environmental management.
Schneider Electric has confirmed that no major incidents or
deposits linked to SoCs nor SVHCs occurred during the reporting
year. Therefore, the reported CAPEX and OPEX in conjunction with
major incidents and deposits linked to pollution are 0. If any
incident had occurred, the CAPEX and OPEX incurred would be
reported accordingly.
The Group is defining its 2025-2030 plan to reduce substances of
concern and substances of very high concern in its products,
including financial resource allocation. Efforts are taken to ensure
comprehensive reporting and transparency in this area.
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2.2.2.3 Resource use and circular
economy (ESRS E5)
This chapter starts by addressing IROs (Impact, Risks, and
Opportunities) related to resource use and circular economy, and
the related policies and actions. Hereinafter two detailed sections
follow, one on resource inflow and one on resource outflow. The
chapter concludes by touching upon the financial effects.
The scope of Schneider Sustainability Impact (SSI) and Schneider
Sustainability Essentials (SSE), defining the Group sustainability
targets and measuring sustainability performance in critical areas
of focus, is more limited than the reporting perimeter of the
sustainability and Sustainability statements (CSRD). SSI and SSE
programs are part of the Group’s 2021-2025 strategy and are
therefore independent from the 2024 double materiality
assessment. For more details about the reporting perimeter of SSI
and SSE, please refer to the section 2.4.1 Methodology elements on
the published indicators.
2.2.2.3.1 Management of associated
IRO in terms of resource use and
circular economy
Impacts, risks and opportunities
Resource inflows
Negative Impact
Contribute to scarcity of resources
through use of critical materials
Positive Impact
Incentivize suppliers to provide
green materials*
Resource outflows
Negative Impact
Generate a significant outflow of
materials
For more information on IROs please refer to
section 2.2.1.2. “Main sustainability impacts, risks
and opportunities” on page 109.
* According to Schneider Electric, a green material has a lower
environmental and social footprint, meaning low GHG emission,
high recycled content, and minimized impact on people and the
planet. For the 2021-2025 duration, the commodities in scope are
thermoplastics, steel, and aluminium.
E5-1 Circular economy policies
Content of Global Environmental
Sustainability Policy
Schneider Electric’s Environmental Sustainability Policy focuses on
circular economy principles and aims to reduce resource inflows
and outflows.
In terms of resource inflow, the policy emphasizes sustainable
resource management via resource sufficiency and efficiency,
sustainable sourcing. Sustainable sourcing means sourcing
renewable energy and sourcing materials with lower environmental
impact like recycled materials or renewable materials.
For resource outflow, (recycled) resources the policy focuses on
maximizing resource use, by ensuring material reuse and recycling,
and ultimately avoiding waste.
Today, 80% of product revenues are covered by Green Premium™,
~19% of our revenue comes from software and services, and
through continued growth of our ranges covered by the repacked
and refurbished label, 22% of our product families have at least one
circular option available. Circular options refer to Repacked by
Schneider Electric or Refurbished by Schneider Electric.
For more information on Green Premium™, please refer
to section 2.3.1.2.1 “Product Stewardship” on page 287.
Regarding virgin resources, the policy specifically addresses the
transition away from these by promoting the use of recycled
materials. Schneider Electric has set targets to increase the
proportion of secondary resources in its products and packaging,
thereby reducing reliance on virgin materials and supporting the
circular economy.
Schneider Electric has a goal to reach 50% of green materials* in
products from 2021-2025; as of fourth trimester of 2024, the
percentage of green materials in our products is 38%. The
company also has a goal to make 100% of primary and secondary
packaging free from single-use plastic and using recycled
cardboard from 2021- 2025. Progress as of 2024 is at 74%.
For more information, please refer to SSI and SSE in Chapter II
section 2.1.1.2.2.
Regarding sustainable sourcing practices, the policy ensures
that materials are procured responsibly and ethically.
Schneider Electric prioritizes the use of renewable resources, such
as sustainably sourced wood and biobased materials, to reduce
environmental impact and support long-term sustainability goals.
Schneider Electric relies on international recognized certification
schemes to ensure renewable resources are sustainably sourced,
such as Forest Stewardship Council (FSC) or Sustainable Forest
Initiative (SFI) for wooden-based packaging.
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2.2 Sustainability statements
Scope of Global Environmental
Sustainability Policy
For all resource inflow and resource outflow related topics:
• The policy applies to all Schneider Electric operations, including
manufacturing sites, offices, and the supply chain. It ensures a
consistent approach to managing resource inflows and outflows
across the Company. Exclusions are not specified.
• The Global Environment team oversees the policy’s
implementation and tracks non-conformities. Regular audits are
conducted by internal governance teams. Senior management
and the Board of Directors are actively involved in governance.
• The policy ensures compliance with ISO 14000 standards and
other relevant environmental regulations and best practices.
• The policy is developed with input from key stakeholders,
including employees, customers, suppliers, and regulatory
bodies, ensuring that their interests and concerns are
addressed.
• The policy is communicated to all relevant stakeholders via
internal communications, training programs, and public
disclosures, ensuring that those affected and responsible for
implementation are well-informed.
Approach to circularity
Schneider Electric’s circularity policy consists of the following
strategic layers:
• “Design and innovate” consists of: 1) applying EcoDesign
principles to product development (e.g., designing for reliability
and lifetime extension), and 2) developing business innovation
to offer development (e.g., moving from transactional sales to
as-a-Service).
• “Use better” is about optimizing the use of resources, sourcing
the materials with the lowest environmental impact, and
manufacturing products efficiently. Example measures include
sourcing materials with high recycled content and minimizing
manufacturing scrap.
• “Use longer” involves providing services to keep products in
use for as long as possible. This includes on-site and workshop
repair, digitally enabled maintenance, as well as equipment
modernization services and spare parts.
• “Use again” relates to recirculating products, parts, and
materials in the economy. For example, take back,
refurbishment, and resale of assets reaching end of use.
6. Recover and recycle
• Recover SF6 gas service
• Material recycling
5. Repack and refurbish
• Take back
• Repack and refurbish
• Harvest spares
4. Modernize and upgrade
• Assess remaining life
• Modernize and upgrade solutions to
avoid replacement with new equipment
1. Source better
• Use optimal amount of sustainable
materials and packaging
2. Manufacture better
• Waste-to-Resource sites
• Zero-waste management
• Optimized logistics
• Local biodiversity actions
• Single-use plastic free sites
• Net-Zero ready operations
• Water action plans in water-stressed
sites
3. Maintain and repair
• Maintenance
• Repair services, and repair kits
where applicable
• Condition-based and predictive
maintenance powered by analytics
and AI
• Consulting services to drive
circularity at customer sites
End-to-end circularity at Schneider: Use better, use longer, use again
0. Design and innovate for circularity
• EcoDesign to use better, longer, and again
• Business model innovation: develop bundled offers with
financing and retained ownership where applicable
Use better
Use longer
Use again
S
U
P
P
LI
E
R
S
C
U
S
T
O
M
E
R
S
AN
D
P
A
R
T
N
E
R
S
DESIGN &
INNOVATE
There is a hierarchy to this approach. Value retention is the highest
in the design and innovation phase, and cost to recover value
increases as the product lifecycle journey matures. For example,
it is far more efficient to optimize the use of copper during design
and manufacturing (“use better”) than it is to recover copper from
products at the end of their use (“use again”), but both are
required. Schneider Electric’s approach is centered on maximizing
value retention through the asset lifecycle.
The reduction in environmental emissions links directly to Schneider
achieving its SSI #1 to #5 by 2025 and its Net-Zero target by 2030.
This policy is designed to prioritize strategies that avoid or minimize
waste over waste treatment strategies.
This policy is reflected in the Company’s initiatives to use recycled
materials, reduce packaging, and implement efficient
manufacturing processes.
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The Group’s commitment to product sustainability is a key aspect of
its waste management policy. Schneider Electric designs products
for longevity, using the best-in-class sustainable materials and
ensuring ease of repair, upgrade, and recycling. This commitment
helps prevent waste by extending product lifetime and reducing the
frequency of replacements.
Following the above hierarchy, Schneider Electric prioritizes waste
prevention by designing products that use fewer resources and
generate less waste, incorporating recycled materials, reducing
packaging, and optimizing manufacturing processes. This
approach enhances resource efficiency and sustainability.
The company actively promotes the reuse of products and
components through refurbishment programs, extending product
lifetime and reducing the need for new resources. When products
cannot be reused or refurbished, Schneider Electric promotes
enhanced recyclability through material selection and
dismantlability, it includes the identification of critical parts in our
End of Life Instructions, together with associated actions to
undertake to maximize product recyclability and therefore minimize
the waste generated at the end of product’s life.
Recycling is a critical component of Schneider Electric’s waste
management strategy. The company has established numerous
Waste-to-Resource sites to convert waste materials into valuable
resources, supporting the circular economy. The goal is to reach
200 sites with no landfill waste by 2025.
The number of sites with actual zero waste to landfill is currently
135. Schneider Electric prioritizes waste prevention, reuse, and
recycling in its operations wherever possible. This approach
maximizes circularity within its operations and minimizes its
environmental impact. When those options are not available, other
recovery options, such as energy recovery from waste materials,
are considered. In the case where none of the aforementioned
options are feasible, remaining waste will be disposed to the
landfill. All waste, regardless of treatment type, are required to
meet or exceed compliance with all relevant regulations.
E5-2 Actions and resources related to
resource use and circular economy
Use of resources from technical and
biological materials
Please refer to section 2.2.2.3.2 Resource inflows and 2.2.2.3.3
Resource outflow for comprehensive insights.
Schneider Electric has several actions related to resource use and
circular economy. Thanks to these circularity inititiaves and
specifically the Green Materials and sustainable packaging
programs, a higher rate of use of secondary raw materials has
been achieved.
Similarly, the Green Materials program (SSI #4) enabled the Group
to increase the percentage of green material content, including an
increased percentage of recycled materials. The Sustainable
packaging program (SSI #5) enabled the Group to increase the
percentage of primary and secondary packaging free of single-use
plastic and to increase the use of recycled cardboard.
A more granular breakdown of these actions can be found below:
Green Materials initiative: Schneider Electric has increased the
green material content in its products to 38% by the end of the
fourth quarter of 2024, up from 29% in 2023 and 18% in 2022. The
ambition is to reach 50% by 2025 (SSI #4).
This program covers a third of procurement’s volume, including
thermoplastics, steel, and aluminum.
Volume and distribution of “green materials” (in kt)
237
18
100
Steel
Thermoplastics
Aluminum
Sustainable packaging: The company has made significant
progress in its Sustainable Packaging program, with 74% of
primary and secondary packaging now free from single-use
plastics and using recycled cardboard, up from 63% in 2023
(SSI #5).
The goal is to achieve 100% sustainable packaging by 2025.
Circular economy efforts: Schneider Electric has avoided the
consumption of 334,364 metric tonnes of primary resources
through its take-back and end-of-use programs since 2017, with an
ambition of 420,000 metric tonnes by 2025 (SSE #10).
The company has also increased the number of Waste-to-Resource
sites to 135, aiming for 200 by 2025 (SSE #9).
Water efficiency and conservation program: Schneider Electric
has implemented water conservation strategies and action plans at
90% of its sites located in water-stressed areas, up from 73% in
2023 (SSE #11). The ambition is to have 100% of these sites with
water conservation plans by 2025.
Biodiversity program: The Company has deployed local
biodiversity conservation and restoration programs at 84% of its
sites, with a goal of reaching 100% by 2025 (SSE #8). According to
the Schneider Electric’s biodiversity footprint assessment, our No
Net Biodiversity Loss is mainly driven by Schneider Electric scope
1 and 2 Climate reduction journey as described in the relevant
pages of the URD. The additional investments are in the process to
be informed in 2025, leveraging also our current investment journey
with Livelihood Carbon Funds.
These programs are part of a broader effort to minimize the
Company’s impacts and dependencies on natural resources.
The above actions contribute to higher levels of resource efficiency.
When products and materials are circulated in the economy at their
highest value, the need for virgin materials is reduced. This leads to
a reduction in metal and mineral extraction, with fewer resource
needs for manufacturing.
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2.2 Sustainability statements
This in turn leads to lesser environmental emissions and more
space for nature regeneration and wilderness preservation. These
efforts demonstrate the Company’s commitment to sustainability
and are part of efficient resource management.
Circular design
Application of circular design
The circular journey of Schneider Electric starts with the design
phase, to ensure that every product and offer are using better
materials and processes, are used longer, and are used again
once they reach their first end-of-life. Here are some key points:
EcoDesign principles: The company integrates EcoDesign
principles into their product development process, which includes
assessing the environmental impact of products throughout their
lifecycle and making improvements to reduce this impact.
Resource efficiency: This emphasizes the principle of frugal
design using the optimal(1) amount of materials, materials with
recycled content, materials made with renewable energy or
technology resulting in lower environmental impact, and recyclable
materials. This not only minimizes environmental impact but also
supports the circular economy by keeping materials in use for as
long as possible. Schneider Electric is also committed to efficient
manufacturing, as outlined in the initiatives taken to reduce Scope
1 and 2 GHG emissions.
Product lifecycle management: Schneider Electric focuses on
designing products that are durable, repairable, and upgradable.
In addition to design features, Schneider also offers customers
maintenance and lifetime extension services for assets that are
deployed in the field. This approach extends the lifecycle of their
products, reducing waste and the need for new resources.
Reuse before recycling: Before sending end-of-use products to
recycling, Schneider investigates the potential to refurbish and
resell products. This maximizes value retention.
End-of-life solutions: Schneider Electric has implemented
take-back programs and recycling services to ensure that products
are properly disposed of and materials are recovered and reused.
These initiatives are part of Schneider Electric’s broader goal to
achieve end-to-end circularity and promote sustainability across
their operations and supply chain.
Application of circular business practices
Schneider Electric aims to maximize the environmental
performance of its products. To achieve such ambition, the Group
develops business models to extend the useful life of its products,
and when no option is possible, take back the product, assess
whether a second-life is possible, and ultimately ensure the product
or components are recycled. The first focus, before considering
end-of-life, is to prolong the lifespan of products.
(1) Optimal amount of materials is referred to as the balance between using less while not compromising on durability.
Secondly, Schneider Electric creates value through its take back
and recovery services which are crucial in enlarging the basked of
refurbished products that it can offer. And thirdly, the Company
recycles raw materials and substances. Specifically, Schneider
Electric engages in the following circular business practices:
Value retention actions: Maintenance and repair: Schneider
Electric designs products for durability and ease of maintenance,
ensuring longer product lifecycles. These solutions, using up to
60% less materials than using brand new equipment, enable
pull-through and constant payback, increase customer stickiness,
and build long-term relationships.
Reverse logistics and closed loop systems: Schneider Electric
has established reverse logistics systems to take back used
products and reintegrate them into the production cycle.
Refurbishing: Schneider Electric has programs to refurbish
products, which helps in reducing waste and conserving
resources. These products are then resold. One example is how
Schneider Electric gives its MasterPact MTZ circuit breakers a
second life. Refurbished at the MasterTech plant in France, these
circuit breakers are collected from customers at end-of-life,
disassembled, diagnosed, upgraded, and tested before being put
back on the market. A dedicated label has been created to
promote the sale of refurbished products. Other ranges include
UPS 1phase, MasterPact MTZ, variable speed drives, HMI, PLC,
Motion and System Drives.
Component harvesting and upgrading: The company focuses on
harvesting components from end-of-life products and upgrading
them for reuse.
Value maximization actions: Product-Service systems: Schneider
is exploring innovative circular offers, notably in Electrification as a
Service and Energy as a Service through its AlphaStruxure joint
venture with Carlyle. AlphaStruxure, Schneider Electric’s joint
venture with Carlyle, offers resilient and decarbonized energy with
“Energy as a Service” (EaaS). EaaS is a financial and technical
solution for deploying transformational on-site energy infrastructure
projects – without the CapEx or complexity for the customer.
AlphaStruxure finances and owns the system, taking on capital
costs in exchange for predictable monthly payments, giving clients
guaranteed pricing and performance outcomes. AlphaStruxure
assumes the design, delivery, operation, and maintenance of the
system over the entire lifecycle. AlphaStruxure’s deep expertise
and long-term accountability enables a right-sized, waste-
minimizing, and service-optimizing approach that drives circularity
for clients.
One such client is New York City’s JFK International Airport’s New
Terminal One. Its EaaS microgrid achieves several superlatives. It’s
the largest airport microgrid in the US, featuring a revolutionary
federated design (i.e., four microgrids in one) that can power 100%
of the terminal’s critical operations. Its 11.34 megawatt
decarbonized electrical capacity is sourced from fuel cells, battery
storage, and the largest rooftop solar array in NYC. AlphaStruxure’s
careful planning and service excellence will prolong asset
longevity, minimize resource use, and propel decarbonization.
That’s how AlphaStruxure’s EaaS drives circularity.
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End-of-life actions: Extended Producer Responsibility (EPR):
Schneider Electric takes responsibility for the end-of-life
management of its products where applicable. In compliance with
the EU Waste of Electrical and Electronic (WEEE) Directive and
Battery and the EU Battery Waste Regulation, Schneider Electric is
working to ensure that through the implementation of a structured
product assessment and the identification of available end-of-life
solutions in each country, the products will be disposed of soundly
by the consumers at end-of-life either through collective schemes
or by sending back to Schneider.
Product circularity initiatives and take-back for recycling and
refurbishment purposes are also being implemented at country
level, such as a Weecycling partnership in France or with
Circolektra in the Netherlands.
For products falling within the scope of the WEEE Directive, i.e.
electrical and electronic products falling within the six open scope
categories of the directive and not subject to exemptions, a
circularity profile including detailed end-of-life instructions is
systematically provided through the Schneider Electric websites.
Recycling: For the products and parts which cannot be reused
as is, the Company sends them to be recycled, where critical raw
materials like copper, silver, and magnets are extracted. The
company also prioritizes incorporating materials with recycled
content into its supply.
Systems efficiency actions: The Group engages in industrial
symbiosis, partnering and investing with ecosystem players in
order to raise the overall efficiency of the circular economy.
Schneider Electric works collectively with stakeholders to
implement circularity in products and materials as described in
the subsequent section.
Refurbished Products
Low Voltage
UPS
Refurbished products guaranteed
by Schneider Electric
• A label dedicated to the sale and
promotion of products from the
circular economy, launched by
Schneider Electric
• The warranty of a circular
product is identical to a new
product
• Refurbished products have a
higher environmental value, by
reducing carbon footprint and
resource consumption
Take-back service
Take-back and recycling of your
aging equipment and all related gas
such as SF6
MasterPact MTZ
UPS 1phase
Industrial Automation and Control
Variable
Speed
Drives
HMI
PLC
Motion
System
Drives
Application in value chain
The company has taken several actions to engage with its
upstream and downstream value chain, as well as its local network,
to enhance the circularity of products and materials. Here are the
key initiatives and collaborations:
Upstream engagement: Schneider Electric collaborates closely
with its suppliers to improve transparency and reduce carbon
footprints. This involves regular assessments and support to help
suppliers meet sustainability targets. For instance, Schneider
Electric’s Zero Carbon Project (TZCP or SSI #3) contributed to
reducing the operational CO2 emissions of 1,000 top suppliers
by 40% (vs. 27% in 2023). Please refer to section “2.2.2.1.3
Climate change results and financial effect” on page 140 for
more information.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Downstream engagement: The company works with customers to
promote the use of energy-efficient and sustainable products. Its
circular offers help customers reduce waste and extend product
lifecycles.
Retailers and other business partners: Schneider Electric
partners with retailers and other business entities to facilitate the
return and resale of used products. This includes take-back
programs and reverse logistics systems.
Community engagement: Schneider Electric engages with local
communities and authorities to implement recycling and upcycling
programs. The Group also supports educational initiatives to raise
awareness about sustainability and circular economy practices.
Government agencies: The company collaborates with
government agencies to align with regulatory requirements and
participate in public-private partnerships aimed at enhancing
circularity and sustainability.
Organization of collaborations: Schneider Electric contributes by
providing expertise in energy management and automation,
developing sustainable products, and implementing circular
business models. The Group also invests in R&D to innovate new
solutions for circularity.
Industry platforms: Schneider Electric engages in knowledge
sharing with multi-stakeholder groups such as the World Economic
Forum, Trellis Network, Circular Electronics Partnership, and others
to foster standardization in the circular economy. The company also
has experts participating in Standardization committees like ISO
and GIMELEC.
Roles of stakeholders:
• Suppliers: Provide data on carbon footprints, implement
sustainability practices.
• Competitors: Share best practices, collaborate on industry
standards.
• Retailers: Facilitate product returns, participate in recycling
programs.
• Customers: Adopt sustainable products and services,
participate in take-back programs.
• Local communities and authorities: Support local recycling
initiatives, participate in educational programs.
• Government agencies: Provide regulatory support, participate
in public-private partnerships.
These collaborative efforts are part of Schneider Electric’s broader
strategy to promote a circular economy, reduce environmental
impact, and enhance sustainability across its value chain.
2.2.2.3.2 Resource inflows including
resource use
This section gives a detailed assessment of Schneider Electric’s
resource inflows.
E5-2 Actions and resources
Schneider Electric’s key actions on resource inflow are
comprehensive and aligned with its circularity policy. These efforts
are expected to significantly enhance resource efficiency, reduce
environmental impact, and support the circular economy by 2025
and beyond.
Schneider Electric embeds its sustainability and decarbonization
efforts into a group wide strategy, which operationally translates
into the SSI and SSE metrics.
The Group defines precise actions (including scope of the action,
time horizons, and expected outcomes) related to resources
inflows for the following SSI/SSE:
• SSI #4: Increase the green material content in products,
focusing on thermoplastics, steel, and aluminum. Schneider
Electric launched first pilots on recycled thermoplastics in 2018
when the organization joined the Ellen McArthur Foundation and
took commitment to double recycled plastics between 2018 and
2020. Starting from 2020, the SSI #4 allowed Schneider Electric
to broaden the definition of thermoplastics, not limited to
recycled content but also testing biobased content and
alternative to flame retardants. Additionally, Schneider Electric
initiated in 2020 a whole supplier’s engagement program with
metals suppliers to enhance and performance throughout the
supply chain. Schneider Electric is targeting to reach 50% of
Green Materials by 2025 on these specific commodities but
plan to strengthen the definition and to expand drastically the
scope of commodities for the 2026-2030 period.
• SSI #5: Removing single-use plastics in primary and
secondary packaging, and using recycled cardboard. The
Sustainable Packaging program started in 2017 with an initiative
on sourcing sustainably wood and cardboard packaging
according to existing certification standard such as PEFC and
FSC. Since 2020, the SSI #5 focuses on recycled cardboard as
well as on single-use plastic. Schneider Electric is expecting to
reach 100% of recycled cardboard in both primary and
secondary packaging systems and to phase out from single-use
plastics by promoting packaging optimization, material
substitution, and reusable packaging system.
• SSE #10: Avoid primary resource consumption through
“take-back at end-of-use” programs. The program was
initiated in 2017 when Take-Back program and EcoFit services
started to be reported. By 2025, Schneider Electric is targeting
to avoid 420,000 metric tonnes of primary resource
consumption by refurbishing, remanufacturing, and effectively
recycling products.
For more information on SSI and SSE, quantitative and
qualitative information regarding progress of actions or
action plans disclosed in prior periods please refer to
section 2.1.1.2. “Long-term commitments and tools to
measure progress” on page 71.
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Cascading from SSI and SSE, Schneider Electric has implemented
several key actions to manage resource inflows and optimize
resource use.
The company is focused on increasing the use of green materials in
their products, particularly thermoplastics, steel, and aluminum.
According to Schneider Electric, a green material has a lower
environmental and social footprint, meaning low GHG emission,
high recycled content, and minimized impact on people and the
planet (e.g., a thermoplastic sourced out of post consumer
recycled content, a steel product manufactured out of an electrical
arc furnace, an aluminum part produced out of a ASI-certified site
with a carbon emission factor lower than 8 tonnes of CO2eq/ton of
aluminum). Currently 29% of resource inflows weight is covered by
this Green Materials program, spanning key commodities,
thermoplastics, steel, and aluminum.
Definitions of green materials
A GREEN METAL IS
Steel
from Direct Procurement
Aluminum
from Direct Procurement
Zamak
from Direct Procurement
Complies with at least one criteria below:
Steel product is sourced from
• Electric Arc Furnace (EAF)
• Direct Reduced Iron
• Blast Oxygen Furnace (DRI-BOF)
or Hot Briquetted Iron (HBI-BOF)
Steel product has a
Green Certificate(1)
Complies with at least one criteria below:
≤ 8 tCO2eq/ton of aluminum(2)
≥ 90% recycled scrap(3)
Aluminum product has a
Green Certificate(4)
Complies with the criterion below:
≤ 3 tCO2eq/ton of alloy(6)
Alloy product has a
Green Certificate(5)
(1) e.g., Responsible Steel.
(2) According to Aluminium Stewardship Initiative (ASI).
(3) According to EU green taxonomy.
(4) e.g., Aluminium Stewardship Initiative (ASI).
(5) e.g., Copper Mark.
(6) According to representative LCA study performed by International Zinc Association (IZA).
A GREEN THERMOPLASTIC IS
REACH / RoHS / POPs compliant(1)
AND
If plastic compound is
Halogen Free(2)
If plastic compound is
still Halogenated(2)
PS FR and PVC
Other halogenated compound
Complies with at least one criteria below:
≥ 20% wt of recycled content(3) (6)
OR
≥ 20% wt of biobased content(4) (6)
OR
Green Flame Retardant
and Additives
For flame retardant plastic only (5)
Complies with at least one criteria below:
≥ 30% wt of recycled content(3) (6)
OR
≥ 30% wt of biobased content(4) (6)
Complies with at least one criteria below:
≥ 50% wt of recycled content(3) (6)
OR
≥ 50% wt of biobased content(4) (6)
(1) Latest versions.
(2) According to EN 50642/IEC 63355 “Materials and Chemicals Directive” Halogen Free is a priority. Halogenated is only applicable if there is no halogen free technical
solution on the market.
(3) According to ISO 14021 and EN 45557.
(4) According to EN 16785 or ASTM D6866.
(5) According to GreenScreen® used in TCO Certification.
(6) According to ISO 22095 for mass-balance chain of custody.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
The company is committed to eliminating single-use plastics in
primary and secondary packaging, opting instead for recycled
cardboard. This covers all primary and secondary packaging
spend for cardboard and plastics categories.
Schneider Electric avoids primary resource consumption through
“take-back at end-of-use” programs, ensuring materials are reused
and recycled. “Take-back at end-of-use” programs cover for
example battery collection from UPS and ECOFIT services.
Further details on these programs can be found in the
Resource Outflows section on page 185.
Schneider Electric’s initiatives to manage resource inflows and
optimize resource use are designed to affect the entire scope
of the Group’s operations. These actions are integrated across
all levels of the Company, ensuring a comprehensive approach
to sustainability.
The key actions are aligned with Schneider Electric’s long-term
sustainability goals, including achieving Net-Zero emissions by
2050.
For more information on SSI and SSE and their time
horizons, please refer to section 2.1.1.2. “Long-term
commitments and tools to measure progress” on
page 71.
The SSI and SSE targets related to resource inflows are set to be
fulfilled by 2025. The Group is defining its next 5-year strategic
program, including financial resource allocation regarding resource
inflows targets.
SSI is reported on a quarterly basis, the performance of the SSE is
reported annually. In the case of providing for and cooperating in
the support of remedies for those harmed by actual material
impacts, the Company undertakes the following actions regarding
resource inflows and resource outflows:
• Schneider Electric actively engages in circular economy
practices by implementing take-back and recycling programs,
ensuring that end-of-life products are responsibly managed.
• The company collaborates with stakeholders to provide
solutions for resource recovery and waste reduction, minimizing
environmental harm.
• The company supports affected communities through initiatives
that promote sustainable resource use and environmental
stewardship, ensuring that any material impacts are addressed
comprehensively and transparently.
E5-3 Targets related to resource inflows
A detailed overview of the resource-inflow related SSI
(#4 and #5) and SSE (#10) can be found in the previous
section on ‘Actions and resources’. For a general
overview on Schneider Electric’s progress on SSI and
SSE, please refer to chapter 2, section 2.1.1.2. For the
methodology of SSIs please refer to chapter 2, section
2.4.1.1. The following section goes into detail on how
the targets are connected to resource use and the
circular economy.
Schneider has committed to increase the amount of green materials
in its products to 50% by 2025 , as part of its Schneider
Sustainability Impact program (SSI #4). Therefore, performance
could be achieved, either through selecting material and/or
supplier with a proven lower environmental footprint (e.g., proof
of a material produced out of a 100% recycled content), or
strengthening the traceability of sustainable initiatives in the
value chain.
• Design with circularity in mind – the circular design actions are
valued through the Environmental Data program,
communicating the environmental performance of Schneider
Electric’s offers, with transparency, on aspects relating to
durability, repairability, recycled content or recyclability.
• Schneider Electric Green Materials commitment includes
thermoplastics and metals (steel and aluminum). Schneider
Electric relies mostly on recycled content for thermoplastics,
electrical arc furnace technology for steel manufacturing, and
scrap-based aluminum production to minimize the use of
primary materials while strengthening resilience across the
supply chain.
Further, the Company has avoided the consumption of 334,364
metric tonnes of primary resources through its take-back and
end-of-use programs since 2017, with a target of 420,000 metric
tonnes by 2025 (SSE #10).
• “Retrofit of equipment with ECOFIT™-Schneider quantifies its
circular economy efforts (repair, reuse, refurbish, and recycle)
and targets to avoid 420,000 metric tonnes of primary resource
consumption through “take-back at end-of-use” by 2025,
cumulatively since 2017 (SSE #10). This program enables
savings in waste, material, energy consumption, CO2 emissions,
and/or water.
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• Schneider Electric’s circularity approach is based on four layers:
“design and innovation”, “use better”, “use longer” and “use
again”. Design relates to applying EcoDesign principles to
product development, while innovation relates to offer
development. “Use better” relates to optimizing the use of
resources and sourcing materials with lowest environmental
impact. “Use longer” involves providing services to keep
products in use for as long as possible. “Use again” relates to
recirculating products, parts, and materials in the economy.
There is a hierarchy to this approach. Value retention is the
highest in the design and innovation phase, and cost to recover
value increases as the product lifecycle journey matures.
• Schneider Electric has an ambition to eliminate primary and
secondary packaging free from single use plastic, using
recycled cardboard by 2025 (Source: Schneider Sustainability
Index). Here’s how this initiative relates to reversing the
depletion of renewable resources:
• Reduction in Plastic Waste: By eliminating single-use plastics,
Schneider Electric reduces the demand for new plastic
production. This helps decrease the extraction of fossil fuels,
which are non-renewable resources used to produce plastics.
• Promotion of Recycling: Using recycled cardboard supports the
recycling industry, which helps conserve trees and forests.
Forests are renewable resources that play a crucial role in
maintaining ecological balance and biodiversity.
• Lower Carbon Footprint: The production of recycled materials
generally requires less energy compared to producing new
materials. This reduction in energy consumption translates to
lower greenhouse gas emissions, contributing to climate change
mitigation.
• Sustainable Supply Chain: By committing to sustainable
packaging, Schneider Electric encourages its suppliers and
partners to adopt similar practices. This collective effort can
lead to a broader impact on conserving renewable resources
across the supply chain.
• Biodiversity Conservation: Reducing plastic pollution and
promoting the use of recycled materials helps protect natural
habitats and biodiversity. Healthy ecosystems are essential for
the regeneration of renewable resources.
E5-4 Material resource inflows
Schneider Electric is actively working towards increasing the
sustainability of its products and materials, ensuring responsible
use of water, and managing its property, plant, and equipment with
a focus on resilience and sustainability. The initiatives include
increasing the use of green materials, phasing out single-use
plastics in packaging, securing the supply of critical raw materials,
and implementing water conservation strategies.
See below for further details.
Products and materials/Green Materials
initiative
Schneider Electric aims to increase the green material content in
itsproducts to 50% by 2025 (SSI #4).
The initiative covers about 29% of Schneider Electric’s procurement
volume, including:
• Thermoplastics (direct and indirect purchase)
• Steel (direct purchase)
• Aluminum (direct purchase)
Full definitions for the three commodities included in scope are
provided above. There is no dedicated target at commodity level
but only a global one set at 50% by 2025.
Other materials such as fabricated steel components, other
non-ferrous metals (e.g., copper, silver, brass), and thermoset will
be considered in future phases.
By the end of third quarter of 2024, 38% of materials in scope were
qualified as “green”.
Sustainable packaging
Schneider Electric is implementing a Sustainable Packaging
program to ensure all cardboard used in packaging is recycled
and all single-use plastics are phased out by 2025 (SSI #5).
This involves a cross-functional team reviewing packaging design
and engaging with suppliers to deploy the roadmap.
Critical raw materials and rare earths
The supply risk of rare earth materials has been assessed, and
strategic partnerships with key suppliers have been reinforced
through long-term agreements and C-Level connections.
A procurement and planning hub in Singapore manages the direct
supply of critical materials and strategic stocks, focusing on active
electronics and copper cathodes.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Water
Schneider Electric assesses its impacts and dependencies on
water-related ecosystem services, particularly due to metals and
resources processing.
The Group aims to deploy water conservation strategies and action
plans at 100% of its sites in water-stressed areas by 2025
(SSE #11).
By 2024, 90% of sites in water-stressed areas had implemented
water conservation action plans.
Property, plant, and equipment
Schneider Electric’s property, plant, and equipment are managed
with a focus on sustainability and resilience.
The Group has implemented business continuity plans for critical
factories and suppliers, particularly in response to energy supply
risks in Europe.
Investments in property, plant, and equipment are aligned with the
Group’s sustainability goals, including energy efficiency and
reducing carbon emissions.
The below table shows Schneider Electric’s material resource
inflow. Please note that in Schneider Electrics context biological
material is understood as wood (further details can be found in
below ‘Methodology’ section.
For calculating biological material and in partnership with our
global packaging colleagues, Schneider Electric identified the
main wood suppliers in each global region, asked them to confirm
if the wood we buy is sustainable, and if so, whether they have a
certification and whether the wood follows the cascading principle.
2024
UOM
Overall total weight of products and technical and biological materials used during the reporting period
2,189,833
Tonnes
Percentage of sustainable sourced wood (biological material) used in manufacturing (including packaging)
0%
Percentage
The absolute weight of secondary reused or recycled components, secondary intermediary products, and
secondary materials used to manufacture the undertaking’s products and services (including packaging)
159,280
Tonnes
Percentage of secondary reused or recycled components, secondary intermediary products, and
secondary materials used to manufacture the undertaking’s products and services
7.27%
Percentage
Methodology
Overall total weight of products
Schneider Electric reports the total weight of products by
consolidating information from procurement spend. Schneider
Electric organizes procurement spend by assigning a category
code (CATs codes) to each group of material purchases (e.g., metal
stamping parts, battery, semi-conductors…). Available weights
data for each category are used systematically. A complementary
approach has been developed to calculate total global volume in
the most accurate way recognizing that some extrapolation and
assumptions are required.
Calculation approach
To calculate the weight of Schneider Electric’s total weight of
products (resources inflows) three parts are used:
1. For our raw material and fabricated components spend, 83%
is covered by the weights we are provided from two tools that
consolidate purchased material weights from global plants
(RMI) and procurement plastic category managers (PUMA).
2. For the remaining 17% of raw materials and fabricated
components spend, we used as much existing internal data
about weights that was available and extrapolated to achieve
100% coverage.
3. For the electronics materials, we combined all the sources of
weights in our internal systems together and assessed spend
to weight ratios based on actual weights and spend. Then
multiplied these ratios by the total spend to assess total weight.
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Each part of the methodology is further developed below.
Boundary: We include all direct purchases in our boundary, so
subcontracting, services, and software spend are excluded.
For packaging, we include all direct packaging spend.
Part 1 – raw material and fabricated component spend using
internally consolidated volume (45% of total spend)
• Weight (tonnage) data was captured from two tools. One is
called Raw Material Impact (RMI) and used for our metals
purchases and a second tool is called PUMA and used for
plastics purchases:
−RMI represents data inputted by the plants based on
the weight of materials that are shipped to each location.
We only use RMI data when we have captured over 90% of
the weight globally in the tool from the plants and in some
instances, we capture up to 100% of global volume. We
continue to bring more plants into the tool to improve
coverage each year and minimize extrapolation. For this year
we assumed 95% coverage for all categories in line with the
Procurement team’s recommendation.
−PUMA captures the volume for our plastics CATs code
categories. We only use the commodity level volume data
when we are able to capture over 90% of volume from the
plants. For spend information in situations where we don’t
have volume data, we use a tool called PRISM that captures
our total procurement spend (directly from purchases ERPs)
to ensure we cover our full procurement.
Part 2 – raw material and fabricated component spend not included
in RMI or PUMA (9% of total spend)
• These instances required CATs group by group analysis to
assess the nature of the volume data that was available followed
by a dedicated discussion with the procurement category
managers to brainstorm the best way to extrapolate or find
additional data.
• Nine categories required an individual analysis. four of these
nine categories in total represented 6% of total spend.
• The Group created individual analysis files for those
4 categories and used existing weight per spend data per family
for the remaining 3 categories to achieve 100% coverage.
• For the four individual analysis, the Group downloaded the
spend, quantity, and unit of measure at the family level from
PRISM which is one level below the CATs code.
• The Group analyzed the families where we had volume defined
in our system based on the unit of measure and calculated
ratios at the family level of volume as a percent of spend. We
then extrapolated a volume assessment at the family level to
cover 100% of spend.
• For the D2 packaging category (which represents all the direct
spend for materials we use to package products including
wood, plastic, cardboard and other materials):
−The Group had weight actuals for packaging from Europe.
So, we calculated the known weight times the units
purchased for these schneider part numbers.
−The Group knew the total spend for the parts we had weight
for, so we calculated the ton per Euro ratio.
−Based on a PRISM download, we had the total spend by
family globally for D2.
−The Group applied the calculated ratios per family to the
spend not covered by actual weights and combined the
known and calculated total weights together.
−The Group were able to assess an average ton per Euro
for different material types because each of the parts from
the known Europe data was linked to a family and the family
was categorized by type of material (wood, paper,
cardboard etc.).
Part 3 –Electronics materials and brand labeling (46% of spend)
• The Group gathered all existing electronics part weights into
one system and analyzed them along with the spend per CATs
category and family.
• In partnership with internal experts, we developed a method to
assess the acceptable boundaries for weights in each category
to remove any outliers from our internal data.
• The Group also moved families between CATs codes to best
represent families with similar products together. This improved
the accuracy of our extrapolation.
• The Group multiplied the known weights times the volume for
those parts within a family and summed all the multiplied figures
within a family together. We summed together the spend for all
the products with known weights and then created a ratio of
grams per Euro based on these known inputs.
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• The Group know the spend total for each category, so we
multiply the ratios per category by the total spend per category
to get the total tonnage.
• The G8 category which represents electronic manufacturing
services and is mostly made up of printed circuit board
assembly (PCBA) in addition to products from other categories.
Based on internal knowledge, the Group defined what percent
of each category was appropriate and completed that
calculation to assess the tonnage.
• To improve the calculation in the future, the Group developed a
list of a few thousand parts that will be key to further enhance
the accuracy of the gram per euro calculation that we use to
extrapolate to 100% of the weight. The goal is to fill in these
weights based on some research and some connections with
suppliers to further improve the accuracy of the calculation.
Volume and percentage of sustainably
sourced biological content (wood)
Schneider Electric developed the following definition of biological
material:
“The biological materials content is the share of materials from living
organisms that are sustainably sourced (b), whether they are raw
materials (wood, cotton...), semi-processed (wood pellets) or
processed (biofuels). In such cases, they must be kept in their
initial state (E5-4.AR 24: the material must not be manipulated
to alter its weight).”
According to the last sentence, only wood is falling into this
definition in Schneider Electric’s context (cardboard, paper,
biobased oils, and plastics have been manipulated and their
weight altered). Thus, the data collection for biological materials
involves gathering information on the total amount of wood
purchased worldwide.
Calculation approach
• In partnership with our global packaging colleagues, we
identified the wood suppliers in each global region and asked
them to confirm if the wood we buy is sustainable, and if so,
do they have a certification and does the wood follow the
cascading principle.
• The information from all the regional procurement outreach to
the suppliers was consolidated by the global sustainable
packaging lead and shared with the CSRD reporting team.
• The Group define the weight of wood that is sustainable based
on what wood purchases we have with approved certifications.
• The overall coverage of wood spend will be defined by our
PRISM reporting tool where wood is a set of category codes
defined by the global packaging director.
• The actual weight of wood is calculated by using the weight
actuals of packaging materials from Europe that we have. We
also know the total spend for those purchases, so can create a
ratio of weight / spend. The totals for weight and spend can be
categorized by type of material, so we have resulting weight /
spend ratios for different material types including wood.
• To calculate the total wood weights, the Group used the actual
weights we had for wood and used the wood weight ratio times
spend for the remaining global spend on wood.
• For the total sustainable wood weights, the Group used the
defined information that came from our suppliers. The Group will
continue to reach out to our suppliers to ensure we fully capture
our sustainable wood spend.
Boundary: The boundary of our wood spend is scoped to our direct
spend of wood used in our products or packaging.
Volume and percentage of recycled
components
There are two contexts with which we use secondary recycled or
reused materials in our manufacturing. The first is our green
materials purchases (including thermoplastics, steel, aluminium
and copper), the second is through recycled cardboard and paper
purchases. The Group is working to expand the use of recycled
materials and will add on additional recycled material purchases
over time.
Calculation Approach
• Green materials – reported and audited as part of SSI#4
−The Schneider green materials program covers four types of
materials – direct steel, direct aluminum, direct copper and
thermoplastics, representing approximatively 30% of total
purchases volume. After careful evaluation, we defined
specific requirements for steel and copper that substantiate
the purchases as using recycled material:
• Steel – For steel the purchase has to be produced in an
electric arc furnace (meaning other technology routes
such as Blast Oxygen Furnace would not contribute to
recycled content even though most Blast Oxygen
Furnance mills are using a portion of scrap).
• Copper – The material has to be produced with over
50% recycled scrap according to suppliers declaration.
−Steel and copper calculation:
• Each producer provides their evidence to prove they are
supplying green material. For each producer, we confirm
what percent of the volume is covered and they share
their documentation.
• The Group knows the volume of materials in kilograms
from our reporting source of record called PRISM broken
down by supplier.
• The Group converts the kgs to tonnes and then multiply
the tonnage times the percentage of the volume that is
confirmed as green material with the proper
documentation.
• For steel we assume 100% of the volume of direct steel
coming out of an electrical arc furnace is recycled
content. For copper we assume 50% when we confirm
that suppliers have sent copper with >=50% recycled
content copper.
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• We sum the total green material volume.
• As per today, the Group is not tracking the recycled
content in aluminium even though industry is developing
circular loops. As a conservative assumption we set the
volume of recycled aluminium to zero, aiming to further
liaising with suppliers to get more primary data and
strengthen our reporting for this commodity.
−Thermoplastics calculation:
• There are three scenarios where we calculate recycled
thermoplastics weight. Suppliers define their plastics
supply as:
−20% to 50% recycled content. In this situation, we use
20% recycled content.
−Over 50% recycled content. We use 50% recycled
content rule.
−20% recycled content in GF. We use 25% since most
Schneider Electric compounds are 25% GF charged.
• In each scenario we multiply the tonnage per supplier by
the appropriate percent of recycled content and sum
that together.
• Recycled paper and cardboard reported and audited as part
of SSI #5
−Through communication with the suppliers, we capture
whether suppliers are sending us packaging made up of
recycled materials. This is identified on a supplier by supplier
and material by material basis. Most of the packaging with
recycled materials are cardboard (over 90%), but we do
purchase some recycled paper as well.
−The Group knows the total spend on these materials per
supplier and the percentage of the spend with each supplier
that is with recycled content. We sum the total recycled
content spend and multiply that by the ton per Euro ratios
assessed from Europe actuals that was used to estimate total
recycled content weight based on spend for the D2
packaging analysis completed for the total weight of
materials indicator (see dedicated section above).
Boundary and future improvements: As the nature of our purchases
evolve, we will update this figure and incorporate additional
commodities (e.g. indirect metals, other non-ferrous metals…).
We aim at improving the quality of recycled content reporting by
relying more systematically on suppliers primary data (recycled
content certificates). To foster automatization, we plan to
consolidate recycled content directly from our Component Library
that would gather the supplier’s certificate, rather than using the
SSI#4 KPI consolidation files. We aim to split the recycled content
between post-consumer and post-industrial content.
Double accounting
Different authoritative sources were used for each data segment
calculated. Additionally, the Group has established a robust
methodology documentation on respective KPIs including defined
boundaries. Schneider Electric calculated the KPIs ensuring they
covered 100% of our spend. By separating the total spend in
categories that required different calculation approaches,
Schneider Electric was able to ensure it avoided double counting
across categories.
2.2.2.3.3 Resource outflows related
to products and services
This section gives a detailed assessment of Schneider Electric’s
resource outflow.
E5-2 Actions and resources
Schneider Electric’s key actions on resource outflows are
comprehensive and aligned with its circularity policy. These efforts
are expected to significantly enhance resource efficiency, reduce
environmental impact, and support the circular economy by 2025
and beyond.
Schneider Electric embeds its sustainability and decarbonization
efforts into a Group-wide strategy, which operationally translates
into our Schneider Sustainability Impact (SSI) and Schneider
Sustainability Essentials (SSE) metrics.
The Group defines precise actions (including scope of the action,
time horizons, and expected outcomes) related to resources
outflows for the following SSI/SSE:
SSE #6: Grow our product revenues covered with
Green Premium™
Schneider Electric integrates EcoDesign principles to enhance
product sustainability and circularity. The company also leads with
transparency through its Green Premium™ and Environmental Data
programs, ensuring products meet high environmental standards.
The expected outcome of these actions is an increase in product
revenues from Green Premium™ offerings, promoting products that
are environmentally friendly and sustainable. This initiative is
ongoing, with continuous improvement and expansion of Green
Premium™ product offerings.
“Everything as a Service” is a key element of Schneider Electric’s
end-to-end circularity strategy. By maintaining ownership of
products and extending responsibility beyond the point of sale,
Schneider Electric is driven to design durable, efficient products
with continuous service support and optimal end-of-life
management. Most new products are digital and connectable,
enabling comprehensive lifecycle management and predictive
maintenance. This shift supports customer-focused models like
subscriptions, performance contracting, and leasing.
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Schneider Electric’s circular journey starts with eco-design,
ensuring better materials and processes, longer product use, and
reuse at end-of-life. Since 2015, the Company has integrated
environmental considerations into product design through initiatives
like the Green Premium label, and in 2023, it further enhanced its
EcoDesign process to better manage environmental impacts
throughout the product lifecycle and coordinate efforts across the
value chain. Each of these actions reduce resource outflows while
maximizing value retention.
SSE #9: Give a second life to waste in “Waste-to-Resource”
sites
To address waste outflows, Schneider Electric has established and
operates sites focused on converting waste into valuable
resources. The company enhances recycling processes and
complies with end-of-life regulations to maximize resource
recovery. The expected outcome is a significant reduction in waste
outflows and increased conversion of waste into valuable
resources, supporting circular economy practices. The time
horizon for this initiative is to increase the number of Waste-to-
Resource sites from 135 to 200 by 2025.
Furthermore, Schneider Electric offers sustainability training for
employees through the Sustainability School and “Act For Green”
initiative as part of the ENGAGE program. The Sustainability School
helps employees understand personal sustainability actions on
various environmental and social topics, while “Act For Green”
supports employees in pursuing local environmental actions. The
Sustainability Essentials training deployed for all employees The
“Act For Green” initiative, which aims at supporting all employees to
pursue local environmental actions”
Schneider Electric was recognized as a Circularity Lighthouse by
the World Economic Forum and McKinsey for its end-to-end
circular approach across a broad portfolio of its energy and
building automation solutions, achieved through EcoDesign,
Waste-to-Resource sites, lifetime extension services, and a global
network of refurbishment centers. As of Q4 2024, Schneider
Electric had helped customers save and avoide 628 million tonnes
of CO2 since 2018. Please refer to our Quarterly Revenues
financial information.
SSE #10: Avoid primary resource consumption through
“take-back at end-of-use” since 2017 (metric tonnes)
Schneider Electric implements take-back and recycling programs
to manage the end-of-life phase of products. Additionally, the
Company provides refurbished products to extend their lifecycle
and reduce the need for new resources. The ambition is the
avoidance of 420,000 metric tonnes of primary resource
consumption by 2025, through promoting the reuse and recycling
of materials. This initiative has been ongoing between 2017 and
2025.
SSI #5: Primary and secondary packaging is free from
single-use plastic and uses recycled cardboard
Schneider Electric is transitioning to packaging that is free from
single-use plastics and uses recycled cardboard. This effort is
supported by the Sustainable Procurement framework, which
includes sustainable packaging, green materials, and compliance
with REACH/RoHS and conflict minerals regulations. The expected
outcome is the elimination of single-use plastics in packaging and
increased use of recycled cardboard by 2025, reducing
environmental impact and supporting sustainable material use. The
time horizon for achieving 100% sustainable packaging is by 2025.
Our actions apply to all Schneider Electric operations, including
manufacturing sites, offices, and the supply chain. It ensures a
consistent approach to climate change adaptation, mitigation and
energy management across the Company.
The key actions are aligned with Schneider Electric’s long-term
sustainability goals, including achieving Net-Zero emissions
by 2050.
The SSI targets and the SSE targets on resource outflows are set
to be fulfilled by 2025. Additional targets are being set regarding
resource outflows for the next five-year strategic program between
2026 and 2030.
Schneider Electric is committed to addressing and remedying
the impacts related to resource outflows from its products and
services. The company actively engages in circular economy
practices by implementing take-back and recycling programs,
ensuring that end-of-life products are responsibly managed.
Schneider Electric collaborates with stakeholders to provide
solutions for resource recovery and waste reduction, minimizing
environmental harm. Additionally, the Company supports affected
communities through initiatives that promote sustainable resource
use and environmental stewardship, ensuring that any material
impacts are addressed comprehensively and transparently.
Read more on the progress of our actions taken as
well as the SSI an in the section 2.1.1.2. “Long-term
commitments and tools to measure progress”
on page 71.
Based on the data retrieved so far, the resources outflows related
to products and services are as follows:
Circular Certified and Take-Back initiatives account for a
significant portion of OpEx, with allocations for headcount and the
digital roadmap.
Additionally, EPR (Extended Producer Responsibility) compliance
management expenses are also included in the OpEx.
The total allocation suggests that these outflows can currently be
considered to be non-material.
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E5-3 Targets related to resource outflows
Under the Schneider Sustainability Essentials programs, the Group
has set two targets related to resources outflows.
The first one is Schneider SSE #6 – 80% of product turnover
covered by Green premium products. This ambition aims at
delivering products designed with sustainability in mind and
meeting one of the following criteria : recycled content, durability,
reparability, energy efficiency or free of SF6.
The second one aims at avoiding 420,000 metrics tonnes of
primary resource consumption thanks to take back services. This is
Schneider SS#10.
Outside of the long-term climate commitments, Schneider Electric
sets self-imposed environmental and social targets every five
years. This is known as Schneider Sustainability Impact, and
progress toward these targets is publicly shared each quarter.
These targets include the following circularity targets: Increase
green material content in our products, and Primary and secondary
packaging free from single-use plastic, using recycled cardboard.
For a general overview on Schneider Electric’s
progress on SSI and SSE, please refer to section 2.1.1.2
on page 71. For the methodology of SSI, please refer to
section 2.4.1.1 on page 311. This section explains how
the targets are connected to resource use and the
circular economy.
E5-4 Material Resource outflows
Schneider Electric’s production process yields a wide range of
products focused on electrical distribution, automation, and energy
management. The company emphasizes the use of green
materials, recycled content, and components with lower
environmental impact to align with its sustainability goals. These
efforts reflect Schneider Electric’s commitment to innovation and
environmental stewardship.
Key products and circular design principles
Electrical distribution products
Circuit breakers, switchgear, or UPS are designed for long-term
durability and reliability. These products are built to withstand harsh
conditions and extended use. They are also designed for easy
disassembly, allowing for parts to be replaced or upgraded, thus
extending their lifecycle. At the end of their life, components can be
recycled, reducing waste and conserving resources.
Automation and control products
Programmable Logic Controllers (PLCs) and Human-Machine
Interfaces (HMIs) are engineered for high performance and
longevity. They are modular, which means they can be easily
repaired or upgraded with new components, enhancing their
reusability and reducing the need for complete replacements.
This modularity also facilitates disassembly and recycling of
individual parts.
Energy management solutions
Energy meters and monitoring systems are designed to optimize
energy use, contributing to sustainability by reducing energy
consumption. They are built to be durable and maintainable, with
components that can be replaced or upgraded. At the end of their
useful life, these products can be disassembled, and materials can
be recycled or repurposed.
Key materials and circular design principles
Green materials
Schneider Electric uses a significant amount of recycled materials
in its products, reducing the demand for virgin resources and
minimizing environmental impact. Recycled thermoplastics and
metals are chosen for their durability and ability to be recycled at
the end of the product’s life.
Critical raw raterials and rare earths
Metals such as copper, aluminum, and steel are essential for
manufacturing electrical components and are selected for their
recyclability. Schneider Electric ensures that these materials can
be recovered and reused, supporting circularity.
Durability
Schneider Electric is committed to providing transparent and
reliable information regarding the durability of its products.
However, it is important to note that there is no universally accepted
definition or standardized measure of “durability” within the
industry. As such, we have leveraged our own understanding and
methodologies to estimate and disclose the expected durability of
our products.
In the absence of a standardized definition, we use the concept of
Reference Service Life (RSL) to estimate the durability of our
products. According to EN 50693:2019, 3.35, the RSL is defined as
“the lifetime that may be expected according to a particular set
(reference set) of conditions of use and that may be used to
estimate the lifetime under other conditions of use”. This approach
allows us to provide a consistent and reliable measure of product
durability based on specific usage conditions. Product group is
one level of Schneider Electric offer pyramid. It represents a
product offer segmentation corresponding to the common
upstream and industrial marketing know-how and encompass all
Schneider business from Home and Distribution (HD), Low voltage
(LV) or Medium Voltage (MV).
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Chapter 2 – Sustainable development
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Product Group
Average
Durability of
products in the
Product Group
in years
Process Automation Control
11.38
Variable Speed Drives
10.17
Human Machine Interface
10.51
Home & Distribution Connected Systems
10.00
Air Circuit Breakers
16.10
Low Voltage Equipment (IEC & NEMA)
20.00
Contactors
20.00
Low Voltage Products
10.00
Molded Case Circuit Breaker, Earth leakage and
Switchgear
19.70
Home & Distribution Core Final Distribution
19.95
Eliwell
10.00
Medium Voltage Products
10.00
Industry Original Equipment Manufacturer Systems
10.18
Control, Relays and Signaling
11.83
Machine Solution
10.00
Low Voltage Functional Enclosure
20.00
Remote Operations
10.00
Home & Distribution Specialists
18.99
Home & Distribution Core Wiring Devices
19.85
Universal Enclosures
20.06
Speed Drives Systems
10.00
Industry Service
12.86
Automation Transfer Switch
20.00
Process Automation Solutions
10.00
Repairability
Schneider Electric’s approach to establishing the repairability of its
products involves modular design, condition-based maintenance,
detailed documentation and support, design for disassembly,
refurbishment programs, and the use of durable materials
(recycled or biosourced for instance). These strategies ensure that
Schneider Electric’s products are not only easy to repair but also
long-lasting, aligning with the Company’s commitment to circular
economy principles.
Recyclability
Schneider Electric is committed to improve the circularity of their
products. To achieve this ambition Schneider must make sure the
materials used in their products can be “used again”. To do so,
Schneider is working on improving the recyclability rate of their
products by making sure materials can be easily split as well as
integrating recycled material and cardboard.
2024
Percentage of recyclable content in products
74%
Percentage of recyclable content in products
packaging
70%
Description of methodologies
Schneider Electric established a comprehensive approach to
calculate several disclosure requirements to ensure accurate and
meaningful reporting. Below is an overview of our methodologies.
Durability calculation methodology
Given the lack of a standardized definition for “durability” within the
industry, Schneider Electric has adopted the concept of Reference
Service Life (RSL) to estimate the durability of products. According
to EN 50693:2019, 3.35, the RSL is defined as “the lifetime that may
be expected according to a particular set (reference set) of
conditions of use and that may be used to estimate the lifetime
under other conditions of use”. This definition provides a consistent
framework for assessing product durability based on specific
usage conditions.
To calculate the RSL, Schneider Electric extracts data from our
Product Information Management (PIM) database, which contains
detailed information on the expected service life of our products.
Schneider Electric organizes its products using an internal
classification system known as PM0. This system categorizes
products into four main levels: Product Line, Strategic Product
Family, Product Family, and Product Group. Specifically, there are
75 Product Lines, 402 Strategic Product Families, 2,389 Product
Families, and 16,800 Product Groups. The company has compiled
RSL data for over 35,000 products and calculated an average RSL
for each Product Line. This average RSL serves as a representative
measure of durability for our products, allowing to benchmark and
report on product longevity effectively. To make the data more
digestible and manageable, it has been decided to report durability
KPIs at the Product Line level. This approach allows to provide a
clear and concise overview of our product portfolio while
maintaining the granularity needed for detailed analysis.
Recyclable content methodology
Schneider Electric leverages the recyclability potential calculated
during a product’s lifecycle assessment to calculate the amount
of recyclable content entering to the market. This assessment is
based on the the total product weight. Both data points (product
weight and recyclability potential) are managed within Schneider
Electric’s PIM system. Once we know the recyclability potential and
the weight of the product, we are able to calculate the amount of
recyclable product (in tonnes) we put on the market for a specific
product (recyclability potential * weight).
Schneider Electric applies this methodology for all products with
available information on recyclability.
Last, the value of each amount of recyclable content is multiplied
per product by the sales of those specific products. It gives the
total amount in tonnes of recyclable content Schneider provides
to the market.
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Product end-of-life waste management
Schneider Electric is dedicated to mitigating the adverse impacts
of hazardous waste on the environment and health through its
“Waste-to-Resource” program. This initiative focuses on ensuring
visibility of hazardous waste handling and end-of-life treatment,
adding value through material or energy recovery, and reducing
waste volumes by implementing “best available techniques” (BAT)
in industrial processes. These efforts aim to enhance resource
efficiency, reduce chemical substance use, and lower emissions.
In 2024, the Group set the ambition to reduce hazardous waste
intensity by 30% in 2025 against the 2017 baseline.
Under the SSE #9 initiative, Schneider Electric has significantly
advanced its efforts to convert waste into valuable resources. As of
the latest reporting period, the Company has established 135
“Waste-to-Resource” sites, with an ambition to increase this
number to 200 by 2025. These sites are pivotal in our strategy to
manage product end-of-life waste effectively. Furthermore, sites
are required to achieve 99% recovery for non-hazardous waste and
100% recovery for hazardous waste using the best local handling
and treatment options. To emphasize the circular economy,
waste-to-energy solutions are limited to 10% of waste, encouraging
collaboration within internal supply chains and with external
partners to innovate in reducing, reusing, and recycling waste.
Sites generating hazardous waste must ensure 100% proper
handling and treatment, adhering to Schneider Electric’s
stringent requirements and local regulations. Waste is considered
recovered if it is reduced, reused, or recycled, excluding landfill
and incineration without energy recovery. The program also
provides data on various environmental indicators, such as air
acidification, ozone depletion, and water toxicity, allowing for a
comprehensive assessment of environmental impacts across the
Group’s operations.
Each site is assessed under more than 240 indicators consolidated
under the Environmental, Health and Safety Assessment (EHSA)
and published to all Global Supply Chain sites in a global EHSA
dashboard. Sites are also benchmarked based on “best available
techniques”, and documented and shared within Schneider
ElectricRE (Safety, Environment and Real Estate) and CS&Q
(Customer Satisfaction and Quality networks).
Schneider Electric has implemented robust take-back and
recycling programs to manage the end-of-life phase of its products.
These programs are designed to recover valuable materials and
reduce the volume of waste sent to landfills. Through these
initiatives, the Company has avoided the consumption of 334,364
metric tonnes of primary resources since 2017, with a goal of
reaching 420,000 metric tonnes by 2025.
We also offer refurbished products that meet high-quality
standards, extending the lifecycle of its products and reducing the
need for new resources. This approach not only supports waste
reduction but also provides cost-effective solutions for customers.
When it comes to compliance with end-of-life regulation, Schneider
Electric adheres to stringent end-of-life regulations and standards,
ensuring that all waste management practices are compliant with
local and international laws. This compliance guarantees that waste
is managed in a way that minimizes environmental impact and
maximizes resource recovery.
The expected outcomes of Schneider Electric’s engagement in
product end-of-life waste management include a significant
reduction in waste outflows, increased conversion of waste into
valuable resources, and enhanced sustainability of its operations.
By leveraging the Waste-to-Resource sites and other waste
management initiatives, Schneider Electric aims to create a more
sustainable and circular economy, reducing its environmental
footprint and promoting resource efficiency.
2.2.2.3.4 Financial effects
At this time, we do not have the necessary information to fully
respond to the disclosure requirement. We are currently in the
process of gathering and verifying the relevant data. This involves
gaining further visibility on quantifying financial effects from
material resource use and circular economy related IROs. We
anticipate having the required information by the end of 2025.
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2.2 Sustainability statements
2.2.2.4 Methodology elements on
EU Taxonomy
Regarding the calculation of the proportion of activities considered
Taxonomy-eligible and -aligned in accordance with the Disclosure
Delegated Act in revenue, capital expenditure (CapEx), and
operating expenditures (OpEx), Schneider Electric provides the
following additional details:
Calculation of Taxonomy-eligible and
-aligned revenue
This calculation uses two combined approaches:
• Offer-based approach: Each line of the business’s offers is
reviewed against the EU Climate and Environmental Delegated
Acts’ definition of economic activities.
• End-segment approach: Revenues from offers that fit the
economic activities description and are sold to Taxonomy-
eligible end-segments (e.g., Green transport and Renewables)
are reviewed.
There is no double-counting, as revenues assessed under
the end-segment approach are not included in the offer-
based approach.
As detailed in Annex 1 of the Delegated Act on Article 8, the
denominator of Taxonomy-eligible revenue is equal to the net
revenue recognized pursuant to IAS 1.82(a) after removal of
intra-group transactions. At Schneider Electric, this represents
EUR 38,153 million, as disclosed in the first line of the consolidated
statement of income in this Universal Registration Document in
page 504.
For 81% of revenues (excluding entities having their own reporting
framework), eligibility calculation combines two approaches:
• For 80% of revenues, the eligibility and alignment calculation
uses an offer-based approach (by nature of technology).
Sustainability, marketing, and offer management teams of each
line of business determine if products are in line with the
definition of economic activities included in the Delegated Acts.
This analysis is performed at product category level, allowing
detailed segmentation between Taxonomy-eligible and
-non-eligible revenues. Compliance with the technical screening
criteria is also assessed by the offer technical experts at the
product category level. For instance, building management
systems (BMS) generally include energy efficiency systems,
which are Taxonomy-eligible, and fire safety and access control
systems, which are not. In this example, the analysis enables
accounting for only energy efficiency systems installed as part
of a BMS. An eligibility and an alignment ratio are then
consolidated for each product line, which includes multiple
product categories.
• For 1% of revenues, eligibility and alignment calculation is using
an end-segment-based approach, whereby commercial teams
indicate for each product line if it matches with the economic
activities as described in the Delegated Acts and provide with
the related amount of revenues generated from Taxonomy-
eligible end-segments (Green transport and Renewables).
Potential double-counting between the two approaches is
avoided in applying the end-segment-based approach to only
1% of revenues issued from eligible businesses sold to
end-segments supporting climate change mitigation, and the
offer-based approach to the remaining 80% of revenues
(excluding entities having their own reporting framework).
For the remaining 19% of revenues (related to entities having their
own reporting frameworks), an offer-based analysis is conducted
separately following a review of each entity’s product line reporting.
In order to determine the amount of eligible and aligned revenue
(numerator), the following assumptions are made:
• At the granularity level of product categories, data is based on
net sales before rebate instead of net sales after rebate.
Therefore, the eligibility and alignment ratios are calculated by
dividing respectively the amount of eligible net sales before
rebate by the total amount of net sales before rebate, and then
applied to the net sales after rebate.
• At the granularity level of product categories, a non-significant
share of revenues is not allocated per product category. The
ratio of eligibility and alignment used for the rest of the product
line is applied to those revenues, contributing to less than 5% of
the total eligible revenues.
• End-segment sales data is based on net sales before rebate.
A correction factor is applied to assess the value of net sales
after rebate per end-segment.
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E U T A X O N O M Y M E T H O D O L O G Y
A rigorous assessment of the compliance with the technical
screening criteria is performed for each activity.
• Activity CCM 3.5 (manufacture of energy efficiency equipment
for buildings): Schneider Electric’s eligible revenues are split
across eight technical screening criteria such that only the most
efficient cooling systems qualify under CCM 3.5.i (cooling and
ventilation systems rated in the highest two populated classes of
energy efficiency) and only UPS with power chute capability
qualify under CCM 3.5.m (energy-efficient building automation
and control systems).
• Activity CCM 3.6 (manufacture of low carbon technologies):
GHG emission savings are calculated using Schneider Electric’s
saved and avoided emissions methodology. This calculation
method was audited by an independent third-party in
accordance with ISO 14067:2018 standard.
• Activity CCM 3.20 (manufacture, installation, and servicing of
high, medium and low voltage electrical equipment for electrical
transmission and distribution that result in or enable a
substantial contribution to climate change mitigation): revenues
from medium voltage switchgears with SF6 gas, as well as
revenues from fossil power generation and fossil fuel value
chain are eligible but not aligned. Only transformers following
the European tier 2 standard are considered aligned.
• Activity CE 1.2 (manufacture electrical and electronic
equipment): challenges in assessing the alignment of economic
activities with the technical screening criteria led to a
conservative disclosure whereby all revenues eligible under this
activity have been declared as non-aligned. Schneider Electric
is continuously reviewing and improving its circular practices via
its EcoDesign Way™ process and end-to-end circularity
program to further reduce the environmental impact of its
products. See more details in section 2.3.1.2.2, on page 287.
• Activity CE 4.1 (provision of IT/OT data-driven solutions and
software): revenues from predictive maintenance systems and
software are eligible but not aligned due to the impossibility to
assess if those systems and software are used to monitor any
type of fossil fuel engine.
See detailed proportion of turnover from Taxonomy-
eligible and -aligned activities in the template required
by EU Taxonomy Delegated Act on Article 8 on
pages 192 to 195.
Calculation of Taxonomy-eligible and
-aligned capital expenditure (CapEx)
As per specification of CapEx as detailed in Annex 1 of the
Delegated Act on Article 8, the denominator of the Taxonomy-
eligible CapEx KPI is equal to additions to tangible and intangible
assets of the financial year 2024 (including IFRS 16 rights of use),
considered before depreciation, amortization, and any
remeasurement, including those resulting from revaluations and
impairments for the financial year 2024 and excluding fair value
changes. The denominator also covers additions to tangible and
intangible assets resulting from business combinations that
occurred during the financial year 2024.
At Schneider Electric, total tangible assets resulting from the above
definition represents EUR 971 million over 2024, including
EUR 955 million from additions, as disclosed in note 11 of the
Group financial statements (page 532), and EUR 16 million from
business combinations.
The total covered IFRS 16 rights of use over 2024 represents
EUR 587 million, including EUR 574 million from additions, as
disclosed in note 11 of the Group financial statements (page 532),
and EUR 13 million from business combinations.
The total intangible assets resulting from the above definition
represents EUR 915 million over 2024. This amount is split as
follows: EUR 469 million from additions, as disclosed in the
note 10 of the Group financial statements (page 530), including
EUR 358 million of capitalized R&D projects as disclosed in the
note 10 of the Group financial statements, and EUR 446 million
from business combinations.
As per specification of CapEx as detailed in Annex 1 of the
Delegated Act on Article 8, all CapEx based on IFRS 16 related to
long-term leasing of buildings are considered eligible. None of
these are aligned since the Group rental real estate portfolio does
not meet all Taxonomy-alignment criteria described in activity CCM
7.7 (acquisition and ownership of buildings). CapEx related to
assets, processes, and business combinations associated with
Taxonomy-eligible and -aligned activities were calculated with a
high level of granularity using allocation keys of eligible, and
respectively aligned, revenue per business and operations, except
for R&D and IFRS 16 CapEx. The allocation keys methodology is
considered as a conservative approach as it is based on the
current activity of each product line, which does not consider the
transformations driven by the product lines’ investments in the
calculation of Taxonomy-eligible and -aligned CapEx KPIs.
As described more exhaustively in section 2.3.1.2.2 on page 287,
product-related R&D projects of the Group aim at and demonstrate
a substantial carbon footprint saving through more efficient
products and systems. Those improvements are measured with a
lifecycle assessment shared publicly in the Product Environmental
Profile, aligned with ISO 14067 and verified by an independent
third party. Thus, 2024 R&D capitalized expenditures directly linked
to capitalized product-related R&D projects are considered both
eligible and aligned according to activity CCM 3.6 (manufacture of
other low carbon technologies).
See detailed proportion of CapEx from Taxonomy-
eligible and -aligned activities on pages 196 to 199.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Calculation of Taxonomy-eligible and
-aligned operating expenditure (OpEx)
To determine the Group’s EU Taxonomy-eligible and -aligned
operating expenditure, only non-capitalized costs related to R&D are
analyzed for the establishment of the numerators of the OpEx KPIs.
The denominator of the Taxonomy-eligible and -aligned OpEx KPI
represents EUR 2,009 million over 2024, corresponding mainly to
non-capitalized R&D costs of the Group for EUR 1,902 million
presented before offsetting with the R&D tax credit for EUR 46
million, as disclosed in note 4 of the Group financial statements
(page 526). This includes non-capitalized costs relative to
product-related R&D projects but also, among others, costs
incurred in relation with support and platforming, costs of IT global
applications dedicated to R&D, and costs relative to continuous
engineering costs for quality, productivity, and obsolescence. The
rest of the denominator corresponds to OpEx related to building
renovation measures, short-term leases, maintenance and repair,
and other expenditures relating to the day-to-day servicing of
assets. The total of these categories represents less than EUR 110
million and is therefore considered non-material for Schneider
Electric’s business, and thus excluded from the OpEx analysis and
the OpEx KPIs’ numerators.
As described more exhaustively in section 2.3.1.2.3 on page 290
and mentioned for CapEx, product-related R&D projects of the
Group aim at and demonstrate substantial carbon footprint savings.
The Taxonomy-eligible and -aligned OpEx KPIs numerator
corresponds to OpEx directly associated with the Group’s
product-related R&D projects: these OpEx are therefore both
Taxonomy-eligible and -aligned under activity CCM 3.6
(manufacture of other low carbon technologies).
See detailed proportion of OpEx from Taxonomy-
eligible and -aligned activities on pages 200 and 201.
Do Not Significantly Harm (DNSH)
As defined in Article 3 of the Taxonomy Regulation, an activity shall
qualify as environmentally sustainable only if it does not significantly
harm any of the other Taxonomy environmental objectives.
Schneider Electric’s activities are subject to the specified DNSH
requirements where the objective it belongs to is shown:
Climate change mitigation (CCM)
Protection of water and marine resources (WTR)
Transition to a circular economy (CE)
As the Group’s activities are linked to only 3 of the 6
environmental objectives, icons for the 3 remaining objectives
are not shown.
For activities belonging to environmental objectives, as shown by
the icons below, this means that they must not do significant
harm to:
Climate change mitigation:
Schneider Electric relies on fossil fuel backup generators in few of
its manufacturing sites. Those generators have been used in 2024
for backup power in sites in Mexico and India. Repair,
refurbishment and remanufacturing centers do not rely on fossil fuel
backup generators. More information in 2.2.2.1.2.
Schneider Electric has developed strategies to account for and
reduce the GHG emissions of its activities along the value chain.
Read more about Schneider Electric’s strategies
and actions for GHG emissions reduction in section
2.2.2.1.3 on page 138, the Group’s GHG footprint in
section 2.2.2.1.5 on page 150, as well as the underlying
methodology in section 2.4.4.1 on page 347.
This applies to activities belonging to objectives:
Climate change adaptation:
Schneider Electric has assessed physical climate risks that are
material to its activity. The Group has put dependencies analysis at
the heart of its risk management and performed a prospective
climate risk and vulnerability assessment to identify and price the
materiality of physical climate risks that may affect Schneider Electric
sites, extended supply chain, and economic activities under different
IPCC scenarios and different timelines (short, medium, and long
term). In line with these assessments, the Group has implemented
adaptation solutions consisting of several resilience initiatives.
Read more about the Group climate risk management
and adaptation measures in section 2.2.2.1.2
“Climate risks, opportunities and impact management“
on page 126.
This applies to activities belonging to objectives:
The sustainable use and protection of water and
marine resources:
Schneider Electric regularly assesses water-related risks. In 2022,
the Group conducted a water footprint analysis along the value
chain, covering water consumption, scarcity, eutrophication,
ecotoxicity, and acidification. Due to the nature of most of its
industrial processes (manual and automatic assembly), water
withdrawal of the Group’s operations is considered limited.
The Group has implemented initiatives to preserve
water quality and avoid water stress – read more about
the Group’s water management in the section 2.3.1.1.2
on page 284.
This applies to activities belonging to objectives:
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The transition to a circular economy:
Schneider Electric assesses the availability of and, where feasible,
adopts techniques that maximize the value of its resources,
considering waste as a resource and ensuring its waste stays
within a circular system.
Beyond avoiding landfill and looking at traditional recycling
solutions, Schneider strives to move up the waste hierarchy and
find “reduce and reuse” solutions for its resources.
Requirements related to construction and demolition waste
management in low-carbon mobility infrastructures are not
applicable to Schneider as the Group only operates as an electrical
and automation solution provider in those projects.
Read more about the Group’s transition to a circular
economy in section 2.2.2.3 “Resource use and circular
economy (ESRS E5)” on page 167.
This applies to activities belonging to objectives:
Pollution prevention and control:
Schneider Electric automated the reporting of its EU Taxonomy
revenue and included a rule to remove from the taxonomy-aligned
revenue the revenue from products that don’t meet the criteria from
the DNSH Pollution prevention and control, leveraging on product
environmental data accessible in “Check a Product” (CAP)
database. In 2024, this calculation rule has been updated to
exclude from Taxonomy-aligned revenue, the revenue from
products with substances part of the exemptions to the directive on
the restriction of the use of certain hazardous substances in
electrical and electronic equipment (RoHS). Product substances
data are based on detailed data collection and tools that gather
hazardous substance information from suppliers and assess
product compliance through the bill of materials. Data availability is
restricted by the reliance on supplier declarations and voluntary
Full Material Disclosures (FMDs). Assumptions about average
percentages and quantities are necessary. The non-compliance to
specific requirements, more stringent than current EU regulations
contributes to 14% of Schneider Electric’s total revenues being non-
aligned.
Read more about the Group’s strategy to substitute
hazardous substances in section 2.2.2.2.1 “Eliminating
hazardous substances” on page 159.
On the manufacture, placing on the market, or use of chemicals,
Schneider Electric provides the following precisions:
• Regulation (EU) 2017/852 of the European Parliament and of
the Council of 17 May 2017 on mercury and repealing is not
applicable to Schneider Electric as we do not use mercury in
our products nor in our manufacturing activities.
• Regarding the directive on the restriction of the use of certain
hazardous substances in electrical and electronic equipment
(RoHS) and the Regulation concerning the Registration,
Evaluation, Authorization and Restriction of Chemicals (REACH),
Schneider Electric’s revenues coming from products with
substances either listed in either the Annex II to RoHS or used in
applications listed in RoHS Directive’s exemptions are declared
as non-aligned with the EU Taxonomy. None of Schneider
products are using REACH restricted substances (Annex XVII)
in the scope of the restriction and the Group follows the POP
restrictions. The Group has deployed significant efforts to
measure and further comply with those requirements, even
outside of the European Union (i.e., beyond the scope of the
regulation).
• Regarding substances listed in Annexes I or II to Regulation
(EC) 1005/2009, Schneider Electric substituted 100% of ozone
depleting substances from its offers on a worldwide basis.
• Regarding substances laid down in Article 57 of Regulation (EC)
1907/2006 and identified in accordance with Article 59(1) of that
Regulation, except where it is assessed and documented by the
operators that no other suitable alternative substances or
technologies are available on the market and that they are used
under controlled conditions, Schneider Electric declared as
non-aligned all revenues coming from such products.
• Regarding substances laid down in Article 57 of Regulation (EC)
1907/2006, and not listed in Article 59(1) of that Regulation, the
Group notes that obtaining material declarations and data from
suppliers beyond tier 1 is particularly challenging and is not in a
position to quantify the impact of excluding products using
substances that may be included in the list of substances
subject to authorization but not currently identified in the
candidate list. The Group is progressively improving the
traceability of the components of each product beyond its tier 1
suppliers, working towards obtaining more comprehensive
information. However, achieving this objective will necessitate
advancements in legislation.
• RoHS application scope in the EU Taxonomy can be seen as
ambiguous. As such, RoHS exemptions, which are granted
when there is no alternative solution available and no exposure
for humans and the environment, were used as a proxy for
exemptions to criteria (f) of the generic criteria for DNSH on
pollution and prevention and control.
Other requirements are met and included in Schneider Electric Global
Environmental Directives and all restrictions are applied globally.
Requirements related to pollution prevention and control on
overground high voltage lines and noise, vibration, dust, and
pollutant emissions reduction during construction and maintenance
of low-carbon mobility infrastructures are not applicable to
Schneider Electric as the Group only operates as an electrical and
automation solutions provider in those projects.
This applies to activities belonging to objectives:
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2.2 Sustainability statements
The protection and restoration of biodiversity and ecosystems:
The Environmental Impact Assessment Directive (2011/92/EU)
mandates project developers to conduct an Environmental Impact
Assessments (EIA) for projects with significant impacts. Schneider
Electric participates in both Annex 1 and 2 projects, but only as a
contractor. Even if with this role, the Group is not subject to
completing an EIA nor the biodiversity risk mitigation on low-carbon
mobility infrastructures, it has integrated in 2023, Environmental,
Social and Governance (ESG) risks into its project selection
process for bidding. ESG risk analysis became part of the factors
in Go/No-Go decisions. This ESG risk management process has
been reinforced with the support of external risk management
experts defining a clear governance. The process verifies project
developers’ Environmental and Social Impact Assessments (ESIAs)
and mitigation actions.
In cases where Schneider Electric intends to build a new site, the
Group may need to complete an EIA. However, due to the nature
of the activities performed on Schneider Electric’s sites, those
projects are not likely to have significant effects on the environment
and are not listed in the Annex I nor in the Annex II of the Directive
2011/92/EU. Schneider Electric Real Estate team is monitoring any
new constructions or extension with their third-party to ensure that
license to build which includes EIA where relevant are correctly
undertaken by them. In 2024, 3 EIA have been completed and 4
are still ongoing.
Schneider Electric has defined a process to conduct Environmental
Site Assessments (ESA) as part of its due diligence phase of new
mergers and acquisitions, primarily to detect contamination of soil,
ground water surface, water sediment, and soil vapor from known
or unknown releases of chemicals, petroleum, or related wastes.
The VP Safety Environment and Real Estate, accountable for the
EHS compliance of the entity under due diligence, has established
an assessment framework and conducts the necessary checks in
all due diligence processes as part of the Due Diligence team.
Schneider Electric requires a Phase I ESA to be performed on all
global real estate transactions involving manufacturing properties
and, other potentially higher risk sites including factories,
distribution centers, or properties with prior industrial activity. The
ESA is performed by an independent environmental consultant.
Schneider Electric’s assessments and actions on
biodiversity are detailed in section 2.3.1.1.1
“Biodiversity” on page 282.
This applies to activities belonging to objectives:
Minimum safeguards
As defined in Article 3 of the Taxonomy regulation, an activity shall
qualify as environmentally sustainable only if it is carried out in
compliance with the specific minimum safeguards detailed in the
regulation. Schneider Electric takes reference from the Final Report
on Minimum Safeguards by the Platform on Sustainable Finance as
a guidance to report against minimum safeguards, which looks
at four key areas: human rights, corruption, taxation, and
fair competition.
Human rights
The company has established an adequate human rights due
diligence process as outlined in the UNGPs and OECD
Guidelines for MNEs.
For details, see our Vigilance plan as well as
section 2.2.1.2 “Main sustainability impacts, risks
and opportunities” on page 109.
Corruption
The company has anti-corruption processes in place.
For details, see section 2.2.4.1 “Zero-tolerance for
corruption” on page 258.
Taxation
The company treats tax governance and compliance as
important elements of oversight, and there are adequate tax risk
management strategies and processes in place.
For details, see our Vigilance plan as well as
section 2.2.1.2 “Main sustainability impacts, risks
and opportunities” on page 109.
Fair competition
The company promotes employee awareness of the
importance of compliance with all applicable competition laws
and regulations.
For details, see section 2.3.3.2 “Compliance with
competition law” on page 307.
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The Group provides below a mapping of Schneider activities eligible under the current EU Taxonomy in order to provide a better
understanding for its stakeholders.
Activity name and code as specified
in the EU Climate, Environmental,
and Disclosures Delegated Acts
Activity definition as specified in the EU
Climate, and Environmental Delegated Acts
Corresponding business activities of
Schneider Electric
CCM 3.1
Manufacture of renewable
energy technologies
Manufacture of renewable energy
technologies, where renewable energy is
defined in Article 2(1) of Directive (EU)
2018/2001.
• Manufacture of technologies that are
essential parts of the systems producing
electricity from renewable energy sources:
inverters, mounting frames, solar panels,
other solar equipment, wind farm
microgrid, and others
CCM 3.5
Manufacture of energy
efficiency equipment for
buildings
Manufacture of energy efficiency equipment
for buildings.
• Building management systems (except fire
safety and access control)
• Power metering systems for buildings
• Smart monitoring and regulation of
electricity or heat in buildings, such as
thermostats and controls for lighting
systems
• Cooling systems
• Insulating products
CCM 3.6
Manufacture of low carbon
technologies
Manufacture of technologies aimed at
substantial GHG emission reductions in other
sectors of the economy, where those
technologies are not covered in CCM activities
3.1 to 3.5 of the Annex.
• UPS with an audited methodology to
calculate GHG emission reductions
CCM 3.20
Manufacture, installation,
and servicing of high,
medium and low voltage
electrical equipment for
electrical transmission and
distribution that result in or
enable a substantial
contribution to climate
change mitigation
Manufacture, installation, maintenance, or
service of electrical products, equipment, or
systems, or software aimed at substantial
GHG emission reductions in high, medium,
and low voltage electrical transmission and
distribution systems through electrification,
energy efficiency, integration of renewable
energy, or efficient power conversion.
• Transmission and distribution wiring
devices for wiring electrical circuits
• Low voltage electrical products,
equipment, and systems
• SF6-free medium voltage switchgears and
control gears that increase the
controllability of the electricity system
• Demand response and load shifting
equipment, systems, and services
• Communication, software and control
equipment, products, systems, and
services for energy efficiency
• Manufacture of variable speed drives
(1) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective;
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(2) This figure is less than EUR 0.5 million
(3) EL – Eligible, Taxonomy-eligible activity for the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
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2.2 Sustainability statements
Activity name and code as specified
in the EU Climate, Environmental,
and Disclosures Delegated Acts
Activity definition as specified in the EU
Climate, and Environmental Delegated Acts
Corresponding business activities of
Schneider Electric
CCM 6.14
Infrastructure for rail
transport
Construction, modernization, operation, and
maintenance of railways and subways as well
as bridges and tunnels, stations, terminals, rail
service facilities, safety and traffic
management systems including the provision
of architectural services, engineering services,
drafting services, building inspection services,
and surveying and mapping services and the
like as well as the performance of physical,
chemical and other analytical testing of all
types of materials and products.
• Equipment, projects, as well as
modernization and maintenance services
for rail transport infrastructure
CCM 6.15
Infrastructure enabling
low-carbon road transport
and public transport
Construction, modernization, maintenance,
and operation of infrastructure that is required
for zero tailpipe CO2 operation of zero-
emissions road transport, as well as
infrastructure dedicated to transshipment, and
infrastructure required for operating urban
transport.
• Equipment, projects, as well as
modernization and maintenance services
for zero-emissions road transport, as well
as infrastructure required for operating
urban transport
CCM 6.16
Infrastructure enabling
low-carbon water
transport
Construction, modernization, operation, and
maintenance of infrastructure that is required
for zero tailpipe CO2 operation of vessels or
the port’s own operations, as well as
infrastructure dedicated to transshipment and
modal shift and service facilities, safety and
traffic management systems.
• Equipment, projects, as well as
modernization and maintenance services
for low-carbon port infrastructure
• Equipment, projects, as well as
modernization and maintenance services
for electrification and efficiency of ports’
operations
CCM 6.17
Low carbon airport
infrastructure
Construction, modernization, maintenance,
and operation of infrastructure that is required
for zero tailpipe CO2 operation of aircraft or the
airport’s own operations, and for provision of
fixed electrical ground power and
preconditioned air to stationary aircraft as well
as infrastructure dedicated to transshipment
with rail and water transport.
• Energy management equipment, projects,
as well as modernization and maintenance
services for low-carbon airport
infrastructure
CCM 7.5
Installation, maintenance
and repair of instruments
and devices for
measuring, regulation
and controlling energy
performance of buildings
Installation, maintenance, and repair of
instruments and devices for measuring,
regulation, and controlling energy
performance of buildings.
• Service plans related to building
management and power metering systems
in buildings
CCM 8.2
Data-driven solutions for
GHG emissions reductions
Development or use of ICT solutions that are
aimed at collecting, transmitting, storing data
and at its modeling and use where those
activities are predominantly aimed at the
provision of data and analytics enabling GHG
emission reductions.
• Software and data-driven solutions aiming
at improving efficiency in building design,
planning, and construction
CCM 9.3
Professional services
related to energy
performance of buildings
Professional services related to energy
performance of buildings.
• Technical consultations such as energy
audits, simulations, and trainings
• Energy management services
• Energy performance contracts
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Activity name and code as specified
in the EU Climate, Environmental,
and Disclosures Delegated Acts
Activity definition as specified in the EU
Climate, and Environmental Delegated Acts
Corresponding business activities of
Schneider Electric
WTR 1.1
Manufacture, installation
and associated services
for leakage control
technologies enabling
leakage reduction and
prevention in water supply
systems
Manufacture, installation, or provision of
associated services for leakage control
technologies that enable leakage reduction
and prevention in water supply systems.
• Leakage control technologies for water
supply systems
WTR 4.1
Provision of IT/OT
data-driven solutions for
leakage reduction
Manufacture, development, installation,
deployment, maintenance, repair, or provision
of professional services for IT or OT data
driven solutions to control, manage, reduce,
and mitigate leakage in water supply systems.
• Real-time network modeling and
optimization
• Leakage calculation, control and reporting
CE 1.2
Manufacture of electrical
and electronic equipment
Manufacture of electrical and electronic
equipment for industrial, professional, and
consumer use.
• Electrical and electronic equipment
CE 4.1
Provision of IT/OT
data-driven solutions
Manufacture, development, installation,
deployment, maintenance, repair, or provision of
professional services for design or monitoring
of software and/or IT/OT systems, built for:
remote monitoring and predictive maintenance;
providing identification, tracking, and tracing of
materials, products, and assets to support
circularity of material flows or other objectives
of the Taxonomy; lifecycle performance
management software supporting the monitoring
and assessment of circularity performance.
• Remote monitoring and predictive
maintenance systems
• Lifecycle performance management
software
CE 5.1
Repair, refurbishment, and
remanufacturing
Repair, refurbishment, and remanufacturing of
goods that have been used for their intended
purpose before by a customer.
• Repairing, refurbishing, or
remanufacturing products that
have already been used
CE 5.2
Sale of spare parts
Sale of spare parts beyond legal obligations.
• Sale of spare parts
CE 5.5
Product-as-a-service and
other circular use- and
result-oriented service
models
Providing customers with access to products
through service models, which are either
use-oriented or result-oriented services.
• Software as a Service offers
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2.2 Sustainability statements
Proportion of turnover from Taxonomy-aligned activities
Economic Activities
Code(s)
Turnover
Proportion of
Turnover, year N
Substantial contribution criteria
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Million Euros
Percent
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of renewable energy technologies
CCM 3.1
94
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of energy efficiency equipment
for buildings
CCM 3.5
336
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of other low carbon technologies
CCM 3.6
0(2)
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation, and servicing of HV, MV and
LV electrical equipment for electrical transmission
and distribution that result in or enable a substantial
contribution to climate change mitigation
CCM 3.20
6,888
18%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure for rail transport
CCM 6.14
39
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon road transport
and public transport
CCM 6.15
227
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon water transport
CCM 6.16
39
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Low carbon airport infrastructure
CCM 6.17
34
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Installation, maintenance and repair of instruments
and devices for measuring, regulation and controlling
energy performance of buildings
CCM 7.5
549
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Professional services related to energy
performance of buildings
CCM 9.3
1,323
3%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation and associated services for
leakage control technologies enabling leakage
reduction and prevention in water supply systems
WTR 1.1
1
0%
N/EL
N/EL
Y
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions
for leakage reduction
WTR 4.1
7
0%
N/EL
N/EL
Y
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions
CE 4.1
1,170
3%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Repair, refurbishment and remanufacturing
CE 5.1
21
0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Sale of spare parts
CE 5.2
-
0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Product-as-a-service and other circular use- and
result-oriented service models
CE 5.5
10
0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
10,737
28%
25%
0%
0%
–
3%
–
Of which enabling
10,707
28%
25%
0%
0%
–
3%
–
Of which transitional
–
–
–
= not relevant.
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
E U T A X O N O M Y M E T H O D O L O G Y
DNSH criteria (‘Does Not Significantly Harm’)
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
turnover, year N-1
Category
enabling
activity
Category
transitional
activity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Percent
E
T
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
3%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
19%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
3%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
3%
E
Y
Y
Y
Y
Y
Y
Y
0%
Y
Y
Y
Y
Y
Y
Y
1%
Y
Y
Y
Y
Y
Y
Y
0%
Y
Y
Y
Y
Y
Y
Y
31%
Y
Y
Y
Y
Y
Y
Y
31%
E
Y
Y
Y
Y
Y
Y
Y
–
T
Continued on next page
(1) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective;
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(2) This figure is less than EUR 0.5 million.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Proportion of turnover from Taxonomy-aligned activities continued
Economic Activities
Code(s)
Turnover
Proportion of
Turnover, year N
Substantial contribution criteria
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Million Euros
Percent
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of renewable energy technologies
CCM 3.1
66
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of energy efficiency equipment
for buildings
CCM 3.5
1,237
3%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of low carbon technologies
CCM 3.6
600
2%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation, and servicing of HV, MV and
LV electrical equipment for electrical transmission and
distribution that result in or enable a substantial
contribution to climate change mitigation
CCM 3.20
7,704
20%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure for rail transport
CCM 6.14
22
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon road transport and
public transport
CCM 6.15
42
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon water transport
CCM 6.16
3
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Low carbon airport infrastructure
CCM 6.17
8
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Data-driven solution for GHG emission reductions
CCM 8.2
80
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation and associated services for
leakage control technologies enabling leakage
reduction and prevention in water supply systems
WTR 1.1
4
0%
N/EL
N/EL
EL
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions for leakage
reduction
WTR 4.1
326
1%
N/EL
N/EL
EL
N/EL
N/EL
N/EL
Manufacture of electrical and electronic equipment
CE 1.2
13,237
35%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Provision of IT/OT data-driven solutions
CE 4.1
167
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Repair, refurbishment and remanufacturing
CE 5.1
6
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Sale of spare parts
CE 5.2
87
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Product-as-a-service and other circular use- and
result-oriented service models
CE 5.5
2
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
23,591
62%
26%
–
1%
–
35%
–
A. Turnover of Taxonomy-eligible activities (A.1 +
A.2)
34,328
90%
51%
–
1%
–
39%
–
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B)
3,825
10%
Total (A+B)
38,153
100%
= not relevant.
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
E U T A X O N O M Y M E T H O D O L O G Y
DNSH criteria (‘Does Not Significantly Harm’)
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
turnover, year N-1
Category
enabling
activity
Category
transitional
activity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
Percent
0%
1%
1%
15%
0%
0%
0%
0%
0%
0%
1%
39%
0%
0%
0%
0%
58%
89%
(1) EL – Eligible, Taxonomy-eligible activity for the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Proportion of CapEx from Taxonomy-aligned activities
Economic Activities
Code(s)
CapEx
Proportion of
CapEx, year N
Substantial contribution criteria
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Million Euros
Percent
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of renewable energy technologies
CCM 3.1
2
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of energy efficiency equipment
for buildings
CCM 3.5
21
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of other low carbon technologies
CCM 3.6
290
12%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation, and servicing of HV, MV and
LV electrical equipment for electrical transmission
and distribution that result in or enable a substantial
contribution to climate change mitigation
CCM 3.20
163
7%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure for rail transport
CCM 6.14
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon road transport
and public transport
CCM 6.15
2
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low carbon water transport
CCM 6.16
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Low carbon airport infrastructure
CCM 6.17
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Installation, maintenance and repair of instruments
and devices for measuring, regulation and controlling
energy performance of buildings
CCM 7.5
8
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Professional services related to energy
performance of buildings
CCM 9.3
40
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation and associated services for
leakage control technologies enabling leakage
reduction and prevention in water supply systems
WTR 1.1
0(2)
0%
N/EL
N/EL
Y
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions
for leakage reduction
WTR 4.1
0(2)
0%
N/EL
N/EL
Y
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions
CE 4.1
13
1%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Repair, refurbishment and remanufacturing
CE 5.1
0(2)
0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Sale of spare parts
CE 5.2
–
–
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Product-as-a-service and other circular use- and
result-oriented service models
CE 5.5
0(2)
0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
542
22%
21%
–
0%
–
1%
–
Of which enabling
541
22%
21%
–
0%
–
1%
–
Of which transitional
–
–
–
= not relevant.
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D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
E U T A X O N O M Y M E T H O D O L O G Y
DNSH criteria (‘Does Not Significantly Harm’)
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
CapEx, year N-1
Category
enabling
activity
Category
transitional
activity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Percent
E
T
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
4%
E
Y
Y
Y
Y
Y
Y
Y
16%
E
Y
Y
Y
Y
Y
Y
Y
12%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
0%
E
Y
Y
Y
Y
Y
Y
Y
1%
E
Y
Y
Y
Y
Y
Y
Y
0%
Y
Y
Y
Y
Y
Y
Y
0%
Y
Y
Y
Y
Y
Y
Y
0%
Y
Y
Y
Y
Y
Y
Y
35%
Y
Y
Y
Y
Y
Y
Y
35%
E
Y
Y
Y
Y
Y
Y
Y
–
T
Continued on next page
(1) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective;
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(2) This figure is less than EUR 0.5 million.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Proportion of CapEx from Taxonomy-aligned activities
Economic Activities
Code(s)
CapEx
Proportion of
CapEx, year N
Substantial contribution criteria
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Million Euros
Percent
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
EL; N/EL(1)
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of renewable energy technologies
CCM 3.1
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of energy efficiency equipment
for buildings
CCM 3.5
71
3%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of low carbon technologies
CCM 3.6
4
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation, and servicing of HV, MV and
LV electrical equipment for electrical transmission and
distribution that result in or enable a substantial
contribution to climate change mitigation
CCM 3.20
184
7%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure for rail transport
CCM 6.14
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low-carbon road transport and
public transport
CCM 6.15
0(2)
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Infrastructure enabling low-carbon water transport
CCM 6.16
0(2)
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Low carbon airport infrastructure
CCM 6.17
0(2)
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Installation, maintenance and repair of instruments
and devices for measuring, regulation and controlling
energy performance of buildings
CCM 7.5
-
-
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Acquisition and ownership of buildings
CCM 7.7
587
24%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Data-driven solutions for GHG emissions reductions
CCM 8.2
0(2)
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Professional services related to energy performance
of buildings
CCM 9.3
-
-
EL
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture, installation and associated services for
leakage control technologies enabling leakage
reduction and prevention in water supply systems
WTR 1.1
0(2)
0%
N/EL
N/EL
EL
N/EL
N/EL
N/EL
Provision of IT/OT data-driven solutions for leakage
reduction
WTR 4.1
4
0%
N/EL
N/EL
EL
N/EL
N/EL
N/EL
Manufacture of electrical and electronic equipment
CE 1.2
344
14%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Provision of IT/OT data-driven solutions
CE 4.1
3
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Repair, refurbishment and remanufacturing
CE 5.1
0(2)
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Sale of spare parts
CE 5.2
1
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
Product-as-a-service and other circular use- and
result-oriented service models
CE 5.5
0(2)
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
1,203
49%
34%
–
0%
–
14%
–
A. CapEx of Taxonomy-eligible activities (A.1 + A.2)
1,744
71%
56%
–
0%
–
15%
–
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B)
729
29%
Total (A+B)
2,473
100%
= not relevant.
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C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
E U T A X O N O M Y M E T H O D O L O G Y
DNSH criteria (‘Does Not Significantly Harm’)
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
CapEx, year N-1
Category
enabling
activity
Category
transitional
activity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
Percent
0%
3%
0%
8%
0%
0%
0%
0%
0%
18%
0%
0%
0%
0%
20%
0%
0%
0%
0%
51%
86%
(1) EL – Eligible, Taxonomy-eligible activity for the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(2) This figure is less than EUR 0.5 million.
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Proportion of OpEx from Taxonomy-aligned activities
Economic Activities
Code(s)
OpEx
Proportion of
OpEx, year N
Substantial contribution criteria
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Million Euros
Percent
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
Y; N;
N/EL(1)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of other low carbon technologies
CCM 3.6
979
49%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
979
49%
49%
–
–
–
–
–
Of which enabling
979
49%
49%
–
–
–
–
–
Of which transitional
–
–
–
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
–
–
Total (A.1 + A.2)
979
49%
49%
–
–
–
–
–
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B)
1,030
51%
Total (A+B)
2,009
100%
= not relevant.
Whenever an economic activity contributes substantially to multiple environmental objectives, non-financial undertakings shall report under
the most relevant environmental objective while avoiding double counting. In 2024, non-financial undertakings such as Schneider Electric
must now also declare their turnover, CapEx, and OpEx that are eligible and aligned with multiple environmental objectives (i.e., without
removing double counting when an activity contributes substantially to several objectives) to facilitate financial undertakings’ reporting
needs, by using the templates below:
Proportion of turnover from activities eligible and aligned with multiple environmental objectives
Proportion of turnover/Total turnover
Taxonomy-aligned per objective
Taxonomy-eligible per objective
Percent
Percent
Climate change mitigation (CCM)
25%
51%
Climate change adaptation (CCA)
–
–
Protection of water and marine resources (WTR)
0(2)%
1%
Transition to a circular economy (CE)
3%
80%
Pollution prevention and control (PPC)
–
–
Biodiversity and ecosystems protection (BIO)
–
–
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DNSH criteria (‘Does Not Significantly Harm’)
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
OpEx, year N-1
Category
enabling
activity
Category
transitional
activity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Percent
E
T
Y
Y
Y
Y
Y
Y
Y
48%
E
Y
Y
Y
Y
Y
Y
Y
48%
Y
Y
Y
Y
Y
Y
Y
48%
E
Y
Y
Y
Y
Y
Y
Y
–
T
–
48%
Proportion of CapEx from activities eligible and aligned with multiple environmental objectives
Proportion of CapEx/Total CapEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
Percent
Percent
Climate change mitigation (CCM)
21%
56%
Climate change adaptation (CCA)
–
–
Protection of water and marine resources (WTR)
0(2)%
0(2)%
Transition to a circular economy (CE)
1%
33%
Pollution prevention and control (PPC)
–
–
Biodiversity and ecosystems protection (BIO)
–
–
Proportion of OpEx from activities eligible and aligned with multiple environmental objectives
Proportion of OpEx/Total OpEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
Percent
Percent
Climate change mitigation (CCM)
49%
49%
Climate change adaptation (CCA)
–
–
Protection of water and marine resources (WTR)
–
–
Transition to a circular economy (CE)
–
–
Pollution prevention and control (PPC)
–
–
Biodiversity and ecosystems protection (BIO)
–
–
(1) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective;
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective;
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(2) This figure is less than 0.5%.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
No
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
No
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2.2.3 Social information
This section presents comprehensive information on the European
Sustainability Reporting Standards (ESRS) S1, S2, S3, and S4.
These standards guide the reporting on own workforce, workers in
the value chain, affected communities, and consumers and users.
The alignment with these standards creates a robust framework to
address the pressing social challenges of our time.
This section is divided in four sub-sections:
1. “2.2.3.1 Great people make Schneider Electric a great
company (ESRS S1)” where the objective is to specify
disclosure requirements that enable stakeholders to understand
how Schneider Electric is organized to propose the best
working experience possible, including material positive and
negative impacts, mitigation efforts, and adaptation strategies. It
covers working conditions, health and safety, equal treatment,
and training and skills development.
2. “2.2.3.2 Sustainable relations in the value chain (ESRS S2)”
where the objective is to provide information on how Schneider
Electric impacts workers in the value chain, especially our
suppliers’ employees and contractors, and including actions to
prevent or mitigate negative impacts. It addresses working
conditions, health and safety, and forced labor.
3. “2.2.3.3 Ethical relations with affected communities
(ESRS S3)” where the objective is to specify disclosure
requirements related to the communities affected by the Group,
and the ethical relations Schneider Electric has with them.
It aims to help users understand the impacts, risks, and
opportunities related to these specific relations.
4. “2.2.3.4 Consumers and end-users (ESRS S4)” where the
objective is to specify disclosure requirements related to
Schneider Electric’s consumers and end-users. It aims to help
users understand the impacts, risks, and opportunities related
to the personal safety and the overall data privacy of these
consumers and end-users.
2.2.3.1 Great people make Schneider Electric a great company (ESRS S1)
2.2.3.1.1 Overall strategy
Having committed employees is essential for the Company to
perform well and align with the Group’s strategy. Employee
feedback from a yearly survey is gathered and utilized to create
action plans throughout the organization. This process encourages
leaders to work with their teams to develop these action plans,
fostering the collaborative communication necessary to shape the
future workplace.
The Group’s employees
The Group’s own workforce encompasses a variety of employment
contracts, catering for the dynamic needs of the organization and
its global operations. The Group distinguishes its own workforce
between employees and non-employees. Employees are
individuals who have an employment relationship with Schneider
Electric in accordance with national law and practice, including all
types of contracts: open-ended contract, fixed-term contract, and
non-guaranteed employees. Part-time employees are also included
in the scope of employees. Non-employees in Schneider Electric’s
own workforce include both individual contractors supplying labor
(“self-employed people”) and persons provided by Schneider
Electric who are primarily engaged in “employment activities”. The
contractual framework includes open-ended contracts, which
provide employees with enduring engagement and the opportunity
to grow and evolve within the Company. Fixed-term contracts are
utilized for project-based work, allowing for agility and adaptability
in response to changing business requirements. Non-guaranteed
hours contracts offer a flexible own workforce solution, enabling the
Company to efficiently manage fluctuations in demand. Lastly,
part-time contracts are available, supporting employees in
achieving a harmonious work-life balance while contributing
valuable expertise to the Company. This diverse contractual
landscape enables Schneider Electric to maintain a robust and
responsive own workforce, aligned with the Company’s strategic
objectives and operational excellence.
Link between strategy and impacts, risks,
and opportunities
Ability to attract, develop, and retain talent
The Group’s ability to attract, develop, and retain talent with critical
skills is a cornerstone of its strategy and business model. As the
Group navigates global reach and digital transformation, it
emphasizes the creation of ideal working conditions to secure top
talent in technology, software, services, sustainability, supply chain,
and electronics. The Group’s balanced multi-hub footprint is a
strategic asset for talent attraction and retention, providing ample
career development and opportunities for local and regional
talents. In response to the rapidly evolving “next normal,” the Group
is accelerating the skill development of its employees and training
leaders capable of cultivating human connections in a digital world.
This focus on training and skills development is essential to reduce
the risk of skill gaps and enhance organizational agility. The
Group’s strategic approach to workforce development is designed
to continually innovate for customers and maintain a competitive
edge in the industry.
The Group’s strategy relies on its ability to attract talent at all levels,
which is crucial for executing the Group’s strategy and fostering
innovation for customers. Mitigating the risk of skill gaps is essential
for maintaining a competitive edge.
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2.2 Sustainability statements
Developing services and solutions for
customers to use resources more efficiently
and reduce CO2 emissions
The Group sees significant opportunities in developing services
and solutions that assist customers and the value chain in using
energy and resources more efficiently and reducing CO2
emissions. Schneider Electric’s Energy Management and Industrial
Automation activities, such as energy audits, greener homes/
buildings, eco-designed products and services, smart grid
technologies, green transportation, energy and carbon
management tools, digitalization, and real-time information
computing capabilities, are central to this endeavor. In 2023,
Schneider Electric’s acquisition of EcoAct aligns with the
Company’s ambition to converge digitalization and sustainability.
EcoAct’s portfolio of net-zero and nature-based solutions,
encompassing consulting, climate data tools, and carbon offset
project development, enhances Schneider Electric’s capacity to
deliver comprehensive solutions that guide organizations through
the net-zero transition and beyond.
The Group is mindful of the potential workforce impacts its strategy
has. The Group recognizes the opportunities for job creation and
the reskilling or upskilling of its workforce in alignment with its
sustainability objectives. Through careful planning and execution of
its transition strategies, the Group aims to balance its environmental
commitments with the well-being and development of its workforce.
Risks and opportunities arising from impacts
and dependencies on own workforce
Working conditions
The Group identifies operational risks such as strikes, loss of
productivity, and resignations as potential risks. Legal risks include
potential fines from lawsuits, duty of care infringement, and
non-compliance with mandatory benefit requirements and
workplace violations, which could lead to a loss of business.
Reputational risks arise from NGO demands on freedom of
association and media exposure. Social negotiations may increase
operational costs. Conversely, the Group recognizes the
opportunity to enhance its reputation and attract talent by
maintaining decent working conditions, which is crucial for
nurturing and retaining talent within the organization.
Employee health and safety
The Group is aware of the legal risks associated with potential fines
due to non-compliance with health and safety regulations. Civil
risks may emerge from potential claims by employees or
customers, and reputational risks could result from any damage to
the Group’s image, particularly when incidents involve employees
working on client sites.
Equal treatment and opportunities for all
The Group sees a business opportunity in increasing employee
engagement, which can lead to improved productivity rates. Not
investing in skills development poses a risk, as the organization
may lack the necessary competencies to meet business needs.
Being perceived as an ethical company enhances the Group’s
employer brand and aids in attracting and retaining talents.
However, there is a legal risk associated with potential lawsuits
arising from discrimination cases.
Training and skills development
Investing in training and skills development is seen as a key factor
in employee attraction and retention, contributing to productivity
improvement. The Group views strong training and career
development programs as business opportunities that prepare a
diverse and skilled talent pool, ready to meet future challenges.
Negative and positive impacts
Negative impacts
Poor working conditions (e.g., excessive working hours, poor
work-life balance) are among the key issues that have been
identified as potential negative impacts by the Group. These issues
may lead to psycho-social risks, increased absenteeism, and
injured workers.
The Group also recognizes the importance of health and safety in
the workplace and has identified the Top 5 Hazards that pose
potential risks to the psychological or physical integrity of its
employees: falls, powered industrial trucks (PIT), machinery, road,
and electrical hazards. Both negative impacts are considered as
widespread or systemic considering the Group’s activity sector and
the hundreds of thousands of employees.
Positive impacts
The Group is dedicated to fostering an inclusive and caring
environment, where our people—no matter who they are or where
in the world they live— feel they belong and are valued. By
prioritizing equal treatment and opportunities for all, the Group has
observed positive impacts on the well-being of its workforce. This
commitment to an inclusive workplace culture positively affects
both employees and non-employees, contributing to a sense of
belonging and enhanced morale across the organization.
Additionally, the Group actively invests in the training and skills
development of its workforce, recognizing the direct correlation
between these activities and the well-being and employability of its
workforce. Through continuous learning opportunities and
professional development programs, the Group empowers its
workforce, enabling individuals to advance their careers and adapt
to the evolving demands of the global market.
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2.2.3.1.2 Working conditions
Impacts, risks and opportunities
Working conditions
Negative Impact
Affect the mental and physical
health of employees
The worldwide context with climate change challenges, geopolitical
issues and technology has accelerated the need for employee care
to make all stronger and more resilient. Schneider Electric firmly
believes that well-being generates performance and performance
generates well-being.
Well-being can be a unique competitive advantage if tackled
properly and genuinely. Schneider has identified three main risks
around those topics:
• Poor working conditions may result in psycho-social risks.
• Market research shows that well-being at work is on a persistent
decline, hitting minority groups harder.
• Employee engagement, performance, and retention are at risk
when employee well-being is deteriorating.
On the flip side, the opportunities are huge when inclusion and
care are by design in all processes and behaviors:
• Figures on stress and psychological risks, from Ecole du Stress
shows that for every 1 euro invested in well-being prevention
programs and practices, a company saves 2.2 euros.
• A study from Forbes (“The Future of Work Depends on
Supporting Gen Z”) shows that overall, DEI and well-being are
strong drivers of attraction and retention among all generations,
especially the younger ones.
Schneider Electric defines its strategy taking into consideration
those risks and opportunities, internal and external trends, insights
and feedback from leaders and employees, and its desire to
continue nurturing an inclusive and caring environment. Since
2020, the Trust Charter included a chapter on well-being and new
ways of working, highlighting behaviors expected from managers
and employees.
Working organisation
Policy
Global Family Leave Policy
As a caring, inclusive, and responsible employer, Schneider
launched its Global Family Leave policy along with care leave in
2017. Through its policy, the Group supports employees with
personal time at critical life stages and empowers everyone to
manage their “unique life and work” to enable them to be at their
best. While countries have flexibility to define eligibility and policy
details per statutory and/or market requirements, the policy
establishes a global minimum standard for paid leave.
In 2023, the Group globally deployed the updated Global Family
Leave Policy for all employees, where parental and care leave were
increased. Although the duration for bereavement leaves remained
unchanged, the local adaptation was enhanced by adopting a
flexible definition of “Immediate Family” in acknowledgment of the
diverse cultures and religions displayed by the global workforce.
Schneider Electric’s Global Family Leave Policy was recognized by
the Brandon Hall Group in September 2023, receiving a Gold
Award for Diversity, Equity, and Inclusion – affirming the Group’s
position as a caring, inclusive, and responsible employer.
Additional to the Group’s Global Family Leave Policy and, in
support of global standards and local empowerment, back-up
family care benefits are offered in some countries to assist
employees with family care needs when they experience disruption
in regular care arrangements. In the absence of a Group-level
back-up family care policy, the Group highlights examples of
back-up family care benefits that are offered at the country level.
Globally, the Group also offers an Employee Assistance Program
with coverage in over 90% of its operating countries which
provides additional support and resources for mental well-being
and family care.
Beyond the Global Family Leave Policy and Employee Assistance
Program, some countries where Schneider Electric operates
provide support in the form of on-site childcare facilities, childcare
contributions, and breast-feeding and lactation benefits.
The policy is accessible to employees via the intranet and has been
approved by the Chief Human Resource Officer, reviewed by the
Senior Vice-President Total Rewards & Performance, with policy
ownership by the Vice-President, Total Rewards & Performance
Innovation & Strategy.
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Global Family Leave
Care for employees and supporting their unique work and life
Parental
(primary)
20 weeks paid
Parental
(secondary)
4 weeks paid
Care
2 weeks paid
Bereavement
Enhanced local
empowerment to support
each employee’s
unique situation
Establishing Global Minimum Standards and Local Empowerment
Local adaptability is possible! Proofpoint: the definition of Immediate Family
Flexibility@Work Policy
Schneider Electric’s Global Flexibility@Work Policy creates a global
standard to work from home (WFH) two days a week for all eligible
employees, and one day for employees working in distribution
centers and plants (Eligibility is based on employee’s role and
requirements for on-site work and is determined by country/territory
with additional input from managers. Some essential roles, e.g.,
Plant & Distribution Center blue-collar workers, and Field services
engineers, due to role specifications are excluded from this
two-day WFH policy. Recognizing that many critical roles need to
be on site, this policy was adjusted to one day for the eligible Plant
& Distribution Center specific roles). This global standard was
introduced in response to feedback in the Group’s 2020 global
employee survey in which a large proportion of employees stated
that they preferred a hybrid work model (mix of WFH and “work
from office”). The policy addresses hybrid work holistically,
providing employees with mental health resources and training on
best practices. The policy also reflects the broader shifts of a
global, digital, and ever-changing environment, and contributes to
a more agile, inclusive, empowered, and trusting Group culture.
The policy is approved by the Group’s Chief Human Resources
Officer and owned by the head of the Inclusion and Care team who
is responsible for its implementation across the organization. There
are no applicable international standards to align the policy with.
As part of this new Flexibility@Work Policy, countries can explore
additional measures such as flexible working hours, flexible
holidays, part-time work, and volunteering. Some examples of
Schneider Electric countries raising the global standards with no
fixed limit on the number of WFH days are Estonia, Finland, Latvia,
Lithuania, Netherlands, Australia, New Zealand, Slovakia,
Germany, and the UK, operating with a fully flexible, output driven
philosophy.
In addition, Schneider recognizes the importance of this two-way
dialogue either directly with employees – and/or with freely
appointed employee representatives and bodies (such as Works
Councils or employee forums) or organizations (like trade unions),
as stated in its Global Human Rights Policy. This two-way dialogue
is a key enabler to employees’ engagement and the Company’s
performance.
Action plan
Built on a foundation of trust and respect, Schneider Electric
continuously implements and improves its policies, education, and
practices to support employees and respect their unique lives and
ways of working. As part of Schneider Electric’s annual employee
engagement survey, 74% of employees feel that the organization
actively looks after the well-being of its employees and 81% of
employees say that they have the flexibility to modify their work
arrangements as needed. These numbers help the organization
understand the impact of its policies and actions as well as help
inform the future actions.
To support cultural awareness and understanding, as well as
celebrate the uniqueness of the employees, the Group hosts
events, webinars, communications, and more for Global Mental
Health Day annually in October. In 2024, multiple sessions were
organized where over 6,000 employees participated in the
campaign.
A volunteer-based global mindfulness team holds annual events to
support employees. These mindfulness practice sessions are held
in multiple languages for the employees. In 2024, 93 mindfulness
practice sessions were organized, in English, Spanish, and French
by internal trainers.
In 2024, the “Digital Upskilling” program “Digital Boost” which aims
at preparing Schneider Electric’s workforce for its digital
transformation was leveraged to educate employees about digital
well-being. Over 38,000 employees leveraged the program to
upskill themselves in 2024.
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Mental health support
Mental health is a vital aspect of Schneider Electric’s overall
Inclusion & Care strategy. Schneider Electric integrated mental
health into its global well-being’s focus in 2019, and has provided
all employees with a playbook, and series of trainings (available in
multiple languages) on how to manage mental health challenges. In
2024, 84.6% of new hires completed “We All have Mental Health,”
an e-learning module focused on what mental health means, and
how to recognize the signs of mental health challenges and act.
Support employees with cancer and chronic
diseases
In 2023, Schneider Electric joined the #WorkingwithCancer
foundation launched at the WEF in Davos, on January 17, 2023. An
internal pledge was published in March with sponsorship from the
CEO, in addition to participation in best-practice survey and data
collection. In 2024, Schneider deployed a one-stop shop on
benefits and education resources related to cancer in the top 12
Schneider Electric countries and organized a global awareness
webinar on working with cancer gathering 1,000 employees.
Other examples of global and local practices
A new real estate workplace guidebook has been launched in 2024
including a dedicated chapter for inclusive and welcoming
workplaces mandating key principles of inclusion and care
(accessibility, healthy food, wellness room, health care on-site,
gender-neutral lactation room, and more).
We also have dedicated programs to educate and support
employees on new, smarter ways of working, mindfulness in the
workplace and working in a hybrid world.
Schneider Electric has implemented many services at its sites
throughout the world (gym facilities, concierge, creativity rooms,
cultural events, mindfulness activities, back-up dependent care,
lactation room, and more) to support all employee’s mental load,
energy recovery, and overall resilience.
Compensation and benefits
Policy
Schneider Electric ensures its diverse global workforce is treated in
a fair and ethical way which affirms its position as an Impact
Company. Its inclusive reward portfolio expands beyond pay and is
a meaningful mix of compensation, benefits, development, and
workplace environment. It is designed to cater to the diverse needs
of our people, fostering inclusivity, empathy, support, and well-
being with fairness and equity.
The Group offers a portfolio of benefits to care for employees’
needs at each life stage. Its diverse and global workforce is
provided with meaningful choices covering a holistic range of
well-being, flexibility, and financial protections to provide peace of
mind to employees and their dependents.
Schneider Electric aims to reward its global workforce based on
the impact of their performance, potential, skills, and contribution to
others’ success.
Schneider Electric confirms that all compensation and benefits
decisions and policies are based on the principles of inclusion and
care and follow local statutory and collective agreements. The
company ensures that all employee benefits are locally and
globally compliant, as well as market relevant. As employee benefit
plans vary significantly between countries due to different levels of
social, tax, and legal regulations, Schneider Electric’s benefits
portfolio is primarily country-driven and aims at providing similar
benefits within a country territory.
Schneider Electric is committed to delivering best-in-class
compensation and benefits offerings to its employees in a fair and
equitable way. Without this commitment, Schneider Electric risks its
ability to achieve their objectives. The Group mitigates this risk by
providing a meaningful mix of rewards programs to support the
diverse needs of employees. The processes also contribute to the
IROs (impacts, risks, and opportunities) mentioned in the beginning
of this chapter.
The implementation of Group policies on compensation and
benefits is overseen by global, regional, and local reward
organizations.
Global compensation and benefit standards and policies are
accessible to employees via the intranet and have been approved
by the Chief Human Resource Officer, reviewed by the Senior
Vice-President, Total Rewards and Performance, with policy
ownership held by the Vice-President, Total Rewards &
Performance Innovation & Strategy. In addition to the global
standards and policies there are local procedures that ensure
compliance with local laws and regulations.
Action plan
Job architecture and compensation process
Schneider Electric has a global job architecture to support HR
processes and programs and to enable Schneider Electric to
engage, develop, and move talent across different businesses and
geographies. The job architecture aligns our organizational
structure to market practices to ensure the reward package offered
for a role is fair and competitive. This architecture serves as the
foundation towards greater transparency on career development
and progression.
Pay competitively and pay-for-performance
Schneider Electric employees are encouraged to seek, give, and
receive feedback, empowering them to take ownership for driving
their individual impact. Managers are encouraged to have routine
meaningful conversations throughout the year that include
coaching, feedback, and recognition with the constant revisit of
goals and priorities. Individual performance is assessed in a fair
manner based on the impact across all three dimensions:
• Individual achievements
• Behaviors in alignment with IMPACT Values
• Contribution to others’ success
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2.2 Sustainability statements
For most employees, compensation structures include fixed and
variable (incentive) elements. Compensation programs and
decisions are based on individual performance and behaviors,
Company performance, and competitive market positioning in
alignment with the Group’s pay-for-performance philosophy.
Short-term incentive plan
The annual short-term incentive plan balances the overall Company
performance and individual performance. It is designed to
encourage and motivate employees to turn ambitious targets into
action and embrace the power of teamwork. It aims to make an
impact together and achieve our collectve ambition of becoming an
industrial technology leader. The framework is built upon
Schneider’s commitment to fairly recognize employees who live our
values and bring positive impact for the organization, their team,
and customers. With a strong sustainability component included,
annual short-term incentives for the Group’s executives and 76,000
plan eligible employees reinforce Schneider Electric’s commitment
to be a trusted partner in sustainability and efficiency. Since 2011,
sustainability performance criteria have been embedded in
incentive goals for Group executives. They are directly linked to the
Schneider Sustainability Impact (SSI) ambitions.
As of 2024, the key Group metrics to measure company
performance consist of sales growth, profitability, cash conversion,
customer satisfaction and sustainability impact.
From 2019, the weight of the sustainability criteria has increased
from 6% to 10-20%, in the collective part depending on the
employee annual short-term incentive plan type, highlighting further
the importance of sustainability on Schneider Electric’s business
agenda. From 2022, Schneider has introduced a Customer First
Performance Criteria in the collective performance goals.
To promote a strong sales culture where salespeople go above and
beyond to help customers make the most of their energy and
resources, bridging process and sustainability, Schneider Electric
offers levels of differentiated reward for sales employees to
enhance motivation and results focus.
Long-term incentive plan
Schneider Electric’s long-term incentive plan offers share
ownership opportunities to the Group’s key talents and critical roles
to align their rewards with the interests and expectations of
Schneider Electric shareholders. Mirroring the framework for
short-term incentives, a portion of the award is subject to the
achievement of sustainability objectives. In previous years, the
long-term sustainability performance was measured through the
Schneider Sustainability External and Relative Index (SSERI). Since
2024, SSERI has been replaced by a new set of criteria focused on
carbon emissions reduction.
Read more on the long-term incentive plan in section
4.2 of Chapter 4.
Global benefit standards
Schneider Electric regularly reviews compliance with its global
benefit policies and principles to ensure that its inclusive global
benefit standards are delivered for all employees. These policies
and standards cover access to healthcare, retirement, and savings,
paid and unpaid leaves, and insurance on accident and life.
One of Schneider Electric’s underlying benefit objectives is to
ensure all its employees are equipped to manage their basic health
and well-being and to provide adequate security to both
employees and their dependents. Health and well-being are
embedded in the Schneider Electric people priorities and
contribute to its sustainability mission. The Group is committed to
provide employees access to a well-being at work program –
translated into a dual standard of access to healthcare and
well-being training programs. It also provides access to an
inclusive and comprehensive standard of healthcare coverage
(outpatient, hospitalization, key health risks/chronic conditions,
maternity, children) defined by local regulations and employment
agreements. Schneider also supports its employees with personal
time off at critical life stages though Global Family Leave Policy.
In addition, the Group commits to provide financial security to
employee dependents, in the event of an employee’s death, in the
form of a minimum standard of life insurance coverage of at least
a multiple equivalent to one year’s salary. Ultimately, Schneider
Electric aims to become the most sustainable and caring
company in the world, fostering an inclusive and supportive
environment for all.
Employee share ownership plan
The Worldwide Employee Share Ownership Plan (WESOP) is one
of the Group’s recurring key annual reward programs, offering
employees across the world an opportunity to become owners of
the Company, at preferential conditions.
WESOP is strongly ingrained in the Group’s culture, as a cultural
and reward differentiator with a positive impact on engagement,
attraction, and retention.
Target
The Company has not imposed specific internal targets related to
job architecture, pay-for-performance, short-term incentive plan,
long-term incentive plan, and benefit standards. The targets related
to adequate wage and equal pay are addressed in subsequent
sections of the report.
Employee share ownership plan
Schneider Electric has strongly developed and reinforced its offer
over the years to build a sustainable group of employee
shareholders reflecting the workforce diversity, to create a strong
feeling of belonging, and to link employees to the performance of
the Company, and share in success. In that spirit, WESOP has
become part of the Group sustainability commitments towards its
2025 roadmap (SSE #19).
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In 2024, the Group successfully offered WESOP in 45 countries,
achieving 60.4% subscription rate, increasing slightly compared to
2023 (58.5%). As of December 31, the employee shareholding
represented 3.2% of Schneider Electric SE’s capital and 5.8% of
the voting rights. 79% of the Group employee shareholders were
located outside of France, of which 13% are in China, 16% in India,
and 7% in the US. This also includes employee shareholding as
part of the long-term incentive plan allocations.
Responsible workplace
Employee engagement process
Engaged employees are key to enable the Company to be at its
best and support the achievement of the Group strategy.
Employees are invited to share their honest feedback through an
annual engagement survey, which measures ten key drivers,
including well-being, inclusion, recognition, and empowerment.
Through the information collected, the Company gains greater
understanding of the views of employees, including areas of
strength and improvement. Insights are used to inform action plans
across the organization. Leaders are guided to co-create the
actions with their teams, reinforcing the dialogue needed to shape
the workplace of tomorrow.
This process also contributes to the impacts, risks, and
opportunities mentioned in the beginning of this chapter.
Action plan
Supported by a global network of engagement partners and HR
Business Partners, each year managers communicate results to
their teams and formulate impactful action plans to drive change.
In 2024, several initiatives were implemented to further support
managers following survey closure:
• Manager journey defined through three phases: Assess
(understand team results), Huddle (share results and collaborate
on focus areas), and Act (finalize and implement action plan).
• Refreshed Manager Report and Dashboard Toolkit, empowering
managers to quickly share results with their teams.
• Action plan and communication templates for consistency and
efficiency.
• Dedicated manager results dashboard, with guiding content
and reminders of key next steps.
The Global Supply Chain organization provides a notable example
of acting for impact through the implementation of a tailored
leadership program, focused on nurturing the entrepreneurial spirit
and growth mindset of managers. Evidenced by manager and
employee feedback from the European division, this program is
already making a difference with enhanced collaboration,
empowerment, and communication.
Target
Schneider’s ambition is to achieve 75% engagement score by the
end of 2025 (SSE #24).
2024 highlights:
• High response rate of 88%, with a stable engagement score vs.
2023, at 73%.
• The two top scoring drivers indicate that employees feel
empowered (80%) in their work, and benefit from flexible work
arrangements (81%).
• Recognition (61%) and collaboration (59%) noted as two lowest
scoring drivers requiring continued focus.
Participation
88%
121,805 responses
(+7,184 since 2023)
Engagement
73%
engagement stable
vs. 2023
Action plans
78%
of employees agree on
the positive impact of
action plans
Managers
43%
of managers have
access to team level
results
The survey includes two open ended questions, where employees
can submit their comments on what makes them proud to work at
Schneider Electric and what they identify as areas of improvement.
This allows employees to share their views on any topic, including
working conditions.
Through these comments, employees have expressed pride in
delivering innovative and sustainable solutions for customers,
appreciation for Company well-being initiatives, and feeling
supported by positive team experiences. Improvement
opportunities were identified to further streamline processes,
provide additional technical training, and reinforce clear
communications for team collaboration and cohesion.
81%
feel they have the
flexibility to modify their
work arrangement when
needed
80%
feel empowered to
choose how best to
complete their work
61%
say they receive
appropriate recognition
for their contributions
and accomplishments
59%
find the collaboration is
good between different
teams
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Social dialogue
Policy
Social dialogue and freedom of association are to be seen within
the wider context of ethics and responsibility. As a Global
company, Schneider Electric believes that its responsibility goes
beyond compliance with local and international regulations and is
therefore committed to conducting its business ethically,
sustainably and in a responsible manner. As the Group’s borders
are expanding, its activities and impact being global, its social
responsibilities are growing.
In the context of transformative growth, it is the Company’s
ambition to maintain the highest confidence and engagement from
all employees, sharing vision and getting insights directly from
employees, or through their representatives, depending of the legal
framework, to ensure a fair two-way dialogue everywhere. Policies
and agreements in place define the framework for this two-way
dialogue.
In addition, social dialogue at Schneider Electric includes also the
continuous listening culture with the annual survey “OneVoice”, sent
to all employees, allowing them to share their feedback on a
voluntary basis, on key topics related to their workplace and
experience appreciation.
In its Trust Charter (Schneider Electric’s Code of Conduct),
Schneider commits to follow all the requirements to build and
sustain fruitful and mutually beneficial relationships between labor
organizations and management, in accordance with local
regulations, in every country where it operates. In its Group
Human Rights Policy, Schneider Electric reaffirms those
principles as the basis for a regular dialogue between management
and employees. To that purpose, Schneider Electric respects the
individual right of its employees to freely join, participate in, or quit
labor organizations to assert and defend their interests.
Read more in section 2.2.1.1.3 on pages 102 to 107.
Read more on the Human Rights Policy in section
2.2.3.2.2 on pages 237 and 238.
Subsequently, Schneider Electric guarantees that any Employee
wishing to do so, shall be protected against any internal measure
limiting his or her freedom of association, such as discrimination of
any kind, pay loss, or dismissal.
In case of any issue, employees are encouraged to report, using
the internal reporting tool for unethical behavior or misconduct,
called the “Trust Line”.
Schneider Electric also values the importance of dialogue with
freely appointed employee representatives, employee
representative bodies (e.g., works councils or employee forums), or
organizations (like trade unions), and supports collective
bargaining. In addition, to provide multi-cultural social dialogue on
transnational projects, the highest level of Leadership is engaged;
as an example, the seat of European Works Council Chairperson is
held by an HR Senior Vice-President, demonstrating Schneider’s
involvement in that two-way dialogue.
In addition to the above, the Group hardwires its principles in the
way it manages social dialogue in countries. On transnational
topics, engagement with employee representatives from European
countries is described in the agreement signed in 2014. It contains
engagement rules for the information, consultation and
participation of Schneider Electric employees and representatives
in Europe. This agreement describes the composition of the
European Works Council, as well as the various roles of its
members (Chairperson, Core Council, Secretary, plenary
members) and the cadence of engagement, i.e. the yearly meeting
with the plenary members, in addition to the quarterly meeting with
the Core Council, as per circumstances. Each year, the level of
participation from top leaders of the Company, as well as the strong
participation rate of all employee representatives from Europe,
demonstrates common interest in this dialogue.
Action plan
Concretely, social dialogue at Schneider Electric is managed at
country level by HR leaders with the employee representative
bodies and/or unions, in compliance with local legislation. Some
examples of social dialogue management in key regions where the
Company operates can be found below.
At transnational level, social dialogue is managed with the
European Works Council which comprises employee
representatives covering European Economic Area Countries, in
addition to UK and Switzerland, as per agreement described
above.
While changing the corporate form of its parent company,
Schneider Electric SA, into a European company (Société
européenne), Schneider Electric negotiated then an agreement
with employee representatives of European countries about the
involvement of these countries’ employees in the Company’s
decision-making process, thus reaffirming its intention to provide
regular, efficient, multi-cultural, and innovative social dialogue at
the European level, taking into account the voice of employees on
the transnational projects of the Company related to its
developments and economic, financial, and social strategies at
European level.
In addition, Schneider joined the Global Deal initiative in 2017,
which promotes social dialogue and sound industrial relations, as
effective means for achieving decent work and inclusive growth.
Since 2021, social dialogue is included into the Group’s social
reporting on Decent Work. Local HR teams report on a yearly basis
on the presence of employee representation bodies in their
countries and the percentage of employees covered by collective
agreements.
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Social dialogue at European level
In the last years, Schneider Electric has significantly enhanced the
intensity and the impact of social dialogue at European level,
making live the ongoing agreement on the “information,
consultation, and participation of employees in Europe”, inviting top
level of Management to contribute to social dialogue, present their
Business strategy and make decisions, enriched by the employee
representatives’ insights and views.
More frequent meetings and workshops have been organized,
giving members the opportunity to collaborate and be informed of
such projects or decisions and to understand context, as well as to
express proposals to supplement or improve them.
In this respect, new spaces for expression have been explored in
order to strengthen contributions of the EWC members on strategic
topics through active workshops for reflection and ideation, namely
for the evolution of the Company’s Core Values, reflection on the
Group sustainability strategy, the deployment of the Global Senior
Talent program and the reinforcement of sexual harassment
prevention. The benefits of these workshops were several, starting
with a better awareness on these topics by the members, and an
opportunity to impact upstream on key programs and strategic
decisions.
EWC members, during the 2024 Plenary meeting at the Headquarters
in Rueil Malmaison, with special guest, an employee representative
from Algeria.
Social dialogue in France
Schneider Electric is organized in France through more than 25
legal entities. However, with 75% employee coverage, Schneider
Electric Industries and Schneider Electric France SAS set the tone
for social dialogue in France mainly through the Central Works
Council and the Group Committee.
During 2024, Schneider Electric kept deploying the implementation
of the new collective agreement for the Metallurgy branch, the
largest branch in France, effective from January 1, 2024, including
discussions with unions on job classifications, working time, and
leave policies. Schneider Electric negotiated also several collective
agreements, among which, one to facilitate and anticipate job
evolutions in the Group (management of jobs and professional
backgrounds) and enable employees to develop their internal and
external employability with measures such as trainings or external
experiences.
Social dialogue in the United States
Regular two-way communication takes place with both union and
non-union teams to provide key business updates and gather
feedback from employees, to promote continuous improvement
and increased employee engagement.
Ongoing communication is provided to employees through daily
short interval meetings and regular Town Hall meetings on key
competitive issues impacting the Company, focus areas, and
priorities, as well as updates on improvements made from
employee feedback.
Company officials meet with key international union leaders and
local union leadership on an ongoing basis, and formally on an
annual basis, to advise and discuss competitive issues impacting
the Company’s business, strategic focus areas, and to gather
additional feedback from employees. In 2024, contract negotiations
took place resulting in successful contract ratification.
Social dialogue in Mexico
In 2024, in addition to regular two-way communication with
employees and their representatives, and in respect of Mexican
laws, Schneider Electric concluded negotiations with a voting
process involving 2,700 employees across two sites, while in
parallel, salary negotiations were organized, benefiting 10,300
unionized employees across four sites. As per collective bargaining
agreements, two new buildings have been built to further improve
employee working conditions.
Social dialogue in China
Schneider Electric in China continues to drive a robust culture of
social dialogue across 30 legal entities and 100 locations. In 2024,
the Company intensified efforts to enhance employee experience
and development through regular communications at all levels and
comprehensive discussions relevant to various roles.
• Creative local activities have been conducted to promote the
evolved Company Values (IMPACT Values) and multiple
workshops facilitated for employees.
• Diversity, equity, and inclusion initiatives engage both early
professionals and experienced experts with facilitations of
multi-generational connections.
• Transparent discussions, career open day events, workshops,
and talent mobility programs accelerate sustainable career
development, fostering impactful dialogues about employees’
future.
• Development remains a priority, with a focus on skill-based
learning, offering customized courses for diverse business
scenarios and targeted roles like Sales, Technical, Digital, and
Supply Chain. Average learning hours reach 23, with 74%
learned through digital channels.
• Externally, over 3,100 employees and their families collaborated
in union-led social and environmental protection initiatives
across nine cities, such as forest and marine conservations.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Social dialogue in India
Schneider Electric India has a strong culture of social dialogue with
all employees (unionized and non-unionized) engaged in equitable
industrial relations across its plants and associated establishments.
Industrial harmony has been achieved through a time-tested
collective bargaining process involving unions or through worker
representative committees (salary related issues, medical
insurance, and benefits are discussed with unions/work
committees).
In some of the plants where there are no recognized unions, this
bargaining process is conducted with the elected representatives
from within the employees who form committees such as Welfare
(works committee). The Company also has strong engagement with
other committees such as Health & Safety, Canteen, Sports, and
Transport, including a special committee for women employees. In
addition, the Prevention of Sexual Harassment Committee, which is
fully compliant with the prevention of sexual harassment
governance as per local laws, comprises employees and external
women with specialist knowledge of the subject and with legal
backgrounds. These committees provide a platform for employees
to present their concerns, collective grievances, and workplace-
related issues to management, and actions are initiated based on
the recommendations of these committees. All employee
engagement programs are run through these committees with the
active participation of every employee.
The process of social dialogue also includes monthly employee
communication at plant level, as well as through quarterly Town Hall
communications on Company performance, strategy, and
challenges, engaging employees on various cultural events, such
as Health talk series, and encouraging them to participate in
activities, such as go-green initiatives (tree plantation activities,
Green Yodha initiatives).
Target and metric
The Group’s ambition is to embark all employees in the
transformative growth as everyone’s engagement is key and social
dialogue is a key enabler.
Each year, a survey is launched in the framework of the Decent
Work program to identify the percentage of employees covered by
collective bargaining agreements and those covered by employee
representation, ensuring that a risk analysis is conducted locally for
mitigation plan, where relevant.
Questions raised at regional level are about confirming their
support to freedom of association and collective bargaining – with
supporting evidence – and what are the key risks and how they
address them.
Collective bargaining coverage and social dialogue
Collective Bargaining
Coverage
Social Dialogue
Coverage Rate
Employees – EEA
Workplace Representation
(EEA only)
80–100%
Austria
Belgium
Czech Republic
Germany
Spain
France
Hungary
Italy
Norway
Poland
Portugal
Sweden
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
France
Germany
Hungary
Ireland
Italy
Latvia
Netherlands
Norway
Poland
Romania
Slovenia
Spain
Sweden
60–79%
40–59%
20–39%
Denmark
0–19%
Bulgaria
Estonia
Finland
Greece
Croatia
Ireland
Lithuania
Latvia
Netherlands
Romania
Slovenia
Slovakia
Estonia
Finland
Greece
Lithuania
Portugal
Slovakia
A survey has been launched to HR Leaders of each Country
belonging to the European Economic Area (EEA). Each legal entity
within the scope of CSRD provided data on Employee
Representation and existence of collective bargaining agreements.
As per collected data from EEA countries:
• around 91% of our Employees at Schneider Electric are covered
by collective bargaining agreements.
• around 98% of total employees are represented by Employee
Representatives locally.
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Low representation in some EEA countries is linked to countries
with small headcounts. However, in all EEA countries where we
operate, each country with more than 150 employees has at least
one seat at the European Works Council (EWC) to represent and
voice Employees’ views (as per 2014 EWC agreement). In addition,
as per same EWC agreement, UK and Switzerland have Employee
Representatives at European Works Council.
At Global level, as per Global Human Rights Policy, SE protects
freedom of association and values social dialogue with employee
representatives, in respect of local rules. Global standards are
being defined to go further in all the countries where we operate.
Today, at global level, 78% of employees are covered by collective
bargaining agreements and 60% of our employees are represented
by unions to improve further the two-way dialogue with our
employees. This comes in addition to our listening culture (One
Voice annual employee survey), our internal whistleblowing
platform on potential unethical issue (Trust Line) and existing
Decent work program for our employees.
Adequate wage
Policy
Schneider Electric firmly believes that earning a living wage is a
fundamental human right and an essential element of decent work.
This commitment is included in our Human Rights Policy and Trust
Charter, guiding our efforts to ensure that all employees receive at
or above a living wage to meet their families’ basic needs which
include food, housing, sanitation, education, healthcare, clothing,
transportation, and communication plus discretionary income for a
given local standard of living.
Schneider Electric conducts annual living wage gap analysis since
2018. Starting in 2021, the Group committed to paying 100% of
employees at least a living wage as part of Schneider Sustainability
Essentials (SSE #20). The company works with the expert
consultant Fair Wage Network to ensure compliance. An external
company provides limited assurance to ensure year-over-year
compliance with this commitment. The SSE #20 reporting protocol
is accessible to employees via the intranet and has been approved
by the Senior-Vice President, Total Rewards and Performance.
Action plan
Collaborating with Fair Wage Network since 2022 allowed the
Group to improve geographical coverage, develop a dynamic
web-based living wage benchmark, and initiate an independent
review and certification of the living wage gap analysis. Schneider
Electric was certified in March 2024, by the Fair Wage Network,
being qualified as a “Living Wage Employer” for a second
consecutive time, valid until December 31, 2025.
As a part of 2024 ambition to comply with CSRD requirements on
adequate wage, Schneider Electric has reviewed its methodology
and focused its analysis on fixed compensation only.
(1) The average number of employees is also presented in the note 24 of chapter 5 of this URD, on page 552. The difference between the 2 figures is explained by a
different reporting scope (see 2.2.1.3 Basics for preparation on page 124 for more details) and by the exclusion here of temporary workers, in accordance with ESRS S1.
Target and metric
As part of its commitment to SSE #20, the Group has conducted an
analysis. Identified living wage gaps were closed during the year,
ensuring all employees receive a living wage and that no new gaps
emerged. At December 31st, 2024, no living wage gaps have been
identified within the scope of SSE #20.
Read more on the methodology of SSE in section
2.4.1.2 on pages 316 to 321.
The definition of adequate wage used for CSRD metric is the same
as the one mentioned in the Policy section above. As the
sustainability statements (CSRD) scope differs from the one of
SSE #20 (for more details, please see section 2.2.1.3 Basis of
preparation), an adequate wage analysis has been conducted for
some entities for the first time in 2024.
Within the sustainability statements (CSRD) scope, no living wage
gap has been identified in the Group except in one legal entity in
Asia, representing less than 0.2% of total employees and less than
0.5% of employees in Asia. This legal entity is a legacy from an
acquisition and currently under an ongoing divestment strategy.
Gaps will be addressed within the year.
Characteristics of Schneider Electric’s
employees
Gender
Number of employees
(head count)
Average number of employees
(head count)(1)
Male
104,291
103,437
Female
54,680
53,814
Other
13
10
Not reported
18
13
Total employees
159,002
157,275
Country
Number of employees
(head count)
Average number of employees
(head count)(1)
Australia
2,390
2,381
Brazil
1,544
1,527
Canada
2,590
2,553
China
16,378
16,463
Egypt
1,640
1,632
France
15,131
15,060
Germany
5,371
5,384
Hungary
2,375
2,368
India
22,663
22,202
Indonesia
2,890
2,808
Italy
3,310
3,300
Mexico
19,380
18,911
Philippines
3,189
3,142
Poland
2,483
2,474
Singapore
1,621
1,616
Spain
4,796
4,785
Sweden
1,282
1,269
Thailand
1,349
1,354
United Kingdom
4,710
4,688
United States
23,759
23,213
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2.2 Sustainability statements
Description of methodology and
assumptions used to compile data
(Employee Headcount)
Methodology:
• the number of employee (headcount) is a simple count of all
employees within the organization at the end of each reporting
period.
• the average number of employee (headcount) is the average of
the number of employee (headcount) at each month’s end
during the reporting period.
Assumptions:
• In the sustainability statements (CSRD), no distinction is made
between active employees and those on leave (e.g., sick leave,
maternity leave), unless otherwise specified.
• In TalentLink, the individual data record is tagged with the
contract type, which helps distinguish them into Open-ended
contracts, Fixed-term contracts, trainees, apprentices, and
non-guaranteed-hour employees.
• In 2024, trainees, and apprentices are out of scope, so we
exclude all known individuals tagged with contract type equal to
the trainees, apprentices; and consider the rest are either
Open-ended contracts, Fixed-term contracts or non-
guaranteed-hour employees.
Contextual information to understand
employee data
The company’s significant revenue growth in the U.S. and Mexico
leads to rapid headcount growth in this region. Strong growth was
also recorded in India, the Middle East and Africa, South America,
and Central and Eastern Europe to support business opportunities
in these areas.
We have a workforce with a reasonably balanced age distribution:
nearly 21% are below 30 years old, 59% are between 30 and 50,
and 20% are above 50. In 2024, 19,815 employees left the
company, resulting in a turnover rate of 12.6%. We observed an
improved employee turnover rate compared to the last few years,
thanks to intense retention activities and engagement programs
that create a workplace everyone wants to be a part of.
Description of the methodology to calculate
employee turnover
Methodology:
• To calculate the Percentage of employee turnover: divide the
total Number of employees who have left the company by the
average Number of employees (headcount) over the same
reporting period.
Assumptions:
a. To calculate the average number of employee headcount
over the reporting period
• In the sustainability statements (CSRD), no distinction is made
between active employees and those on leave (e.g., sick leave,
maternity leave), unless otherwise specified.
• In TalentLink, the individual data record is tagged with the
contract type, which helps distinguish them into Open-ended
contracts, Fixed-term contracts, trainees, apprentices, and
non-guaranteed-hour employees.
• In 2024, trainees, and apprentices are out of scope, so we
exclude all known individuals tagged with contract type equal to
the trainees, apprentices; and consider the rest are either
Open-ended contracts, Fixed-term contracts or non-
guaranteed-hour employees.
b. To calculate the number of employees who have left the
undertaking, sum the relevant employees
• Types of contracts included: open-ended contracts, fixed-term
contracts, non-guaranteed hours employees.
• Types of contracts to be excluded: trainees, apprentices.
• In TalentLink, the individual data record system could track the
critical events over the entire employee lifecycle. This system
has an indicator to show employee’s assignment status at
a selected period. It can indicate if someone is active,
suspended or inactive. For employee who have left the
company, the system will capture the type of terminations
and indicate the status as inactive.
• Only the Inactive assignment status are included to measure
the number of employees who have left the company. Types of
terminations included are as follows: Voluntary termination,
Dismissal, Retirement, Death in service.
Female
Male
Other
Not reported
Total
Number of employees (head count)
54,680
104,291
13
18
159,002
Number of permanent employees (head count)
49,242
96,377
13
17
145,649
Number of temporary employees (head count)
5,390
7,863
0
1
13,254
Number of non-guaranteed hours employees (head count)
48
51
0
0
99
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2.2.3.1.3 Employee health and safety
Context
The world in which Schneider Electric operates is changing fast
with many drivers such as digitalization, new technologies,
connectivity of data, and ESG giving opportunities to positively
impact health and safety. At Schneider Electric, health and safety is
a value that will not be compromised, as it is one of the five
Schneider Electric Trust Charter pillars. In addition, the Group has
set ambitious 2025 health and safety targets.
As a pillar of corporate social responsibility, providing a safe
workplace for employees is fundamental. Schneider Electric’s
ambition is to provide a safe and healthy environment for all its
employees, so they can perform to their full potential, positively
impact the safety of our customers, and return home safely.
The ambition is to enhance the safety maturity level by leveraging
the employee engagement through our Safer Future program,
digitalization, and visualization of data.
Impacts, risks and opportunities
Health and safety
Negative Impact
Damage the physical integrity
of employees
Health and safety is one of the risk drivers of the ERM model, which
is part of a formal corporate risk assessment, identifying Key Risk
Indicators (KRIs) and implementing action plans to reduce risk. The
focus of this model is to concentrate at global level, on risks that
can result in serious or fatal accidents. This involves looking
beyond the top 5 hazards and analyzing the controls preventing
accidents from occurring and connects to Schneider Electric’s
High Potential Severity (HiPoS) program. Those hazards that have
the potential to result in serious accidents have a deeper analysis
by global experts, and the learnings are then shared with the full
organization.
As well as driving specific actions, the ERM and HiPoS programs
also contribute to the annual global Health and Safety Improvement
program.
Regarding legal compliance risk, all Schneider Electric sites
prepare a Health and Safety legal register, audit themselves
against the required regulations, and implement actions to close
the gaps. The full process is audited as part of the ISO 45001
Occupational health and safety management systems external
certification.
Injuries based on the Top Hazards
33%
19%
16%
7%
19%
5%
2%
Driving
Electrical
Machines
Material Handling
Falls
Powered Industrial Truck
Other
Data from last 5 years.
Policy
Schneider Electric is committed to invest in its people and its
workplace as stated in its Group Health and Safety Policy, which is
reviewed each year and is fully aligned with ISO 45001 standard
and is published externally. The implementation of the Health &
Safety Policy is monitored by the Chief Compliance Officer.
Each employee plays a key role in identifying and mitigating
hazards. This practice applies at Schneider Electric sites, at
customer sites and while driving or traveling.
The Group values engagement at all levels and:
• Expects each manager to role model health and safety as
defined in the Global Safety Strategy;
• Empowers employees to take ownership, for themselves and
their team, of health and safety;
• Gathers the views of all employees, their representatives, and
those working on the Group’s behalf, through consultation,
including their participation in reporting and resolving safety
improvement opportunities;
• Recognizes employees who propose health and safety
innovations or implement solutions; and
• Sustains relationships with suppliers, contractors, and
customers under the condition that safety commitments are
agreed and met.
The Group provides a safe work environment for all and:
• Invests in resources and training to support Schneider’s health
and safety vision and goals;
• Complies to external legal requirements and internal directives;
• Embeds health and safety into its business practices and is an
integral part of all major decisions, from acquisition, product
development, the launch of a business and change
management; and
• Is determined to eliminate hazards and reduce risks.
The Group communicates in an open and transparent manner and:
• Continually improves its health and safety systems by
benchmarking, adopting best available techniques, and through
continuous learning;
• Captures, analyzes, and communicates High Potential Severity
(HiPoS) events, safety improvement opportunities, near misses,
and incidents in a systematic manner;
• Creates global action plans and shares with all potentially
impacted employees to prevent incident (re)occurrence; and
• Sets safety and occupational health goals and objectives,
monitors performance, and reports progress internally and
externally.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Action plan
The fundamentals of the Health and Safety action plan are based
on the Health & Safety Policy, supported by the ERM program and
is the framework for deploying the 2025 Health and Safety strategy
“S.A.F.E. First”:
• “S.A.F.E. First” is at core of the strategy, developed as a
personal reminder to pause and reflect on safety before
beginning any task. (Self-check, Activity check, Facility check,
Environment check).
• Top five hazards, regularly reviewed to prevent serious
accidents.
• Five guiding principles, set the expected Health and Safety
behaviors.
• Four strategic priorities, which have been identified as strong
levers to deliver the Schneider Electric Policy.
Falls
Material
Handling
Machines
Electrical
Driving
T
o
p
5
h
az
ar
d
s
Technical
qualifications
and safe
behaviors
Operational
discipline
and execution
Leading
as role
models
Safe
workplace
for everyone
We report
opportunities
We resolve
and share
solutions
We care for
each other
We are
qualified
Unsafe?
We stop
work
G
ui
di
n
g
pr
in
ci
pl
e
s
S.A.F.E.
First
The Global Health and Safety action plan is connected to the four
pillars of the Health and Safety strategy – technical qualifications
and safe behaviors, operational discipline and execution, leading
as role models, and safe workplace for everyone.
Schneider Electric has a strong Health and Safety governance in
place with several instances of control to ensure the Health and
Safety strategy is fully deployed.
Regular Health and Safety reports to executive level are created by
the VP Global Health and Safety and presented to the executive
level. The report includes Health and Safety performance vs.
targets and Health and Safety program deployment update.
There is also a monthly Global Health and Safety steering
committee to share Health and Safety performance vs. targets and
Health and Safety program deployment, with the Regional and
Organizational Health and Safety VP’s.
The 2024 plan covered programs related to safe driving, reducing
cut accidents, machine safety, and Health and Safety leadership
training for frontline managers.
Local action plans, managed by each region, complement the
global plan, and includes the improvements identified by the
Environment Health and Safety Assessment (EHSA) deployment,
the ISO 45001 implementation, and the safety culture assessment.
The safety culture assessment has evolved into a program called
“Safer Future”, which includes a safety climate survey, which is
internationally known as NOSACQ50. In 2024 this safety
questionnaire has been deployed for the first time to all Schneider
Electric employees globally. The results are analyzed at local and
global level, helping to identify action plans to improve the safety
culture maturity. The employee engagement in the 2024 safety
survey was 46% which exceeded the 2024 ambition of 40%.
In 2024 Schneider Electric has deployed a new global safety
software solution, which collects incidents, near miss, HiPoS, and
safety observations, tracks actions related to incident audits and
improvement programs. It is accessible by all Schneider Electric’s
employees, as well as contractors, and visitors, allowing them to
fully engage in the safety program.
The Health and Safety intranet portal is used by employees to find
Health & Safety directives, programs, valuable practices, hazard
awareness information, and technical webinars calendar, allowing
employees to enhance their health and safety competency.
Each quarter, Schneider Electric publishes key topics, “Quarterly
H&S Spotlights”, to raise awareness of workplace health and safety
through training materials, posters, employee videos, and
supported by a quarterly video message from Schneider Electric’s
top leaders. Schneider Electric engages employees by using the
internal social media tool, “Engage”, to post health and safety
updates, interact with the community, and allowing Schneider
Electric to collect feedback from employees. Schneider Electric
also encourages employees to report safety opportunities, which
are translated into risk reduction actions and engage employees in
the health and safety program.
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The implementation of improvement actions linked to safety
opportunities is monitored. A risk reduction initiative has led to the
drafting of a code of good practice for R&D and offices. This code
describes the practical measures that R&D sites and offices must
take to reduce risks. These measures will be incorporated into the
Schneider Electric Safety Trust Standard, which will monitor
compliance against safety standards through an internal audit
program.
Annual Environmental Health and Safety Assessments (EHSA): To
ensure successful implementation of the Schneider Electric Health
and Safety strategy, annual EHSA are performed in industrial and
customer-facing sites worldwide, by the site Health and Safety
team and validated by the regional Health and Safety specialist.
This assessment is a global process which measures compliance
against Health and Safety directives and identifies improvement
opportunities and recognizes excellence in manufacturing and
logistics locations.
All Schneider Electric sites prepare a Health and Safety legal
register, audit themselves against the required regulations and
implement actions to close the gaps. The full process is audited
every three years as part of the ISO 45001 which is implemented
on all industrial sites and is externally audited by an accredited
body. The key elements of certification to ISO 45001 includes
annual site management review and internal site audit program,
and external audit program at site and corporate level.
Management of hazardous substances is also audited as part of
the ISO 45001. Engineering controls such as ventilation, enclosure
of hazardous substances, and regular maintenance of equipment
and extraction systems are control measures implemented to
control the risk. Safety Data Sheets and other information on
hazardous substances are made available to employees and
included in the work area training. A new software tool to manage
Safety Data Sheets and reduce risk associated with hazardous
substances has been deployed to pilot countries in 2024. Health
surveillance of workers exposed to hazardous substances are
implemented to ensure the control measures are working and the
employees are working in a safe and healthy environment. When
the hazardous substances cannot be fully controlled with
engineering controls personal protective equipment is provided
to employees.
Global Risk Consultants perform loss prevention audits for
industrial sites to ensure that the required standards for fire
prevention and emergency planning are in place.
Targets and metrics
Health and Safety performance results
In 2020, Schneider set a five-year safety ambition related to SSE
#14 to reduce the Medical Incident Rate (MIR) to 0.38 by 2025,
from a 0.79 baseline in 2019. The MIR is the number of work-related
medical incidents (including injuries and occupational illnesses)
multiplied by one million hours (average hours of 500 employees
working for one calendar year) divided by the total hours worked.
Work-related injuries and occupational illnesses requiring medical
treatment are included. Medical Incidents, where the injured party
requires hospital treatment for more than 24 hours, are classified
as serious.
Read more on the methodology of SSE in
section 2.4.1.2 on pages 316 to 321.
In 2024, 197 medical incidents were recorded, translating to a MIR
performance of 0.60, equivalent to a 24% progress of the 2021-
2025 program. The 2024 MIR has increased by 17% compared to
2023, of which 4 of the Medical Incidents were classified as
serious, without any employee fatalities. Of the 197 medical
incidents three were work related ill health incidents, connected
with industrial ergonomics.
As a result of all the health and safety programs deployed over the
last 8 years, Schneider Electric has been very successful in
reducing incident severity as measured by the Lost-Time Day Rate
(LTDR) reduction to 9.1 lost days per incident, representing a
reduction of 17% compared to 2020.
In addition, sustainability statements (CSRD) requirements cover a)
Percentage of people in its own workforce who are covered by
health and safety management system based on legal
requirements and (or) recognized standards or guidelines, b) Rate
of recordable work-related accidents for own workforce, c) Number
of fatalities in own workforce as result of work-related injuries and
work-related ill health, d) Number of fatalities as result of work-
related injuries and work-related ill health of other workers working
on undertaking’s sites.
Compared to the SSE, sustainability statements (CSRD) are
including more sites and include only Schneider Electric
employees, as defined by the text.
43% of employees are working 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 injuries and
work-related ill health fatalities in Schneider Electric’s own
workforce in 2024. One Schneider Electric contractor fatality
occurred in India while a contractor was installing solar panels and
fell through a roof skylight.
In 2024 we have developed a code of practice on R&D and Office
Safety. This code of practice will be translated to the Schneider
Electric Safety Trust Standard. This Safety Trust Standard will
monitor compliance against these standards through an internal
audit program.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Recognition and awards
Schneider Electric North America has won the Operational
Excellence Achievement Award given to organizations with 50 or
more locations achieving Occupational Excellence.
Schneider Electric UK & Ireland has been awarded the RoSPA
Gold Medal (seven consecutive Golds) Award for health and safety
performance and the RoSPA Fleet Safety Gold Medal (eight
consecutive Golds) Award for managing occupational road risk.
Schneider Electric India, China, and Thailand have been
recognized for their safety performance delivering customer
worksite projects.
Schneider Electric Canada has been awarded a partnership in
injury reduction.
Schneider Electric Perú received an award from the insurance
company RIMAC for its excellence in the category “Best
Comprehensive Occupational Risk Management”.
Employee safety participation trend
MIR historical trend
0.38
0.6
0.51
0.57
0.65
0.58
2020
2021
2022
2023
2024
2025 Target
LTIR historical trend
0.24
0.28
0.28
0.32
0.34
0.32
2020
2021
2022
2023
2024
2025 Target
Future evolution
Safety is a never-ending journey towards excellence. Schneider
Electric’s vision is for all employees and contractors to work in a
safe and healthy workplace, so they can perform to their full
potential, positively impacting safety for its customers, and
therefore always returning home safely to their family.
This translates into the following health and safety two-year
improvement plan aligned with the 2025 vision to:
• Strengthen health and safety knowledge, skills, and abilities of
all employees and contractors.
• Equip all leaders to role model Health and Safety at every
opportunity and encourage employees to speak up and engage
in safety programs.
• Accelerate transformation with digitalization and data analytics,
and promote local innovation to accelerate health and safety
maturity.
• Develop and implement effective controls for high-risk activities
and to sustain a safe workplace for everyone.
• Positively impact all stakeholders through effective
communications.
The 2025 Global Health and Safety action plan will concentrate on
– safety culture assessment results, office and R&D safety, code of
practice deployment, and electrical safety enhancement.
2.2.3.1.4 Equal treatment
Impacts, risks and opportunities
Equal treatment and opportunities
Positive Impact
Improve employees’ well-being and
feeling of belonging
With continuous global and local political, economic, and social
challenges in the post-pandemic era, inclusion and care is needed
more than ever. This, paired with the rising importance of ESG
topics for organizations, stakeholders, and investors, puts Inclusion
& Care at the forefront of Schneider Electric’s business and people
priorities.
We live in a more and more polarized world, where megatrends
create more inequities as well as opportunities for just energy and
digital transitions. There will be no energy and digital transitions
without bringing everyone along. Companies must play their part in
the inclusion of all in their ecosystem to reach their growth
ambitions while reducing inequalities. The regulatory environment
becomes more stringent, and the landscape is more and more
different by geography. As an Impact Company, Schneider Electric
must adapt to this context to remain a leader in ESG. This means
expanding its inclusion and care by design journey to create
impact for customers, people, and the entire ecosystem.
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Inclusion & Care is a marker of Schneider Electric and can continue
to be a unique competitive advantage if tackled properly and
genuinely. Schneider has identified three main risks around those
topics:
• Workforce diversity compared to the markets we serve – if our
diversity is not mirroring the markets and customers we serve,
we are at risk of not attracting and retaining the best talent and
ultimately not meeting all customer needs.
• Employee engagement, performance, retention, and corporate
reputation are at risk when all employees do not have the same
opportunity to grow and advance because of a lack of fairness
and equity in people processes.
• The regulatory environment becomes more stringent, and the
landscape is more and more different by geography.
On the flip side, the opportunities are huge when inclusion and
care are by design in all processes and behaviors:
• A Boston Consulting Group report shows that companies with
more diverse management teams have reported 19% higher
revenues due to innovation.
• A study from Harvard Business Review shows that employees
reporting a feeling of belonging, where they feel included and
cared for are 3.5 times more engaged.
Schneider Electric defines its strategy taking into consideration
those risks and opportunities, internal and external trends, insights
and feedback from leaders and employees.
Schneider Electric believes this leads to greater engagement,
performance, and innovation, and creates access to the best
possible talent pools around the globe.
Policies
DEI policy
In its Trust Charter, Schneider Electric articulates that it aims to
offer equal opportunities to everyone, everywhere. The Group
wants its employees – no matter who they are, or where they live in
the world – to feel uniquely valued and safe to contribute their best,
free from harassment, victimization, and discrimination of any kind.
The Group’s DEI Policy recognizes that diversity comes in many
forms; visible and non-visible, including cognition, experience,
education, gender and gender identity, age, nationality, race and
ethnicity, color, sexual orientation, disability status, religious,
cultural, socio-economic background, life experience, location, and
more. There are no applicable international standards to align the
policy with.
In addition, Schneider Electric has targeted global polices around
inclusion and care, including Global Family Policy Leave, Flexibility
@ Work, Global Anti-Harassment and Discrimination, and Pay
Equity.
The Group brings its ambition to life by empowering all employees
to develop inclusive practices and behaviors, ensure fairness and
equity in core people processes and policies, and advocate
internally and externally for change with partners, such as UN
Women through the GEF, and the WEF.
Governance
The implementation of Schneider Electric’s strategy involves
several different bodies and stakeholders, working hand in hand
with the global team.
The Global Inclusion and Care team, reporting to the SVP Talent,
Inclusion & Culture who also acts as the Chief Diversity Officer,
defines the strategy and is accountable to deliver on Schneider
Electric’s transformation, working with the Group’s Executive
Committee and the Group Global DEI Board. Progress and results
of the ambition are also reported to the Board of Schneider Electric
(Human Capital & Remunerations Committee and Governance,
Nominations & Sustainability Committee) on an annual basis. The
team works in close collaboration with the HR Centers of
Excellence (Talent Acquisition, Talent Management, Learning and
Rewards), and the Sustainability, Compliance and Risk
Management, Employee Communications, and Marketing and
Employer Branding teams, as well as with the broader HR and
Communication ecosystem.
Schneider Electric’s Global DEI Board is a group of top leaders
from all the Group’s markets, sponsored by the Executive
Committee, which acts as a sounding board for the Global
Inclusion & Care strategy, and as internal and external DEI
champions. In 2024, the DEI Board met four times to discuss topics
such as gender and pay equity, discrimination and harassment,
and accessibility.
Schneider Electric entities develop local action plans based on the
global strategy and employee feedback, while meeting local
regulations and addressing country-specific needs.
To support the local focus, leaders, ambassadors, and champions
have been appointed in more than 100 countries/zones and entities
to develop and lead local action plans. This global network
convenes bi-monthly to share progress and best practices.
Beyond this governance structure, all employees at Schneider
Electric are held accountable through our IMPACT Values.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Partnering inside and outside the organization
Global center of expertise & entities
• Global Marketing, Employer Branding
& Communications
• HR Centers of Excellence:
Reward, Talent Acquisition,
Talent Management, Learning
• Compliance
• Sustainability
• Investor relations
• Corporate Citizenship
Local ERNs
Inclusion & Care
Steering
committee
(major geographies,
global process
owners)
Supervisory Board
Global Human Resources Committee
Diversity, Equity &
Inclusion Board
Global ERNs
(LGBT+)
Global Inclusion & Care Team
External Partners
(WEF, UN & others)
World Economic Forum
Valuable 500
Business For Inclusive Growth
United Nations
International Labour Organization
Local Compliance, Employer
Branding, Communications,
HR Center of Excellence
Local Human Resources
Local Country &
Entity Inclusion
+ Care Network
Co-design & implement
Co-design & implement
Sponsor &
collaborate
Exchange/
influence
Implement
Oversee
Teams in country/region
Teams at global level
External partners
Groups with senior stakeholders
Digital accessibility policy
At Schneider Electric, we are committed to inclusion and care of all
so that everyone belongs and thrives. That includes ensuring equal
access and usability of our digital assets for all individuals,
including those with disabilities. We strive to meet worldwide
accessibility standards, guidelines, best practices, and laws.
This digital accessibility policy, launched in 2024, outlines our
commitment to digital accessibility. It applies to all digital assets
created, procured, or used by Schneider Electric, regardless of
the platform or device on which they are accessed, and to all
Schneider Electric employees, affiliates, contractors, and sub-
contractors that are involved in the creation or modification process
of digital assets.
The policy is aligned with Web Content Accessibility Guidelines
(WCAG) and mentions the Americans with Disabilities Act (ADA),
Section 508 of the Rehabilitation Act, the European Union Web
Accessibility Directive, Revised Section 508 Standards, EN 301
549. The policy is approved by the Chief Human Resources Officer
and the Chief Digital Officer of the Group and is managed by the
Group’s Global Accessibility Office. The Disability Inclusion and
Accessibility Steering Committee along with external subject matter
experts were involved in the drafting and reviewing of the policy.
Group Anti-Harassment &
Anti-Discrimination Policy
Schneider Electric ensures that all employees, no matter who they
are, or where they live in the world, feel uniquely valued and safe to
contribute their best. It requires everyone feeling free from any type
of harassment, victimization, and discrimination. Failure to maintain
a responsible workplace may expose Schneider Electric to liability
for harassment or discrimination claims from the person who has
allegedly been harassed or discriminated or the alleged
perpetrator for failure to protect employees against such conduct.
Moreover, the Group could be exposed to reputational risk.
Benefits of fostering a responsible workplace include a positive
work environment, talent retention, enhanced Company reputation
and reduced legal risks.
To uphold this, Schneider Electric maintains a “zero-tolerance”
policy for workplace misconduct, a key focus of the Ethics &
Compliance program. This program, overseen by the Chief
Compliance Officer, is led by a dedicated HR Compliance team
that defines and implements measures to prevent workplace-
related issues. Locally, it is operationalized by Regional
Compliance Officers under the supervision of their regional Ethics
& Compliance Committees defining the local strategy.
Schneider Electric implemented in 2018 an Anti-Harassment Policy,
serving as an employee manual to address and prevent misconduct
violating the dignity of employees. In 2023, Schneider has
deployed a new Anti-Harassment & Anti-Discrimination Policy
which reinforces Schneider Electric’s zero tolerance for any kind of
harassment or discrimination in the workplace and sets forth clear
rules and processes.
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Harassment can involve bullying, sexual harassment, physical
harassment (also called violence), discriminatory harassment,
psychological harassment, verbal harassment and digital
harassment. Discrimination occurs when someone is treated
unfairly due to personal characteristics, such as disabilities, age,
race, gender, religion, sexual orientation, marital status, and more.
This policy is not aligned with any international standards due to the
absence of a comprehensive global framework on the prevention of
harassment and discrimination in the workplace. It is owned by the
Group HR Compliance Officer and approved by Chief Governance
Officer and Secretary General and Chief Human Resources Officer.
It also reinforces employees’ rights and responsibilities, notably
regarding anti-retaliation. Managers and Human Resources
Business Partners’ roles have been highlighted as well as the
possible reporting mechanisms.
At Schneider Electric, stakeholders may report potential violations
of the Anti-Harassment & Anti-Discrimination Policy either by
contacting an appropriate person in the Group and/or by using
the Trust Line, Schneider Electric’s whistleblowing system. In 2024,
51% of the closed, valid, and substantiated alerts reported
through whistleblowing, concerned discrimination, harassment,
and sexual harassment.
Read more on the Whistleblowing policy in
section 2.2.1.1.3 on pages 102 to 107.
To build a common understanding and alignment, Schneider
Electric also created a mandatory training entitled “Building an
Inclusive and Caring Mindset” and assigned it to all employees as
part of Schneider Essentials (mandatory for all) in 2024. 99.4% of
employees completed the training. In addition, in 2024, the Group
has deployed a “Prevent and manage harassment and
discrimination” for Human Resources Business Partners and
managers, and some specific trainings were deployed in line with
local initiatives to prevent sexual harassment in specific countries
(e.g. India, Germany, Austria, Switzerland).
To enhance workplace-related alert handling, the Group introduced
updated e-learning in 2024 for its HR internal investigators,
ensuring impartiality and consistent practices. The number of HR
investigators was increased in 2024 to bolster investigation
capabilities across all regions. Workshops have been also
conducted for internal investigators in many geographies, and a
pilot mediation program was launched in France. In addition, HR
processes were strengthened through background check updates
to the Personnel Management Security Policy, enhanced Hiring
Guidelines with a focus on compliance (including re-hire
processes), and the creation of a new Ethics & Compliance
questionnaire for the Interview Guide Tool.
In 2024, a dedicated communication plan was carried out,
promoting the Anti-Harassment & Anti-Discrimination Policy and
raising awareness. In addition, Schneider Electric encourages the
Speak Up mindset to allow employees and stakeholders to report
any violations of the Group’s ethical standards or any workplace-
related concerns.
Pay Equity policy
The principles of fairness, equity, ethics, and transparency are
fully embedded in the Company values. Employees are fairly
compensated for their skills and contributions through reward
policies and processes. Furthermore, Schneider Electric is
committed in upholding a comprehensive compensation and
benefits policy.
Read more on the compensation and benefits in
section 2.2.3.1.2 on pages 207 to 209.
Schneider Electric has pledged to ensure fair compensation for
equivalent work and has been overseeing pay fairness since 2015
using various methods and strategies. The company has made a
pledge to Pay Equity under Schneider Sustainability Essentials
(SSE #18), initiated in 2021 and set to continue until the end of
2025. Schneider Electric has committed to attain and maintain a
pay gap below 1% by 2025 for both females and males as per the
internal methodology. An external company provides limited
assurance on Pay Equity to ensure year-over-year progress toward
closure of pay equity gaps. The pay equity reporting protocol is
accessible to employees via the intranet and has been approved
by Senior Vice-President, Total Rewards and Performance.
Action plan
The Group’s strategy is known as Inclusion and Care by Design.
With this strategy the Group’s ambitions are:
• Thriving individuals and teams: Schneider Electric is committed
to making sure every individual feels respected and safe to be
their unique self. Leaders coach and care with respect,
empathy, and well-being in mind.
• Diversity at every level: Schneider Electric is committed to
reflecting the communities in which it operates. The Group
continues its efforts to hardwire equity and inclusion at all
stages of its employee experience, ensure fairness in people
processes and policies, and foster a culture of care and
inclusion at all levels.
• Impact ecosystem: Schneider Electric is committed to driving
change within its broader ecosystem and society at large,
through advocacy and role-modeling. The Group works closely
with its strategic partners and suppliers and invests in local
actions through the Schneider Electric Foundation.
Creating a standard of inclusion and care
for all
The Group’s Values, and Trust Charter ensure all employees,
managers and leaders are trained and held accountable to a
standard of inclusion and care for all. Also, the Group believes that
transparency leads to greater trust, and drives better outcomes for
all; and has committed to more transparency in data, ambitions,
partnerships, and initiatives. To support cultural awareness and
understanding, as well as celebrate the uniqueness of the Group’s
global teams, the Group hosts events, webinars, communications,
and more for International Women’s Day, Pride Month, International
Men’s Day, Global Accessibility Awareness Day, and International
Day of Persons with Disabilities.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Inclusion and respect building programs
Building on the opportunity, as per the study from Harvard
Business Review, to create an environment where employees feel
included and cared for, the Group introduced the following actions:
• Uncomfortable Conversations: In 2024, a global and regional
series of webinars was conducted to have open conversations
on topics such as people with a disability, anti-harassment,
working with chronic diseases, amongst others to create
awareness, and educate our employees, where 10,000+
employees participated.
• E-learning:
−Building an Inclusive & Caring Mindset: A global e-learning
created in 2024 that was mandatory for all employees within
Schneider Electric Core. The training helped employees
explore what it means to build an inclusive and caring
environment and why it matters that everyone belongs and
thrives to help Schneider win. Employees get a first-hand
look of different situations that employees could be facing,
how they can respond, or how to get support for oneself and
colleagues in front of misconduct.
−Unconscious Bias e-learning available to all employees to
help understand what hidden bias means, explore clear
steps to keep decision-making objective, and how to call out
bias when seen and explore the importance of building a
culture of respect, learn to recognize the different forms of
harassment, and understand the actions to take (as
employees and managers) when witnessing such conduct.
• Employee Resource Networks (ERNs): Employee volunteer-led
networks, globally and locally, made up of individuals with
similar backgrounds, experiences, characteristics and/or who
share a passion or interest, play a key role in building an
inclusive and equitable culture.
Diversity and equity, at every level
Schneider Electric desires to reflect the world we live in so that we
can better serve our customers and clients. To ensure this, the
Group aims to provide equal opportunities to all and makes talent
decisions based on skills and qualifications for the role irrespective
of any other identifying characteristics. This includes visible and
non-visible dimensions of diversity, including cognition, experience,
education, gender and gender identity, age, nationality and
ethnicity, color, physical appearance, sexual orientation, disability
status, religious, cultural and socio-economic background, life
experience, location, and more, depending on local requirements.
Pay Equity strategy
In support of advancing Pay Equity, the Company executes a holistic strategy to improve and maintain fair compensation while preventing
creation of new pay gaps.
Our Holistic Strategy
Process
Education
and
Awareness
Tools and
Analytics
Governance
Advocacy
In execution of the holistic Pay Equity strategy, the Group closely
monitors the salary offers of new recruits, salary adjustments from
employee promotions, and other employee career movements.
Continuous monitoring of pay equity status is made possible by Pay
Equity Dashboard and its resulting analytics. Additionally,
managers and HR professionals are trained to be unbiased and
mindful of every pay decision they make. Prevention of new pay
gaps is supported by the Group’s “Fair Pay Simulator” which was
deployed to HR in 2023. The simulator provides visibility to pay
equity positioning, enabling better pay decisions for recruit offers,
promotions, and other salary adjustments.
Since 2018, pay equity has been an integral part of the annual
Global Salary Review processes, to address identified gaps. In the
2024 campaign, there have been notable enhancements to the
user experience, specifically benefiting managers in relation to pay
equity, further improving the process.
Pay equity advocacy is another key aspect of the Group’s Pay
Equity strategy. Schneider Electric leaders advocate internally and
externally for fair and equitable pay which further reinforces the
Group’s commitment to fair pay.
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Fair and equitable talent processes
To mitigate the risk where employees do not have the same
opportunity to grow and advance because a lack of fairness and
equity in people processes, Schneider Electric is committed to
transparent and equitable access to career opportunities,
growth and development to the fullest potential, and equal pay
for equal work for all its employees worldwide, depending on the
cost of living.
Talent decisions are based on skills, values, performance, and
potential, and the Group counts on each leader to be fair and
equitable when making a hiring or promotion decision to help
advance its overall goal to create a skilled and diverse workforce
for the future. To check and mitigate hidden bias in its main human
resource programs, the Group has built in reminders and
prompts for moments that matter, including performance and
salary review processes.
Fair and equitable pay is a core component of the Group’s
compensation philosophy, in line with the principle of equal pay
for equal work.
Read more on the compensation and benefits in
section 2.2.3.1.2 on pages 207 to 209.
Multi-Generation
For the five generations working at Schneider, the Group seeks to
foster lifelong career development and knowledge exchange for
and across all generations to boost learning and innovation. The
Group is committed to creating new opportunities for the next
generation through apprenticeships, internships, and its annual
global student competition for innovation, Schneider Go Green.
With tailored career development opportunities including Career
Days, upskilling, coaching, development plans, and mutual
mentoring the Group is harnessing the power of all generations.
With this, Schneider Electric is equally committed to supporting
talent in the later stages of their career to have meaningful and
fulfilling development, and to recognize and leverage their unique
expertise and experience to boost learning and innovation
across generations.
Generation breakdown(1)
4%
16%
29%
52%
Gen Y (Millennials)
Gen X
Gen Z
Baby Boomers
Silent
Others
(1) Percentage rounded up to the unit; the silent generation represents 0.01%; This pie chart is out of scope for the sustainability statements (CSRD) and excludes data for
both the United States and Canada.
Origin, ethnicity, and nationality
Schneider Electric believes in a multi-local world with locally
tailored solutions supported by teams across the globe to best
meet its customers’ needs with customization, quality, and speed.
The Group’s multi-hub model is key to delivering on this ambition
with teams that represent diverse origins, nationalities, ethnicitie,
locations, and cultural backgrounds. The multi-hub model focuses
on attracting and developing local talents for global and local roles,
and ensuring leadership reflects the backgrounds present in local
markets. The opportunity for Schneider Electric to be the “most
local of global companies” with a balanced multi-hub footprint to
enable customer proximity, innovation, speed, and collaboration
are key differentiators for long-term success.
• 91% of Country Presidents are either local or regional.
• 56% of employees are in new economies, of which 30% in
leadership roles.
• 183 nationalities represented in our global workforce across
108 countries.
Disability inclusion and accessibility
Schneider Electric is committed to promoting and including people
with disabilities throughout its operations worldwide. In March 2022
the Group established the Global Disability Inclusion and
Accessibility Office, addressing the needs of people with
disabilities through a strategy of Inclusion and Care by Design, for
people with disabilities. This is underpinned by global awareness
and education about what is the largest minority group in the world,
consisting of 1.3 billion people.
The Group focuses on all dimensions of disability: visible, invisible,
permanent, and temporary. These include physical motor or
physical health, sensory, cognitive, and neuro diversities, and
psychological, emotional, or behavioral.
The Group’s approach of “accessibility by design” creates holistic
disability inclusion through four pillars:
• Customer First design: Accessible product, software, and
UI/UX design.
• People, processes, and tools: Accessibility by design in all
processes (recruitment, procurement), platforms, and tools.
• Brand and communication: For all events and communication –
internal and external, digital, physical, and virtual.
• Physical workplace: Accessible buildings and workplaces
applying universal design principles, local legislation, and the
International Accessibility Standards.
The Disability Inclusion and Accessibility Office governance
consists of two executive sponsors, the Chief Human Resources
Officer, and the Chief Digital Officer, along with a Steering
Committee of six executives covering all aspects of the Group’s
aforementioned pillars.
Building awareness and education on disability, inclusion; and
accessibility is a key element to moving the needle. Schneider
Electric ran two global campaigns in 2024: Global Accessibility
Awareness Day in May, and UN International Day of Persons with
Disabilities in December.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
In 2024, to ensure equal opportunities, fairness, and a consistent
experience for all and to mitigate the potential for bias, as part of
the annual employee engagement survey, Schneider Electric
conducted a Self-ID pilot. Without Self-ID data, Schneider Electric
has to make assumptions about the employee population and the
talent processes, and thus limiting the representation efforts to
gender. The Self-ID pilot was conducted in 2024 in Canada,
Mexico, and the US. The pilot countries constitute to a total of
32,253 employees out of which 17% employees self-identified as
living with a disability, while 21% employees prefer not to answer.
LGBT+ inclusion
Schneider Electric recognizes the lesbian, gay, bisexual,
transgender, and intersex people (LGBT+) community and its
members. The Group aims to build awareness and advocate for the
community and wants its employees to be allies, playing a decisive
role in creating an open and safe community where individuals are
comfortable bringing their whole authentic self to work. While
Schneider Electric entities must align with the Company’s strategy
described throughout the DEI Policy, countries have the flexibility to
adapt the policy at the country level according to local laws, market
practice, perceived value to employees, and specific business
requirements.
Schneider Electric is committed to the United Nations Free and
Equal Standards of Conduct for Business on Tackling
Discrimination against LGBT+ People, standing up for equal rights
and fair treatment for LGBT+ people everywhere. Across the globe,
Schneider Electric has also made public statements of support to
advance LGBT+ inclusion. By adopting these standards, the Group
pledges to respect and stand up for the human rights of LGBT+
workers, customers, and members of the public; to support our
LGBT+ employees, further build inclusion in the workplace, and to
prevent discrimination, including workplace discrimination, against
LGBT+ people.
In 2024, as part of the annual employee engagement survey,
Schneider Electric conducted a Self-ID pilot in Canada, China,
Mexico, and the US to better understand the employee
demographics. The pilot countries constitute to a total of 47,556
employees out of which 11% employees self-identified as part of
LGBT+ community, while 21% employees prefer not to answer.
Global strategic partnerships:
• United Nations GEF, a global multi-stakeholder initiative that
brings together representatives from the private sector, Member
States, United Nations entities, and civil societies, including
youth organizations and networks, to accelerate progress for
gender equality around the world.
• United Nations Women’s Empowerment Principles (WEPs).
Schneider Electric became the first multinational Group to
achieve 100% commitment to the WEPs across its global
leadership team. In 2024 the Group assessed itself against
the WEP framework and is using those results to build
continual improvement and advancement in ensuring
women’s empowerment.
(1) From 2025 onwards, diversity targets shall not impact local incentives in countries or entities prohibiting the establishment of such targets.
• WEF Global Parity Alliance, a global, cross-industry community
whose goal is to facilitate peer sharing between companies and
showcase DEI best practices/ research, and WEF Good Work
Alliance, a partnership to promote peer exchange between
companies on Future of Work topics. In 2022, Schneider Electric
endorsed the “Good Work Standards” a global, cross-industry
partnership aiming to pave the way in building a healthy,
resilient, and equitable future of work.
• The Valuable 500 (V500), a global business collective made up
of 500 CEOs and their companies, innovating together for
disability inclusion. Schneider Electric is committed to ensure
that disability inclusion is on its senior leadership agenda, and
that its commitment is shared with the business and the world.
The Group is committed to reporting on the following five
criteria: workforce representation, objectives, training, ERNs,
and digital accessibility.
• ILO Global Business and Disability Network, a business-to-
business support network promoting disability inclusion in
the workplace.
• Business Disability Forum, trusted partners, working with
business, government, and disabled people to improve the life
experiences of disabled employees and consumers, by
removing barriers to inclusion.
• Disability: IN, a leading nonprofit resource for business disability
inclusion worldwide.
• Business for Inclusive Growth (B4IG) Working Group. B4IG is a
partnership between the OECD and a global, CEO-led coalition
of companies fighting against inequalities of income and
opportunities. In 2022, Schneider Electric contributed to the
publication of the group’s Operational Recommendations on
Ethnic Diversity & Inclusion.
• WeQual is on a mission to achieve 50/50 gender parity at the
top of the world’s largest companies.
Targets and metrics
Gender balance ambition(1)
Schneider Electric began its journey to becoming a gender-
balanced organization more than 15 years ago and has identified
increasing the share of women in its workforce and leadership as a
business imperative. To support this aim, the Group has stated
ambitions on increasing female representation in the overall global
workforce and seeks to engage all genders in the journey.
In 2021, Schneider Electric renewed its commitment to gender
balance with the SSI #8 aiming to increase gender diversity – with
women representing 50% of all new hires, 40% of frontline
managers, and 30% of senior leadership by 2025.
Read more on the methodology of SSI in section 2.4.1.1
on pages 311 to 316.
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In 2021, the baseline was 41/23/24 – with women representing 41%
of all new hires, 23% of frontline managers, and 24% of senior
leadership.
While significant progress has been made in the representation of
women, especially on the Board and Executive Committee level,
the Group recognizes that there is more work to do at all levels in
the organization.
Non-IT Integrated Entities (NIIEs) that were acquired after 2021 are
not part of the SSI #8 program. These entities include AVEVA,
IGE+XAO, Lauritz Knudsen, Luminous, RIB Software, ProLeiT,
and ETAP.
Breakdown of women in our workforce
Total new hires(1)
Board of Directors
42%
58%
2025 ambition: 50% female
43%
57%
Frontline management(2)
Executive Committee
30%
70%
2025 ambition: 40% female
40%
60%
Leadership(3)
Overall workforce
31%
69%
2025 ambition: 30% female
35%
65%
Management position
Non-management position
28%
72%
36%
64%
Female
Male
Female
Male
(1) Total New Hires – all new hires in 2024. (SSI #8)
(2) Frontline management – junior and mid-level management whose direct reports are individual contributors only. (SSI #8)
(3) Leadership – Vice-Presidents and above, excluding direct reports to the CEO. (SSI #8)
Gender Distribution by Head Count
Gender
Number of leaders
(Head Count)
Female
405
Male
946
Other
–
Not reported
–
Total Employees
1,351
Gender Distribution by Percentage
Gender
Number of leaders
(Percentage)
Female
30%
Male
70%
Other
0%
Not reported
0%
Total Employees
100%
The two tables showcase the gender distribution in number of
employees (head count and percentage) at top management level
at Schneider Electric. This includes Schneider Electric Core entities
and NIIEs like AVEVA, RIB, ETAP, and Luminous. Employees who
are Vice Presidents and above, excluding direct reports to the
Group CEO are considered as leaders. The data for calculation
is extracted from Talent Link tool for the integrated entities and
with an excel file for the entities that are not in Talent Link (NIIEs).
The trainees, apprentices, and VIEs are excluded for the first year
of reporting 2024. The gender distribution at top management
leader will show some variance when compared to the SSI #8 due
to the inclusion of all these entities (SE Core and NIIEs).
Gender distribution in percentage of employees at top
management level:
•
Percentage of female employees at top management level =
Female Employees at top management level / Total Employees
at top management level * 100;
•
Percentage of male employees at top management level = Male
Employees at top management level / Total Employees at top
management level * 100.
Anti-harassment and discrimination metrics
As part of the Speak Up mindset, and as developed in the
Whistleblowing Policy, Schneider Electric employees have a
responsibility to report potential unethical behaviors. To voluntarily
report a potential violation of laws and regulations, and/or of the
Group’s Trust Charter and Group policies, whistleblowers can use
all reporting channels available.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
At Schneider Electric, internal stakeholders, may report concerns
either by contacting an appropriate person in the Group (manager,
HR business partner, Legal Counsel, or Compliance Officer) and/or
by using the Trust Line, Schneider Electric’s whistleblowing system.
All the potential channels used should be, at the end, linked back
to the Trust Line system as a consolidation tool of this type of
information. The latter is available online globally, always, and
protects the anonymity of the whistleblower (unless there is
legislation to the contrary). In compliance with local legislation,
this system is provided by an external, impartial third-party
company and proposes alert categories, a questionnaire, and an
information exchange protocol between the person issuing the alert
and the person responsible for the case management. Overall,
case management is a structured process led by Ethics &
Compliance team.
Case Status
Number of incidents
of discrimination
Number of complaints
Case filed
1,122
2,319
Case valid
683
1,371
Case substantiated
233
N/A
In 2024, Schneider Electric received a total of 2,319 reports
(including 50 for AVEVA) concerning potential violations of laws,
regulations, the Group’s Trust Charter, and Group policies. Out of
these, 1,371 reports were assessed as valid and proceeded to
investigation (including 50 for AVEVA). On the other hand, no
complaint was filed the National Contact Points for Schneider
Electric in 2024. Focusing specifically on reported issues of
discrimination, harassment, and sexual harassment, the Group
received 1,122 potential violations (including 11 for AVEVA). Of
these, 683 were determined to be valid (including 11 for AVEVA).
Additionally, among the cases related to discrimination,
harassment, and sexual harassment that were closed in 2024, 233
were substantiated following investigation, for which appropriate
actions have been taken. All these elements are reviewed and
analyzed by the Ethics & Compliance team to ensure an
improvement on this matter and to ensure equal treatment for all
within Schneider Electric.
Read more on the Whistleblowing policy in section
2.2.1.1.3 on pages 102 to 107.
At the end of the year 2024, the Group Schneider Electric has fines,
penalties, and compensation for damages as result of incidents of
discrimination amounting to 280,331 euros. These incidents are
including harassment, sexual harassment and complaints filed.
Gender pay gap
As mentioned above, Schneider Electric has made a commitment to Pay Equity under SSE #18 to attain and maintain a pay gap below 1%
by 2025 for both females and males as per the internal methodology. SSE #18 methodology differs from the gender pay gap definition in
CSRD. The table below explains the main differences identified between the methodologies:
SSE #18
CSRD
Methodology / Formula
Gap to be assessed for each gender based
on the peer group.
Peer group – employees in the same country,
level (grade), and salary structure
Gap to be assessed as a difference of pay
between genders.
Calculation to be done through:
– Unadjusted gap: pay gap assessed by
gender;
– Adjusted gap: pay gap assessed by gender,
taking into account country and level (grade)
Calculation
Median
Mean
Scope of employees
Schneider Electric Core – Global Scope
Schneider Electric including Non-IT Integrated
Entities – Global Scope
Scope of pay elements
Base Salary + Short-Term Incentives
(at target) + Fixed Allowances (if applicable
for a country)
Base Salary + Short-Term Incentives (actual) +
Fixed Allowances (if applicable for a country)
+ Benefits in kind and in cash (estimates) +
Long-Term Incentive
The unadjusted gender pay gap shows the difference of average
pay level between female and male employees globally without
considering their country of work, level (grade), salary structure,
role, or other factors. The result is affected by the purchasing
power parity in the countries, differences in pay levels for different
jobs based on different responsibilities between employees in each
geography. In 2024, the unadjusted gender pay gap was 22.1%.
The analysis of the gender pay gap for roles with comparable levels
of responsibility has also been conducted. The data has been
segmented by country and level (grade) to provide a more precise
comparison of average pay levels between females and males.
Each group (country and level) has been assigned a respective
weight depending on the headcount, and the results have been
calculated into one global figure as a weighted average. In the
reporting year of 2024, the calculated adjusted gender pay gap
was 2.0%. The difference in the results is driven by the segregation
of employees by country and level, as mentioned above. 0.02% of
the population was not covered in the CSRD calculation as their
gender differs from female or male.
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Remuneration ratio
Annual Total Remuneration Ratio measures the ratio between the
level of compensation of the highest paid individual and the median
compensation of the employees.
Calculation methodology:
The compensation comparisons and pay ratio set out below were
calculated based on CSRD guidelines. The calculation includes
employees with active payroll on December 31, 2024, open-end
contract, and fixed-term contract. For part-time employees,
compensation was established on a full-time equivalent basis.
For the benefits in cash and in kind, numbers are based on best
possible estimates by grade and by country.
Compensation elements considered:
• 2024 fixed compensation;
• Variable compensation paid in 2024;
• Relevant bonuses and benefits (in cash and in kind) for
2024; and
• Value of the performance shares granted in 2024 at their fair
value (IFRS) on the grant date.
In the year of 2024, the remuneration ratio was 95.
2.2.3.1.5 Training and skills
development
Impacts, risks and opportunities
Training and skills development
Positive Impact
Improve employability of
employees
In today’s landscape, the ability to attract, develop, and retain
talent is paramount for ensuring the sustained success of
companies. Business growth in markets around the globe, in
conjunction with the rapidly evolving world, requires focused
acquisition and accelerated skill development, especially in
technical, digital, human, and commercial areas, of the workforce.
Schneider is committed to preparing and executing a robust
build, buy, borrow workforce and talent plan to optimize its its
future readiness and create a culture with shared values for
all employees.
Due to the current talent and skills scarcity in the market, the
current VUCA (volatile, uncertain, complex, ambiguous) world and
the unprecedented changes in the future of work, Schneider is not
immune to talent and skills risks.
The risk of not attracting, developing, and retaining the best talent
in the market, especially for critical skills, would have an impact
in terms of:
• Cost of recruiting and onboarding;
• Gaps in critical skills to drive growth and innovation and to
stay ahead of the competition;
• Succession pipeline for critical expert and leadership
positions; and
• Schneider ’s employer brand.
Policies and programs
At the same time, with the right policies and programs in place,
these risks become opportunities for the Group to strengthen its
brand as a leading employer and talent developer for everyone,
everywhere. Similarly, they have the potential to positively impact
Schneider Electric’s employees by enhancing both their
employability and well-being.
Signature policies and programs from the Group include:
• A robust talent management system to review annually the
development plans for all employees, identify key talent such as
experts and high potentials, prepare key successions and
developments via local and global talent reviews, and make
talent selections through People Committees (including for
executive positions).
• An annual performance management and development
approach with fair, transparent, and competitive rewards and
development, supported by regular meaningful career
conversations.
• A digital ecosystem powered by AI to enable access to
development opportunities (internal mobility, project, and
mentoring) via Open Talent Market (OTM).
• Learning and development programs for employees at different
stages of their professional career and specific talent segments
(e.g. Digital, AI, Software, Services, Electronics, Commercial,
Supply Chain, and Sustainability), with a strong focus on digital
and human skills, commercial excellence, leadership, technical,
and functional expertise.
• A Global Flexibility@Work Policy and a balanced multi-hub
footprint to enable its employees to have more flexibility and
manage their unique life and work in the way that works best
for them.
These key policies and programs ensure the investment in the
attraction, upskilling, and development of talent at all levels,
creating equitable opportunities and the environment for
employees to learn and grow, while empowering them to own their
career. Along this line, Schneider Electric has reflected this
commitment through 2 of its 6 long-term sustainability goals -
create equitable opportunities and harness the power of all
generations - and formalized this in its Trust Charter (Schneider
Electric’s Code of Conduct) within the Trusted Teams chapter.
Governance
The Executive Committee regularly discusses the overall health of
the global workforce, leadership pipeline, and succession strength
for top positions, including during the monthly Executive Committee
People Committee and the year-end global talent reviews with the
CEO and Chief Human Resources Officer. In addition, the
Executive Committee meets regularly to make critical selection and
succession decisions and review specific talent attraction and
development strategies, for example, expert talent, digital talent,
and global top potential talent. This is supported by integrated HR
information systems and analytics platforms which provide data
and analysis in the areas of workforce planning and talent
management. In addition, regional, business, and function People
Committees also meet regularly to review talent in their perimeter.
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2.2 Sustainability statements
Action plans
Schneider Electric believes that all employees are talent and
empowers people to grow to their fullest potential, developing new
skills and building careers for today and tomorrow, enabled by the
Group multi-hub organization model. Establishing a strong brand
as an employer, the promise to current and future employees is
communicated in Employee Value Proposition “Impact starts with
us”, driven and anchored by a meaningful purpose. In addition, the
Group invests in learning and development for the wider
ecosystem, including universities and schools, partners,
customers, and the wider community.
The Group has developed a two-pronged approach to talent
development, in order to prepare the workforce of the future – for all
employees and for specific target groups. Most activities are driven
through an annual People Calendar, which is adopted globally to
ensure that development is accessible to all employees.
• For all employees, the Group ensures there are tools and
processes in place to set individual performance and
development goals, and access learning and development
opportunities for their current role, as well as preparing
themselves for diverse career paths around the world. Curiosity
and Mastery as two of our IMPACT Values set the tone for
employees to be open to new challenges, embrace a learn
everyday mindset, and proactively build their expertise through
continuous upskilling for themselves, their teams, and their
communities. In the OneVoice employee survey, 76% of
employees responded favorably to being able to renew their
skills through learning and development opportunities.
• For specific groups of talent, there are targeted skill acquisition
and development programs to support Schneider Electric’s
commercial, digital, and leadership transformations and equip
its blue-collar workers for the supply chain of the future. There is
a strong focus on high potentials, expert talent, and employees
at different career stages, including early career talent and
those who are in a later stage of their career. An annual talent
review process operates across the Group to help ensure key
talents including high potential and technical and digital expert
talent, is identified, recognized, and supported with targeted
development paths and actions.
Schneider also places strong emphasis on the role and
accountability of leaders and people managers in the Company. In
today’s uncertain and volatile world, the role of leaders is to deliver
results, shape culture, build great teams and drive transformation,
starting with the values and behaviors they demonstrate every day.
The 2021 Culture & Leadership survey of around 2,000 Schneider
leaders, started in 2017, validated steady progress on the overall
Group leadership and culture transformation. Key strengths include
strong ethics and integrity, sense of purpose, and customer focus,
as well as a positive spirit and willingness to go above and beyond.
The evolution of the Leadership Driver Score in OneVoice results
shows a strong 14-point increase from 61% in 2012 to 75% in 2024.
The Group expects its leaders to act as role models and coaches
of its IMPACT Values. Schneider Electric believes one of the most
effective ways to help them meet these expectations is giving them
timely feedback, which enables their continuous development,
growth, and upskilling. With this in mind, Schneider developed
Upward Feedback: an annual process through which eligible
managers can request for feedback from their direct and/or
functional reports. In 2024, over 8,500 leaders opted-in to
participate in the Upward Feedback campaign.
In the Upward Feedback process, confidential feedback is
provided to the manager via a short questionnaire that is modeled
on IMPACT Values. Upon the completion of the exercise, managers
receive individual reports that consolidate feedback from all survey
respondents, which helps them develop a perspective on their
perceived strengths, development areas, hidden potential and
blind spots. This feedback is valuable input for any leader or
manager to reflect on their leadership style and determine how to
evolve it in the future.
The Group strives to provide a meaningful end-to-end experience
for all employees from talent attraction and onboarding to
performance management, rewards, and development. Schneider
empowers all employees to grow to their fullest potential, deliver
with impact based on the “what” and the “how”, build sustainable
careers, and refresh and learn new skills for today and tomorrow.
Attracting talent to shape the workforce of
the future
Attracting talent at all levels is more crucial than ever before – not
only in terms of enabling the delivery of the Group strategy, but also
to continue to innovate for our customers and build a long-term
pipeline of future talent that could join Schneider Electric.
In 2024, the focus has been on these key areas:
• Building talent pipelines: Schneider Electric builds talent
pipelines through their Brand to Hire strategy, deepening the
connection from the top of the funnel attraction phase all the
way through to hire to deliver the talent and skills needed in
support of our business strategy.
• Refreshed tech: A new talent acquisition ecosystem to simplify
the overall candidate experience, migrate to more digital,
borderless, and self-paced offers to attract talent, and create a
more equal playing field for those interested in joining
Schneider.
• Data driven talent attraction strategies: Schneider Electric is
leveraging data and external talent intelligence to stay ahead in
the competitive talent market. Strategic sourcing and talent
intelligence efforts are complemented by the standardization of
external market intelligence. These actions support our ambition
to leverage predictive analytics to inform brand-to-hire
strategies, ensuring the Company remains proactive and
informed.
• Delivering tailored and personalized candidate experience:
Schneider Electric realizes it cannot afford to lose even one
candidate and has created a system that provides constant
feedback so we can achieve our ambition of an exceptional
hiring process. This focus was rewarded with the Candidate
Experience Award (CandE) from the Talent Board across all
regions, recognizing the priority placed on the experience.
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Building strong early connections and enhancing our brand
appeal are key elements of Schneider Electric’s strategy to
cultivate a robust talent pipeline for the future. By consistently
nurturing candidates and creating talent pipelines in our
Candidate Relationship Management platform, we are strategically
preparing to attract and engage top talent as they move forward
in their careers.
As part of SSI #10, our five-year goal is to double the growth in the
early-career “next generation” pipeline. This will be accomplished
through Schneider Electric’s Brand to Hire strategy, shifting from
traditional methods to more digital, borderless, and self-paced
approaches to promote fairness and attract those interested in
Schneider Electric and sustainability. Our updated University
strategy will balance global programs, strategic university
partnerships, and country-specific initiatives to achieve this.
Key initiatives in 2024:
• Schneider Global Student Experience: This digital program
offers e-learning modules and project simulations, connecting
students with Schneider Electric. Securing record engagement
with 9,600 registrations, a 175% increase from 2023.
• Schneider Go Green: This annual competition invites business
and STEM students to propose innovative solutions. The 2023
winners visited our Le Hive Office, toured the Innovation Hub
and Smart Home showroom, networked with leaders, and
attended the Innovation Summit and Paris Marathon.
• Early career development programs: These programs include
graduate programs, internships, apprenticeships, and co-ops,
supporting early career talent through comprehensive training
paths.
• Targeted university initiatives: These initiatives include virtual
career fairs, office tours, Innovation Summit tours, speaking
engagements, networking opportunities, and mentoring
relationships. In 2024, the Group held their first global open
week in 2024 reaching 6,200 students outside of the traditional
on-campus approach.
These initiatives aim to attract and develop talented individuals who
align with our IMPACT values and the skills we need to deliver the
Group’s strategy.
Amplifying a culture of growth and impact
Schneider Electric’s approach to performance management is
anchored by the Group’s Employee Value Proposition “Impact
starts with us” and it is a key enabler to its collective success and
demonstration of its IMPACT values. At the heart of this culture is
the belief that everyone is a talent and has the potential to be an
Impact Maker, translating their goals into real actions through
meaningful discussions, feedback, coaching, and recognition.
The Group’s robust process of setting individual performance
and development goals set clear expectations for individual and
collective performance. The performance management framework
(1) This includes employees whose employment status is active (or suspended, which is country specific), who are on permanent/ fixed term contract type, who are
information workers and those who were hired on or before 30 Sept 2024, in addition to country or entity specific conditions.
assumes positive intent, meaning Schneider trusts that its
employees aim to make an impact. Impact is not measured solely
by activity, but the outcomes which benefit customers, the business
or team.
Employees’ overall impact is assessed considering the following
three dimensions equally:
• Individual behaviors aligning with IMPACT Values
• Individual achievements
• Contributions to others’ success
Schneider Electric employees are encouraged to seek, give, and
receive feedback, empowering them to take ownership for driving
their individual impact. Managers are encouraged to have regular,
agile and meaningful conversations throughout the year with
coaching, feedback and recognition while re-visiting goals and
priorities. Managers set team goals aligning with the collective
team priority to win as a team and achieve together. In 2024,
99.4% of eligible employees(1) completed a performance and
development review.
(*)This includes employees whose employment status is active (or
suspended, which is country specific), who are on permanent/
fixed term contract type, who are information workers and those
who were hired on or before 30 Sept 2024, in addition to country or
entity specific conditions.
Enabling sustainable careers
The Group recognizes that its people are the driving force fueling
Schneider’s profitable growth and empowers them to grow to their
fullest potential by developing new skills and building careers for
today and tomorrow. In line with the conviction that all employees
are talent and the aim to provide equitable development
opportunities for all, Schneider Electric considers that all
employees should take ownership of their own unique career
development, supported by their managers and enabled by digital
tools. The Group encourages employees to build a sustainable
T-shaped career by striking the balance between deepening their
expertise in different domains and broadening their skillset through
experiences in diverse contexts to increase their impact. This will
help them keep themselves relevant and marketable in a rapidly
changing world.
To empower and engage employees with this approach, Schneider
Electric held its fourth edition of “Career Days” for all employees in
2024. Under the theme “Unleash your skills for growth and impact”
more than 100 events took place with employees participating from
over 100 countries; getting inspired by diverse career stories,
unleashing the power of networking and mentoring, having career
conversations, learning about different roles, skills, and industry
trends, and being equipped with tools and resources to develop,
grow, and shape their future. 94% of employees surveyed were
positive about the program, highlighting that it helped them to
reflect about their career aspirations, encouraged them to own their
career, and inspired them to build a more sustainable career. The
Career Days theme, design, and activities are shaped every year
by considering both the strategic people priorities and the
feedback from Schneider Electric employees provided in the
annual engagement survey and in the targeted Career
Development survey.
Schneider Electric harnesses the power of all generations by
fostering lifelong learning, upskilling, and development for everyone
– from fresh graduates to senior talent. In this respect, the Group
has several career development programs in place for groups of
talent, supporting employees at all stages of their career and
ensuring a strong pipeline of talent for the future.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
In addition to career programs for early talent, in 2021 Schneider
launched its Senior Talent program with the firm belief that
employees who are near or at the later stages of their professional
careers (“senior talent”) bring unique expertise, experience, and
wisdom to the business. The Senior Talent program recognizes this
contribution and empowers them to continue making an impact on
the Company while taking ownership and designing the next stage
of their careers. The program is anchored in career conversations
resulting in a robust development plan linked to their unique career
aspirations and supported by different offers including new
contractual opportunities, upskilling, knowledge transfer, pivoting,
recognition, care, and personal planning among others.
Since its launch, the Group has started to observe the positive
impact of the program, which is being progressively deployed
and scaled globally in waves.
The commitment and progress are measured through SSE #23
which aims at providing meaningful development programs for
at least 90% of employees in the later stages of their career
by 2025.
The program was recognized by the OECD in their brief
on Career paths and engagement of mature workers.
To learn more about the program see the Senior Talent
white paper and section 2.3.2.5 “Future Ready
program” on page 305.
Boosting expertise and knowledge across
the organization
Schneider Electric strongly believes that its position as an industrial
tech leader in providing digital energy and automation solutions for
efficiency and sustainability is driven by the innovative
contributions of its skilled and expert employees. The Electrifier
program has been designed to develop and recognize our experts
across the Company.
The Electrifier program recognizes employees with remarkable
achievements, expertise, and leadership, offering them
opportunities to contribute to strategic business drivers in realms
such as technology, innovation, strategy, supply chain, digital, and
operations, while empowering them to make the most of their
careers. The program is structured around four business streams
(Create, Sell, Supply, Service), 28 Domains of Competencies, and
is articulated around three levels of expertise: Electrifier, Senior
Electrifier, and Fellow Electrifier. This setup was designed with the
objective of bolstering the core of our business, while pioneering
advancements on Electricity 4.0, Industry 4.0, and our
Sustainability Solutions.
The Electrifier program offers a streamlined application process
along with a tailored development plan, career prospects, and an
evolving reward system in tune with market dynamics. A design
that cultivates a vibrant, glocal community dedicated to
transforming innovation into influential business outcome.
Our Open Innovation Platform enables our Electrifiers to collect all
kinds of innovation ideas, connects Electrifiers together to turn
these ideas into reality, and inspires our leaders to make a visible
impact together.
The Group actively promotes a learning and teaching culture by
developing its internal trainer capability to foster curiosity and a
Learn Everyday culture. The purpose of the community is to equip
internal trainers with the right best practices and tools to develop
and facilitate training, including digital tools for creating more
engaging learning experience. A Global Virtual Internal Trainer
Conference was organized in October with the purpose of
recognizing, developing, and connecting internal trainers. 2024’s
two-day conference theme was “Fostering Curiosity on the
Learning Journey”. A panel of 12 internal speakers and two external
speakers delivered a total of 14 sessions which offered extensive
learning and sharing among the peers internally and opportunities
to learn from external experts. There are currently over 4,500
identified internal trainers who collectively delivered over 14,100
sessions in 2024, accounting for 85.5% of formal training.
Schneider Electric’s Communities at Work (C@W) program is a
robust network of over 250 communities of practice, designed to
foster cross-team collaboration and dismantle silos across
departments and locations. These dynamic hubs facilitate efficient
and intuitive knowledge exchange, providing valuable resources to
swiftly enhance expertise in specific domains. By connecting
employees and offering opportunities for networking, and boosting
employee engagement, C@W nurtures a positive work culture.
Furthermore, the program accelerates innovation by uniting diverse
individuals, fostering problem-solving and efficiency through
collaborative efforts. This comprehensive approach not only
supports personal growth and increased productivity but also
exemplifies Schneider Electric’s dedication to cultivating a vibrant
and supportive work environment.
Upskilling for today and tomorrow at scale
The Group recognizes the development of critical skills needs to be
accelerated, especially for select technical, digital (including AI),
human, and commercial skills required to accelerate our
organization growth. Roles requiring digital and human skills are
growing due to the acceleration of AI, automation, and digitization.
Purposeful renewal of skills is necessary to ensure sustainable
careers and a resilient, future-ready business. To support this
ambition, Schneider launched in 2024 its Upskilling @Scale
learning strategy focused on developing the right skills, at the right
time, with the right learning culture. This “Skills First” approach
includes redesign of the global career and skill architecture as well
as focused plans and programs for measured skill development in
key domains. Business and functional academies are in place to
partner with the business in identifying learning needs and spotting
gaps in core and future skills for relevant employee populations.
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They develop and promote learning and development opportunities
to build both depth and breadth of skills and experiences based on
the 3E model (education, exposure, and experience). The aim is to
support Schneider Electric’s workforce to upskill and reskill with
focus, speed, and scale through a mix of internal and external
training and development offers that are relevant to each
employee’s role, interests, and skill sets.
In 2024, the Group continued to provide a wide range of learning
offers, ensuring that each employee embarks on a journey of
continuous learning and growth. All Schneider Electric employees
spent an average of 23 hours in learning in 2024 encompassing
compliance and Company culture related mandatory training and
skills training based on employees’ roles and development goals.
Below are some of the Group’s key targeted upskilling programs to
support commercial, digital, and leadership transformations and
also upskill its blue-collar workforce in the supply chain.
Key programs focused on critical skill upgrading include:
Program title
Target audience
Program description and
desired business benefit
Quantitative and Qualitative
Impact of the program
Skill Up @
Scale for
sales
All sales employees
(~17,400 sales
employees).
Completion and
progression so far:
SkillUP has been
globally deployed
across Schneider
Electric at the end of
2024. 49.2% of the
learners had
completed a
minimum of 1
module of digital
learning in the
platform.
• Customer-centric commercial transformation is a
key pillar of Schneider Electric to drive sustainable
and profitable growth, and the development of
high impact sales skills is a crucial element of
this transformation.
• Consultative Selling Approach (CSA) is a blended
digital learning curriculum to enable sales teams to
build trusted advisor relationships with business
decision makers, which was launched in 2021, and
has been widely adopted by the business.
• Building on the CSA learning, in October 2023 the
Group launched Skill UP, a fully digital learning
platform, embedded in the CRM tool aimed at
promoting learning in the flow of work. In 2024, the
platform was expanded to deliver learning in 9
languages for global deployment.
• 8 programs are offered under the newly launched
Skill UP program, including Consultative Selling
Approach, Successful Account Management, Sprint
Selling, Sprint Negotiations, Coaching for
Consultative Selling, High Stakes Consultative
Dialogues, Opportunity Reviews, and Sprint
Prospecting.
SkillUP has been globally deployed across
Schneider Electric with the below deployment
outcomes:
• 72% of the Sales employees are connecting to
SkillUp platform for learning and upskilling
opportunities.
• 8,211 Sales personnel have completed atleast
1 program in the platform.
• Total Courses completed – 12,200.
• Total platform utilization time – 361,000 Hours
• Learners have a measurable Skill
Improvement of +5 pts from 61% to 66%
• NPS for the various courses in the platform
range from 24% to 36%
• At a program level, internal data analysis on
employee performance has showed that
~12% of CSA program participants exhibited a
noticeable improvement in their performance
rating in comparison to those who did not join
the program.
The intended impact of the Skill UP is to upskill
sales learners to best position topics such as
Digitization, Sustainability, and Services. Direct
business impact will be monitored in 2025.
CoMET –
Competency
Management
for Global
Supply Chain
11,000+ Global
Supply Chain
employees in 200
sites.
Completion and
progression so far:
Global Supply Chain
employees:
• 11 modules are
deployed 4 of
which are new in
2024.
• ~85% employees
in scope had
completed the
assessment.
• 3,200 experts are
certified.
CoMET aims to bridge the gap between global
business strategy and employees’ skill development
requirements. Translate the organizational skill
demands into robust skill development plans for
employees, facilitating their success in their
respective roles.
This is achieved through an end-to-end process of
mapping the required skill sets to specific job roles
and conducting skill assessments of employees in
those roles. The assessment outcome is personalized
learning and development plans that enable
employees to upskill in the identified
development areas.
Through CoMET, the Group also certifies experts in
specific skills within the different sites. Under a clearly
defined governance structure, these experts can
assist in developing and certifying other individuals to
become experts in specific skills. Through this
approach, the sites become more autonomous and
efficient in cultivating their expert network.
Digital competency:
• Since launch in 2022, employees reaching
medium digital competency level increased
from 10% to 45% through skill assessments
and personalized development plans
• 500+ digital experts certified
Technical competency and product knowledge:
• Technical and product experts certified in
200 sites
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Key programs focused on critical skill upgrading include:
Program title
Target audience
Program description and
desired business benefit
Quantitative and Qualitative
Impact of the program
Transforming
Schneider
Leaders
All people managers
in Schneider Electric
from early career
leaders to Executive
level.
Completion and
progression so far:
5,300+ leaders
trained through
digital experience
and in 50+ intakes/
classes.
In 2016, Transforming Schneider Leadership (TSL) was
designed to support a strategic shift towards the
digitalization of energy management and industrial
automation, with the intent to develop leaders as
architects of transformation. TSL was to serve as a
strategic enabler in the overall transformation.
• A system of leadership programs across four levels
from earlier career leaders to executive level was
built, to enable Schneider Electric to lead through
disruptive change by “humanizing leadership”,
developing leaders to think and act differently,
challenge the status quo effectively, and bring about
organizational change.
Partnering with a renowned international Business
School, the program was delivered at scale from 2017
onwards, continuing during Covid in a virtual format, and
finalized at the end of 2023.
The program delivery was tailor made to best fit each
level. For example, using purely digital learning to reach
thousands of high potentials at L4 level and intensive
experiential learning and coaching in groups for higher
levels.
Outlook 2024 and beyond:
With increasing external disruptions, and in line with a
renewal of the Group’s ambition and strategy, Schneider
Electric recognized a need to further accelerate the TSL
programs.
In 2024, the Group launched a new program with a new
partner called “Leading Next Frontier”, keeping what
was perceived as successful, but adopting adjustments.
The program shift can be described as a balanced mix
of management and leadership content integrated with a
deeper understanding of Schneider Electric relevant
local markets.
The goal is to develop organizational agility and
resilience, instilling curiosity and an entrepreneurial
mindset, resilience, and adaptability. The program offers
tools “that work”, allowing leaders to build strong
networks, and lead their teams in an inspiring and
empowering spirit.
Since the program launch in 2017, 5,300+
leaders were trained. Perceived value/
satisfaction was 4.4 - 4.9 across all program
levels and cohorts.
The feedback from the impact survey
conducted in 2024 on a sample of 1,000 TSL
graduates confirmed positive impact:
• 87% agreed that TSL “changed my
leadership for the better at Schneider
Electric”
• 91.8% agreed they “benefited from the
program as a person”
• 80.2% agreed “their work during and after
the program has made a difference at
Schneider Electric”. More specifically, they
agreed that the program helped them: lead
with more courage (78%); lead with more
care (81%); enhance their resilience (74%);
increase their ability to influence (76%); build
closer relationships (74%); manage, diverse
groups (82%); and build a broader network
(79%).
Beyond these participants’ self-reported data,
a 2023 data analysis revealed:
• More promotions: participants of L3 and L4
between 2019 and 2022 received
significantly more promotions within one
year of completing the program than
members of an identified control group
• More lateral career steps: Senior leaders (L2
and L1, typically VPs and SVPs) made more
lateral career steps; 20% of L2 graduates
made a sideways career step compared to
just 11.9% of the control group
With INSEAD Business School, the TSL
program has won a gold and two silver medals
at the 2019 Brandon Hall Group Awards as well
as a silver in the EFMD Awards.
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Key programs focused on critical skill upgrading include:
Program title
Target audience
Program description and
desired business benefit
Quantitative and Qualitative
Impact of the program
Digital
Upskilling for
all employees
All white-collar
employees (95,000+
employees)
Completion and
progression so far:
49% completed
assessment. Post
assessment,
18,000+ employees
completed 83,000+
trainings around the
6 digital skills and
mindset to acquire
further knowledge
and skills on digital.
The “Digital Upskilling” program aims at upskilling
Schneider Electric’s workforce in critical digital skills
for the Company’s digital strategy and employees’
sustainability of employment. It is supported by the:
“Digital Upskilling for All Employees” enabling Digital
Citizenship (SSE #22) which consists of four key
elements:
• Digital Boost: a Digital Skills knowledge check for
employees to get updated on key digital trends and
discover individual strengths and development
areas around six critical digital skills and mindset.
• Digital Skills and mindset dedicated learning path
linked to the individual assessment result to facilitate
further upskilling.
• A personalized dashboard for employees to monitor
their progress.
• Digital Skills dashboard for HR and managers to
visualize collective digital skill assessment results
supporting data-driven actions to accelerate talent
readiness.
• Schneider Electric’s employees are aware of
new technology and tools, and are more
open using them in their work and instilling
the right behaviors in a digital environment
(e.g., Generative AI tools, Data
management, Cybersecurity, Efficiency and
collaboration tools, understand digital
strategy)
• Global recognition of the Group’s upskilling
solution, with a Gold Award by Brandon Hall
Group, strengthened Schneider Electric’s
employer branding around its commitment
to upskilling employees on critical skills.
• The Digital Skills dashboard created value
for line managers and leadership, assisting
in targeting actions for upskilling.
• Even though the program was primarily
targeting white-collar employees, it had
been extended to support the digital
upskilling for the blue-collar employees. In
2024, 34,000+ blue collar employees
completed 128,000+ trainings to build and
expand their fundamental knowledge
around the 6 digital skills and mindset.
Digital
Upskilling for
Digital
Experts and
R&D
Digital Upskilling for
Digital experts and
R&D (22,000+
employees)
Completion and
progression so far:
Usage rate:
• 9700+ employees
(~ 43% from the
targeted scope)
started using the
solution to upskill
• 83,000+ hours of
learning and
9800+ courses
completed in
2024.
As part of our Upskilling@Scale strategy, the Group
offered access to Coursera to 22,000 of its employees
with a key focus on the acceleration of upskilling of its
digital and tech talent.
Upskilling of this population on critical digital skills is
key for Schneider Electric to fully leverage technology
investments and realize our digital strategy. This
program is in collaboration with Coursera, offering
access to over 10,000 courses from renowned
universities and institutions and providing a depth of
knowledge in data and technology.
• Employees building critical skills in areas of:
AI, data cybersecurity, architecture, and
software development
• Gradually building a culture of creating time
and space to learn and stay updated with
new digital skills
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2.2 Sustainability statements
Levels
Key Programme Objectives
Stages of Leadership Journey
L1
Exec.
Level
(SVP/EVP)
• Shape the future of the Company and steer the
vision for enterprise-wide leadership
Leading with Vision
L2
Senior
Leaders
(VPs)
• Shift your mindset and ability to lead
transformation and business growth in a fast
changing environment, with a clear sense of
purpose and conviction
Leading with Purpose
L3
Mid Career Leaders
(Directors/ Senior Managers)
• Develop your mindset and ability to navigate and
influence for driving change and business results
• Apply a toolkit for innovation and strategic
business execution
Leading with Influence
L4
Early Career Leaders
(Managers/Individual Contributors)
• Find your own leadership voice and lead yourself
and others to sustained success
• Develop your business acumen and embrace the
complexities of digital transformation, high-paced
innovation, and customer centricity
Stepping up to Leadership
A digital ecosystem to enable development
opportunities for all
Schneider Electric invests in its people, providing equal
opportunities and a supportive environment for all employees to
learn, develop their skills and advance their careers. The Open
Talent Market (OTM) platform empowers employees to drive their
own careers by discovering opportunities for mentoring, new
positions, and part-time projects, as well as potential career paths.
Launched globally in 2020, the platform is available to all globally
connected employees and leverages AI to match our internal
supply of talent with the business demand of “gig” projects,
positions, and mentorships through a transparent skill-centric
digital and borderless approach.
The ambition is to increase fourfold the number of employee-driven
development interactions in the OTM by 2025 (SSE #21). At the end
of 2024, more than 95% of the employee base are in the OTM
achieving more than 40,000 digital development opportunities
since launching in 2019. Through OTM in 2024, employees were
given visibility to over 15,000 open positions, 4,000 mentoring
relationships were formed, and 2,000 employees worked on
internal “gig” projects. An average of 23,000 employees visit the
platform each month.
Schneider Electric also has an open learning ecosystem
comprised of interconnected platforms at the center of which
is MyLearningLink (MLL). This platform provides digital and
classroom learning opportunities, accessible also on mobile
devices for both mandatory training and personal choice learning
based on employee roles and skill development goals. Schneider
Electric also continues to invest in providing MLL connectivity to
shop floor employees either through the “Digital Learning Corner”
(a computer or kiosk installed in their facilities) or from their mobile
phones, providing equal opportunities for all employees to learn
and develop.
Schneider Electric also offers a broad catalogue of online courses
and webinars that provides customized learning experiences with
targeted contents to partners and customers. It is accessible via
free registration at mySchneider Partner Portal (an extranet). The
mySchneider Partner Portal is deployed worldwide with more than
1.4 million registered users who consumed more than 380,000
courses since its launch.
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Targets
In line with its ambition to build a highly-skilled workforce enabled
by technology, the Group has set some ambitious targets to be
achieved by 2025:
• SSI #10: Double hiring opportunities for interns,
apprentices, and fresh graduates. Schneider Electric is
doubling its commitment to the next generation of talents. To
build a sustainable flow of talent, the Company continues to
invest in student programs such as interns, co-ops, apprentices,
and VIEs (Volunteers for International Experience). Moreover,
the Company is prioritizing the development of recent graduates
across critical functions including Sustainability, Supply Chain,
Technical, Leadership, and Sales.
• SSE #21: Increase 4x the number of employee-driven
development interactions on the Open Talent Market (OTM).
Schneider Electric has democratized development through an
OTM, and by 2025 will grow the skills in the workforce through
digitally enabled engagements. These engagements include
projects (internal gigs), mentorships, and new positions. By
leveraging AI, the Company empowers employees and creates
more connections that support development across
departments, countries, and functions.
• SSE #22: >90% of employees undergo digital upskilling
through the Digital Citizenship program. Schneider Electric
accelerates digital upskilling for their employees with a holistic
approach by:
−Ensuring foundational digital skills for all through different
initiatives : Digital Boost check and learn, Digital open days,
digital upskilling for workers, and targeted development
programs for key digital roles in domains like data and AI or
cybersecurity, among others.
−Enabling digital experts to build the necessary skills to thrive
in today’s rapidly competitive and changing business digital
world, through specific digital expert offers and certifications
partnering with top notch learning platforms.
−Embedding digital transformation at the core of the different
streams and domains of expertise of its expert program
Electrifier.
• SSE #23: Access to meaningful career development
programs for >90% employees during later stages of their
career. With five generations working globally, the Group
recognizes personal aspirations and specific needs within each
group. Having a multi-generational approach drives
engagement, productivity, and innovation in a constantly
changing world. The Group has identified opportunities to
further engage its talent pool near or at the later stages (senior
talents) of their professional journey via robust career plans,
recognition, and knowledge transfer. The Senior Talent program
empowers experienced talents to design their next career stage
while fostering lifelong career development by leveraging
meaningful career conversations and personalized offers. This
program is deployed globally with the support of local
ambassadors who adapt the global framework to local needs
and share best practices with the working community.
Read more on the methodology of SSI in section 2.4.1.1
on pages 311 to 316.
Read more on the methodology of SSE in
section 2.4.1.2 on pages 316 to 321.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.3.2 Sustainable relations in the value chain (ESRS S2)
2.2.3.2.1 Overall strategy
Impacts, risks and opportunities
Working conditions (in the value chain)
Negative Impact
1. Affect the mental and physical
health of value chain workers
2. Risk detriment to physical health
of value chain workers (injuries,
diseases, or death)
3. Enable poor working conditions
in the value chain due to lack
of dialogue
Health and safety (in the value chain)
Negative Impact
1. Damage the physical integrity of
workers in the value chain
Forced labor (in the value chain)
Negative Impact
1. Jeopardize fundamental human
rights and damage the physical or
psychological integrity of workers
in the value chain
The analysis of key risks, impacts, and opportunities is conducted
each year as part of the Enterprise Risk Management (ERM)
process, the Vigilance risk assessment, and a strategic review.
Various inputs are factored in these annual assessments:
• Interviews with internal experts and leaders;
• Reports from audits conducted at risky suppliers;
• Alerts raised through our Trust Line alert mechanism;
• Internal audits on the Human Rights Policy;
• Reviews of available business and human rights literature (such
as reports from the International Labor Organization (ILO), or
from the Business and Human Rights Resource Center); and
• Engagement with peers, multi-stakeholder initiatives, institutions
or NGOs (such as the Responsible Business Alliance (RBA), the
Copper Mark, or Human Resources Without Borders).
The analysis of key opportunities takes place notably during the
creation of a new SSI.
It shows the following impacts:
• Forced labor and other labor rights abuses in the value chain, in
particular for migrant workers.
• Non-decent working conditions in the value chain, in particular
concerning health and safety, excessive working time, or wages
below local living wage levels.
• Mental health risks, which are increasing as anxiety levels rise
about the future of work and life amid disruptions globally.
• Safety of customers and end-users due to quality offer risk.
• Discrimination and harassment in the workplace, augmented by
the risk of population displacement due to climate impact is a
growing risk.
• Continued employability may be jeopardized as the disruption
of office and factory work by new digital technologies could lead
to poor working conditions in the value chain, ultimately
affecting the mental and physical health of workers.
Context
Global supply chains drive the economic engine of the world.
However, the workers powering this engine often do not receive the
fair share of their contribution, especially when it comes to rights
and benefits in the areas of working conditions, wages, job, or
social security.
The variation among geographies, in socio-economic context, cost
of non-compliance, and governance, affects the conditions
extended to the workers. The detrimental impact of these
malpractices is not only limited to the individual worker but has a
significant multiplier effect on the physical and psychological
well-being of their families, creating a systemic risk in the society at
large.
With this realization, the demand for corporate accountability and
respect for human rights has grown steadily over the past decade.
The publication of the United Nations Guiding Principles (UNGPs)
on business and human rights in 2011 marked a turning point and
clearly put forth the role of states and corporations in respecting
human rights in their value chain and facilitating access to remedy.
However, according to the ILO, over 28 million people were still in
forced labor in 2021, an increase of about 3 million since 2016. In
addition, the increasing number of armed conflicts, the impacts of
climate change, and ongoing technological disruptions increasingly
put people employed in global value chains at risk. This could
make our societies fragile, affect business resilience, and impede
our collective capacity to rapidly transition to a society that
respects its planetary boundaries and minimum social foundations.
In response to these challenges, Schneider Electric has built over
the years an extensive framework of policies, processes, and
special interventions, that the Company is continuously improving
based on the learnings acquired along the way.
Description of supply chain
Owing to the location, size and nature of the Company’s operations,
its supply chain is impacted by climate change, resource scarcity,
and human rights issues across the world. While the impact of
Schneider Electric’s own operations is relatively limited, the
footprint of its wider supply chain is more significant as millions of
more workers are involved in the upstream value chain than
employed in the Company and affected by the evolving trends.
Geographical spread of the supply chain
The supply base of the Company is spread across four major
geographical regions, almost in an equal manner, namely:
• North America
• Europe
• China
• International region, consisting of IMEA sub-region (India,
Middle East, Africa) and EAJPS sub-region (East Asia, Japan,
Pacific, South America)
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Sectoral spread of the supply chain
Schneider Electric purchases various goods that will become part
of the finished products: raw materials such as copper, steel,
plastics or aluminum; electrical and electronic components, and
fabricated components. The Company also purchases indirect/
services which are not related to the products but supporting the
operations of the Company. Each of these four purchases
categories imply specific risks for the workers in their supply chains
described below:
• Raw materials: a diverse set of raw materials companies,
involved in primary or secondary processing of the materials.
The workers in this value chain are primarily working in a
factory/heavy manufacturing setup along different stages of raw
material processing up to finished goods and involved in
managing distribution centers and warehouses. The workers in
this category are often exposed to extreme work environments,
including working in high temperatures, noise, and vibration,
and working with heavy equipment or chemicals. The workers in
this category are at risk of physical injury and other occupational
health and safety concerns due to prolonged exposure to
extreme work environment.
• Electrical and electronic components: the companies in this
category are often working in manufacturing units involved in
the assembly of various sub-electronic components and
associated manufacturing processes. These include a variety of
semi-conductor modules, passive components, displays,
connectors, cords, relays, etc. The distributors form an
important category of suppliers in this segment as well. The
workers involved in this segment often work in closed, artificially
lit environments, doing repeated actions over a prolonged
period. The machine and equipment used are relatively smaller
in size, hence closer attention is required during the work. The
nature of operations may also include occasional exposure to
harmful emissions associated with chemicals used or processes
and musculoskeletal impact of repeated actions over
prolonged period.
• Fabricated components: the fabricated components are parts
manufactured using raw materials or semi-finished materials by
deploying a variety of processes. These operations involve
working with a variety of machines in a manufacturing setup.
This segment also employs exposure to high noise, vibration,
surroundings and use of machines doing a variety of
mechanical operations. The health and safety impact due to
continued exposure to such work conditions and physical injury
are key concern areas owing to the nature of operations.
• Indirect procurement and services: these are often companies
which provide the services, equipment or infrastructure that are
critical for Schneider Electric in discharging its operations. The
companies in this segment come from a variety of contexts
including software, hardware, marketing and communications,
travel, legal etc. Due to the diverse context, the workforce
involved is a mix providing generic services such as
housekeeping to highly specialized services such as advisory,
and segments across manufacturing or commercial activities.
2.2.3.2.2 Policy framework guiding
sustainability in the value chain
Human Rights Policy
Schneider Electric Trust Charter is the Group’s Code of Conduct.
Through the Trust Charter, Schneider Electric is taking a strong
position on what values it stands for with a focus on several human
rights topics that serves as a basis for the relative policy.
Schneider Electric’s Global Human Rights Policy was last updated
in 2022 and approved by the Group’s Chairman. It is articulated
around three principles.
1. Schneider Electric is committed to fully respecting and applying
laws and regulations in all countries where it operates.
2. Schneider Electric is committed to fostering and promoting
human rights throughout all its operational sites and subsidiaries
worldwide.
3. Schneider wishes to support human rights beyond its borders,
leveraging its large network of partners and stakeholders to
promote the implementation of actions that will ensure the
respect of people’s rights.
The Human Rights Policy’s objective is to define the Group’s
position on human rights along its value chain, including forced
labor, health and safety, or working conditions. The Group both
states in the document that “to the best of its knowledge, it refrains
from working with business partners that are using forced or
compulsory labor in their operations” and that it “is committed to
ensuring that human rights are respected not only in its own
operations but throughout its value chain. The Group considers that
a company should seek to provide decent work not only to its own
employees but the same should be extended to its value chain”.
It also states Schneider Electric’s commitment to provide or support
remedy in case the Group has caused or contributed to a negative
impact. The Human Rights Policy serves as a set of rules
applicable to its daily operations for Schneider Electric and
its employees.
The policy is available in eight languages and applies to all
Schneider Electric affiliates. It is applicable to all Schneider Electric
permanent or temporary employees working on Group premises.
It also aims to inspire external stakeholders. The policy provides a
framework and gives guidance to employees and teams on how to
behave in their daily operations or when facing a specific situation.
Schneider Electric’s Human Rights Policy is available
publicly on www.se.com
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Alignment with international standards and frameworks:
Schneider Electric endorses the following principles or guidelines:
• The international human rights principles encompassed in the
Universal Declaration of Human Rights (as part of the
International Bill of Human Rights), which sets out a common
standard for all types of organization.
• The Organization for Economic Co-operation and Development
(OECD) Guidelines for Multinational Enterprises, which formulate
recommendations for companies, including for the respect of
human rights.
• The ILO Declaration on Fundamental Principles and Rights
at Work.
• The UNGPs on business and human rights which precisely
define the roles and responsibilities of States and businesses on
these matters. Schneider Electric is committed to these Guiding
Principles and to the United Nations Convention on the Rights of
the Child.
• The Institute for Human Rights and Business (IHRB) Dhaka
Principles for migrations with dignity.
The procedures implemented by Schneider Electric, notably its
Vigilance plan and Ethics & Compliance program, ensure that the
Group adhere to the EU Taxonomy “minimum safeguards”
requirements referred to in Article 18 of Regulation (EU) 2020/852.
Specific internal standards and guidelines complement the policy:
• The migrant workers guidelines, guided by the “Dhaka
Principles for migrating with dignity”. The document provides
a frame to help Schneider Electric’s teams, as well as partners
such as recruitment agencies, ensure that any migrant worker
in Schneider Electric’s ecosystem is protected from any abuse
or malpractices.
Schneider Electric Supplier Code of
Conduct (SCoC)
The Supplier Code of Conduct (SCoC) is the policy instrument
dedicated to the organization’s supply chain, which illustrates the
expectations from suppliers, on business conduct. The Supplier
Code of Conduct covers full range of expectations from human
rights, ethical conduct, environmental management, occupational
health and safety, material and resource use, engagement with
sub-suppliers, and access to remedy. On the human rights topics,
it includes explicit reference to child labor, human trafficking,
modern slavery, forced labor as unacceptable practices.
Read more on the Trust Line in section 2.2.1.1.3 on
pages 102 to 107.
The SCoC is included in the contractual obligations with the
suppliers. It is part of the family of documents in the Trust Charter
of the Company.
Schneider Electric Supplier Code of Conduct is
available publicly on www.se.com
This policy-level commitment is the guiding source for various
programs implemented by Schneider Electric with its suppliers
in its value chain.
Supplier Guidebook
To sensitize all current and potential suppliers about expectations
and various stages of collaboration with Schneider Electric, a
Guidebook is documented. Initially launched in 2016 and updated
regularly, the document articulates expectations for suppliers on
sustainable development in the following five areas: environment,
fair and ethical business practices, sustainable procurement, labor
practices, and human rights, and subsequently dwells on various
stages for approval, qualification, and performance evaluation of
the suppliers.
Governance
A Duty of Vigilance Committee, set up in 2017 and chaired by the
Executive Vice-President, Global Supply Chain (Executive
Committee member), has the oversight of the human rights issues
on in the value chain. The Committee’s objective is to provide a
discussion on strategic orientation and prioritize initiatives and the
resources allocated to their implementation. This Committee also
reviews the actions in progress and their results and defines
decisions on next steps for action.
Read more on this Committee in section 2.2.1.2.1 on
page 109.
In addition to this Committee, all sustainability initiatives
implemented with upstream supply chain partners are headed by
the Vice President of Sustainable Procurement, who is responsible
for consolidating the various actions in a concerted strategy and
accountable for driving the impact with supply partners and
procurement department. Also, in 2023, a Vice President for
Human Rights was nominated in the Corporate Citizenship
department, reporting to the Chief Corporate Citizenship Officer.
His role is to oversee the Group’s human rights due diligence, and
design appropriate measures to prevent, mitigate, or remediate
human rights impacts in the Group’s value chain.
The performance of upstream sustainability programs,
implemented with suppliers is included in the procurement
scorecard review and evaluated monthly with the Global
Procurement Committee, the apex leadership team of Global
Procurement function, led by the Chief Procurement Officer (CPO).
This provides a platform to timely discuss the performance, any
bottlenecks or challenges, and support needed from concerned
Procurement teams.
Additionally, the performance of the upstream sustainability
programs is also part of the monthly performance evaluation under
the broader Global Supply Chain umbrella, which includes
interventions with other stakeholder groups as well. This platform
provides visibility to the Company’s executive leadership on various
initiatives, facilitating more open collaboration and harmonization
between various teams working on different topics.
Mechanisms like these help in fostering an open and collaborative
approach towards value chain sustainability and help in identifying
the early warning signals and proactively plan for remediation
measures.
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Beyond internal governance, the Group is engaged in various
coalitions to advance human rights in its value chain:
• Schneider Electric’s CEO is a commissioner at the Business
Commission to Tackle Inequalities (BCTI).
• Multiple Schneider Electric leaders are taking part in the World
Business Council for Sustainable Development (WBCSD) Equity
Action working group.
• Schneider Electric is a Patron of the United Nations Global
Compact (UNGC) Decent Work initiative and committed to the
targets under Forward Faster initiative on Living Wages.
• Taskforce on Inequality & Social Financial Disclosures (TISFD).
• The RBA since 2018, to focus on decent working conditions in
the supply chain, with peers from different industries.
• Joined the Hello Accelerator with Ashoka and Ikea to advance
the situation of migrants in Europe.
• Entreprises pour les droits de l’Homme (EDH – Businesses for
Human Rights), a leading French association of businesses
providing its members with tools and advice on implementing
the UNGPs.
• Ressources Humaines sans Frontières (RHSF – Human
Resources Without Borders) since 2017. The Group is part of
their project “Lab 8.7” that gathers companies to work on
preventing the risks of child, forced labor, and more broadly
indecent labor in supply chain.
• Participation in the Copper Mark initiative.
2.2.3.2.3 Integration of sustainability in
the procurement process
Onboarding new suppliers: Supplier
Approval Module
Schneider Electric has incorporated the sustainability evaluation
criteria at the stage of onboarding of new suppliers. This ensures
that any new supplier entering the Company supply chain is
screened for sustainability, and in case any issues of concern are
identified, they are resolved before further onboarding can be
processed. This ensures a degree of control over the suppliers who
become part of the value chain.
The journey of a new supplier starts with the Supplier Approval
Module (SAM), when a supplier’s capabilities are assessed to
assure alignment with Schneider Electric’s expectations. This
process has a dedicated evaluation on labor, ethics, environment,
and occupational health and safety, in addition to other operational
elements. It is a questionnaire-based evaluation combined with
on-site audits, if required by Schneider Electric auditors. For all
new suppliers, it is mandatory to undergo this evaluation and only
approved partners can proceed to the next stage of functional
and technical audits required for business qualification. If a
supplier fails to qualify SAM, the potential business discussions
will be stopped.
General Procurement Terms & Conditions
All existing Schneider Electric suppliers must abide by the General
Procurement Terms & Conditions, as part of contractual obligations.
The instrument applies the principles and guidelines of ISO 26000,
and the rules defined in the ISO 14001 standard to all suppliers.
As part of the obligations, the suppliers, when entering business
relation with Schneider Electric, commit to respect all national
legislations, Registration, Evaluation, Authorization and Restriction
of Chemicals (REACH) regulation, Restriction of Hazardous
Substances (RoHS) directives, and, more generally, the laws and
regulations relating to the prohibition or restriction of use of certain
products or substances. The suppliers are also expected to report
the presence and country of origin of all conflict minerals supplies
in accordance with the requirements of the US DoddFrank Act of
2010, known as the “Conflict Minerals” law. In this context,
Schneider Electric has a “conflict-free” objective.
Additionally, the Terms & Conditions were updated in 2023 to
include participation in the supplier-specific sustainability initiatives
implemented as part of Schneider Sustainability Index, which
included the initiatives around decarbonization, resource, and
circularity and human rights.
Consult and download Schneider General Procurement
Terms and Conditions from the Suppliers page on
www.se.com
2.2.3.2.4 Risk-based approach to
sustainability in supply base
In addition to the new suppliers, Schneider Electric has almost
50,000 legacy suppliers spread across different regions of the
world.
While SAM ensures that all new suppliers are screened for ESG
concerns and if identified are resolved before resuming the
onboarding, there is a special process and family of interventions
dedicated to the issues of human rights with the existing suppliers,
having ongoing business relationship with the Company.
These interventions are implemented at three levels:
1. The foundational level, which aims to secure the industrial
hygiene and focus on high-risk segments owing to the industrial
sector or geography of operations. This includes the Duty of
Vigilance Program, which is implemented with the high ESG risk
suppliers and ensures regulatory and ESG compliance at site
level.
2. However, to ensure that the focus is not only on basic levels of
compliance and that supplier partners constantly improve their
operational practices in the spirit of continuous improvement; all
the strategic suppliers are mandated to implement ISO 26000
guidance and improve their sustainability profile.
3. Schneider Electric believes in being a pioneer and this spirit is
extended to expectations from our supply partners as well. To
ensure we can anticipate the potential trends, risks, and issues
before they become mainstream, an aspirational intervention is
deployed via the Decent Work Program. The requirements of
this program take inspiration from the Decent Work agenda of
the ILO and harmonizes with the priorities of several other
international initiatives such as UNGC, SDGs (Sustainable
Development Goals), and EU Commission. It also informs itself
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2.2 Sustainability statements
with concurrent discussions on emerging human rights issues.
The program requires companies to implement preventive
controls within their organizational framework (policies and
processes) thus reducing the likelihood of occurrence of
malpractices, and providing a secure and sanitized (both
physically and psychologically) work environment, creating a
positive influence, and enhancing overall worker well-being.
2.2.3.2.5 Vigilance plan for suppliers
and contractors
Duty of Vigilance with suppliers
Read more on the Vigilance Plan in section 2.2.1.2.1
on page 109.
The Sustainability Matters on the conditions of workers in the value
chain and on forced labor in the value chain are material issues
identified in the Schneider Electric materiality analysis. The
Company has deployed a robust governance and supplier
engagement framework to perform a risk analysis to screen and
mitigate the risk of workers in upstream. The Company’s supply
chain is exposed to varying levels of risks depending on the
environmental, social, and ethical contexts of the countries in which
they operate. These country-related risks are one of the important
factors in customizing risk profile of suppliers.
To evaluate and mitigate the sustainability risk from its global
suppliers, Schneider Electric conducts a risk evaluation of its entire
supply base on an annual basis. This evaluation covers
sustainability risks and specific parameters such as the type of
industrial process used by the suppliers, their technology, and the
geographic location. This allows the Group to factor in risks that
may arise from a country’s specific situation (social, political, etc.).
These parameters are compiled in a third-party independent
database (RBA methodology, ex-EICC, of which Schneider Electric
has been a member since January 2018). Schneider Electric’s
entire Core network of about 50,000 tier 1 suppliers is processed
through this methodology and is refreshed every year with the new
supplier baseline to identify high risk suppliers.
The non-high-risk suppliers are deemed appropriate for remote/
self-assessment, via an ESG questionnaire. The supplier responses
to the questionnaire are evaluated by a team of specialists. Upon
identifying any response, which requires further deep dive, the
team engages with the suppliers for clarifications. Post the
clarification, if the need is felt, on-site audits may be triggered. For
the suppliers who are classified as high risk, on-site audit by
Schneider Electric auditors is conducted.
The Duty of Vigilance (SSE #17) program has a mandate of on-site
audit of 1,000 high risk suppliers between 2021 and 2025; 3,000
medium-risk suppliers are evaluated based on desktop review and
followed up by on-site audit, in case of any high concerns. The
annual target is 200 on-site audits and 600 remote evaluations per
year for non-high-risk suppliers between 2021 and 2025. This SSE
#17 has been achieved with 4,050+ suppliers at the end of 2024,
therefore one year in advance. In 2024, 240 on-site audits were
performed, and 564 suppliers answered to the self-assessment
questionnaire.
Read more on the methodology of SSE in
section 2.4.1.2 on pages 316 to 321.
To implement the key tenets with the suppliers in scope, Schneider
Electric follows the RBA ESG criteria, which includes worker rights,
environment management, occupational health and safety, and its
inclusion in the governance of the Company. This common set of
requirements is used to evaluate supplier performance via on-site
audits. The high-risk suppliers of Schneider Electric are subjected
to on-site audit, conducted by specialized auditors. The audits
span over 2-3 days and include facility walkthrough, review of
management policies, worker interviews and examination of
operational records to validate the conformances. At the end of the
audit, an audit report is generated which is shared with the supplier
to develop a corrective action plan and implement the measures.
For the most serious non-conformances, each case is escalated
to the CPO.
An analysis of the 209 “top priorities“ raised in 2024 shows the
following issues are the most recurring:
• Labor standards (61% of top priority non-conformance issues):
−lack of respect of working time and resting days (time
measurement systems are often insufficient). Corrective
action can be wages for regular and overtime hours correctly
calculated and paid to all workers.
• Health and safety (30% of top priority non-conformance issues):
−insufficient fire alarm and protection systems. Corrective
action can be appropriate controls for worker exposures to
chemical, biological, and physical agents.
• Environment and management systems (9% of top priorities):
−insufficient waste management and pollution prevention
systems.
In case of any findings in vigilance, the supplier needs to implement
the corrective actions, and then get a revised on-site audit done.
Once all non-conformances are resolved the risk status can be
lowered. However, to ensure continuous monitoring and continuity
of the controls, the supplier is revisited in a fresh audit cycle after 3
years. As of end of 2024, Schneider Electric has closed 98% of all
types of non-conformances from 2023 and 40% of all types of
non-conformances from 2024.
Schneider Electric adopts an active approach helping suppliers
resolve any issue by sharing good practices and providing them
with guidance and training. Closure of non-conformances are
checked mainly through an on-site check a few months after the
audit. When non-conformances are not resolved (mainly top
priorities), escalation to the CPO may lead to the end of the
business relationship. In 2024, one business relationship with a
supplier was decided to be stopped due to non-conformance to
the Vigilance plan.
As part of this Duty of Vigilance program, 14 Batteries suppliers
have been audited since 2018, and we continue the engagement
with the battery suppliers, also for the EU battery regulation.
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Self-assessments
In 2021, a specific self-assessment questionnaire was developed,
building on the experiences of on-site audits performed during
previous years. Among the questions asked, the core ones aim to
check whether the suppliers are compliant on mandatory subjects
of labor, human rights, environment, and health and safety. The two
main goals of this assessment are to help the supplier to reflect on
its compliance to vigilance standards, and for Schneider Electric to
identify whether on-site audits may be necessary. During 2024, 564
suppliers submitted answers.
% Risky suppliers identified in 2024 by geography
1%
7%
10%
16%
39%
26%
EAJP*
EMEA**
North
America
South
America
India
China
0
20
40
60
80
100
% Audits carried out in 2024 by geography
0%
18%
0%
13%
49%
20%
EAJP*
EMEA**
North
America
South
America
India
China
0
20
40
60
80
100
% Non-conformances in 2024 by topic
6%
13%
25%
24%
33%
Labor
Management Environment
Ethics
Health
& Safety
0
20
40
60
80
100
% Non-conformances in 2024 by geography
1%
7%
1%
11%
31%
50%
EAJP*
EMEA**
North
America
South
America
India
China
0
20
40
60
80
100
*
EAJP: East Asia Japan Pacific
** EMEA: Europe Middle East Africa
Impact
From the beginning of the program in 2017 to the end of 2024,
about 1,250 suppliers had been audited on-site, and 14,800+
non-conformances were raised, and subsequently remediated.
The 240 on-site audits performed in 2024 have allowed Schneider
Electric to raise 2,400+ non-conformances. Out of these non-
conformances, 209 are assessed as “top priority” and are given
very specific attention during the re-audits of the suppliers.
Schneider Electric’s objective is to close 100% of all types of
non-conformances identified, whatever their priority level.
Overall, the resolution of non-conformances identified since the
program’s inception in 2017 has supported the improvement of
the working conditions for almost 400,000 employees.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Duty of Vigilance with project contractors
Schneider Electric’s products and solutions are usually combined
into larger systems such as electricity distribution and energy
management in a building, or production process automation in a
factory. The building of such systems can be complex and typically
involves several different parties before they are commissioned by
end-customers. For Schneider Electric, there are two options: to
sell components through channel partners who take the
responsibility to build and deliver the system; or to build and deliver
the system directly for the end-customer, as a project. This second
option requires coordinating several project contractors (panel
manufacturers, system integrators, building contractors, etc.),
usually on the premises of the end-customer. These projects are
primarily off-site (mostly on customer premises, existing or future),
and they involve several different parties, global or local. Therefore,
relationships with contractors are specific to a contract, and not
necessarily recurrent. In 2024, Schneider Electric worked with
approximately 9,000 solution suppliers (with a total spend of
approximately EUR 1.3 billion).
Human Rights risks: As project sites are in countries where
Schneider Electric may not be present, and involve independent
subcontractors, there is a risk that the policies recommended by
Schneider Electric on Health and Safety, as well as decent
workplace, may not be properly implemented. The main risks
are physical accidents and injuries, or the unfair treatment of
employees (wages and salaries, resting time), especially temporary
and/or foreign employees.
Business Ethics risks: Projects that are conducted in countries
where business ethics standards are insufficient may be subject
to ethical risks such as corruption, bribery, or pressures of a
similar nature.
Cybersecurity risks: Some subcontractors may have digital
interactions with the end-customer and Schneider Electric at
the same time. Therefore, their level of cybersecurity and data
protection may create some risks for the project and the final
customer.
A rigorous management of subcontractors supports a reduction
in risks of incidents or accidents on site, and therefore protects
workers, the communities living around the project site, and the
final customer’s employees and assets.
Out of the 9,000 solutions suppliers, Schneider Electric has
identified about 220 solution suppliers categorized as “high risk”.
Since 2018, around 110 of those suppliers have been audited, with
19 audits performed in 2024 leading to Schneider Electric raising
166 non-conformances. Out of these non-conformances, 23 were
assessed as “top priority” for 7 suppliers.
The most recurring non-conformances with high-risk solution
contractors are related to management systems, in terms of
establishing adequate management reviews and defining
responsibilities for implementation of management systems. In
addition to these non-conformances, specific risks related to local
contract negotiation and relations with local authorities may occur.
Actions following non-conformances are the same as with other
suppliers (re-audits, trainings, workshops). Specific measures are
implemented for this project environment: Schneider Electric
implements regular reviews of safety incidents on customers’ sites,
involving the Global Safety team and the Project Management
leadership. The Group has also reinforced training on Anti-
Corruption and Business Agent policies for its employees involved
in commercial negotiations. The project follow-up with contractors
and the selection processes for contractors have been adapted to
ensure vigilance topics are considered early in the project stage.
2.2.3.2.6 Continuous improvement
based on the ISO 26000 standard
The key focus of Schneider Electric is to ensure that suppliers treat
sustainability as a journey and continue to improve their
sustainability performance via organizational maturity on an
ongoing basis. This is achieved by mandating strategic suppliers to
adhere to ISO 26000 guidelines and sharing performance results
and Key Performance Indicator (KPI) as part of journey to achieve
higher performance threshold.
ISO 26000 is a voluntary guidance for companies and provides a
framework for organizations to operate in a socially responsible
manner, considering the interests of various stakeholders, including
employees, customers, suppliers, communities, and the
environment. As it is not a management standard, Schneider
Electric has partnered with a third-party service provider,
EcoVadis, to provide evaluation of the performance of the suppliers
and assigning a score.
A score is assigned based on answers on four pillars: (1) Labor and
human rights, (2) Environment, (3) Ethics, and (4) Sustainable
procurement. Based on the results, suppliers must develop and
deploy a corrective action plan and retake the evaluation.
All strategic suppliers of Schneider Electric are mandated to
participate in the ISO 26000 program. The suppliers are assessed
for conformance. If the score goes below 50 points, it results in
revocation of the strategic status, impacting their business growth.
To drive evolution of the suppliers towards higher maturity and
degree of performance, Schneider Electric has adopted a global
target to have the global average score of 65 points for all strategic
suppliers by end of 2025. This target is split into annual targets.
Against the target for 63.5 points to be achieved by end of 2024, a
score of 64.4 was achieved. As a summary, 1.6 points increase in
2022, same in 2023 and 2.5 points increase in 2024.
ISO 26000 Program Progress
65.9
64.4
61.9
60.3
58.7
57.4
2020
2021
2022
2023
2024
2025
Average EcoVadis score
Target
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2.2.3.2.7 Other action plan and targets
on sustainable programs
Decent Work program
The Decent Work program encourages suppliers to go beyond
regulatory compliance and normative business practices. The
program is dedicated to human rights and takes inspiration from
the work of the ILO and includes key tenets into the program
content.
The program also combines key requirements and focal areas of
several other international frameworks and bodies such as United
Nations Global Compact, European Commission, United Nations
Sustainable Development Goals and even aligning with the key
requirements of SA8000 management standard.
The scope of the program includes strategic suppliers across
direct (also known as production) and indirect (known as non-
production) procurement. The initiative adopts the approach of a
development program, acknowledging that the program criteria
may be new for many suppliers who will need support with capacity
building, and constant engagement throughout implementation.
The evaluation of supplier performance is carried out through an
online questionnaire that is rolled out via SSP-SRM – Schneider
Electric’s supplier relationship portal. A specifically trained team of
associates from Global Procurement Services (GPS) lead the
launch of the initiative. The suppliers are required to respond to the
questions and upload evidence to support the responses. All
responses and accompanying evidence are evaluated to meet the
minimum criteria of decent work. These responses and documents
are assessed by specially trained reviewers. The reviewers come
from within Schneider Electric as well as third-party agencies who
specialize in business and human rights. In cases where the
supplier actions do not meet the minimum requirements, feedback
is given, and corrective actions need to be implemented by the
suppliers in a timely manner. Upon rectification, the information
needs to be resubmitted along with the evidence for the re-
evaluation. To better engage suppliers and identify the common
areas of improvement for deploying more effective supplier
capacity building initiatives, the responses were analyzed. Below is
the summary of the most frequent gaps identified during the year.
There is a high level of engagement with constant training, capacity
building, and communication with suppliers to ensure they
understand the actions required and implement them. On average
for every supplier 4-6 rounds of capacity building, clarifications
and coaching sessions are conducted.
Most frequent Non-conformances
19%
42%
46%
48%
53%
53%
53%
59%
64%
65%
68%
69%
73%
83%
84%
86%
90%
No policy on Living Wage
Missing policy OR remediation plan for Child Labor/Modern Slavery/Human Traficking
Policy on free employment not shared with workforce providers
No policy and remediation plan on free employment
No structured control to prevent slavery/trafficked labor in operations
No gender neutral child care/family care leaves
Missing structured control to check/detect child labor in contract workforce
Safety management systems not evidenced in 100% locations
Missing structured control to check/detect slavery/trafficked labor in operations
No policy on notice period
No supplier code of conduct
Missing structured control to regulate working hours in operations
No policy on weekly off
Missing structured control to check/detect child labor in operations
Missing criteria in the inclusion policy
No policy on collective bargaining
Social security not extended to 100% employees
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Key pillars of the Decent Work program include:
1. Employment
opportunities
Employment opportunities should be available to all eligible, in a transparent, well-informed manner, and
without any charges, as a right. In case of any expense incurred by the worker towards obtaining
employment, the same should be reimbursed by the employer. The work should respect and uphold the
dignity of employees and proactively create an environment to address and resolve modern slavery, forced
labor, and bonded labor. There should be a process to ensure no child is employed.
2. Adequate
earnings and
productive work
Employment should be a source of economic independence and dignified living. The gradual decline of
industrial wages and the COVID-19 crisis have severely impacted the economic outlook of the workforce,
globally. Companies should review wage policies to ensure the affordability of a dignified living by the
workers. Additionally, employment should equip the workforce to improve current skill sets and knowledge
for future employability.
3. Decent working
hours
Excessive working hours is a legal violation, often accepted as “necessary”. It is generally connected with
low industrial wages and used as an excuse to not provide appropriate wages. Companies should review
and remediate excessive hours and should align with the legal and/or international requirements.
4. Stability and
security of work
Employment should be a source of economic stability and peace of mind. Uncertainty of job security
increases stress and makes the workforce vulnerable to abuse and hazardous working conditions. The
problem has been exacerbated due to COVID-19-related job losses.
5. Social dialogue
and workplace
relations
Employees should have the right to engage with management and collectively put across their concerns
and demands. Collective bargaining encourages workers to raise concerns in a timely manner, acts as a
barometer and early warning system to assess worker satisfaction and reduces worker vulnerability.
6. Fair treatment
in employment
Employment should be based on merit and the ability to do the job, and fair treatment should be extended
to all employees. Differences in lifestyle, choices, etc., often become a source of discrimination,
victimization, and harassment. This curbs freedom of expression, hiding preferences, and creates mental
health challenges. Companies should ensure a workplace that accepts diversity and provides an inclusive
work environment.
7. Safe work
Employment should result in economic independence and augment the ability to exercise a healthy and
prosperous life. It should not result in ill-health, risk to well-being, or be a source of injury/misery.
8. Social protection
Industrial wages are often not sufficient to provide adequate living standards. The problem is exacerbated
in cases of health emergencies. Social protection, provided by employers/governments, provide a much-
needed safety net from economic shock, descent into poverty, and vulnerability. Companies should ensure
that all employees have access to the social security safety net.
9. Purchasing
practices
Purchasing practices and requirements significantly impact working conditions. They influence the working
culture of the supplier organization to meet customer requirements. The power of procurement can be a
strong driver for positive change to include decent work conditions as a pre-requisite among the supply
chain partners, when balanced with other commercial criteria.
10. Balancing work
and family life
Family responsibilities disproportionately impact genders and result in unequal participation in economic
activities. Workplaces should strive to create a level playing field and provide all possible opportunities to
employees to participate in economic activities without compromising the family responsibilities, which may
require periods away from work (e.g., maternity, family care, flexible hours, and adequate childcare). Work
environment should act as a leveler/equalizer and not augment the disparity.
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Decent work criteria comparison with other initiatives
Key Pillars
Schneider DW
ILO
UNGC
EU Com
SDGs
SA8000
Employment opportunities
Yes
Yes
Yes
Yes
Yes
Yes
Adequate earning and productive work
Yes
Yes
Yes
Yes
Yes
Yes
Decent working hours
Yes
Yes
Yes
Stability and security of work
Yes
Yes
Yes
Social dialogue and workspace relations
Yes
Yes
Yes
Yes
Fair treatment
Yes
Yes
Yes
Yes
Yes
Safe work
Yes
Yes
Yes
Yes
Social protection
Yes
Yes
Yes
Purchasing practices
Yes
Yes
Yes
Balancing work and family life
Yes
Yes
Yes
Disciplinary practices
Yes
Management system
Yes
Abbreviations
ILO – International Labour Organization UNGC – UN Global Compact EU Com – European Commission
SDGs – Sustainable Development Goals SA8000 – Social Accountability 8000
Schneider Electric has taken an overall ambition to ensure 100% of
its strategic suppliers achieve compliant status in the program by
end of 2025 (SSI #6). This ambition is split into annual targets.
Against the target for 60% compliance to be achieved by end of
2024, 63% of strategic suppliers achieved the compliant status.
Read more on the methodology of SSI in section 2.4.1.1
on pages 311 to 316.
Social Excellence program
In addition to the above-mentioned engagement, the Company has
initiated development of a Social Excellence program, which aims
to go beyond tier 1 suppliers and onboard them on the human
rights journey.
Currently the Company is implementing a pilot program to assess
how such a program, focused on upstream, can be developed and
deployed. While the program is still in exploratory stage, it will
provide invaluable insights that will help in conceptualizing a
full-fledged program (the actual date for full scale deployment will
depend on the findings of ongoing pilot, due for completion by end
of 2025).
Towards this the Company has identified a particular product and
created 3 work streams to evaluate the risk. These include:
• Traceability workstream: this includes connecting with suppliers
and seeking details about their sub-suppliers to ensure
transparency and accountability.
• Geographies workstream: using the RBA risk evaluation tool,
high-risk countries are identified, and suppliers located in those
countries are engaged via worker voice tool to identify key
impacting areas.
• Raw materials workstream: focus on the critical minerals as
identified by the International Energy Agency (IEA) and aims to
engage supplier to increase the accountability in the upstream
mining and processing stages.
During 2024, as part of the Geography workstream, the Company
initiated the use of “Worker Voice” surveys, with a pilot in Vietnam,
and organized feedback sessions with the suppliers involved in
2024. The use of this tool will be expanded in coming years.
In addition to the above, Schneider Electric also implements
programs in accordance with country-specific requirements.
Supplier Diversity program
In the US, the Company implemented a Supplier Diversity program,
which aims to promote the utilization of qualified and competitive
diverse businesses in procurement.
The program includes suppliers that are certified as one (or more)
of the following: Small Business Enterprise (SBE), Veteran-Owned
Enterprise (VET), Disadvantaged Business Enterprise (DBE),
Minority-Owned Enterprise (MBE), Women-Owned Enterprise
(WBE), Disabled-Owned Enterprise (DOBE), LGBT+ Owned
Enterprise (LGBT), and Businesses located in Historically
Underutilized Business Zones (HUBZone).
The Company accepts all third-party certifications by organizations
such as: the National Minority Suppliers Development Council
(NMSDC), Women’s Business Enterprise National Council
(WBENC), the National Gay and Lesbian Chamber of Commerce,
and Disability: IN.
The suppliers are required to successfully complete Schneider
Electric’s supplier evaluation and onboarding process to
demonstrate their capabilities prior to being invited to a competitive
bid. Once invited to the bid, suppliers are only awarded business
based on the strength of their bid submission.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Supplier communication and engagement
The Company follows a customized communication plan for full
spectrum of policies and programs to the suppliers. The Schneider
Electric Supplier Platform is the preferred mode of communication
with the suppliers. Additionally, several other avenues of
engagement are deployed as deemed effective. These include:
• Inclusion of the sustainability requirements, and Supplier Code
of Conduct in the contractual instruments.
• Webinars and thematic digital connect sessions.
• 1-1 communications, keeping specific suppliers in the loop,
procurement colleagues to inform, train, and schedule
engagement on various programs.
• Dedicated training and capacity building sessions are
organized for suppliers, in group as well as 1-1 settings for
ISO 26000 and Decent Work Program
Conflict Minerals program
Regarding Conflict Minerals and Extended Minerals (Cobalt &
Mica), Schneider Electric is working with an expert third party to
analyze the collected information (CMRT & EMRT) from its
suppliers, to identify the source of the minerals in question and
ensure they are recognized as “conflict-free” within established
international standards such as the Responsible Minerals Initiative
(RMI), the London Bullion Market Association (LBMA), and others.
The data collection campaign includes all the 5 due diligence steps
recommended by the OECD. Supplier CMRTs are collected twice a
year, and in case of non-conformant or non-audited, smelters or
refiners are identified, and suppliers are contacted to work on the
removal of those SoRs from the supply chain.
All strategic suppliers are required to provide updated CMRT and
perform due diligence. Additionally, suppliers delivering products
containing Mica or Cobalt are required to complete the EMRT
(Extended Minerals Reporting Template).
2.2.3.3 Ethical relations with
affected communities (ESRS S3)
2.2.3.3.1 Context
Impacts, risks and opportunities
Affected Communities
Negative Impact
Violate rights of local communities
There is increasing research and evidence on the potential impacts
of energy transition-related industries on local and indigenous
communities. In line with its Human Rights policy and its Vigilance
plan, Schneider Electric is therefore seeking to better understand
and minimize the impacts that its activities could have on
communities throughout its value chain.
ESRS S3 defines “Affected communities” as “People or group(s)
living or working in the same area that have been or may be
affected by a reporting undertaking’s operations or through its
upstream and downstream value chain. Affected communities can
range from those living adjacent to the undertaking’s operations
(local communities) to those living at a distance. Affected
communities include actually and potentially affected
indigenous peoples”.
Schneider Electric has identified 6 categories of potentially affected
communities, which excludes people working at Schneider Electric
(described in S1), or in its value chain (described in S2).
• Local communities living adjacent to Schneider Electric’s sites.
• Local communities living adjacent to Schneider Electric’s direct
suppliers’ sites.
• People living adjacent to logistics and distribution centers.
• People living around mines in Schneider Electric upstream
supply chain, including indigenous people.
• People living adjacent to waste management sites, downstream
Schneider Electric value chain.
• People living around customer projects, in particular in the
extractive industries sector and power generation.
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2.2.3.3.2 Policy
The affected communities topic is governed by Schneider Electric’s
Human Rights Policy, specifically the section “2.1 Local
communities and Indigenous people”. Through this policy, the
Group commits to build an understanding, and engage with
communities potentially affected by its activities in its value chain,
and to minimize impacts on populations, whether local or
indigenous communities.
The policy also 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. In
case negative impact may have occurred, the Trust Line, Schneider
Electric’s internal and external alert system, can be used by
communities potentially affected by Schneider Electric’s activities
throughout the value chain to raise concerns and alerts.
Read more on the Trust Line in section 2.2.1.1.3 on
pages 102 to 107.
Schneider Electric’s Human Rights Policy is available
publicly on www.se.com
The affected communities topic also falls under the Group’s ambition
set forth in the Vigilance plan, to be a role model in its interactions
with customers, partners, suppliers, and communities on ethics and
the respect and promotion of human rights. At a later stage, some
specific policy may be drafted to further structure the framework.
The strategic part of the Human Rights policy as well as the
measurement and its full deployment is led by the Corporate
Citizenship department, composed of Human Rights experts
supported by Human Resources and Global Supply Chain
departments as well as countries, the Internal Audit team, and
Compliance functions.
Read more on the Human Rights Policy in
section 2.2.3.2.2 on pages 237 and 238.
Read more on the Vigilance Plan in section 2.2.1.2.1
on page 109.
The Duty of Vigilance Steering Committee, chaired by the
Executive Committee member in charge of the supply chain and
composed of senior leaders who represent key internal stakeholder,
is responsible for overseeing the topic of affected communities.
To better understand the topic of affected communities and its
specific issues, the Group is engaged in various coalitions,
allowing to gain insights into perspectives of affected communities:
• The United Nations forum on Business and Human Rights;
• The United Nations Global Compact (UNGC) Decent Work
initiative and Forward Faster initiative on Living Wages;
• The Taskforce on Affected Communities of the French UNGC;
• The Responsible Business Alliance;
• Responsible Steel;
• The Copper Mark.
Schneider Electric participates several times a year in initiatives,
conferences, or working groups organized by these different
organizations.
Besides its participation in these coalitions, the Group has not yet
engaged directly with affected communities. Schneider Electric is
still investigating which communities and what engagement would
be relevant.
2.2.3.3.3 Impacts and risks
The table below presents, on a 1 to 4 scale, a simplified view of the human rights risks identified for each affected community. In this report
disclosures will focus on the most material risks, that is those rated 3 and 4.
Around
Schneider Electric
sites
Around
suppliers’ sites
Around logistics
and distribution
Around
mines
Around end-of-life
management sites
Around customers’
projects
Proximity to Schneider Electric and leverage
Med
Low
Low
V. Low
Low
Med
Communities’ economic, social, and cultural rights (adequate housing,
adequate food, water and sanitation, land-related and security-related impacts)
2
3
1
4
3
3
Communities’ civil and political rights (freedom of expression,
freedom of assembly, impacts on human rights defenders)
1
1
1
4
1
3
Particular rights of indigenous peoples (free, prior, and informed consent,
self-determination, cultural rights)
1
2
1
4
1
3
This table reflects a gross impact measurement carried out by Schneider Electric’s Human Rights and Vigilance experts, using the severity
x likelihood scoring methodology.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Internal assessment used to guide scoring:
• Vigilance Risk assessment for Schneider Electric’s 30 largest
sites carried out in 2020.
• Ongoing Vigilance Risk Assessment of communities living
around customers’ projects sites (see below section
communities living around customer project sites).
External reports used to guide scoring:
• Transition Minerals Tracker: 2024 Analysis, Business & Human
Rights Resource Centre.
• 2024 Top 10 Business & Human Rights Issues in 2024, Institute
for Human Rights and Business.
• Sustainable and Responsible Critical Mineral Supply Chains,
International Energy Agency.
• The Global E-Waste Monitor 2024, United Nations Institute for
Training and Research.
2.2.3.3.4 Local communities living
adjacent to Schneider Electric’s direct
suppliers’ sites
Schneider Electric’s suppliers include companies in various
industries and countries, which could cause pollutions to soil, air, or
water, generate noise, or impact traffic around their sites, and could
potentially impact local communities.
Specific sustainable procurement programs are in place to
prevent environmental and social risks at Schneider Electric’s
direct suppliers:
• Supplier qualification process including sustainability
performance as key evaluation criteria.
• Adhesion to Schneider Electric’s supplier Code of Conduct.
• On-site and remote supplier audits as part of the vigilance plan
(SSE #17).
• ISO 26000 for Strategic Suppliers.
Read more in section 2.2.3.2 on page 236.
2.2.3.3.5 People living around mines in
Schneider Electric’s upstream supply
chain, including indigenous people
Risks related to raw material extraction and transformation in
Schneider Electric upstream supply chain are difficult to evaluate
precisely because they are located far upstream, which makes
data difficult to obtain. For this reason, the evaluation of risks is
mostly based on external reports.
According to the Transition Minerals Tracker 2024 Analysis, key
impacts on communities around mines include:
• Attacks against human rights defenders,
• Land rights,
• Personal health,
• Impacts on livelihoods,
• Impacts on indigenous rights,
• Clean, healthy, and sustainable environment,
• Access to water and
• Water pollution
Schneider Electric’s approach is to evaluate those risks and
implement prevention or mitigation plans for each material,
prioritizing them by procurement volume and human rights risks.
The Group is engaged in various programs relating to raw
materials:
• Conflict minerals program (Tin, Tungsten, Tantalum, Gold +
Cobalt and Mica)
• SSI #4 program (Aluminum, Steel, Plastics) with the ambition to
increase green material content in our products to 50%.
Read more on the methodology of SSI in section 2.4.1.1
on pages 311 to 316.
For raw materials that are necessary for Schneider Electric’s
activities and are not yet covered by one of the programs
mentioned before (such as copper), a specific study has been
started to better understand the impact of these industries. This
study will also allow Schneider Electric to investigate the existing
certifications and coalitions for these raw materials. The impacts of
the mining industry being far upstream and the leverages to act
being thus limited, the Group’s strategy is to work with other actors
to improve the social and environmental conditions of mineral
extraction through certifications and coalitions.
In addition to aiming for more certification of its raw material
procurement, Schneider Electric is accelerating its circularity
strategy to limit the consumption of raw materials, and thereby
potential associated risks.
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2.2.3.3.6 People living adjacent to
waste management sites, downstream
Schneider Electric value chain
According to the Global E-Waste Monitor 2024, 14 billion kilograms
of e-waste was estimated to be disposed of as residual waste in
2022, the majority of which is landfilled globally. The non-treatment
of this waste therefore has significant consequences in terms of soil
and water pollution and impacts on biodiversity. Moreover, 18
billion kilograms of e-waste was estimated to be handled in low-
and lower-middle-income countries with no developed e-waste
management infrastructure, mostly by the informal sector. The lack
of adequate infrastructure can therefore also impact the health of
individuals who find themselves managing this waste through the
informal sector.
In the downstream value chain, Schneider Electric is actively
working to secure compliance with local regulations, including the
WEEE Directive (Waste from Electrical and Electronic Equipment)
and the Batteries and Battery Waste Regulation. These EU laws
incorporate Extended Producer Responsibility (EPR) provisions,
compelling Schneider Electric to prevent products within scope
from ending up in landfills at their end-of-life.
Also, our electrical and electronic equipment products include end-
of-life instructions, offering customers guidance on safe
management and disposal when they become waste.
2.2.3.3.7 People living around customer
projects, in the extractive industries
sector and power generation
Ongoing customer projects
Since 2021, Schneider Electric extended its Vigilance risk
assessment to cover local communities residing close to sites
where the Group is implementing projects for customers. This
analysis was conducted remotely through interviews with customer
project managers. These projects can be, for example, the building
of an electrical switchgear station to distribute electricity, either to a
grid or to large private users. Depending on the profile of the
end-customer, these projects necessitate the on-site coordination
of several types of contractors. Relationships with local
communities, when relevant, are usually handled by the main
contractor, or by the end-customer.
To identify the main sites presenting potential risks, Schneider
Electric has pre-selected customer projects based on the
combination of two criteria – country risk and customer activity.
40 customer projects have been selected for a review.
Projects reviewed can be grouped into three categories, each
reflecting the type of involvement of Schneider Electric, and the
mitigation capabilities of Schneider Electric.
• Type 1: Schneider Electric provides switchgear and/or industrial
equipment, is also the main contractor for the project, and is
present on site. Mitigation actions can be decided and
implemented by Schneider Electric.
• Type 2: Schneider Electric provides switchgear and/or industrial
equipment, but it is not the main contractor. Mitigation
capabilities are limited.
• Type 3: Schneider Electric provides software and control, and is
mostly working remotely, being present on site only for final
testing and commissioning. Mitigation capabilities are very low.
As of end 2024, 30 projects have been reviewed and results can be
summarized as follows:
Type 1: 2 projects - Schneider Electric operating as the main
contractor
• Renovation of medium voltage electrical substations.
• Very large city, dense urban area.
• Sites already existing, limited surface (1 building).
• Limited civil work (refurbishing) in a closed area.
• Almost no impact on population living nearby (two-days street
closing).
Type 2: 19 projects - Schneider Electric as on of the suppliers
to a large contractor or customer
• 9 projects are medium voltage equipment ex-works delivery: no
presence on customer site.
• 2 projects are reinforcements of safety systems on existing
mining sites.
• 4 projects are very large new projects on land.
−3 are for a customer expanding a refinery
• Large civil work on previously unoccupied land.
• End-customer and local authorities are in charge on site.
−1 is for a customer building an irrigation network for
agriculture.
• Location in a semi-desertic area – no population living on site.
• 4 projects are new Data Centers
Type 3: 9 projects
• Projects are mostly software systems, that do not involve any
on-site work as there is no hardware to deliver and install.
Although this analysis is done on a limited sample, it points to the
following conclusions:
• A large majority of Schneider Electric projects are having limited
impact on local communities as they are either:
−Not located close to any populated area;
−Taking place on already built facilities;
−Delivered ex-works to the client, with no on-site involvement
from Schneider Electric; and
−Involve software offers only, that are entirely delivered
remotely.
• A minority of projects involve large civil works on-site, that may
affect the local environment or local communities. This almost
only happens when the end-customer is conducting a complex
and highly specialized project (refinery, factory, extraction site,
etc.). In these instances, Schneider Electric is only one of the
several vendors, and does not handle relations with local
population. In such cases however, Schneider Electric wishes to
apply the highest level of ethical and responsible commitment in
its relations with the end-customer to ensure that the project
complies with high sustainable and ethical standards.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Focus on EACOP project
EACOP (East Africa Crude Oil Pipeline), along with the Tilenga
project, is operated by a joint venture between two states
(Uganda and Tanzania), and two private companies (CNOOC and
TotalEnergies). It consists of several extraction sites, and a pipeline
to connect these sites to a port on the Indian Ocean coast.
The Group provides equipment for the supervision and safety of
the infrastructure and contributes to the integration of renewable
energy sources to reduce the CO2 emissions.
Schneider Electric has commissioned an independent third-party
expert, to conduct a risk assessment based on the International
Finance Corporation performance standards on Environmental and
Social Sustainability. The assessment has been updated with the
status of discussions with the EACOP joint venture, local
stakeholders (Individuals or NGOs) and Total Energies. In addition,
Schneider Electric organized two field visits on the project site (in
Uganda and Tanzania), led by its Chief Compliance Officer.
Based on these assessments and observations, Schneider Electric
estimates that EACOP joint venture, local authorities, and local
stakeholders are addressing the environmental and human rights
concerns raised by certain local stakeholders and media outlets.
As the project continues, Schneider Electric will continue to engage
with stakeholders and to monitor relevant remediation actions.
Overall, Schneider Electric is confident that the work with EACOP
is consistent with its ethical and sustainability standards.
Customer projects process
Due to the acceleration of infrastructure linked to the energy
transition and the potential risks on local communities, the Group
introduced evolutions in its project decision-making process. From
the moment a business opportunity is identified to the moment it
becomes an official offer from Schneider Electric to the customer, a
project goes through several selection milestones that ensure its
technical, operational, legal, and financial feasibility. Crucial
milestones have been added over the last years to that process, to
reinforce its compliance to the highest ethical, environmental, and
human rights standards, following the 8 International Financial
Corporation Standards (IFC).
An early analysis to identify environmental and human rights risks
that the project may create for the ecosystems and communities
potentially affected was added to the Customer Project Process.
This risk assessment can be reinforced by an expert third-party
report whenever needed. The risks are prioritized and escalated
through the selection process to ensure that any decision is
consistent with the highest ethical and human rights standards, and
that any project execution plans for the adequate prevention and
mitigation actions to be implemented. Below is a summary of this
process:
Risk assessment process
New project opportunity
ESG risk classification based on:
Country risk level
Market segment risk level
ESG questionnaire
Low Risk Project
Medium or High Risk Project
Extreme Risk Project
Screening tool:
To ensure no corruption risk
Deep dive analysis
Committee composed of Schneider
Electric leaders
Project continuation
GO
GO
NO GO
2.2.3.3.8 Opportunities
Beyond mitigating the negative impacts linked to its value chain,
Schneider Electric also seeks to have a positive impact by
implementing various programs on employment, education,
training, entrepreneurship, women empowerment, infrastructure
improvement, access to green energy, and non-discrimination
(based on ethnicity, gender, religion, etc.). The absence of such
initiatives by Schneider Electric could lead to adverse
consequences, such as the perpetuation of inequality, a lack of
opportunities for marginalized communities, and a deterioration of
living and working for the individuals concerned.
Read more on these programs in section 2.3.2
on page 293.
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E S R S S 4
2.2.3.4 Consumers and end-users
(ESRS S4)
2.2.3.4.1 Personal safety of consumers
and end-users
Context
Schneider Electric deeply values the trust that customers and
employees place in its products and services to ensure their safety
and protect their property. Learning from events in other industries,
Schneider Electric understands the importance of quality to
customers and the potential brand damage that can result from a
loss of trust and perceived quality. Consequently, Schneider
Electric has elevated its already high standards to set a new
benchmark for quality in the industry. Continuous quality
improvement is now a central element of the organization’s strategy
and is fundamental to achieving its overall business purpose and
mission. Recognizing the benefits of delivering superior quality, the
Group has accelerated its Company-wide quality transformation.
Impacts, risks, and opportunities
Personal Safety of consumers and end-users
Negative Impact
Trigger physical harm or property
damage
Schneider Electric operates globally with a wide-ranging portfolio
of customer solutions. The corresponding complexity of the
product portfolio and supply chain brings with it risks and
opportunities for quality. Many of the Group’s solutions serve
mission-critical industries where product quality and safety are a
critical topic. Consumers and end-users subject to product usage
risks and defaults in implementation resulting in physical harm or
property damage are mainly panel builders, system integrators, IT
solution providers, electricians, digital and service providers,
specifiers, and end-users. All these consumers and end-users are
mentioned as well in the General Disclosure section (please refer to
the section ESRS 2).
Product malfunctions or failures could result in Schneider Electric
incurring liabilities for tangible, intangible damages, or personal
injuries. The failure of a product, system, or solution may not only
pose a risk to the physical integrity or property of our customers,
but it can also entail costs related to the product recall, result in
new development expenditure, and consume technical and
economic resources, on top of brand or reputational damage.
Schneider Electric’s products are also subject to multiple quality
and safety controls governed by national and supranational
regulations and standards. Maintaining compliance with new or
more stringent standards or regulations could result in capital
investment. At the end of the day, these quality controls pretend
to impact positively all the consumers and end-users mentioned
above. Risks identified by Schneider Electric about product,
project, system quality, and offer reliability can be:
• Design-related safety, compliance, and quality concerns
• Manufacturing and logistic problems
• Field execution and services related
• Software security and quality
• Supplier and supply chain related
The risk on design-related safety and quality concerns can
specifically have negative impacts on the consumers in the middle
of the value chain, such as electricians or panel builders. The
above-mentioned risks could significantly impact the Group’s
financial performance. The business reputation of Schneider
Electric could also be negatively impacted. Indeed, the Group has
been impacted by 23 approved product recalls in 2023. With the
quality transformation, Schneider Electric has focused on
correcting and preventing the reoccurrence of quality issues,
seeing a substantial reduction in the number of safety-related
product recalls to 5 in 2024, and established the visionary goal to
eliminate product recalls by 2025 (SSE #15).
The full understanding of the different risks that can occur to our
consumers and end-users is also frequently done throughout the
year thanks to a deep analysis of all the product recalls Schneider
Electric is receiving. This continuous analysis enables us to drive
our activities and our quality guidelines in the direction of a proper
personal safety of our consumers and end-users.
Schneider Electric Quality Policies
In 2023, the Group elevated our commitment to quality though a
new Quality Policy, stating:
“We rise to a new challenge! Meeting quality, product safety, and
reliability requirements is our baseline at Schneider Electric; but we
aim for more! Our customers expect nothing less than continuous
improvement and innovation beyond expressed needs, to set new
industry standard. Quality, product safety, and reliability demand
the active engagement of all, without exception because the quality
of our solutions is the safety of our customers.”
The policy of Schneider Electric is to only propose products,
solutions, and services which are safe when properly used for their
intended purpose or for other reasonably foreseeable purposes. In
this sense, Schneider Electric Quality Policies contribute to a
continuous effort from our Company to avoid any product usage
risks and defaults in implementation resulting in physical harm or
property damage.
At Schneider Electric, the “Customer Satisfaction and Quality
network” covers all layers, functions, global supply chain,
operations, and lines of businesses.
Schneider Electric’s Quality Policies are available to
all stakeholders including consumers and end-users
on www.se.com
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Identifying, addressing, solving and
preventing safety quality issues
In line with the Quality Policy, it is the obligation of Schneider
Electric to notify customers of any known safety issues caused by
its offer that may result in bodily injury or property damage, and
include instructions for immediate remedial actions, even after the
end of the useful life of the offer.
To address this requirement, Schneider Electric has implemented
several quality directives that require the application of systematic
processes to properly address potential offer safety issues
discovered inside or outside Schneider Electric.
These processes are to be used for all offers sold or manufactured
by Schneider Electric:
• Quality Directive “Managing Customer Safety Risks”. This
directive requires the application of Schneider Electric’s
systematic processes to properly address potential offer safety
risks of bodily injury or property damage discovered inside or
outside Schneider Electric. These processes are to be used for
all offers sold or manufactured by Schneider Electric.
• Quality Procedure “Offer Safety Review”. The overall objective
of offer safety is to reduce the risk arising from the use of
Schneider Electric’s products, solutions, or services throughout
their lifecycle. Offer safety reviews are conducted by Offer
Safety Review Committees and are used to focus attention on
safety and help ensure that offers are safe when properly
installed (based on safety manual), maintained and used for
their intended purpose and other reasonably foreseeable use or
misuse.
• End-to-End “Issue to Prevention” (E2E I2P) process. E2E I2P is
designed to identify, address, and solve quality issues affecting
the customer, and to understand and correct the root causes at
the source of the issues and learning from that understanding to
prevent the reoccurrence of similar issues in the future.
End-to-End Issue-to-Prevention (E2E I2P) Process
Issue To Resolution
Prevent issues
Solve issues
Fix systemic and severe problems
Problem to Prevention
Efficient Resolution and Prevention of customer issues for
increased customer satisfaction and zero safety issues.
Partner,
SE Employee
Offer Safety
Officer (OSO)
Problem (PRB)
Safety Related
Offer Safety Alert (OSA)
Supplier Problem (SUPPRB)
Offer Safety
Issue (OSI)
Complaint/
Request (CR)
Business Risk
Escalation (BRE)
Technical Expert
Assessment
(TEX)
Problem (PRB)
Non-Safety Related
Supplier Problem (SUPPRB)
Return
Request(RR)/
Parts Order
Field Service
Bulletin (FSB)
Customer
Major
Issue
(CMI)
Customer
Care
Data
Analysis
8D for 100% of significant high PRB
to avoid offer quality reoccurrence,
including on look-across.
Capitalization and
Transversalization
Offer Safety
Officer (OSO)
P2P Expert
Lessons Learned
Offer
Development
Quality
Fundamentals
OSR
OSR
OSR/LRC
Offer
Maintanance
Offer
Launch
Heat Map
DfSR
Industry
Fundamentals
Installation
Fundamentals
Process
Fundamentals
Process Health
Dashboard
Containment (XA)
Correction
Prevention
Follow-up
until Closure
Partner,
SE Employee
Offer Safety Alert
Committee (OSAC)
Offer Safety Alert
Prevention Board
(OSAP)
Case
When our consumers and end-users are using the Customer Care service, a short satisfaction survey is proposed to evaluate their trust in
our structures and processes, and to raise their concerns or needs and have them addressed. Contact information of our Customer Care
service is available in the different communication and packages that we are continuously sharing with our consumers and end-users.
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How the process works
Within the End-to-End Issue to Prevention process, and in line with
the Quality Directive “Managing Customer Safety Risks”, Schneider
Electric has defined and implemented a robust process for
managing safety issues related to its offers.
Any occurrence, or near-miss situation, of bodily injury or property
damage which is potentially attributable to any Schneider Electric
offer must be reported as an Offer Safety Issue (OSI) within 24
hours of awareness by any Schneider Electric employee, or
partner. Reporting an OSI does not imply liability or
acknowledgment of a safety risk caused by an Schneider Electric
product, but it does guarantee that the potential safety issue will be
analyzed and eventually confirmed as a safety risk by the
appropriate experts. The process emphasizes that concerns about
sensitivity, confidentiality, or potential recovery costs should not
delay reporting. If anyone feels pressured not to report an OSI, they
should use the Schneider Trust Line.
Once an OSI is confirmed as a safety risk by the appropriate
experts, the Offer Safety Alert process is triggered. A Problem
Leader is appointed to form a team to address the issue, involving
various departments such as Line of Business, Offer Management,
Field Services, Legal, and others. The team identifies the potentially
affected products and customers and prepares a communication
strategy to effectively reach all customer categories.
The Problem team immediately implements the urgent actions
needed to contain the issue, and then submits to the Offer Safety
Alert Committee (OSAC) the risk analysis, the draft customer safety
notification, and the proposed remediation action plans. Based on
these key elements, the OSAC will give a “Go” or No-Go” decision.
In case of a “Go” decision, the Problem team will proceed to notify
the potentially affected customers and to implement the
remediation action plans.
If the OSAC gives a “Go” decision, the Problem team then refines
the remediation plan, including finalizing and approving the
Product Safety Notice, Customer Letter, and supporting
documents. The team must also ensure the supply chain readiness
for the remediation actions execution and must define an internal
communication plan for various stakeholders.
Once the remediation plan is kicked off, Remediation Action
owners are appointed in each one of the Front Office organizations
in the relevant countries. They are responsible for sending the
Safety Notice to customers as soon as possible after the OSAC
“Go” decision, and tracking customer acknowledgments. The
Customer Containment Action owner keeps the containment action
open until completion and submits it for Country President
approval. The Country President reviews the containment action
closure data and evidence, before approving its closure.
The Problem Leader schedules regular OSAC follow-up meetings
and a closure meeting once all actions are completed and
validated.
This comprehensive process ensures that safety issues related
to Schneider Electric offers are promptly reported, analyzed,
contained, and remediated, with clear communication and
coordination among all involved parties.
Putting the Quality Strategy into Action
1.
Quality
care
2.
S&R-0
Compromise
3.
Strict and efficient
change
management
4.
Highest applicable
standards
5.
Enhanced audits
6.
Situation-specific
problem solving
7.
Leverage lessons
learnt
8.
Governance
and acceleration:
obeya/gen(m)ba
/ kaikaku
QMS/Excellence Roadmaps
Design phase
Launch
Mass Production
Field Execution & Reliability
Hardware
/ Systems
Software
Parts
Quality
Program Launch
Production &
Distribution
Projects & Field
Execution
Service/Field
Reliability Product
Parts
Planning & Assurance
Quality Control
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Quality strategy
Schneider Electric’s Quality strategy seeks to embed quality
throughout each value stream from the earliest moments of design,
through industrialization and launch, in production and supply
chain, and in the field. In each of those lifecycle phases, the key
principles are applied. In 2024 the Group made significant
progress in the Quality transformation.
Building a quality culture, the Group emphasizes the role and
responsibility of every employee from the front line to the CEO for
Quality as highlighted in the new Quality Policy. A Quality Academy
was created with the mission to enable employees throughout the
Company with learning and development. The Group also
launched Quality Fundamentals across the value stream and held
hundreds of radical week-long Quality Improvement workshops
wherein thousands of employees learned the Quality Fundamentals
through hands-on kaizen-style implementation.
Quality Management System and
internal audit
Strengthening and simplifying the Quality Management System
(QMS) processes and internal audit. To ensure complete
implementation and disciplined adherence to processes, the
Group is significantly strengthening the quality of the Internal Audit
program. This program will now cover both system audits and
process audits simultaneously, evolving internal audits into valuable
tools for continuous improvement and risk mitigation. Furthermore,
Schneider Electric has enhanced collaboration with certification
bodies to ensure adherence to globally recognized quality
standards and to increase the value of audits beyond mere
compliance.
The scope of audits within the QMS has expanded to encompass
compliance, strategic alignment, process optimization, and
continuous improvement. This approach adds value by uncovering
insights that drive meaningful changes and contribute to the overall
success of the organization. In highlighting the Group’s
commitment to continuously improving the QMS, fostering
collaboration with external stakeholders, and leveraging audits as
powerful instruments for driving positive change, we demonstrate
our dedication to excellence.
Quality in design phase
The Group accelerated its commitment to safety, reliability, and
robustness with the launch of a brand-new Design for Safety and
Reliability Standard with new mandatory Quality Fundamentals for
Design domain, to increase both safety, robustness, and reliability
of new offers; the Customer Satisfaction and Quality (CS&Q)
function puts a strong focus on stopping any launches that do not
comply to quality standards. In addition, roles and responsibilities
were better defined and the number of resources focused on
design quality has greatly increased.
Recognizing the importance of software and firmware, Schneider
established a new Software Quality Leader position and created
Software Quality Fundamentals based on Development, Security,
Operations, and Agile development principals.
Quality in industrialization and launch
Through the process improvement efforts, the Group recognizes
the opportunity to integrate and strengthen existing industrialization
procedures with “Advanced Product Quality Planning” (APQP)
which seeks to introduce new products with outstanding quality. As
APQP matures it would enable the Group to bring together the
Design, Industrialization, Manufacturing, and Service teams to
co-create solutions that are more reliable, robust, manufacturable,
and serviceable, contributing to the sustainability goals of the
Group.
Therefore, the Group reinforced quality in industrialization by
adding Quality Fundamentals, based on APQP from the Automotive
Industry Action Group, for prototypes, pre-series, and launch.
Roles and responsibilities were redefined, and the resources
refocused on industrialization quality will continue to expand. This
adoption of the highest applicable standard positions Schneider
Electric for even more proactive identification, prioritization, and
mitigation of product and process risks. This “zero-defect” and
data-driven program aims to ensure our products achieve 100%
first time right and on-time flawless launches. The resulting safety,
robustness, quality, and cost optimization strives to exceed our
customers’ expectations.
Quality throughout the supply chain
Demonstrating its zero compromise on safety and regulatory
requirements, the Group rigorously sustains a living Potential
Failure Mode and Effects Analysis process whereby the most
important risks are identified, and in 2023 a breakthrough level of
risk elimination or mitigation actions were taken across the supply
chain.
The Group pursues a twin strategy of “back to basics” while it
accelerates and leverages its digitization. The “quality basics” were
developed and are being deployed or strengthened across the
Group. To deploy the quality basics special radical change events
(kaikaku) were held to immediately implement quality basics in all
regions and products, implementing the basics on hundreds of
manufacturing and distribution center lines across the Company.
The radical change events serve to build quality capability in
participants and organizations, further strengthening the Group
quality culture.
To further the quality culture and accelerate transformation, the
Group developed a Quality Index to measure quality-centric
behaviors and outcomes for all plants and distribution centers. The
new Quality Index provides transparency and focus to the quality
transformation; recognizing leading plants for their quality and
identifying any lagging plants to allocate regional or global
resources for success.
Shifting from reactive to proactive quality, the Group has
strengthened its change management processes wherein changes
to the supply chain are now evaluated early and at key milestones,
and their potential risk and quality gaps are closed before the start
of production, preventing potential problems from ever occurring.
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Three major initiatives were launched with our supply base in 2023.
First, the Supplier Qualification process was analyzed and updated
for efficiency and robustness including the addition of the Quality
Fundamentals, addition of software supplier qualifications, and
counterfeit component programs. Second, the Group is
standardizing on widely known APQP process with external
suppliers for new project offers. In addition to new offers, the Group
launched a program to apply Production Part Approval Process
(PPAP) to legacy critical parts and changes of suppliers. Finally, in
support of the strategy, the Group continues to invest in building
quality expertise, most recently expanding battery and electronics
competencies.
The Group continued the implementation of digital solutions for real
time process control and statistical process control, traceability,
and other digital capabilities to over 500 manufacturing lines.
Leveraging Schneider Electric’s formidable Smart Factory
capabilities, the Group is innovating ways to digitally build-in
quality. From process quality assurance and control to reducing
administration, the Group has identified hundreds of applications
for Artificial Intelligence (AI) and Machine Learning.
Quality in projects and field services
The Group enhanced the efficiency of service and project
execution by incorporating risk management and mitigation
strategies throughout the entire process, from offer definition to
maintenance. The Group also so integrated Quality Fundamentals
for Projects and Services into daily activities to strengthen
processes and establish standardization for proactive
identification, prioritization, and mitigation of risks. By implementing
this approach, we seek to improved safety, robustness, quality, and
cost optimization, surpassing our customers’ expectations while
ensuring their safety. Additionally, this will help us establish
consistent standards across the Company.
Quality improvement
Schneider Electric’s “Issue to Prevention” process continues to
deliver valuable insights to root causes of problems and their
responding improvement opportunities. The process was further
strengthened through the implementation and verification of
corrective and preventive actions, and by creating a mechanism to
share learning horizontally across the Group.
All these actions cover all layers, functions, global supply chain,
operations, and lines of businesses.
Target
Through the combined effects of the enforcement of the Offer
Safety management process and the deployment of the actions
described above, the Group made progress setting a new
standard for the industry by declaring its ambition to drive toward
zero recalls by the end-2050 horizon. This ambition is materialized
by the implementation of the SSE #15.
Read more on the methodology of SSE in
section 2.4.1.2 on pages 316 to 321.
2.2.3.4.2 Data privacy
Impacts, risks and opportunities
Data Privacy of consumers and end-users
Negative Impact
Risk private and sensitive information
leaks
Schneider Electric strongly supports the fundamental rights to data
privacy and protection and believes that the global implementation
of a digital strategy must reconcile economic objectives and
respect for fundamental human rights, including the right to
protection of personal data and privacy. Our Data Privacy Policy
is designed to reflect the fundamental principles of privacy and
personal information protection.
Schneider Electric provides connected solutions to consumers
to make their homes sustainable and to manage their home and
electric vehicle energy consumption and production. Some of
these solutions involve information relating to consumers’ lifestyle
which, in case of a security incident leading to their disclosure,
could potentially have a material negative impact on the private life
of consumers. A data breach of this kind could affect the trust
vested in the Company by its customers, have an adverse impact
on its reputation and expose the Company to fines including GDPR
fines for non-compliance with the security obligation under article
32 of GDPR (up to 4% of the global annual turnover). The Company
has no track record of this risk to consumers’ private life having
materialized. Schneider Electric cybersecurity and data protection
policies, processes, and measures are designed to minimize
its likelihood.
To be transparent to consumers about data protection, the
Company engages with them through various touch points.
Consumers browsing the Company’s website can access the
online data privacy policy and cookie notice of the Company for
information about online data processing activities. For specific
information about data processing activities (processing purposes,
data categories, data sharing…) carried out in the framework of
connected product offers, consumers can consult the related
privacy notice, prepared considering internal Privacy Notice
Guidelines.
Additionally, consumers can contact Schneider Electric to exercise
their data protection rights at the email address: Global-Data-
Privacy@schneider-electric.com or on a web form available in the
online privacy policy (country rollout in progress). They can also
raise questions on data processing or data protection or make a
claim at this email address: DPO@schneider-electric.com or this
post mail address: DPO, 35 rue Joseph Monier CS30323, 92506
Rueil-Malmaison – France. Our CCC (Customer Care Centers) are
also available for customer requests.
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2.2 Sustainability statements
Various mechanisms are available to collect and address consumers’
concerns related to a data protection risk. Schneider Electric has
put in place a Trust Line, where anybody can report a violation of
our Trust Charter, our policies, or the law.
The Trust Line can be accessed at
https://www.se.com/ww/en/about-us/sustainability/
responsibility-ethics/trustline/
Schneider Electric has implemented a process where anybody can
report security vulnerabilities or incidents so they can be
addressed by our SOC, which operates 24/7/365.
Reports can be made externally to
https://www.se.com/ww/en/work/support/
cybersecurity/report-an-incident.jsp
Internal reporting channels are also available. Potential data
breaches are considered as Priority 1 incidents which are
investigated, assessed, and remediated in accordance with our
Cybersecurity Incident Management Policy by teams involving
security and privacy contacts. Also, as indicated above, internal
processes are in place to collect and then address individual rights
requests and claims by consumers in a timely manner with relevant
teams and the support of privacy contacts in countries and the
DPO Office.
Description of policies
Policies
The Company’s Trust Charter, Data Golden Rules, Data Privacy
Policy, Binding Corporate Rules (BCR), cybersecurity policies, and
internal standards and procedures provide the foundation for our
global commitment to the protection of consumers and end-users’
data privacy and protection. They address key data privacy and
protection controls such as:
• Data Privacy Principles of purpose limitation, fairness and
lawfulness, proportionality, data quality, individual rights
protection, security, and storage limitation (Data Privacy Policy,
BCR, Privacy by Design Guidelines).
• Data sensitivity (Data Classification Policy, Data masking
Standard).
• Vendor management (Data Privacy Policy and Supplier Security
Management Policy).
• Data retention limitation (Data Retention and Data Deletion
Policies).
• Accountability (Data Privacy Policy, Digital Certification
Procedure).
• Security (User Access Management, Password & Authentication
Requirement, Network Security, Back-up and Recovery and
other cybersecurity policies).
• Data breach management (Cybersecurity Incident Management
and Crisis Simulation policy).
• Data localization and Cross-border data transfers (Data Privacy
Policy, BCR, In progress: Data Residency Policy).
The Company’s overarching General Information Security Policy
and all supporting security policies are in line with broadly
recognized standards and regulations such as ISO 27001, NIST
Cybersecurity Framework, ISA/IEC 62443).
The Data Privacy Policy has been drafted and updated in 2024
taking into consideration the General Data Protection Regulation
(GDPR), California Consumer Privacy Act (CCPA), and Personal
Information Protection Law (PIPL).
The Company’s Privacy by Design Guidelines, reference document
for developers of product offers, have been drafted in
consideration of multiple recognized frameworks, including GAPP
– Generally Accepted Privacy Principles (2009), ISO 29100:2011 –
Information technology – Security techniques – Privacy framework
(2011), OECD – Privacy Framework (2013), APEC – Privacy
Framework (2015), Council of Europe – Convention 108+ (2018),
and regulations including the General Data Protection regulation
(GDPR), California Consumer Privacy Act (CCPA) and Personal
Information Protection Law (PIPL).
The Company closely follows regulatory and standards evolutions
and trends. It is:
• A founding member of the ISA Global Cybersecurity Alliance
and a member of both the Paris Call and Cybersecurity
Coalition.
• A signatory of the Cybersecurity Tech Accord and works with
partners towards addressing supply chain security.
• An active contributor to the WEF’s Cybersecurity Center, sitting
at the advisory board of its Oil and Gas group to strengthen
resilience across the industry, leveraging collective intelligence
and expertise.
• A Gold Member of the IAPP, International Association of Privacy
Professionals.
• An active contributor to the CEDPO – Confederation of
European Data Protection Organizations- and AFCDP-
Association Française des Correspondants à la Protection des
Données (French association of Data Protection).
Governance
Cybersecurity and data protection policies are foundational to the
Group’s security and data protection posture as they are
compulsory for all employees and contractors. These policies are
made available to employees on the Company intranet in a policy
dedicated platform. The Company’s internal Data Privacy Policy is
also accessible in a link available at the bottom of the Company
intranet and in a Data privacy dedicated page. Company policies
set management’s tone and provide requirements for secure
behaviors (people), practices (processes), and environment (data
and technology) throughout the Company.
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The Company’s data governance ecosystem revolves around a
network of Data Officers, coordinated by a Chief Data Officer, and
Data Privacy Champions in geographies and functions, who are
responsible for implementing the Company’s Data Golden Rules
and Data Privacy Policy within their perimeters. A Group Data
Protection Officer (Group DPO), a DPO Office, and a network of
privacy contacts in key countries advise on data privacy
obligations and monitor compliance.
A central body governs the Company-wide cybersecurity portfolio,
coordinating the execution of strategic and operational initiatives,
and orchestrating a broader community of security practitioners
distributed across businesses and territories.
Action plan
Schneider Electric has been building its data protection program
around various processes including:
• The Digital Certification process, which requires each digital
asset used or provided by the Company to be assessed in light
of security and privacy controls before going live as required by
a Digital Certification Policy and Procedure;
• Processes for the management of individual rights requests via
central contact points from where requests are dispatched to
appropriate owners and answers prepared in coordination with
the DPO network under an internal procedure. A request
collection form and a workflow management tool (One Trust) is
being rolled out (2024-2025);
• A procurement process requiring the conclusion of Data
Protection Addendum with suppliers processing personal
information on behalf of Schneider Electric;
• A data processing register which inventories data processing
activities;
• Process and organization to identify, investigate, manage, log
data breaches, and to notify impacted parties; and
• A maturity matrix which enables to follow progress in the
management of personal information protection.
Moreover, the Company Offer Creation Process/Offer Lifecycle
Management provides product specification requirements,
including Cybersecurity and Privacy, into system requirements to
guide and control the product design. The Secure Development
Lifecyle (SDL Policy) requires that products embed data privacy
and protection controls into our product offers. Privacy by Design
Guidelines and Requirements provide references for developers to
translate privacy principles into interface and architecture designs.
Once the development lifecycle concludes, the product offers
undergo various risk-based assessments, which include the Formal
Cybersecurity Review (FCSR), Mobile Apps Governance and the
Digital Offer Certification (Digital Certification Policy).
Additionally, processes are in place to report data breaches. Their
investigation and remediation are managed by SOC and
cybersecurity and privacy teams under the Company’s Cyber
Incident Management Policy.
The Company regularly revisits and strengthens its data protection
processes and measures. Several actions are ongoing, including:
• Schneider Electric has been rolling out a data protection
program in Europe, the USA, China, India, and other key
countries through its Data Golden Rules checklist and a Data
Privacy Playbook which provides in particular for a governance
model, data privacy awareness, the inventory of data
processing activities, the provision of privacy notices, the
identification of activities requiring DPIAs and their performance
and supplier DPAs. A maturity assessment of each country is
performed bi-annually to measure progress. A new version of
the Data Privacy Playbook will be released by the end of 2024
and deployed in 2025. The current maturity assessment model
was reassessed in Q4 2024 with the objective of implementing a
revised model in 2025.
• Several training and awareness campaigns are conducted
within Schneider Electric each year to sensitize and educate its
workforce on data protection and security risks and
requirements. They are either general or tailored to a specific
population in countries or functions (e.g., Marketing, CCC, HR).
In 2024, Schneider Electric Essentials trainings, mandated to all
employees, have addressed data protection and security
requirements: “Data Fundamentals: Managing Data Risks” and
“Cybersecurity for Schneider Electric 2024”. A new version of
the general data privacy training has been developed in Q4
2024 and will be rolled out in 2025. A training for privacy
advisors – a new role to advise in product development teams –
has been designed in 2024, with a rollout plan to be defined in
2025. This training includes practical guidance on how to
ensure data protection compliance in products and services
(“privacy by design”).
• In order to facilitate the exercise of their data protection rights by
consumers, Schneider Electric is implementing a web form
which will be available on se.com in each country online data
privacy policy. The rollout happened at the end of 2024 and in
the course of 2025. The management of these requests will be
supported by a workflow management tool to ensure a
streamline process.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.4 Governance information (ESRS G1)
This section presents comprehensive information on the European
Sustainability Reporting Standards (ESRS) G1. This standard
guides the buisness conduct. The alignment with this standard
creates a robust framework to address the pressing governance
challenges of our time.
This section is divided in three subsections:
1. “2.2.4.1 Zero-tolerance for corruption”
2. “ 2.2.4.2 Supplier Relationship Management and late
payment prevention”
3. “2.2.4.3 Cybersecurity”
2.2.4.1 Zero-tolerance for
corruption
2.2.4.1.1 Context
Corruption is illegal and refers to the abuse of entrusted power for
private gain. It damages ecosystems by eroding trust and
confidence, which are crucial for sustainable economic and social
relationships. Additionally, corruption poses threats to the rule of
law, democracy, and human rights. It undermines good
governance, fairness, and social justice, distorts competition,
hampers economic development, and jeopardizes the stability of
democratic institutions and the moral fabric of society. In recent
years, global anti-corruption regulations have been strengthened.
Many countries now have stricter controls and impose sanctions for
misconduct to combat corruption effectively.
2.2.4.1.2 Impacts, risks and
opportunities
Corruption and bribery
Risks
1. Debarment from public tenders or
public funds
2. Potential legal proceeding,
prosecutions, sanctions and fines
3. Reputational damage
Opportunities
1. Strengthen legal compliance and
public reputation
2. Reinforce stakeholder engagement
and loyalty
Engaging in corruption exposes organizations to legal
proceedings, prosecutions, and sanctions for companies and
individuals. Companies accused or convicted of illicit behavior may
then suffer a serious public relations backlash and expose
themselves or individuals to being debarred from public tenders/
public funds. They may also be subverting local social interests
and/or harming local competitors while the cost of funding
corruption may be perceived by investors as a hidden “tax” or
illegal overhead charge, thereby increasing costs for companies,
and further down the chain, their customers.
Schneider Electric’s exposure to corruption risk materializes
through various negative factors, in particular:
• Pressure on Schneider Electric’s own employees to participate
in corrupt practices, potentially leading to personal judicial
consequences, and a decline in employees’ morale and
engagement; and
• Pressure on suppliers, channel partners, and contractors to
participate in corrupt practices, pay bribes to secure contracts
or payments.
Moreover, the Group faces significant legal and reputational
consequences associated with corruption, including:
• Legal consequence: potential fines related to non-compliance
with laws and regulations, such as December 9, 2016, French
law known as the Sapin II law, which could result in fines of up to
EUR 500 million.
• Reputational consequence: reputational damage with media
exposure, potentially impacting stakeholder trust and brand
perception.
To meet the legal obligations specified by the Sapin II law, the
Company launched a risk mapping exercise focusing on corruption
risks in 2018. In 2024, this risk assessment was updated as part of
the new Ethics & Compliance risk mapping.
The process at regional level was as follows:
• Step 1 – each region defined its local risk universe considering
local specific risks.
• Step 2 – each region assessed its gross risks and effectiveness
of its local mitigation measures, generating a mapping of
regional net risks. In addition, a global risk mapping was
consolidated at Group level.
• Step 3 – each region defined action plans to reduce the risk
exposure. In addition, a set of global action plans was
established at Group level.
Separate from the risk assessment carried out in 2024, Schneider
Electric established specific risk maps for newly acquired entities
currently being integrated.
Based on the Ethics & Compliance risk mapping results, Schneider
Electric adopts a risk-based anti-corruption program. To this end,
Schneider Electric focuses on “at-risk” employees in third party-
facing roles and therefore are involved in activities representing
potentially a risk exposure from a compliance standpoint. They are
identified through job activities based on risk assessment results,
Internal Audit recommendations, and whistleblowing cases. The list
is reviewed yearly to update job codes and add new ones if
needed, based on HR reviews and new risk identification. The 2024
list contains 474 different job codes categorized into various job
families. 85% of the affected population is distributed across the
following key job families: Customer Projects & Services, Finance,
Sales, Procurement, and Marketing. Other job families include
Digital Innovation & Technology; Environment/Sustainable
Development; General Management; Human Resources; Industrial/
Manufacturing; Supply Chain Planning; Logistics; Customer
Satisfaction & Quality; Technical; and Utilities/Facilities.
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By contrast with those risks, there is competitive advantage in
approaching this proactively. Companies can experience
significant improvements when they hold themselves to high
standards of integrity. The primary benefits range from increasing
employee satisfaction, improving workplace culture, maintaining
legal compliance, and strengthen public reputation. It can also
reinforce the engagement and loyalty of customers, partners,
suppliers, and local communities.
Multiple studies indicate that companies that have anti-corruption
measures significantly increase profits compared to companies
that do not. Indeed, such an approach will attract customers,
investors, employees, and suppliers who are concerned about
risks as well as those who value integrity. It is then translated
directly into tangible benefits, including risk reduction, cost
savings, and sustainable growth.
2.2.4.1.3 Governance
As stated in the Trust Charter and Anti-Corruption Policy, Schneider
Electric has zero tolerance for corruption and is committed to
comply with all applicable anti-corruption laws. This commitment is
demonstrated by strong and continuously developing Anti-
Corruption actions, which are part of the Ethics & Compliance
program. The Ethics & Compliance program is led by the Ethics &
Compliance department, under the authority of the Chief
Compliance Officer, to ensure its efficiency through a dedicated
Compliance Program team in close collaboration with the Anti-
Corruption Controls and the Fraud Examination teams.
The Compliance Program team is made of a central team, covering
Policy, Awareness, Learning & Change Management; Compliance
Operations; and Risk & Control, and is locally operationalized by
Regional Compliance Officers under the supervision of their
regional Ethics & Compliance Committees defining the local
strategy, and supported by a community of Ethics Delegates,
Schneider Electric’s network of trusted ambassadors locally.
Schneider Electric’s Board of Directors oversees the maturity level
and effectiveness of the governance and organization, risk
management systems, processes and controls, and
communication and training through the Audit & Risks Committee.
2.2.4.1.4 Policy
Schneider Electric published and rolled out a revised Anti-
Corruption Policy in 2021 meeting the requirements of the French
Sapin II law, to take into account results of the Ethics & Compliance
risk mapping, including potential negative factors faced by
Schneider Electric businesses and operations, and to provide
employees with examples illustrating situations they may face. The
policy considers the results of the risk assessment conducted with
key internal stakeholders across all Group processes, as well as
benchmarking actions to understand the expectations of external
stakeholders, ensuring it is appropriately aligned. Furthermore, in
countries where legislation requires it, work council reviews have
been organized to take into account social dialogue.
This policy acts as a handbook for all Schneider Electric employees
and affiliates to be consulted when in doubt about the appropriate
behavior to adopt. It is not intended to address every issue one
may encounter, but it provides appropriate examples of corruption
risks and offers guidance to resolve many ethical dilemmas. The
policy aims to mitigate the risks identified in section 2.2.4.1.2
Impacts, risks, and opportunities. In case of serious doubt about
the behavior of a third party or an employee which will be
potentially contrary to the provisions of the Policy, it sets out the
process to report the concerns through the whistleblowing system.
This policy will undergo an update in 2025 to take into account the
2024 risk assessment results and to align it with the requirements of
the United Nations Convention against Corruption.
Schneider Electric’s Anti-Corruption Policy is available publicly on
www.se.com
To reinforce the Anti-Corruption Policy, Schneider Electric has
established specific policies and procedures on Conflict of Interest
and Gifts & Hospitality. Both policies were updated in 2023,
accompanied by extensive digitalization, simplification, and
clarification of the processes. These enhancements were made
with a particular focus on providing practical examples to facilitate
comprehension. To ensure that employees grasp the modifications
effectively, a range of informative and explanatory resources have
been made readily accessible, communicated through various
channels, and explained in various awareness sessions.
2.2.4.1.5 Action plan
Management commitment
Group management demonstrates unwavering commitment to
anti-corruption efforts through their actions and initiatives. The
Anti-Corruption Policy was updated in 2021 and signed by
Jean-Pascal Tricoire, the then Chief Executive Officer & Chairman,
and Hervé Coureil, Chief Governance Officer & Secretary General.
Management regularly releases informative videos, which are
extensively communicated to all employees, and which highlight
the Company’s zero-tolerance policy towards corruption,
emphasizing the importance of integrity and ethical decision-
making at all levels of the organization.
The program is supervised at Board level, by the Executive
Committee through the Group Function Committee, and through
dedicated committees, notably for the anti-corruption controls
program. These committees also approve certain program actions,
including risk mapping. Management has also made some call for
actions to all middle- and first-line managers through dedicated
communication channels.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Awareness
Through its internal communications, Schneider Electric aims to
provide employees with essential baseline information on the
Company’s commitment to integrity. In 2024, several
communication campaigns on anti-corruption were organized
within the Company, with specific focus on third-party management
and anti-corruption controls, gifts, and hospitality, as well as
conflict of interest, to support the 2024 Annual Conflict of Interest
Disclosure Campaign for targeted employees exposed to
corruption risks. The objective was to effectively communicate
updates on the anti-corruption program, enhance employee
awareness of corruption risks, and equip them with the necessary
tools to address them, encouraging them to seek help whenever
needed. Schneider Electric also regularly shares videos and
other communication assets on integrity-related subjects to
its employees.
Schneider Electric organized a live event on December 9, 2024, to
raise awareness about combating corruption. The event aimed to
educate employees on preventing unethical conduct through real
stories of how Schneider Electric prevented corruption in the past.
The event saw over 6,000 employees actively participating and
engaging in discussions. A recording of the session will be
available throughout 2025.
Schneider Electric communicates externally to stakeholders about
its commitment to integrity and the execution of the anti-corruption
program. This communication is carried out through a dedicated
webpage and specific external channels. Additionally, the
Company actively engages with various extra-financial rating
organizations by responding to their questionnaires on anti-
corruption related matters.
Training
Schneider Electric has developed a suite of anti-corruption
e-learnings, providing guidance on real life risk scenarios,
designed to meet the trainees’ needs and expectations. Trainings
are supported by videos from top leaders demonstrating the “tone
at the top”, are available in 14 languages, and is mandatory for all
targeted employees exposed to corruption risks, are identified by
the corruption risk mapping. In 2024, those e-learnings were
rolled out to more than 64,000 employees, with a completion rate
of 98.9%.
Moreover, the year saw ad hoc anti-corruption learnings delivered
to specific audiences in functions deemed to be priorities (e.g.
Finance). A training session for the Board is organized yearly
through the Audit & Risks Committee.
98.9%
percentage of at-risk functions employees that have completed the
anti-corruption training programs vs. 98.5% in 2023); this
percentage is out of scope for the sustainability statements (CSRD)
Third-parties due diligence
Third-party relationships may create risks for companies, including
corruption exposure and impact on brand and reputation.
Conducting third-party due diligence is important to make informed
decisions and avoid potential compliance, regulatory, and
reputational issues. To this end, Schneider Electric has established
procedures to prevent, detect, and manage corruption risks in
business relationships. These procedures involve steps such as
risk assessment, screening, investigation, review, and audit. They
ensure that adequate actions are taken to mitigate risks effectively.
Customers and suppliers: When forming relationships with
customers and suppliers, Schneider Electric employs a meticulous
screening and continuous monitoring process to assess the risks of
anti-corruption and export control.
Business Agents: Schneider Electric has a policy on
intermediaries, called “Business Agents”. It aims to minimize their
use as much as possible, except for specific exceptions.
Sponsoring and donations: To ensure legal and ethical
operations in sponsorship activities and mitigate corruption and
reputational risks, comprehensive risk screenings are conducted.
Additionally, Schneider Electric’s Philanthropy program is governed
by strong practices, including thorough due diligence to assess
donation-related risks in compliance with laws and local contexts.
Mergers and acquisitions: A specific process and guidelines
were put in place to ensure full compliance of M&A operations with
anti-corruption, export control regulations, and human rights risk.
In 2024, they were updated to identify, manage, and mitigate those
risks at the earliest possible stage. Guidelines aim to cover the very
first steps of identifying potential targets, what to look out for in
data-rooms, when and how to interview personnel at the target
entity, and finally how the Group plans to integrate the acquired
entity through dedicated Trust Standards.
Schneider Electric is also a third party for its clients and is subject
to evaluation as such. The Group regularly responds to
questionnaires and other additional requests regarding the
Company’s compliance policies, programs, trainings, governance,
and audit controls. To respond to those requests, the Group has a
dedicated internal platform – called Trust Center.
Whistleblowing
At Schneider Electric, stakeholders may report potential violations
of the Anti-Corruption Policy either by contacting an appropriate
person in the Group and/or by using the Trust Line, Schneider
Electric’s whistleblowing system. In 2024, 11% of the closed, valid
and substantiated alerts reported through whistleblowing,
concerned a violation of the Anti-Corruption Policy. Additionally, for
the reporting year 2024, Schneider Electric was not convicted for
any violation of anti-corruption and anti-bribery laws.
Read more on the Whistleblowing Policy and grievance
mechanisms in section 2.2.1.1.3 on page 105.
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Anti-corruption accounting
controls
Schneider Electric implemented enhanced accounting
control procedures to prevent corruption. In 2022, a
cross-functional program was launched, involving
Accounting, Internal Control, Digital, Ethics & Compliance,
Procurement, Sales, and Marketing teams. The program
focused on digitizing preventive and detective controls, with
sponsorship from Executive Committee members. Priorities
were determined based on the 2021 Ethics & Compliance
risk assessment, covering areas like Gifts & Hospitality,
Travel & Expenses, Sponsorship, Donations, Business
Agents, Marketing Development Funds, and Performance
Bonuses.
Monitoring, audit and continuous
improvement
Schneider Electric continuously assesses and updates our
processes and action plans related to the prevention and
detection of corruption. This involves a comprehensive
approach that considers various factors such as risk
assessment results, internal control, audit, and
whistleblowing findings, and aligning with the expectations of
relevant authorities. By integrating insights from these
sources, the Group ensures that our actions plans are
robust, adaptive, and aligned with evolving regulatory
requirements, thereby reinforcing our dedication to
combating corruption and upholding the highest standards
of integrity. Annually, the Group conducts comprehensive
evaluations of the action plans to gauge their effectiveness.
Through in-depth result analysis, the Group gains valuable
insights that inform our continuous improvement efforts.
In addition, the anti-corruption program is part of the Group’s
Key Internal Controls (KICs) and the Group’s Internal Audit
program with specific tasks related to anti-corruption.
Schneider Electric also continued to execute in 2024 the
central monitoring of key anti-corruption processes such as
Business Agents, Conflict of Interest, and Anti-Corruption
training results. The outcome of these controls is regularly
shared with key stakeholders to ensure continuous process
and design improvements.
For more details on Key Internal Controls and
Group Internal Audit, please refer to sections 3.2
and 3.3 on pages 361 to 370.
2.2.4.1.6 Anti-corruption target
and metric
Anti-corruption target
Schneider Electric aims to have 100% of its employees trained in
Ethics (Trust Charter and Anti-Corruption for eligible employees)
and Cybersecurity as part of SSE #13 commitment. By the end of
2024, SSE #13 achieved a 98.7% completion rate.
Read more on the methodology of SSE in
section 2.4.1.2 on page 316.
Metric on prevention of corruption
and bribery
In addition to this specific target, Schneider Electric is following
the CSRD metric on prevention of corruption and bribery. This
metric enables the Group to highlight the ins and outs of the
anti-corruption and anti-bribery training programs offered and
required for many Schneider Electric’s employees. This metric is
used to evaluate performance and effectiveness and to avoid any
potential legal proceeding, prosecution, sanction, or fine. For this
CSRD metric, we have a focus on at-risk functions employees,
managers, and any other own employees. Moreover, in contrary to
SSE #13 ambition, the CSRD analysis was performed for Schneider
Electric core entities and as well as for some non-IT integrated
entities like AVEVA, RIB, ETAP, and Luminous. The analysis is also
pinpointing different aspects of the anti-corruption and anti-bribery
training programs like the training coverage, the frequency of the
trainings, and the topics covered in these trainings. As a focus
point, this analysis shows that 96.9% of the functions-at-risk have
completed these training programs. See below a summary of the
analysis regarding this metric on anti-corruption and anti-bribery
training programs:
Anti-corruption and bribery training
At-risk
functions
Managers
Other own
employees
Training coverage
Total
72,756
14,898
84,964
Total receiving training
70,535
11,609
11,190
Frequency
How often training is required
Annually
Annually
Annually
Topics covered
Corruption
Facilitation payments
Conflict of interest
Gifts and hospitalities
Business agents
Policies dedicated
Speak up mindset
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.4.2 Supplier Relationship
Management and late payment
prevention
2.2.4.2.1 Context
Schneider Electric’s focus is not only on achieving business results
but also on the impact its activities generate along the value chain.
The contribution of Company’s upstream supply chain is
significantly higher than its own operations when it comes to the
environmental and social impact stemming from commercial
activities.
Sustainability alignment with suppliers are the corner stone of
ethical sourcing, minimizing environmental impact, creating social
value, and fostering long-term business resilience. By prioritizing
sustainability in our operations and open communication with
suppliers, we enhance supply chain transparency, reduce risks,
and contribute to overall sustainability of the industry.
2.2.4.2.2 Glocal supply chain
Schneider Electric is the most local of global corporations, with a
presence in over 100 countries and a uniform revenue footprint
across major geographies. While this provides a balanced market
position, it also results in a supply base that is distributed across
the world. In 2024, Schneider Electric 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. This
diverse supply base represents a unique combination of mature
companies operating on a global scale, and small and medium
scale enterprises serving local or niche markets and categories,
providing simple assembly to complex manufacturing activities.
Deeply committed to advance the United Nations Sustainable
Development Goals (UN SDGs), and delivering solutions for
sustainability and efficiency, Schneider Electric is in a unique
position to influence and support its supply chain partners
across the world to embrace more sustainable social and
environmental practices.
2.2.4.2.3 Impacts, risks and
opportunities
Supplier relationship management
Negative Impact
Compromise suppliers’ financial
stability
Owing to the size, scale, and nature of the Group’s operations, its
operating environment can have a direct negative impact on the
overall financial stability of all its suppliers, and is directly impacted
by climate change, resource scarcity, and human rights issues
across its global supply base. By engaging suppliers in specific,
through timebound programs, the company can create concerted
actions which deliver tangible results.
The business ethics that Schneider Electric is continuously
implementing have also the purpose of helping to avoid some risks
like suppliers’ financial instability. Additional key risks identified by
the Vigilance risk assessment include human rights (in particular,
safety at work, decent workplace, and labor standards), GHG
emissions (especially coming from the transformation of raw
materials into components and their transport), and pollution risks
linked with some specific purchases categories.
By taking a combined approach to proactively managing upstream
supplier risks through Schneider Electric’s vigilance plan, while also
driving ambitious sustainable development programs and
processes, Schneider Electric secures the impacts on its business
resilience and increases its attractivity to customers, investors, or
new talents.
2.2.4.2.4 Sustainable procurement
framework and strategy
Schneider Electric has deployed a Sustainable Procurement
framework, which institutionalizes mechanism to proactively
screen, identify, and mitigate sustainability risk from suppliers and
embed preventive controls into the procurement processes. This
ensures sustainability is embedded in the routine operational
activities of all procurement team working around the world.
The framework also identifies thematic areas across ESG
spectrum, where Schneider Electric has impacts and can play an
industry transforming role. Collaborating and engaging with supply
partners to develop maturity on climate action, circularity, and
human rights, and challenging status-quo allows us to unlock
newer areas of growth. The Group’s ambitious sustainability
roadmap leads its partners to define the next wave of evolution
of industry, making them fore-runners who shape the future. This
pursuit of sustainability helps identify new and several hidden
avenues of efficiency, operational improvement, and creating and
capturing new markets, which provide competitive advantage and
positively correlate with financial performance. All engagements
within Schneider Electric and its supply base establish that
sustainability is good for business and has to be looked at as
an opportunity.
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E S R S G 1
Sustainable procurement framework 2021 – 2025
Supplier Code of Conduct:
Duty of Vigilance:
ISO 26000:
Improve sustainability profile of suppliers though leading ESG practices (strategic suppliers)
4,000 suppliers assessed under Vigilance Program (SSE #17)
Summarizes the most fundamental requirements from Schneider Electric towards its Suppliers
• Supplier Approval
Module (SAM) &
Quality Mgt (SSQM)
• Sustainable
Development,
Environment, Ethics &
Compliance Terms &
Conditions
• Quarterly Business
Review
• Trust Line
• Sustainability
throughout our
Procurement
Excellence System
The Zero
Carbon Project
Reduce CO2
emissions
from top 1,000
suppliers’
operations by
50%
REACH/RoHS
Conflict
Minerals/Cobalt
Green
Materials
Sustainable
Packaging
Decent Work
Social
Excellence
Increase green
material content
in products to
50%
100% packaging
uses recycled
cardboard and
no single-use
plastic
Continued adherence and compliance
to regulations governing hazardous
materials and conflict minerals
100% of
strategic
suppliers provide
decent work to
their employees
Deploy a “Social
Excellence”
program through
multiple tiers of
suppliers
Vision:
Environment
Social
Governance
Collaborate with global supplier network for an inclusive and carbon neutral world, where ecosystems
and resources are preserved, and people get access to economic opportunities and decent lives.
(SSI #3)
(SSI #4)
(SSI #5)
(SSI #6)
(SSE #12)
2.2.4.2.5 Policy
The Group’s global procurement mission is aligned with our
strategy of delivering customer value through transformation of
energy management. Schneider Electric does this by contributing
to top line and bottom line growth, while establishing a leadership
position in sustainable sourcing. Key priorities of quality, innovation,
cost, cash, and sustainability are supported by our people, our
tailored, connected, sustainable Supply Chain and Digitalization.
As a key part of our end-to-end supply chain, we count on our
suppliers to be strong contributors across all aspects of
performance.
Schneider Electric embeds sustainability at every stage of supplier
lifecycle. It starts with the mission of the global procurement
organization, which embodies sustainability in its core. In addition
to top line growth and bottom-line impact, sustainability in sourcing
operations is one of the three key enablers for procurement
function and firmly institutionalized.
Schneider Electric is following a specific policy called Schneider
Procurement Policy Book that participate in both our company and
our suppliers’ financial stability. This policy is validated by the VP
Procurement Quality & Process Excellence. Our Chief Procurement
Officer is the most senior level in our organization that is
accountable for the implementation of this policy. Procurement
function is accountable for the suppliers’ selection and overall
performance. Yet, some specific responsibility is shared with and
with support from the related organizations and specific functions
(R&D, Quality, Legal, etc.…), who play a key role in elaborating the
relevant information and expectation to our suppliers. Therefore,
the interaction with our suppliers involves several types of internal
stakeholders, and every relation must be handled within the
Relationship framework established by Procurement, whatever is
the size of the suppliers.
The objective of this Schneider Electric Procurement Policy Book is
to describe Schneider Procurement Policy and Guidelines. The
policy aims as well to mitigate the risks and negative impacts
identified in section 2.2.4.2.3 and work fairly with our suppliers. The
application scope of the Schneider Electric Procurement Policy
Book covers all Procurement activities: Direct Procurement, Indirect
Procurement, Business Unit Procurement. Policy and guidelines
including in this Schneider Electric Procurement Policy Book must
be followed by all members of Procurement organization. As well,
this apply to the organizations within Schneider Electric who are in
relationship with our suppliers.
Our Schneider Electric Procurement Policy Book includes several
elements, including our way to manage sustainability with our
suppliers, our policy for suppliers that are also key Schneider
Electric customers, our payment means and terms, our Procure-to-
Pay Schneider Electric rules, as well as our Supplier Guidebook.
Moreover, supply chain finance, also known as supplier finance or
reverse factoring, is a set of solutions that optimizes cash flow by
allowing businesses to lengthen their payment terms to their
suppliers while providing the option for their large, small, and
medium suppliers to get paid early. This supply chain finance
process is also presented and explained in the Schneider Electric
Procurement Policy Book.
Overall, this Schneider Electric Procurement Policy Book is for
internal purpose within the Group, and publishing this Book outside
Schneider Electric is forbidden. However, some of the guidelines
mentioned in this Procurement Policy Book are external documents
and are available to our suppliers through our official website. This
the case for our Supplier Guidebook, our Terms & Conditions
(T&Cs), and our Supplier Code of Conduct.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
To sensitize all current and potential suppliers about expectations
and various stages of collaboration with Schneider Electric, a
Guidebook is documented, initially launched in 2016 and updated
regularly. The document articulates expectations for suppliers on
sustainable development in the following five areas: environment,
fair and ethical business practices, sustainable procurement, labor
practices, and human rights, and subsequently dwells on various
stages for approval, qualification, and performance evaluation.
Consult and download Schneider’s Supplier Guidebook on the
Suppliers page on www.se.com
The objective of our Supplier Guidebook is to give in one simple
document to our suppliers, a good overall view of how to do
sustainable business with Schneider Electric by explaining our
organization model, our commitments towards them, and our
expectations. Our supplier leaders need to make sure that this
Supplier Guidebook has been communicated to our suppliers. The
implementation of this Supplier Guidebook is also the result of a
collaboration with all our suppliers to ensure a sustainable
relationship with all of them.
The foundation of Schneider Electric’s sustainability ambition is its
own Supplier Code of Conduct. It is the mother document of all
supplier relationships and lists out the basic expectations with its
suppliers across, but not limited to, environment, human rights and
decent work, fair business practices, sustainability procurements,
and occupation health and safety. The document also provides
access to remedy by means of Trust Line, which is the ethics
hotline of Schneider Electric. Any partner can access this help line
to raise concern associated with ethical or sustainability standards
with respect to business association. The Supplier Code of
Conduct is also included in General Terms & Conditions, and in all
other contractual documents.
Consult and download Schneider Electric
Supplier Code of Conduct from the Suppliers
page on www.se.com
For more information on policies regarding supplier
sustainability, social programs, and governance,
see section 2.2.3.2 on page 236.
2.2.4.2.6 Action plan
Vendor Query Management (VQM)
For more than 10 years, the Vendor Query Management (VQM)
system aims at ensuring transparent and effective communication
with all our external suppliers, to support in the best possible way
any queries from them. Accessible through personalized email
addresses specific to each country, VQM is managed by
multilingual and global teams. VQM team exists on top of our
Schneider Supplier Portal (SSP) and is accessible to all Outside
Group (OG) suppliers.
VQM uses a ticketing tool named “Sequence”: a ticket number is
created for each vendor request, which is used to follow both
externally (vendors) and internally the resolution of the request.
VQM team coordinates with various stakeholders (Procurement,
Accounting, etc...) the needed answer, both to get an update of the
situation and resolved the issue if any.
Each month, VQM handles approximately 20,000 queries, allowing
our suppliers, including SMEs, to raise concerns regarding
potential late payments, account statements, or balance
confirmations. The average resolution time is 2 days. See below the
VQM data process:
Existing progress flow of VQM managed via sequence
VQM flow via Sequence Tool
Vendor
Buyers,
purchasers,
internal users
Ticket no#
with required data
Ticket no#
Generic mailbox
Sequence
VQM Team
• Open gate / NO filters applied – all
mails coming into GMBs and creating
sequence ticket
• Monotonous response missing
1.1 connect
• Manual Indexing of mandatory field
in sequence tool
• Inaccurate indexing data unable to
leverage and correlate
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Supplier collaboration steps
The following is outlined in detail in the Supplier Quality Excellence
Guide published and communicated to our suppliers. Schneider
Electric deploys a fourth-step process comprising of a Supplier
Approval Module (SAM), Supplier Qualification Module (SQM),
Supplier Performance Module (SPM), and Supplier Development
Process (SDP) to qualify new and legacy suppliers for continued
business association, where sustainability performance is a key
evaluation criteria.
Consult and download the Supplier Quality
Excellence Guide on www.se.com
Supplier Approval Module (SAM)
The journey of a new supplier starts with the SAM, when a
supplier’s capabilities are assessed to assure alignment with
Schneider’s expectations. This process has a dedicated evaluation
on labor, ethics, environment, and occupational Health and Safety
(L&EHS), in addition to other elements. It is a questionnaire-based
evaluation combined with on-site audits by Schneider Electric
auditors. For all new suppliers, it is mandatory to undergo this
evaluation and only approved partners can proceed to the next
stage of functional and technical audits required for business
qualification. The existing process is using a scoring method for the
supplier L&EHS performance based on which supplier can
proceed to the next stage of the assessment (quality, procurement,
etc.), or can be put on hold until an improvement is confirmed in
their score.
Supplier Qualification Module (SQM)
Post the successful approval module the suppliers undergo supply
qualification, which evaluates the technical feasibility with respect
to the supplies, and after successful completion the supplier can
begin the commercial association by supplying products to
Schneider Electric.
Supplier Performance Module (SPM)
During the commercial stage, the performance of the supplier is
constantly evaluated by the SPM. Different functional teams
evaluate different performance parameters, including sustainability
as one of the pillars, and the overall performance has an impact on
the nature of business relationship (strategic or non-strategic).
Supplier Development Process (SDP)
Also, during the commercial stage there is a collaborative process
to drive systemic and sustained improvements on identified gaps to
reach specific expectations.
Schneider Supplier Portal – Supplier
Relationship Management (SSP-SRM)
The results of approval and performance evaluation are available in
real time on the Schneider Electric supplier portal (SSP-SRM) and
are accessible to global supply chain community, making supplier
interactions/decisions more fluid and preventing any supplier with
poor sustainability performance from entering the supply base.
The supplier’s performance is tracked by Schneider Electric
supplier leaders on a monthly or pluri-annual basis depending on
the severity of the risks and classification of the supplier. All
business reviews with suppliers and internal functional business
reviews with department Executives cover sustainability
performance as a key criterion of evaluation.
The Schneider Supplier Portal (SSP) is a tool enhancing
collaboration within our Supplier Ecosystem. By digitizing supplier
interactions, we aim to foster a transparent and accurate exchange
of information between our suppliers and Schneider Electric. The
SSP offers a comprehensive suite of features, including Supplier
Single Sign-On (SSO), Supplier Qualification, e-Sourcing (RFx/
Auctions), and Contract Management, facilitating a seamless
Source to Contract process. Additionally, it streamlines Order &
Delivery, Forecast Management, Inventory Management, and
Invoicing & Payment under the Procure to Pay framework. Our
commitment to Supplier Relationship Management is further
demonstrated through Performance Management, Supplier
Development initiatives, and robust Risk Management practices.
The portal also enhances communication through Master Data
Management, Online Feedback Collection, and a centralized
onboarding process, all supported by tools such as the Supplier
360° Cockpit and a Gen AI Chatbot. For more information, please
visit the Supplier Guide Book on the Group’s website.
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Chapter 2 – Sustainable development
2.2 Sustainability statements
2.2.4.2.7 Targets and metrics
Paid On Time (POT) golden target
At Schneider Electric, we are committed to enhancing our supplier
management practices, particularly in ensuring timely payments.
From here, a Key Performance Indicator (KPI) the Group is
following is the “Paid On Time” (POT). POT is measured as the
percentage of payments made within agreed purchasing payment
terms per legal entity for OG vendors (Paid on or before due date to
be considered as “paid on time”).
As of December 2024, our POT metric was 80%, which is a
significant improvement from the 71% recorded when we began
tracking this KPI in January 2022. The target was set to 85% for
2024. The scope of this KPI includes all operational group (OG)
suppliers, with specific exclusions for entities outside of Schneider
Electric’s direct oversight, such as Eurotherm, Lauritz Knudsen,
and Solar.
During the year 2024, we have focused our improvement on
significantly reducing our blocked invoices, thanks to some on-time
actions and structural process improvement to reduce further
inflows. An invoice can be blocked when 3 ways match is not met
between the Purchase Order, the Good Receipt, and the Invoice.
By continuing our work, we will be able to mechanically improve our
POT and have a positive impact on the deadline we are paying
after the due date.
Payment practices metrics
At Schneider Electric, we are committed to ensuring timely and
efficient payments to our suppliers. We understand the impact of
late payments and have implemented processes to track and
address delays root causes.
The Schneider Procurement Policy Book mentions clearly our
payment means and terms. This section of the Schneider
Procurement Policy Book aims to describe what is in place within
our Group to ensure payments are made in due dates, therefore
prevent late payments, including for SMEs.
Payment terms and means are part of the process that is ensuring
the payment to our suppliers is done in due time. It is the
responsibility of all functions who are part of the Procure to Pay
(P2P) process to ensure that payments are made in due time and to
follow the process and controls to block any fraud attempt.
Payment term is one of the parameters of the relationship between
a supplier and Schneider Electric’s entities. The payment terms are
negotiated in duly respect with the law of each country and
payment term negotiation in compliance with payment policy is
under the full responsibility of the buyers and supplier leaders.
Schneider Electric is also following specific rules to ensure the
payments to our suppliers are done in due time. These rules are
called PGS rules for Platinum, Golden, and Silver rules.
The actual optimum payment terms are the following for main
regions linked to PGS rules:
• Europe: 60 days
• China, NAM (North America): 90 days
• Rest of the World (see table below)
Payment Terms
International
Payment Term (days)
Australia, MSME (Micro, Small, and Medium
Enterprises) India
45
Indonesia, Malaysia, SAM (South America),
non MSME India, Turkey
75
Philippines, Singapore, South Korea,
Thailand, Taiwan, Vietnam
60
Japan
90
Potential deviation from these payment terms may result from either
the result of a negotiation or internal Schneider willingness,
including for SMEs, Start-up, etc.
In each region / market, we have “champions” animating the
implementation of the standard Payment Terms. The GSC
Procurement Business Finance team is animating this community of
“champions” by delegation of the Chief Procurement Officer.
When compiling the necessary information to provide
transparency on Schneider Electric’s payment practices metrics,
different approaches were used. Indeed, the Group wants to give
as much visibility as possible regarding the average number of
days to pay its suppliers and the percentage of Schneider Electric’s
payments that are aligned with standard payment terms. Therefore,
these indicators have been calculated depending on the actual
date that can be used: from the invoice date and from the received
invoice date.
Regarding the metrics on the percentage of payments aligned with
standard terms, another differentiation has been done. Indeed, you
can count the percentage by compiling the number of invoices
concerned or by compiling the amount of all these invoices.
Moreover, the information for these 2 CSRD indicators has been
split per “size” of suppliers. This categorization was done by using
rating agencies classification like the one from Bureau van Dijk
(BvD). As a result, see below the results of these 2 CSRD
indicators:
Average Number of Days to Pay Suppliers
Supplier Type
Invoice
Date Approach
Received Invoice
Date Approach
“Large” Suppliers
61
44
“Medium” Suppliers
70
50
“Small” Suppliers
77
55
“Unknown” Suppliers
70
45
Total Suppliers
66
46
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% of Payments Aligned with Standard Terms –
Number of Invoices Approach
Supplier Type
Invoice
Date Approach
Received Invoice
Date Approach
“Large” Suppliers
79%
98%
“Medium” Suppliers
82%
97%
“Small” Suppliers
89%
99%
“Unknown” Suppliers
75%
96%
Total Suppliers
79%
97%
% of Payments Aligned with Standard Terms –
Amount of Invoices Approach
Supplier Type
Invoice
Date Approach
Received Invoice
Date Approach
“Large” Suppliers
70%
95%
“Medium” Suppliers
71%
93%
“Small” Suppliers
70%
93%
“Unknown” Suppliers
71%
93%
Total Suppliers
70%
94%
Currently, our top reasons for late payments are:
1. Late received invoices: frequently observed scenario is that
suppliers are sending their invoices with significant delay vs
document issue date from which payment terms are calculated,
that results in receiving invoices close to or after their due dates.
Another scenario observed is suppliers not sharing invoices
through official invoice reception channels so that they do reach
accounting department allowing us to process payments timely.
In both these cases invoices reaching the official reception
channel are already past due.
2. Very short payment terms, especially 14 days and below. While
those cases might be limited, they are creating a challenge to
address payment process in such short timelines.
We are tracking all unpaid invoices thanks to an online Tableau
dashboard, connected to our ERPs eco-system, to ensure the
fastest resolution possible.
For the full year 2024, Schneider Electric counts ten outstanding
legal proceedings related to late payments, regardless of the
triggering event.
2.2.4.3 Cybersecurity
2.2.4.3.1 Impacts, risks and
opportunities
Cybersecurity
Negative impacts
1. Risk health and safety impacts on
people through industrial accidents
2. Damage the natural environment
through industrial accidents
3. Risk theft of intellectual property
and/or customers’ sensitive data
2.2.4.3.2 Policy
As per the context of Schneider Electric, the negative impacts
identified in the Double Materiality Analysis (DMA) as industrial
accidents pave the way for damage to customer assets and
business disruption. A potential consequence is as well the theft or
loss of intellectual property and/or customers’ sensitive data. To
address these potential consequences, a set of policies has been
established. The aim is to define control requirements that reduce
the potential impact of these consequences while also fostering
and enhancing trust with customers, authorities, and partners.
Cybersecurity policies are fundamental to the Group’s security
posture, mandating secure behaviors, practices, and environments
for all employees and third parties with access to our network or IT
systems. These policies are directly approved by upper
management (Group CISO and above), who pay special attention
to effective cybersecurity due to its impact on the organization’s
financial success and Schneider Electric’s reputation as a trusted
partner for sustainability. These policies are the backbone of our
cyber posture and provide guidelines and directions to ensure
secure behaviors and practices across the Company.
They are stored in a centralized repository accessible to all
employees and contractors with access to our IT assets and
systems. They are communicated regularly through various
channels, such as newsletters and online trainings, ensuring that all
employees and relevant third parties with access to our network or
IT systems are informed.
Policy Owners, in collaboration with the Communications team,
ensure that employees understand what a policy is, why it is
important, the differences between policies, directives, guidelines,
and procedures, and where to find them.
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2.2 Sustainability statements
In addition to corporate commitment, our Executive Committee and
Board of Directors play a crucial role in ensuring a seamless
implementation of the Group’s security policies. A central body
governs the Company-wide cybersecurity portfolio, coordinating
strategic and operational initiatives and orchestrating a community
of security practitioners across businesses and territories. The
Policy Owners and the Governance team are responsible for
conducting frequent reviews and driving improvements or updates
as needed. These updates are conducted annually to reflect the
evolving threat landscape, regulations, and industry practices, with
each review validated by the Senior Vice-President & Chief
Information Security Officer (CISO) or even at Executive Vice-
President level (responsible for the overall strategy and direction
of the operations, functions, or businesses).
Additionally, the Company’s overarching General Information
Security Policy and all supporting cybersecurity, product security,
and data protection policies aim to comply with recognized
industry’s standards and frameworks such as ISO/IEC 27000
series, NIST Cybersecurity Framework, ISA/IEC 62443, as well as
regional regulations like the European Union Network Information
Security (NIS2) Directive.
Furthermore, Schneider Electric has received several recognitions
for its cybersecurity, product security, and data security
performance.
Schneider Electric public cybersecurity principles and
whitepapers can be found in the Cybersecurity and
Data Protection Posture page on www.se.com
2.2.4.3.3 Action plan
To maintain and demonstrate this commitment on Cybersecurity
strategy, we have established two reporting protocols: SSE #13 and
SSE #16, which are shared with external auditors annually and
publicly disclosed through the Group’s annual report.
Our cybersecurity training is part of the global mandatory
Schneider Essentials program, assigned to all Schneider Electric
employees through our global learning management system, with
completion thoroughly tracked and regular reminders sent to
ensure compliance, and reflecting our commitment to our Trust
Charter and the principles of respect and good faith towards all
stakeholders.
Schneider Electric continuously and consistently monitors its
posture with the support of cyber scoring agencies. This enables
the Group to identify and address vulnerabilities and weaknesses
(along with intelligence-driven detections). By addressing findings
that can negatively impact overall cybersecurity ratings and
benchmarking Schneider Electric’s performance, the Group is
supporting the Group’s maturity journey on cybersecurity, from a
performance, risk, and communication perspective. Cyber scoring
facilitates internal communication of cybersecurity reports with
executives, explaining the effectiveness of our security program
within the business context. Each month, leadership receives a
dashboard that helps identify pain points and mitigation actions.
This methodology is also deployed with subsidiaries to encourage
and sustain acceptable levels of maturity across the extended
enterprise, enabling continuous benchmarking of performance
against peers and real-time monitoring of the Company’s exposed
digital footprint. Our external certificates can be also found in our
Cybersecurity and Data Protection page.
ISO 27001 demonstrates our ongoing
commitment to manage our high value assets
securely in compliance with regulations.
CREST Certification for Penetration testing
acknowledges Schneider Electric’s product
security teams for their skills and proficiency
when it comes to testing the resilience and
security of the Company’s products and
systems.
Our global Secure Development Lifecycle
process and central office is certified to
Maturity Level 4 of the TÜV Rheinland Cyber
Security Management (CSM) certification, as
well as the ISASecure® SDLA certification.
Schneider Electric’s Vulnerability Handling &
Disclosure process is certified with ISO/IEC
30111:2019 and ISO/IEC 29147:2018
standards. This affirms our commitment to
address vulnerabilities affecting our products
and protecting our customers.
Schneider Electric SE
Mature
Certicate of Cybersecurity Assessment
990
Assessed in:
Valid until:
MATURE
Rated
2024
R
2
y
by
b
Platinum
P
Schneider Electric was certified mature
based on international information security
standards such as ISO 27001, NIST
Cybersecurity Framework and Cybersecurity
for ICS, PCI-DSSs and GDPR.
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2.2.4.3.4 Targets
As part of our objectives for 2025, defined in the General
Information Security Policy, Schneider Electric commits to
manage cybersecurity potential consequences such as customer
damage, business disruption, and intellectual property theft and
loss. To do this, Schneider Electric aims to ensure that 100% of
our employees are trained annually on cybersecurity (SSE #13),
underscoring our dedication to maintain a robust security culture
across the organization.
Additionally, we strive to be in the top 25% in external ratings for
cybersecurity performance (SSE #16), reflecting our ongoing
efforts to benchmark our security practices against industry
standards and continuously improve our cybersecurity posture.
This target is publicly accessible and serves as transparent
evidence of our cybersecurity maturity, providing assurance to
our customers.
(1) For more information, visit the “Cybersecurity and Data Protection Posture” page on www.se.com
(2) Read the press release “Schneider Electric’s Global Security Labs receive CREST pen-test accreditation” on www.se.com
(3) Access Schneider Cybersecurity Notification Portal from www.se.com
Both methodologies are described in two reporting protocols
(SSE #13 and SSE #16), which are primarily shared internally on a
monthly basis with KPI pilots, Senior Vice-Presidents sponsors, the
Sustainability team, and the Executive Committee, serving as the
KPI approver. These protocols may also be shared with other
collaborators upon request, such as local sustainability leads,
ensuring a comprehensive understanding and implementation
of our cybersecurity commitments.
SSE #13: At the end of 2024, SSE #13 achieved a 99.3%
completion rate.
SSE #16: From a baseline of 520 in January 2018, we scored in
Advanced with an average of 782 for 2024 and ending the year
with 790.
Read more on the methodology of SSE in
section 2.4.1.2 on page 316.
Requests
Schneider Electric received and handled 536 requests related to cybersecurity, product security, and data protection in 2024, stemming
from customers and authorities.
Maturity
The Group averaged a score of 782 with BitSight during the course of 2024.
It has 35 sites ISO 27001 certified(1).
Our global product penetration testing labs are CREST certified(2).
8 internal audits were conducted in 2024.
Schneider Electric received a score of 3.3 in a 2024 annual NIST maturity assessment by a top consultancy.
Training
Its mandatory training has been performed by 99.3% of employees in 2024.
On top of the annual mandatory training, the Group deploys role-based cybersecurity training for its admins, HR, R&D, and customer-
facing employees.
99% as average of the customer-facing employees obtained their “Cyber Badge” in 2024 with end of the year completion of 98%.
Industrial
security
1 Cyber Leader per site monitors alerts and vulnerabilities and supports incident response.
100% of sites are monitored in real-time for physical and digital penetration.
Since 2022, every new line is ISA/IEC 62443-3-3 & 2-4 Security Level 2 compliant.
Supplier risk
management
Out of ~52,000 unique suppliers tiered, ~5,000 are monitored, according to their criticality and exposure.
~50% of critical risk profile suppliers went through C-level security discussions.
Exposure-based Cybersecurity and Data Privacy Terms & Conditions for all new suppliers.
Vulnerability
management
Throughout 2024, the Group’s Vulnerability Management process has been certified ISO/IEC 30111:2019 and ISO/IEC 29147 2018.
Security notifications are published, in response to vulnerabilities reported, on Schneider Cybersecurity Notification Portal(3).
Cyber
defense
Security Operations Center (SOC) operates 24/7 across Schneider’s worldwide digital and operational landscape.
In 2024, the Group did not experience any cybersecurity incident impacting materially its financial statement.
100% of high severity incidents are contained and debriefed at the highest level of the Company.
Schneider Electric leads periodical crisis simulations with its critical infrastructure clients and authorities.
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2.2 Sustainability statements
2.2.5 Tables
2.2.5.1 Disclosure Requirements presentation table
As per the ESRS guidance, the disclosure of material information in the report is pertinent to the material impacts, risks and opportunities
following the respective disclosure and application requirements related to each sustainability matter. Material information is disclosed
according to its significance, completeness, and capacity to meet the decision-making needs of the users.
Disclosure Requirement
Section
Page
BP-1 – General basis for preparation of sustainability statements
2.2.1.3 Basis for preparation
124
BP-2 – Disclosures in relation to specific circumstances
2.2.1.3 Basis for preparation
2.2.5.4 Disclosure requirements
incorporated by reference
124
277
GOV-1 – The role of the administrative, management and supervisory bodies
2.2.1.1.2 Integrated and transverse
governance of sustainable development
97
GOV-2 – Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
2.2.1.1.2 Integrated and transverse
governance of sustainable development
97
GOV-3 – Integration of sustainability-related performance in incentive schemes
2.2.1.1.2 Integrated and transverse
governance of sustainable development
97
GOV-4 – Statement on due diligence
2.2.5.3 Declaration in terms of due
diligence
276
GOV-5 – Risk management and internal controls over sustainability reporting
2.2.1.2.1 Assessment mechanisms:
Vigilance plan and Enterprise Risk
Management
109
SBM-1 – Strategy, business model and value chain
2.2.1.1.1 Schneider Electric activities and
business model
96
SBM-2 – Interests and views of stakeholders
2.2.1.1.3 Trust with stakeholders
102
SBM-3 – Material impacts, risks and opportunities and their interaction with
strategy and business model
2.2 Sustainability statements (CSRD)
95
IRO-1 – Description of the processes to identify and assess material impacts,
risks and opportunities
2.2.1.2.2 Double materiality assessment
2.2.2.1.2 Climate risks, opportunities, and
impact management
114
126
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
2.2.5 Tables
270
MDR-P – Policies adopted to manage material sustainability matters
2.2 Sustainability statements (CSRD)
95
MDR-A – Actions and resources in relation to material sustainability matters
2.2 Sustainability statements (CSRD)
95
MDR-M – Metrics in relation to material sustainability matters
2.2 Sustainability statements (CSRD)
95
MDR-T – Tracking effectiveness of policies and actions through targets
2.1.1.2 Long-term commitments and tools
to measure progress
71
E1-1 – Transition plan for climate change mitigation
2.2.2.1.2 Climate risks, opportunities, and
impact management
126
E1-2 – Policies related to climate change mitigation and adaptation
2.2.2.1.2 Climate risks, opportunities, and
impact management
126
E1-3 – Actions and resources in relation to climate change policies
2.2.2.1.2 Climate risks, opportunities, and
impact management
126
E1-4 – Targets related to climate change mitigation and adaptation
2.2.2.1.2 Climate risks, opportunities, and
impact management
126
E1-5 – Energy consumption and mix
2.2.2.1.4 Energy consumption and mix
146
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
2.2.2.1.5 Gross Scopes 1, 2 and 3 and
Total GHG emissions
147
271
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C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
T A B L E S
Disclosure Requirement
Section
Page
E1-7 – GHG removals and GHG mitigation projects financed through
carbon credits
2.2.2.1.6 GHG removals and GHG
mitigation projects financed through
carbon credits
151
E1-8 – Internal carbon pricing
2.2.2.1.7 Internal carbon pricing
153
E2-1 – Policies related to pollution
2.2.2.2.1 Eliminating hazardous
substances
159
E2-2 – Actions and resources related to pollution
2.2.2.2.1 Eliminating hazardous
substances
159
E2-3 – Targets related to pollution
2.2.2.2.1 Eliminating hazardous
substances
159
E2-4 – Pollution of air, water and soil
2.2.2.2.1 Eliminating hazardous
substances
159
E2-5 – Substances of concern and substances of very high concern
2.2.2.2.1 Eliminating hazardous
substances
159
E5-1 – Policies related to resource use and circular economy
2.2.2.3.1 Management of associated IRO
in terms of resource use and circular
economy
167
E5-2 – Actions and resources related to resource use and circular economy
2.2.2.3.1 Management of associated IRO
in terms of resource use and circular
economy
167
E5-3 – Targets related to resource use and circular economy
2.2.2.3.2 Resource inflows including
resource use
172
E5-4 – Resource inflows
2.2.2.3.2 Resource inflows including
resource use
172
E5-5 – Resource outflows
2.2.2.3.3 Resource outflows related to
products and services
179
S1-1 – Policies related to own workforce
2.2.3.1 Great People making Schneider
Electric a great company (ESRS S1)
203
S1-2 – Processes for engaging with own workers and workers’ representatives
about impacts
2.2.3.1.2 Working conditions, sub-section
"Social Dialogue"
210
S1-3 – Processes to remediate negative impacts and channels for own workers
to raise concerns
2.2.1.1.3 Trust with stakeholders , sub-
section "Whistleblowing Policy and
grievance mechanisms"
105
S1-4 – Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
2.2.3.1 Great People making Schneider
Electric a great company (ESRS S1)
203
S1-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
2.2.3.1 Great People making Schneider
Electric a great company (ESRS S1)
203
S1-6 – Characteristics of the undertaking’s employees
2.2.3.1.2 Working conditions, sub-section
"Characteristics of Schneider Electric’s
employees"
213
S1-8 – Collective bargaining coverage and social dialogue
2.2.3.1.2 Working conditions, sub-section
"Social Dialogue"
210
S1-9 – Diversity metrics
2.2.3.1.4 Equal treatment
218
S1-10 – Adequate wages
2.2.3.1.2 Working conditions, sub-section
"Adequate wage"
213
S1-14 – Health and safety metrics
2.2.3.1.3 Employee health and safety
215
S1-16 – Compensation metrics (pay gap and total compensation)
2.2.3.1.4 Equal treatment, sub-section
"Gender Pay Gap"
226
S1-17 – Incidents, complaints and severe human rights impacts
2.2.3.1.3 Employee health and safety
215
S2-1 – Policies related to value chain workers in the value chain
2.2.3.2.2 Policy framework guiding
sustainability in the value chain
237
272
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2.2 Sustainability statements
Disclosure Requirement
Section
Page
S2-2 – Processes for engaging with value chain workers about impacts
2.2.3.2 Sustainable relations in the value
chain (ESRS S2)
236
S2-3 – Processes to remediate negative impacts and channels for value chain
workers to raise concerns
2.2.3.2 Sustainable relations in the value
chain (ESRS S2)
236
S2-4 – Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those action
2.2.3.2 Sustainable relations in the value
chain (ESRS S2)
236
S2-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
2.2.3.2 Sustainable relations in the value
chain (ESRS S2)
236
S3-1 – Policies related to affected communities
2.2.3.3.2 Policy
247
S3-2 – Processes for engaging with affected communities about impacts
2.2.3.3 Ethical relations with affected
communities (ESRS S3)
246
S3-3 – Processes to remediate negative impacts and channels for affected
communities to raise concerns
2.2.3.3 Ethical relations with affected
communities (ESRS S3)
246
S3-4 – Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
2.2.3.3 Ethical relations with affected
communities (ESRS S3)
246
S3-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
2.2.3.3 Ethical relations with affected
communities (ESRS S3)
246
S4-1 – Policies related to consumers and end-users
2.2.3.4 Consumers and end-users
(ESRS S4)
251
S4-2 – Processes for engaging with consumers and end-users about impacts
2.2.3.4 Consumers and end-users
(ESRS S4)
251
S4-3 – Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
2.2.3.4 Consumers and end-users
(ESRS S4)
251
S4-4 – Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end- users, and effectiveness of those actions
2.2.3.4 Consumers and end-users
(ESRS S4)
251
S4-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities impacts,
and managing material risks and opportunities
2.2.3.4 Consumers and end-users
(ESRS S4)
251
G1-1 – Business conduct policies and corporate culture
2.2.4.1 Zero-tolerance for corruption
258
G1-2 – Management of relationships with suppliers
2.2.4.2 Supplier Relationship Management
and late payment prevention
262
G1-3 – Prevention and detection of corruption and bribery
2.2.4.1 Zero-tolerance for corruption
258
G1-4 – Confirmed incidents of corruption or bribery
2.2.4.1 Zero-tolerance for corruption
258
G1-6 – Payment practices
2.2.4.2 Supplier Relationship Management
and late payment prevention
262
273
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C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
T A B L E S
2.2.5.2 Regulations correspondence table
Other EU legislation
ESRS
Disclosure
Requirement
Datapoint
Name
Section
Page
SFDR
ESRS 2
GOV-1
21 d
Board’s gender diversity
2.2.1.1.2 Integrated and
transverse governance
97
SFDR
ESRS 2
GOV-1
21 e
Percentage of board members who are
independent
2.2.1.1.2 Integrated and
transverse governance
97
SFDR
ESRS 2
GOV-4
30; 32
Statement on due diligence
2.2.5.3 Declaration in terms
of due diligence
276
SFDR
ESRS 2
SBM-1
40 d i
Involvement in activities related to fossil
fuel activities
SFDR
ESRS 2
SBM-1
40 d ii
Involvement in activities related to
chemical production
SFDR
ESRS 2
SBM-1
40 d iii
Involvement in activities related to
controversial weapons
SFDR
ESRS 2
SBM-1
40 d iv
Involvement in activities related to
cultivation and production of tobacco
EU Climate Law
E1
E1-1
14
Transition plan to reach climate
neutrality by 2050
2.2.2.1.2 Climate risks,
opportunities, and impact
management
126
Pillar 3 + Benchmark
Regulation
E1
E1-1
16g
Undertakings excluded from Paris-
aligned Benchmarks
2.2.2.1.3 Climate change
results and financial effects
138
SFDR + Pillar 3 +
Benchmark
Regulation
E1
E1-4
34
GHG emission reduction targets
2.2.2.1.3 Climate change
results and financial effects
138
SFDR
E1
E1-5
37
Energy consumption and mix
2.2.2.1.4 Energy
consumption and mix
146
SFDR
E1
E1-5
38
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
2.2.2.1.4 Energy
consumption and mix
146
SFDR
E1
E1-5
40 to 43
Energy intensity from activities in high
climate impact sectors
2.2.2.1.4 Energy
consumption and mix
146
SFDR + Pillar 3 +
Benchmark
Regulation
E1
E1-6
44
Gross Scope 1, 2, 3 and Total GHG
emissions
2.2.2.1.5 Gross Scopes 1, 2
and 3 and Total GHG
emissions
147
SFDR + Pillar 3 +
Benchmark
Regulation
E1
E1-6
53 to 55
Gross GHG emissions intensity
2.2.2.1.5 Gross Scopes 1, 2
and 3 and Total GHG
emissions
147
EU Climate Law
E1
E1-7
56
GHG removals and carbon credits
2.2.2.1.6 GHG removals and
GHG mitigation projects
financed through carbon
credits
151
Pillar 3
E1
E1-9
66
Exposure of the benchmark portfolio to
climate-related physical risks
2.2.2.1.8 Financial effects
154
Pillar 3
E1
E1-9
66a
Disaggregation of monetary amounts
by acute and chronic physical risk
2.2.2.1.8 Financial effects
154
Pillar 3
E1
E1-9
66c
Location of significant assets at
material physical risk
2.2.2.1.8 Financial effects
154
Pillar 3
E1
E1-9
67 c
Breakdown of the carrying value of its
real estate assets by energy-efficiency
classes
2.2.2.1.8 Financial effects
154
Benchmark
Regulation
E1
E1-9
69
Degree of exposure of the portfolio to
climate- related opportunities
2.2.2.1.8 Financial effects
154
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Chapter 2 – Sustainable development
2.2 Sustainability statements
Other EU legislation
ESRS
Disclosure
Requirement
Datapoint
Name
Section
Page
SFDR
E2
E2-4
28
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air, water
and soil
SFDR
E3-1
9
9
Water and marine resources
SFDR
E3
E3-1
13
Dedicated policy
SFDR
E3
E3-1
14
Sustainable oceans and seas
SFDR
E3
E3-4
28 c
Total water recycled and reused
SFDR
E3
E3-4
29
Total water consumption in m3 per net
revenue on own operations
SFDR
E4
E4.SBM-3
16 a i
Disclosure of activities negatively
affecting biodiversity sensitive areas
SFDR
E4
E4.SBM-3
16 b
Material negative impacts with regards
to land degradation, desertification or
soil sealing have been identified
SFDR
E4
E4.SBM-3
16 c
Own operations affect threatened
species
SFDR
E4
E4-2
24 b
Sustainable land / agriculture practices
or policies
SFDR
E4
E4-2
24 c
Sustainable land / agriculture practices
or policies
SFDR
E4
E4-2
24 d
Policies to address deforestation
SFDR
E5
E5-5
37 d
Non-recycled waste
SFDR
E5
E5-5
39
Hazardous and radioactive waste
SFDR
S1
S1.SBM-3
14 f
Risk of incidents of forced labor
SFDR
S1
S1.SBM-3
14 g
Risk of incidents of child labor
SFDR
S1
S1-1
20
Human rights policy commitments
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S1
S1-1
21
Due diligence policies on issues
addressed by the fundamental ILO
Conventions 1 to 8
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S1
S1-1
22
Processes and measures for
preventing trafficking in human beings
SFDR
S1
S1-1
23
Workplace accident prevention policy
or management system
2.2.3.1.3 Employee health
and safety
215
SFDR
S1
S1-3
32c
Grievance or complaints handling
mechanisms
2.2.1.1.3 Trust with
stakeholders
102
SFDR
S1-14
88 b + 88 c Number of fatalities and number and
rate of work- related accidents
paragraph
2.2.3.1.3 Employee health
and safety
215
SFDR
S1-14
88 e
Number of days lost to injuries,
accidents, fatalities or illness
SFDR/Benchmark
Regulation
S1
S1-16
97 a
Unadjusted gender pay gap
2.2.3.1.4 Equal treatment
218
SFDR
S1
S1-16
97 b
Excessive CEO pay ration
2.2.3.1.4 Equal treatment
218
275
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C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
T A B L E S
Other EU legislation
ESRS
Disclosure
Requirement
Datapoint
Name
Section
Page
SFDR
S1
S1-17
103 a
Incidents of discrimination
2.2.3.1.4 Equal treatment
218
SFDR/Benchmark
Regulation
S1
S1-17
104 a
Non-respect of UNGPs on Business
and Human Rights and OECD
Guidelines
SFDR
S2
S2.SBM-3
11 b
Significant risk of child labor or forced
labor in the value chain
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S2
S2-1
17
Human rights policy commitments
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S2
S2-1
18
Policies related to value chain workers
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S2
S2-1
19
Non-respect of UNGPs on Business
and Human Rights principles and
OECD Guidelines
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR + Benchmark
Regulation
S2
S2-1
19
Due diligence policies on issues
addressed by the fundamental ILO
Conventions 1 to 8
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S2
S2-4
36
Human rights issues and incidents
connected to its upstream and
downstream value chain
2.2.3.2.5 Vigilance plan for
suppliers and contractors
240
SFDR
S3
S3-1
16
Human rights policy commitments
2.2.3.2.2 Policy framework
guiding sustainability in the
value chain
237
SFDR
S3
S3-1
17
Non-respect of UNGPs on Business
and Human Rights principles and
OECD Guidelines
2.2.3.3.2 Policy
247
SFDR
S3
S3-4
36
Human rights issues and incidents
2.2.3.3.3 Impacts and Risks 247
SFDR
S4
S4-1
16 c
Policies related to consumers and
end-users
2.2.3.4.1 Personal safety of
consumers and end-users
2.2.3.4.2 Data privacy
251
255
SFDR
S4
S4-1
17
Non-respect of UNGPs on Business
and Human Rights principles and
OECD Guidelines
2.2.3.4.1 Personal safety of
consumers and end-users
251
SFDR
S4
S4-4
35
Human rights issues and incidents
2.2.3.4.1 Personal safety of
consumers and end-users
251
SFDR
G1
G1-1
10 b
United Nations Convention against
Corruption
SFDR
G1
G1-1
10 d
Protection of whistle- blowers
SFDR
G1
G1-4
24 a
Fines for violation of anti- corruption
and anti-bribery law
2.2.4.1.5 Action plan
259
SFDR
G1
G1-4
24 b
Standards of anti- corruption and anti-
bribery
2.2.4.1.5 Action plan
259
Grey lines = not material for Schneider Electric.
276
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2.2 Sustainability statements
2.2.5.3 Declaration in terms of due diligence
Due Diligence Mapping
Section
Page
Embedding due diligence in
governance, strategy and
business model
2.2.1.1.2 Integrated and transverse governance of sustainable development
97
2.2.1.2.2 Double materiality assessment
114
2.2.2.1.1 Climate-related governance
125
2.2.2.1.2 Climate risks, opportunities, and impact management
126
2.2.3.1.1 Overall strategy
203
2.2.3.2.1 Overall strategy
203
2.2.3.4.1 Personal safety of consumers and end-users
251
Engaging with affected
stakeholders in all key steps
of the due diligence
2.2.1.2.1 Assessment mechanisms: Vigilance plan and Enterprise Risk Management
109
2.2.1.2.2 Double materiality assessment
114
2.2.2.1.2 Climate risks, opportunities, and impact management
126
2.2.2.2.1 Eliminating hazardous substances
159
2.2.2.3.1 Management of associated IRO in terms of resources use and circular economy
167
2.2.3.1.1 Overall strategy
203
2.2.3.1.2 Working conditions
205
2.2.3.1.3 Employee health and safety
215
2.2.3.1.4 Equal treatment
218
2.2.3.2 Sustainable relations in the value chain
236
2.2.3.3.2 Policy
247
2.2.3.4.1 Personal safety of consumers and end-users
251
2.2.3.4.2 Data Privacy
255
2.2.4.1.4 Policy
259
2.2.4.2.4 Sustainable procurement framework and strategy
262
2.2.4.2.5 Policy
263
2.2.4.3.2 Policy
267
Identifying and assessing
adverse impacts
2.2.1.2.2 Double materiality assessment
114
2.2.2.1.2 Climate risks, opportunities, and impact management
126
2.2.3.1.1 Overall strategy
203
2.2.3.2.1 Overall strategy
236
2.2.3.3.1 Context
246
2.2.3.4 Consumers and end-users (ESRS S4)
251
Taking actions to address
those adverse impacts
2.2.2.1.2 Climate risks, opportunities, and impact management
126
2.2.2.2.1 Eliminating hazardous substances
159
2.2.2.2.2 Financial effects
166
2.2.2.3.2 Resource inflows including resource use
172
2.2.2.3.3 Resource outflows related to products and services
179
2.2.3.1.2 Working conditions
205
2.2.3.1.3 Employee health and safety
215
2.2.3.1.4 Equal treatment
218
2.2.3.1.5 Training and skills development
227
2.2.3.2.5 Vigilance Plan for suppliers and contractors
240
2.2.3.3 Ethical relations with affected communities (ESRS S3)
246
2.2.3.4.1 Personal safety of consumers and end-users
251
2.2.3.4.2 Data Privacy
255
2.2.4.1.5 Action plan
259
2.2.4.2.6 Actions and resources
264
2.2.4.3.3 Action plan
268
277
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C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
S U S T A I N A B I L I T Y S T A T E M E N T S
T A B L E S
Due Diligence Mapping
Section
Page
Tracking the effectiveness
of these efforts and
communicating
2.1.1.2 Long-term commitments and tools to measure progress
71
2.2.2.1.2 Climate risks, opportunities, and impact management
126
2.2.2.2.1 Eliminating hazardous substances
159
2.2.3.1.2 Working conditions
205
2.2.3.1.3 Employee health and safety
215
2.2.3.1.4 Equal treatment
218
2.2.3.1.5 Training and skills development
227
2.2.3.2.5 Vigilance plan for suppliers and contractors
240
2.2.3.3.8 Opportunities
250
2.2.3.4.1 Personal safety of consumers and end-users
251
2.2.3.4.2 Data Privacy
255
2.2.4.1.6 Anti-corruption target and metric
261
2.2.4.2.7 Targets and metrics
266
2.2.4.3.4 Targets
269
2.4.1 Methodology elements on the published indicators
310
2.2.5.4 Disclosure requirements incorporated by reference
Disclosure Requirement / Datapoint
Section
Page
GOV-1-21-c – Information about member’s experience relevant to
sectors, products and geographic locations of undertaking
4.1.1.2 Biographies of the Chief Executive Officer
and Board members
403
GOV-1-22-a – Information about identity of administrative, management
and supervisory bodies or individual(s) within body responsible for
oversight of impacts, risks and opportunities
4.1.1.1 Board members
400
GOV-1-22-a – Information about identity of administrative, management
and supervisory bodies or individual(s) within body responsible for
oversight of impacts, risks and opportunities
4.1.3.1 Audit & Risks Committee
431
GOV-1-22-a – Information about identity of administrative, management
and supervisory bodies or individual(s) within body responsible for
oversight of impacts, risks and opportunities
4.1.3.2 Governance, Nominations & Sustainability
Committee
433
GOV-1-22-b – Disclosure of how body’s or individuals within body
responsibilities for impacts, risks and opportunities are reflected in
undertaking’s terms of reference, board mandates and other related
policies
4.1.5 Internal regulations of the Board of Directors
440
GOV-1-22-b – Disclosure of how body’s or individuals within body
responsibilities for impacts, risks and opportunities are reflected in
undertaking’s terms of reference, board mandates and other related
policies
4.1.2.1.1 Roles and duties of the Board of Directors
423
GOV-1-22-b – Disclosure of how body’s or individuals within body
responsibilities for impacts, risks and opportunities are reflected in
undertaking’s terms of reference, board mandates and other related
policies
4.1.3.1 Audit & Risks Committee
431
GOV-1-22-b – Disclosure of how body’s or individuals within body
responsibilities for impacts, risks and opportunities are reflected in
undertaking’s terms of reference, board mandates and other related
policies
4.1.3.2 Governance, Nominations & Sustainability
Committee
433
GOV-1-23 – Disclosure of how administrative, management and
supervisory bodies determine whether appropriate skills and expertise
are available or will be developed to oversee sustainability matters
4.1.1.4 Skills and diversity, sub-section "Skills
within the Board"
414
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2.2 Sustainability statements
Disclosure Requirement / Datapoint
Section
Page
GOV-1-23 – Disclosure of how administrative, management and
supervisory bodies determine whether appropriate skills and expertise
are available or will be developed to oversee sustainability matters
4.1.1.2 Biographies of the Chief Executive Officer
and Board members
403
GOV-3-29-a – Description of key characteristics of incentive schemes
4.2.3.1.2 Compensation policy of Mr. Olivier Blum
as Chief Executive Officer
400
GOV-3-29-b – Description of specific sustainability-related targets and
(or) impacts used to assess performance of members of administrative,
management and supervisory bodies
4.2.3.1.2 Compensation policy of Mr. Olivier Blum
as Chief Executive Officer
431
GOV-3-29-e – Description of level in undertaking at which terms of
incentive schemes are approved and updated
4.1.2.1.1 Roles and duties of the Board of Directors
433
GOV-3-29-e – Description of level in undertaking at which terms of
incentive schemes are approved and updated
4.1.2.2 Board of Directors activities in 2024
440
GOV-3-29-e – Description of level in undertaking at which terms of
incentive schemes are approved and updated
4.1.3.3 Human Capital & Remunerations
Committee
423
GOV-5-36-c – Description of main risks identified and their mitigation
strategies
3.4 Key risks and opportunities
371
GOV-5-36-d – Description of how findings of risk assessment and
internal controls as regards sustainability reporting process have been
integrated into relevant internal functions and processes
3.2 Organization and management
361
SBM-1-40-a-i – Description of significant groups of products and (or)
services offered
Integrated report
26
SBM-1-40-a-ii – Description of significant markets and (or) customer
groups served
Integrated report
22 – 25
SBM-1-40-b – Total revenue
5.1 Consolidated statement of income
504
SBM-2-45-a-i – Description of key stakeholders
4.1.7.1 Composition
450
IRO-1-53-c – Description of process used to identify, assess, prioritise
and monitor risks and opportunities that have or may have financial
effects
1.2 Megatrends and Driving Trends
51
IRO-1-53-c – Description of process used to identify, assess, prioritise
and monitor risks and opportunities that have or may have financial
effects
3.3 Risk management mechanisms
366
MDR-T – Tracking effectiveness of policies and actions through targets
2.1.1.2 Long-term commitments and tools to
measure progress
71
MDR-T – Tracking effectiveness of policies and actions through targets
2.4.1 Methodology elements on the published
indicators
310
E1-GOV-3-13 – Disclosure of whether and how climate-related
considerations are factored into remuneration of members of
administrative, management and supervisory bodies, Explanation of
climate-related considerations that are factored into remuneration of
members of administrative, management and supervisory bodies
2.4.1 Methodology elements on the published
indicators
310
E1-4 – Targets related to climate change mitigation and adaptation
2.1.1.2 Long-term commitments and tools to
measure progress
71
E1-4 – Targets related to climate change mitigation and adaptation
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
E1-MDR-A-68 – Actions in relation to material E1 substainability matters
2.1.1.2 Long-term commitments and tools to
measure progress
71
E2-3 – Targets related to pollution
2.1.1.2 Long-term commitments and tools to
measure progress
71
E2-3 – Targets related to pollution
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
E2-MDR-A-68 – Actions in relation to material E2 substainability matters
2.1.1.2 Long-term commitments and tools to
measure progress
71
E5-2-19 – Actions and resources in relation to resource use and circular
economy – Resources inflows including resource use
2.1.1.2 Long-term commitments and tools to
measure progress
71
E5-3 – Targets related to resource use and circular economy
2.1.1.2 Long-term commitments and tools to
measure progress
71
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T A B L E S
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Section
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2.4.1.1 Indicators from the Schneider Sustainability
Impact
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E5-MDR-A-68 – Actions in relation E5 to material substainability matters
2.1.1.2 Long-term commitments and tools to
measure progress
71
G1-MDR-A-68 – Actions in relation to material G1 substainability matters
2.1.1.2 Long-term commitments and tools to
measure progress
71
S1-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.1.1.2 Long-term commitments and tools to
measure progress
71
S1-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
S1-MDR-A-68 – Actions in relation to material S1 sustainability matter
2.1.1.2 Long-term commitments and tools to
measure progress
71
S1-MDR-A-68 – Actions in relation to material S1 sustainability matter
2.3.2.5.3 Actions for multi-generational
empowerment
304
S1-MDR-A-68 – Actions in relation to material S1 sustainability matters
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
S2-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.1.1.2 Long-term commitments and tools to
measure progress
71
S2-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
S3-4-AR 35 – Initiatives or processes whose primary aim is to deliver
positive impacts for affected communities are designed also to support
achievement of one or more of Sustainable Development Goals
2.3.2 Delivering social impact for a fair transition
293
S3-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.1.1.2 Long-term commitments and tools to
measure progress
71
S3-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
S4-MDR-A-68 – Actions in relation to material S4 sustainability matter
2.1.1.2 Long-term commitments and tools to
measure progress
71
S4-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.1.1.2 Long-term commitments and tools to
measure progress
71
S4-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
2.4.1.1 Indicators from the Schneider Sustainability
Impact
311
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
Schneider Electric | Universal Registration Document 2024
At Schneider Electric, sustainability is central to our
strategy. As the world faces urgent environmental
challenges, including biodiversity loss and climate
change, companies must take decisive action and
adopt a comprehensive approach to efficiently use
the Earth’s resources.
Context and commitments
We understand that the planet’s health is closely tied to the
well-being of communities and economies worldwide. As
biodiversity declines at an alarming pace, protecting our natural
resources is essential for both our operations and the livelihoods
of many.
Our commitment to Environmental, Social, and Governance (ESG)
principles goes beyond merely complying with regulations like the
Corporate Sustainability Reporting Directive (CSRD); it reflects our
dedication to reducing our reliance on natural resources.
Central to our sustainability strategy is a focus on ecodesign and
the circular economy, which we see as vital for protecting
biodiversity while addressing climate change. Our innovative
approaches enable us to rethink product lifecycles, creating
solutions that are both resource-efficient and sustainable in
the long term.
Our Environmental Data Program serves as a cornerstone of our
initiatives, providing a comprehensive framework to measure,
categorize, and compare the environmental attributes of our
products. By offering up to 35 environmental data points across
categories like materials, energy efficiency, and environmental
footprint, we ensure transparency and empower customers to
make informed decisions.
Looking ahead, we are committed to accelerating our progress.
In 2024, Schneider Electric reported a year-over-year reduction in
CO2 emissions across all scopes, showcasing the effectiveness of
our strategies. We recognize the importance of driving innovation
and collaboration, engaging with partners, governments, and
NGOs to foster meaningful policy evolution and societal
transformation in the face of climate change.
Xavier Denoly
Senior Vice President Sustainable Development
“At Schneider
Electric, we act
responsibly to
minimize impacts
and dependencies
on nature.”
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2.3 Sustainable impact for all
| Beyond CSRD
In this section
2.3.1
Being efficient with resources
282
2.3.1.1
Minimize the Group’s impacts and dependencies
on nature
282
2.3.1.1.1
Biodiversity
282
2.3.1.1.2
Water withdrawal, discharge and stress
284
2.3.1.1.3
Pollution mitigation
285
2.3.1.1.4
Environment management systems
285
2.3.1.1.5
Energy management programs
286
2.3.1.1.6
Waste-to-resources
287
2.3.1.2
End-to-end Circularity
287
2.3.1.2.1
Product stewardship
287
2.3.1.2.2
EcoDesign for Schneider Electric
287
2.3.1.2.3
Leading with transparency: Environmental
Data Program and Product Environmental Profiles
290
2.3.2
Delivering social impact for a fair transition
293
2.3.2.1
Improving lives through access to green electricity 293
2.3.2.1.1
Context
293
2.3.2.1.2
Access to Energy Initiatives
293
2.3.2.1.3
Key segments
293
2.3.2.2
Investing for high social impact
294
2.3.2.2.1 Context
294
2.3.2.2.2 Group Impact Investing policy
294
2.3.2.2.3 Governance
294
2.3.2.2.4 Actions and impacts
294
2.3.2.2.5 Examples of portfolio projects
295
2.3.2.3
The Schneider Electric Foundation
296
2.3.2.3.1 Context and goals
296
2.3.2.3.2 Group policy
296
2.3.2.3.3 Governance
296
2.3.2.3.4 Key actions driven by the Schneider Electric
Foundation
296
2.3.2.3.5 Youth Education & Entrepreneurship program
deployed
296
2.3.2.3.6 Volunteering and social mentorship for
successful youth projects and initiatives
297
2.3.2.3.7 Acting as a corporate citizen: Tomorrow Rising Fund 298
2.3.2.3.8 Strengthening its impact thanks to
Schneider Electric Sister Foundations
298
2.3.2.3.9 Support innovation with emblematic projects
299
2.3.2.3.10 Measuring the impact of all the programs
299
2.3.2.4
Next Gen Academy: the workforce of tomorrow
300
2.3.2.4.1
Context and goals
300
2.3.2.4.2 Youth Education & Entrepreneurship program
300
2.3.2.5
Future Ready program
304
2.3.2.5.1 Risks, impacts and opportunities
304
2.3.2.5.2 Empowering all generations to learn and
design their professional journey
304
2.3.2.5.3 Actions for multi-generational empowerment
304
2.3.3
Advocating responsibly and ensuring compliance 307
2.3.3.1
Responsible lobbying, political activity
and donations
307
2.3.3.2
Compliance with competition law
307
2.3.3.2.1 Context
307
2.3.3.2.2 Risks, impacts and opportunities
307
2.3.3.2.3 Governance
308
2.3.3.2.4 Group policy
308
2.3.3.2.5 Actions and resources
308
2.3.3.3
Compliance with tax regulations
308
2.3.3.3.1 Context
308
2.3.3.3.2 Group policy
308
2.3.3.4
Export control and sanctions
309
2.3.3.4.1
Context
309
2.3.3.4.2 Risks, impacts and opportunities
309
2.3.3.4.3 Governance
309
2.3.3.4.4 Group policy
309
2.3.3.4.5 Actions and resources
309
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
2.3.1 Being efficient with resources
2.3.1.1 Minimize the Group’s impacts and dependencies on nature
(1) WWF 2024 Living Planet Report.
(2) Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy Report, World Economic Forum.
(3) Article “Biodiversity loss poses a fundamental risk to the global economy”, World Economic Forum.
(4) Taskforce on Nature-related Financial Disclosures (TNFD) website.
(5) Article “Net positive and the Mitigation Hierarchy”, The Biodiversity Consultancy.
2.3.1.1.1 Biodiversity
Context
A sustainable future for people and economies will only be possible
if nature, climate, and people are valued in an integrated way.
Climate change is among the main drivers of biodiversity loss, and
at the same time climate change cannot be addressed without
solutions from nature. If temperature rises above 1.5°C from
pre-industrials level, climate change will likely become the
dominant cause of biodiversity loss in the coming decades.
The World Wide Fund for Nature (WWF) 2024 “Living Planet
Report”(1) points out that rising temperatures are already driving
mass mortality events, as well as the first extinctions of entire
species: it shows an average 73% drop in monitored wildlife
populations between 1970 and 2020. Every degree of warming is
expected to increase these losses and the impact they have on
people. The first report of the World Economic Forum’s (WEF) New
Nature Economy Report series (2020), Nature Risk Rising,
highlighted that USD 44 trillion of economic value generation – over
half the world’s total GDP – is potentially at risk as a result of the
dependence of business on nature and its services(2).
Contributing to implementing the proposed five main transitions
from the WEF Nature Economy Report II could create USD 3 trillion
annual business opportunities and 117 million jobs by 2030(3).
Pollination, water quality, and disease control are three examples of
the services an ecosystem can provide. As nature loses its
capacity to provide such services, the economy could be
significantly disrupted. This report found that many industries have
significant “hidden dependencies” on nature in their supply chain
and may be more at risk of disruption than expected.
The urgency to accelerate corporate action on biodiversity
management is also reflected in the increase in disclosure
requirements. With increased expectations from investors and
stakeholders for companies to be aligned with the Kunming-
Montreal Global Biodiversity Framework (GBF), the Taskforce on
Nature-related Financial Disclosures (TNFD) piloting phase was
officially launched in Q3 2023(4) to facilitate transparency and
consistency in disclosures.
While the Group has aligned its targets with GBF’s mission: “To halt
and reverse biodiversity loss by 2030”, it will continue to monitor
evolving international standards and best practices especially as
the science-based targets for nature, guided by the Science Based
Targets Network, continue to mature. The Group has designed
a program that is guided by science and follows the mitigation
hierarchy(5) – prioritizing actions to avoid, minimize, restore, and
regenerate impacts across its value chain. Schneider Electric will
continue to grow its Biodiversity program with strong governance
and commitment across the business.
Risks, impacts, and opportunities
When considering this “climate-nature nexus”, Schneider Electric
recognizes the inability to mitigate – or adapt to – the impacts of
climate change without protecting, restoring, and enhancing the
global stocks of nature. Schneider Electric assesses periodically
(in 2020 and in 2023) its impacts and dependencies on the four
realms of nature defined by TNFD (land, ocean, freshwater, and
atmosphere), and five main drivers of nature change: climate
change, resource exploitation, land and sea use change, pollution,
and invasive alien species. The Group’s biodiversity impacts are
indirectly caused by its carbon emissions, and its dependencies
are concentrated upstream of the Group’s supply chain –
specifically, water-related ecosystem services, due to metals
and resources processing.
As the Group expands its efforts to manage its impacts along its
value chain, it also recognizes significant opportunities to enhance
the resilience of its supply chain through better partnerships with
suppliers and enhancing visibility on environmental measures.
The Group’s commitments and early actions on biodiversity
continues to support its reputation as a leader in its sector.
The Group’s commitment to biodiversity
In 2021, Schneider Electric committed to no net biodiversity loss
in its own operations by 2030. This was underpinned by five key
actions. Internal guidelines define the rules applicable for the
Schneider Sustainability Essentials (SSE) ambitions and best
practices are shared across sites for continuous improvement.
In May 2024, Schneider Electric updated its Biodiversity Pledge to
act4nature, adding more granularity on how the different activities
related to climate change, circularity, sustainable materials, and
waste roadmaps are contributing to Schneider Electric’s ambition
towards nature.
Schneider Electric’s reiterated commitments to act4nature
international:
1. Quantify and regularly publish the assessment of the Group’s
impacts on biodiversity.
2. Commit to reduce Schneider’s impacts and align biodiversity
objectives with science.
3. Develop solutions and technologies that contribute to the
preservation of biodiversity.
4. Engage and transform the value chain.
5. Act locally, engaging employees and partners.
Consult Schneider’s commitments to act4nature
international on www.se.com
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Biodiversity footprint measurement
As committed in 2021, Schneider Electric will run a biodiversity
footprint assessment every 3 years. Its baseline was published in
2020. The second biodiversity footprint assessment was run in
2023. Schneider Electric ran its second biodiversity footprint
assessment in 2023. The study allowed the Group to be more
granular in its data and have a first view to what extent the actions
undertaken since 2021 are supporting the footprint reduction.
The evolution of Schneider Electric’s upstream footprint is mainly
driven by our climate roadmap with green materials and
sustainable packaging commitments. Land use accounts for almost
30% of “cradle-to-gate” impacts. As the Group was able to
accelerate our climate commitment in our Scope 1 (operations
emissions), these results are reflected in the biodiversity footprint
too. Climate change remains an important driver for Schneider
Electric’s biodiversity footprint, however engaging on targets
related to other pressures remains key to contribute to reversing
biodiversity loss.
A key learning is that addressing one issue may negatively impact
another, e.g., moving from single-use plastic to cardboard-based
packaging is decreasing one climate change driver while
increasing the land conversion risk. Such conclusions invited
the Group to go further on the knowledge and granularity of its
targets setting.
In addition to understanding its Corporate Biodiversity Footprint,
Schneider Electric works to understand the inherent risk linked to
its sites’ locations. This is why it used the Integrated Biodiversity
Assessment Tool (IBAT(1)) in 2021 to capture such information.
The IBAT report enables users to assess the biodiversity-related
features of multiple operational sites for risk management and
strategy setting. In particular, the report is relevant for Global
Reporting Initiative (GRI) standard GRI 304: Biodiversity.
For each operational site, the report provides the counts of
protected areas and Key Biodiversity Areas (KBAs) within a
1-kilometer radius. The results of the “IBAT Multi-site Report,
2021” include all Schneider sites and show that, within a
1-kilometer radius:
• 21% of its sites are in proximity of a protected area as
defined by the International Union for Conservation of Nature
(IUCN), of which:
−8% are in category 1a, 1b, and 2 (just six sites are in
proximity of a category-1-protected area);
−29% are in category 3 or 4;
−31% are in category 5 or 6; and
−2% are not applicable, not assigned or not reported.
• 3% of the Group’s sites are in proximity of a KBA (defined by
IBAT as either “Alliance for Zero Extinction” or “Important Bird
and Biodiversity Areas”).
Among the sites in proximity of a protected area, 33% are either
industrial sites (characterized by discrete industrial processes
such as assembly lines) or distribution centers (warehouses and
logistics); the remaining 66% are office buildings. All results are
made available to sites, so that they can better understand the
local threat to biodiversity and restoration potential.
Find our IBAT Multi-site Report generated under
license 26614-25299 from the Integrated Biodiversity
Assessment Tool on 15 December 2021 on
www.ibat-alliance.org
(1) https://www.ibat-alliance.org
For the second action, Schneider has committed to no net loss
biodiversity loss from its operations by 2030. It also set the ambition
of having 100% of eligible sites with biodiversity conservation and
restoration programs by 2025.
Schneider Electric’s 2022 terrestrial dynamic footprint by
scope (in MSA.km2)
Climate Change
Metals and Minerals
Woodlogs
Others
49.5
1.0
232
Direct Operations
Downstream (Excl.
avoided and saved)
Upstream
0
50
100
150
200
250
Schneider Electric’s upstream dynamic terrestrial impacts
2019 vs. 2022 (in MSA.km2)
Climate Change
Metals and Minerals
Woodlogs
Others
Impact Intensity (right axis)
2022
2019
0
10
20
30
40
50
60
0
0.4
0.8
1.2
1.6
2.0
Schneider Electric’s dynamic terrestrial impacts 2019 vs.
2022 in its direct operations (in MSA.km2)
Climate Change
Others
Impact Intensity (right axis)
2022
2019
0
0.4
0.8
1.2
1.6
2.0
0
0.02
0.04
0.06
0.08
0.10
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
Based on the outcome of the second Biodiversity Footprint
Assessment, Schneider Electric is on track to achieve its target
of “no net loss in its direct operations by 2030”. The study also
allowed Schneider Electric to further identify and reiterate the
main levers of action to reduce its biodiversity footprint across its
value chain:
• Reduce greenhouse gas (GHG) emissions in the Group’s own
operations and in the supply chain. Climate change is one of the
major pressures on biodiversity globally and represents the
Group’s main impact on biodiversity (over 70%). Therefore,
Schneider’s Net-Zero commitment will have a significant impact
on reducing the Group’s pressure on biodiversity.
• Reduce the “land use” due to the extraction of raw
materials. The main driver of land use is the extraction of wood
and metals. Wood is mainly used for packaging purposes
(cardboard, pallets, boxes); metals are the core of the Group’s
products (silver, copper, steel, aluminum, etc.). Greater
transparency and access to data on end-to-end supply chain is
key to understanding how to minimize the Group’s impacts and
dependencies on nature.
Nevertheless, whether on climate or nature, data quality should not
get in the way of necessary immediate action. Schneider made
several commitments:
• Source 100% deforestation-free wood by 2030.
• Source 50% “green materials” in its products by 2025 (SSI #4).
• Use 100% of sustainable primary and secondary packaging by
2025 (SSI #5).
As part of the Schneider Sustainability Essentials (SSE) program,
Schneider Electric committed to engaging employees and partners
in deploying biodiversity conservation and restoration programs at
100% of its sites larger than 2,000 m2. To meet this ambition, 300
sites must implement a Biodiversity program aimed at eliminating
non-operational single-use plastics (e.g., cups and cutlery) and
addressing local ecological risks through structured governance
and stakeholder involvement. The program launched in 2021,
focused on education and training in 2022, and action in 2023.
As of 2024, Schneider Electric achieved 84% performance, up
from 66% in 2022 for its SSE #8 commitments.
The program empowers employees to understand local
environmental risks and act, resulting in initiatives like Monarch
butterfly waystations in Mexico and the US, miniature forests in
India and other countries, mangrove restoration in Vietnam and
China, river and ocean clean-ups in Egypt and Italy, and ecological
corridors in Brazil.
2.3.1.1.2 Water withdrawal, discharge and stress
Water-related risks monitoring
Schneider Electric regularly assesses water-related risks. In 2022
the Group conducted a corporate water footprint assessment
across the full value chain, covering water consumption, scarcity,
eutrophication, ecotoxicity, and acidification. The assessment
showed that direct water use and indirect energy water use in
facilities amounts for less than 1% of Schneider Electric’s overall
water footprint; 18% was allocated to raw materials and 81% to the
use phase of its products.
Schneider Electric’s direct operations are not water intensive with
industrial processes consisting of mainly manual and automatic
assembly. However, without water the facilities cannot operate and
as such, water remains a continued focus of the business with
increased focus on sites located in the most water-stressed areas.
In 2024, Schneider Electric continued to prioritize water
conservation by monitoring water stress levels at its sites and
implementing water conservation strategies at main sites. The
Company aims for 100% of its water-stressed sites to have water
conservation action plans by 2025 (SSE #11), ensuring continuous
improvement in water efficiency and management.
In 2024, water management and performance information were
disclosed in the CDP Water Security program, and Schneider was
scored an A-.
Annual water withdrawal intensity* (m3/€M)
2020
2022
2021
2024
2025
2023
0
20
100
40
60
80
120
77
70
48
53
56
72
Water intensity
Ambition
* Scope of sites is GED 001 scope; Scope of total revenues is the Group’s revenue
Water withdrawal
The Group also measures water withdrawals from various sources,
including the public network, groundwater, surface water, and other
sources like rain and recycled water.
Water is mainly used for cooling, sanitary purposes, and specific
processes such as surface treatment and paint lines.
In 2021, Schneider Electric set a target to reduce water intensity by
35% by 2025 compared to 2017, focusing on sites with high water
withdrawal and in water-stressed areas. In 2024, the Company
achieved a water withdrawal intensity of 48 cubic meters per million
euros of revenue, a 55% reduction from the 2017 baseline.
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Water-stressed areas
Schneider Electric recognizes the critical importance of water
for its operations and local communities, particularly in water-
stressed areas. The Group monitors water stress levels at all
ISO 14001-certified sites, including factories, distribution centers,
and large offices, using the World Resources Institute’s Aqueduct
Water Risk Atlas. Sites identified as “high” or “extremely high”
are classified as water-stressed, regardless of the volume of
water withdrawn.
Currently, 76 sites fall into this category, accounting for about 46%
of total water withdrawals. Schneider Electric aims for 100% of its
water-stressed sites to have a water conservation strategy and
action plan by 2025 (SSE #11).
These plans involve conducting water use assessments to identify
efficiency improvement opportunities, implementing best practices
in metering, providing technical and general water training for
employees, and analyzing water use in various processes. In 2024,
the Group had achieved 90% of its 2025 ambition, continuing to
prioritize water conservation efforts.
Water discharge
Most of the water discharged by Schneider Electric is sanitary and
canteen wastewater, sent to third parties for treatment without
needing additional pre-treatment on site.
In cases where industrial processes like surface treatments are
involved, on-site wastewater treatment is used to reduce pollutants,
aligning with regulatory requirements. Increasingly, sites are
adopting closed-loop systems to eliminate wastewater, minimize
freshwater withdrawal, and recover valuable raw materials.
2.3.1.1.3 Pollution mitigation
Conditions of use and release into the soil
Schneider Electric’s facilities are predominantly situated in urban or
industrial zones. The Group’s operations do not involve extraction
or land farming. In 2024, Schneider’s manufacturing sites
conducted their routine annual review of pollution risks as part
of the ISO 14001 monitoring process. No incidents of spills or
discharges leading to soil pollution were reported in 2024.
Hazardous materials and their associated wastes are managed in
strict compliance with regulations and effective pollution prevention
measures. For instance, these measures include storing materials
on impervious surfaces and ensuring that stormwater is kept
separate from chemicals and wastes.
Discharge into water and air
As Schneider Electric primarily functions as an assembler, its
discharges into air and water are minimal. The Group’s
manufacturing sites are meticulously monitored in accordance with
local regulations and the ISO 14001 certification. Discharges are
tracked locally as mandated by current legislation. In 2024, there
were no spills or discharges that resulted in water or air pollution.
Emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and
particulate matter are monitored at site level where applicable,
in line with legal requirements, with these emissions being verified
through ISO 14001 audits.
Schneider Electric is dedicated to preventing air pollution and
mitigating adverse health impacts from volatile organic compound
(VOC) emissions. The Group aims to reduce VOC emissions from
industrial activities by 10% every three years. VOC emissions,
primarily linked to production, have decreased from 29 kilograms
per million euros in 2017 to 8.5 kilograms per million euros in 2024.
The Group collaborates with its industrial sites that contribute the
most to VOC emissions, which together account for over 90% of the
Group’s total VOC emissions.
At these sites, environment, health and safety, and industrialization
teams work together to ensure strict adherence to usage conditions
and to identify and mitigate health and environmental risks. These
top VOC-emitting sites also explore opportunities to reduce and
phase out the use of certain chemicals in industrial processes
wherever possible.
Additionally, emissions of chlorofluorocarbons (CFCs) and
hydrochlorofluorocarbons (HCFCs) are monitored locally in
accordance with applicable regulations. These emissions are
primarily due to the operation of air conditioning systems and
are not directly related to Schneider’s industrial activities.
Noise, odors, and light
All Schneider Electric sites comply with local regulations
regarding noise and odor. Given the nature of its activities and
distribution model, the Group does not have any significant external
light pollution.
2.3.1.1.4 Environment management systems
Schneider Electric’s commitment to implementing an environmental
management system is driven by a global network of over 600
managers and experts. These professionals are responsible for
overseeing the environmental management of the sites, countries,
product design, and marketing efforts. At the core of the Group
strategy is the Integrated Management System (IMS), which
standardizes and streamlines the deployment of various
management systems across our plants, distribution centers, and
large offices. The IMS includes compliance with ISO 14001,
ISO 50001, ISO 9001, and ISO 45001 standards. Each site
undergoes periodic audits, either externally by Bureau Veritas
every three years or internally, to ensure adherence to these
standards. Specifically, ISO 14001 certification is crucial for
maintaining robust environmental governance and supporting
continuous improvement in environmental performance.
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Schneider Electric certifies all industrial and logistics sites with
more than 50 employees and all large tertiary sites with more than
500 employees within two years of their acquisition or creation. For
sites that do not meet the criteria for ISO 14001 certification –
industrial and logistics sites with fewer than 50 employees, tertiary
sites with fewer than 500 employees, and newly acquired or
created sites – an environmental management system may be
implemented on a voluntary basis, though it is not tracked at the
corporate level. This approach ensures that the Group maintains
high environmental standards across our operations while allowing
flexibility for smaller or newer sites.
In addition to ISO 14001, our IMS also includes ISO 45001
certification, which focuses on occupational health and safety.
Key elements of ISO 45001 certification include annual site
management reviews, internal site audit programs, and external
audit programs at both site and corporate levels. This certification
is currently in place for 211 locations, including 176 manufacturing
and logistics sites and our headquarters.
As of the end of 2024, 263 sites were certified to ISO 14001,
covering approximately 79% of our Group’s scope based on site
surfaces, 73% in terms of energy consumption, and over 84% in
terms of water usage, waste generation, and Volatile Organic
Compounds (VOC) emissions.
The environmental reporting scope and targets are based on all
ISO 14001-certified sites. Environment reporting metrics, detailed
on chapter 2.2.2 Environmental information on page 125, include
energy consumption, Scopes 1 and 2 CO2 emissions, waste
generation, water usage, and VOC emissions.
Environmental risk management and prevention require more than
just the appointment of technical environment experts. Robust
governance with key stakeholders across the entire organization is
critical to achieve and maintain success in the numerous areas
surrounding environmental risk and prevention.
The Group has therefore established the following engagement
programs:
• The Company-wide Look at Environmental Assessment and
Risk Review program (CLEARR), which focuses on historical
and current potential environmental site risks, and surveys new
and existing selected manufacturing sites each year.
• Environmental due diligence reviews of mergers, acquisitions,
and disposals, at any site where chemicals are or have been
used. Any environmental risks or liabilities identified are
addressed through proper risk management activities.
• Third-party services assess the risk profiles of key sites in
relation to certain external risks such as fires, earthquakes,
floods, and other natural disasters. This process is combined
with the business continuity planning efforts to gauge related
risks and anticipate possible steps which would be required.
• Risks and mitigation actions are presented to the Board Audit
& Risks Committee.
2.3.1.1.5 Energy management programs
Schneider Electric measures its Energy program in a variety of
ways. Two such ways are energy productivity and energy
efficiency.
On the one hand, energy productivity is the amount of output the
Group produces vs. the amount of energy consumed (turnover/
MWh), and the goal is to increase this value by both increasing the
Group’s business performance while simultaneously reducing the
energy consumed in its operations. Schneider Electric has been a
member of Energy Productivity 100 (EP100), a Climate Group
initiative, since 2017. Schneider’s target is to double energy
productivity by 2030 against the 2005 baseline, which means
doubling the economic output from every unit of energy consumed
within 25 years. In 2024, the Group achieved 153% energy
productivity compared to 2005 (against a 2030 target of 100%). By
achieving its EP100 commitment 8 years early (in 2022), Schneider
Electric demonstrates the feasibility of decoupling business growth
from energy consumption. Simultaneously it tangibly illustrates
Schneider Electric products, solutions, and services are a core
foundation to energy saving opportunities.
Energy efficiency, on the other hand, uses linear regression models
to predict how much energy the Group would consume based on
various inputs (production, weather, worked hours, etc.) vs. the
actual energy consumed. The goal here is to reduce energy
consumption compared to predicted value by driving energy
efficiency in its operations.
Despite being low consumers of energy compared with other
industries, due to its discrete and assembly-based industrial
processes, Schneider has had a clear obsession with efficiency
since long before its EP100 commitment.
The Group monitors energy efficiency across its 200+ largest
energy-consuming sites, which together account for over 90% of
the Group’s total measured energy consumption. In Schneider
Electric operations, site energy experts along with Schneider’s
Sustainability Business consulting team work together to report and
analyze energy consumption, identify energy saving opportunities,
and deploy actions. Since 2005, the Group has fixed annual
objectives for energy efficiency each year. Schneider met or
exceeded its energy efficiency goals during the previous four
Company programs (2009 – 2011, 2012 – 2014, 2015 – 2017, and
2018 –2020), by achieving 10%, 13%, 10%, and 10%, respectively.
In 2021, the Group renewed its commitment to improve energy
efficiency by another 15% between 2019 and 2025, tracked under
SSE #5. 15.8% were achieved in 2024, totaling over 50% reductions
between 2009 and 2024.
Schneider Electric utilizes its EcoStruxure™ architecture to achieve
energy savings across its smart factories, distribution centers, and
offices. Five of Schneider’s Smart Factories have been recognized
as 4th Industrial Revolution (4IR) Advanced Lighthouses by the
World Economic Forum (WEF). Through its Smart Factory and
Distribution Center (DC) programs, the Group has implemented
advanced manufacturing technologies in over 120 smart factories
and distribution centers over the past six years. In offices,
Schneider Electric’s EcoStruxure™ solutions, such as Building and
Workplace Advisor, help minimize energy consumption and
emissions, reduce costs, and enhance employee experience and
comfort.
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2.3.1.1.6 Waste-to-resources
When products and materials are circulated in the economy at their
highest value, the need for virgin materials is reduced. This leads to a
reduction in with metal and mineral extraction, fewer resource needs
for manufacturing. This in turn leads to lesser environmental emissions
and more space for nature regeneration and wilderness preservation.
The reduction in environmental emissions links directly to Schneider
achieving its SSI #1 to #5 by 2025 and its Net-Zero target by 2030.
Circularity is a non-negotiable for Net Zero. While most efforts to
tackle the crisis have focused on a transition to renewable energy,
complemented by energy efficiency, these measures can only
address 55% of emissions. The remaining 45% of emissions come
from the production and consumption of products. Beyond this
corporate level, circularity principles also guide product sustainability,
for example eco-design and Environmental Data Program; efficient
manufacturing, for example, waste to resource sites; and component
and material securitization, for example, copper circularity.
2.3.1.2 End-to-end Circularity
2.3.1.2.1 Product stewardship
Schneider Electric’s vision is to decouple business growth from
resource extraction. Leveraging the goal of circularity is to design
out waste and pollution, keep products and materials in use, and
regenerate natural systems. It proposes a framework in which
outputs from every stage of the lifecycle become inputs to another,
offsetting the need for new materials and energy-intensive
manufacturing activities.
The company adopts end-to-end circularity to (1) drive circularity
concepts as a core part of offer creation, product design, and
manufacturing; and (2) keep products, parts, and materials in
circulation at their highest functional value as long as possible.
Strategic layers:
• Design innovation: (1) applying eco-design principles to product
development, e.g., designing for reliability and lifetime
extension, and (2) business innovation to offer development,
e.g., deciding a go to market strategy between transactional
sales and as a service.
• Use better: is about sourcing the best-in-class sustainable
materials and manufacturing products efficiently. Example
measures include sourcing materials with high recycled content
and minimizing manufacturing scrap.
• Use longer: involves providing services to keep products in use
for as long as possible. For example, on-site repair and
maintenance, as well as equipment modernization services.
• Use again: relates to recirculating products, parts, and materials
in the economy. For example, take back, refurbishment, and
resale of retired assets.
2.3.1.2.2 EcoDesign for Schneider Electric
At Schneider Electric, every product or solution fulfills strict
environmental performance. The Group has embraced a circular
approach throughout the lifecycle of its products and aims to
design products with minimal material footprint and maximal
lifetime value. Implementing a circular model that minimizes waste
requires interventions across the value chain – innovative design,
materials, service business models, reuse and redistribution
processes, collection, and more. R&D is needed to design
products that use fewer virgin resources, bring additional CO2 or
resource efficiency for customers, have longer lifespans, and lower
end-of-life impacts, such as SF6-free products.
Circularity is a key enabler and lever to climate change mitigation
and biodiversity preservation. With circularity in mind, the Group
can maximize the value retention of everything it produces through
the products’ lifetime. The circular journey of Schneider Electric
starts with the design phase, to ensure that every product and offer
are using better materials and processes, are used longer, and are
used again once they reach their first end-of-life: this is EcoDesign
for Schneider Electric. Environmentally conscious design (or
eco-design) is defined in the standard International
Electrotechnical Commission (IEC) 62430:2019 – Environmentally
conscious designas the design of products or services that aims to
minimize the environmental impact throughout a product’s lifecycle.
Over the past two decades, Schneider Electric has been investing
in improving the sustainability of its products and completed +3000
life cycle assessments, leading the organisation to have a better
understanding of its environmental hotspots. In 2015, to respond to
customers’ growing demand for products with a lower
environmental footprint, and to embed circular principles in its
products and offers, Schneider Electric adopted EcoDesign Way™,
a process to understand and manage the environmental impact
throughout the lifecycle of products, and to coordinate efforts
across the value chain, as shown with the five EcoDesign
categories below. Schneider Electric has been able to build
internal capabilities in EcoDesign through a tailor-made training
pathway. In 2024 more than 12,000 engineers have been trained
to the EcoDesign principles allowing to implement innovations
which deliver measurable environmental savings compared to
previous models.
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EcoDesign Circularity
Recirculation
Ensure products, parts and
materials have multiple lives.
Life time Extension
Extend lifetime of products, parts
through design and services.
Energy Efficiency
Optimize Energy Efficiency during
product use. Ability to deliver
energy efficiency for customers.
Materials & Substances
Optimize: Focus on using less.
Focus on alternative materials
acting for circularity, low carbon
and people and ecosystem
safety.
Packaging & Operations
Focus on alternatives packaging
solutions to optimize resources
and minimize waste generation.
Other benefits occuring at
SE operations.
EcoDesign allows businesses to implement Schneider Electric
environmental global commitments into new product development
processes, therefore ensuring that Schneider Electric offers
participate actively to its long-term commitments. While the
EcoDesign Way™ Scorecard is still being used in projects,
Schneider Electric has revamped the EcoDesign assets in 2023 to
further accelerate positive impacts products and services could
have on the environment. In 2023, the Group structured the
EcoDesign strategy while developing multiple assets to better
support all Design and R&D teams.
EcoDesign in business strategy
Each business unit defined its sustainability targets and roadmap
to reflect operationally the resources required to achieve a
decarbonization plan. The Human Resources department
performed a thorough assessment to ensure each business unit
was correctly staffed to foster EcoDesign. It includes roles and
responsibility descriptions and upskilling plans. The Group has
implemented EcoDesign metrics into the Offer Life Cycle
Management to ensure all projects are incentivized to track the
environmental footprint of their projects and report their
performance on carbon and materials footprint. Mandatory
deliverables at key milestones of the Offer Life Cycle Management
have been updated to strengthen the EcoDesign requirements.
EcoDesign assets
The Group has launched in 2023 the EcoDesign Training Path, a
set of 20 training modules, accessible for the entire R&D
community, to raise awareness, train, and upskill the engineer in
charge of new product development. The EcoDesign Training Path
includes several training levels, from basic to expert and covers a
wide range of topics such as the EcoDesign principles, lifecycle
assessment (LCA), green materials, communication rules, and
standards. The central team of the different business units are
tracking the deployment of the different EcoDesign Training Path
modules to ensure a good appropriation by the R&D team and
therefore building a common knowledge to foster Sustainable
Innovation DNA across the Company.
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Introduction
•
The EcoDesign BOOST
to define the list of your
most recommended
learnings according
to your role and your
knowledge.
•
Sustainable
communication
Basic
•
EcoDesign principles
•
Life Cycle Analysis
Principles
Advanced
•
Environmental data
•
Overview of external
labels & certifications
•
EcoDesign calculator
•
How to design a
sustainable packaging?
•
How to design products
with Sustainable
Materials?
•
How to achieve
recyclability
performance?
•
How to optimize product
energy consumption?
•
How to extend lifetime of
our products?
•
Green supply chain
Expert
•
How to perform &
verify a Product
Environmental Profile
(PEP)?
•
Life Cycle Analysis (LCA)
& Product Environmental
Profile (PEP) advanced
•
How to anticipate
regulations & standards?
•
How to perform
conformity assessment?
EcoDesign Training Path Overview
In 2023, the Group has developed the EcoDesign Carbon
calculator, an online tool based on LCA methodology and datasets
to allow non-environmental experts to model their projects’
environmental footprint, identify hotspots, and estimate their first
reduction potential. The EcoDesign Carbon Calculator, focusing on
a Climate Change indicator at first (other environmental indicators
could be activated at a later stage), intends to be used at an early
stage of the Offer Life Cycle Management. It relies on available
Product Environmental Profiles (PEPs) and allows users to simulate
different scenarios by using an extrapolation function. Multiple
scenarios can be compared to identify the best design opportunity
for the project team.
The EcoDesign Carbon Calculator has been built thanks to a
partnership with start-up, Altermaker, specialized in the
development of IT solutions for LCA, with support of pilot project
teams who tested the tool. The EcoDesign Carbon Calculator does
not intend to replace a full LCA tool, but rather to educate the whole
project team on the order of magnitude of the carbon footprint of
their product or service, raising their awareness on the
environmental footprint accountability, developing their ownership
toward Schneider Electric’s environmental commitments, and
thereby actively contributing to identify more opportunities.
RoHS
PEP
REACH
EoLI
Green Premium™ is
introduced to provide
transparent information
on regulated substances
and to share environmental
information about
our products
2008
EcoDesign Way™
EcoDesign Way™ is launched
– our internal eco-design
approach, embedded in
the offer creation process.
A label to guide customers
to make a more
sustainable choice
2015
The Green Premium™
program evolves to include
green claim differentiation
2018
EcoDesign
External labels
New transparent,
data-based framework
2024
Marketing valorization and
data digitization acceleration
2023
Sustainable
performance
by design
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2.3.1.2.3 Leading with transparency:
Environmental Data Program and Product
Environmental Profiles
Complementing the EcoDesign initiative, for the last 15 years,
Schneider Electric operated the Green Premium™ program to
transparently communicate the environmental value of a product to
customers, with both qualitative and quantitative data. The Green
Premium™ label means that a product follows the EcoDesign
principles, and:
• Is compliant with RoHS (Restriction of Hazardous Substances)
and REACH (Registration, Evaluation, Authorization, and
Restriction of Chemicals) regulations;
• Has an estimated LCA; and
• Has clear end-of-life instructions.
In 2015, the Green Premium™ label added other environmental
criteria. For example, the Green Premium™ label signals circularity
business models, such as “take-back” programs. An example of
a take back program is for customers who have purchased one of
the Uninterruptable Power Supplies (UPS) to have access to
complementary recycling when the battery in the product reaches
its end of useful life. In 2023, this service collected more than
16,000 tonnes of batteries globally for recycling.
In 2018, external labels such as Byggvarubedömningen (or BVB),
Cradle to Cradle or SundaHus have been added as a criteria for
Green Premium™ product eligibility.
Lastly, in 2024, Schneider Electric decided to go one step
further regarding product sustainability transparency by
launching the Environmental Data Program and retiring the
Green Premium™ label.
The Environmental Data Program is the way Schneider Electric
measures, categorizes, and compares the environmental attributes
and footprint of their products. The program uses a fact-based
methodology to provide up to 35 environmental data points to
Schneider Electric products.
The data are classified in five categories covering the entire
product lifecycle (materials and substances, energy efficiency,
lifetime extension, repack and remanufacture, and environmental
footprint) and are available on Schneider Electric’s digital platforms.
Learn more about the Environmental Data Program on
mySchneider webpage on www.se.com
This detailed product environmental information goes beyond
existing regulatory requirements in response to customers
growing expectations.
End of 2024, 70% of Schneider product turnover (90 000
Commercial references) was made with product disclosing more
than 14 environmental data attributes, easily accessible on the
online product pages.
A greater number of customers, regulators, and standards bodies
request quality and detailed environmental data. Many building
standards and local regulations demand or promote offers
providing Environmental Product Declarations (EPDs).
An environmental footprint is a product or solution-related
measurement that provides quantitative information based on
LCA (according to ISO 14040-44 standard). It enables the
assessment of multiple environmental impact indicators, including
the carbon footprint, for all product or solution lifecycle stages.
The scope of this assessment is also referred to as “cradle-to-
grave”. Environmental footprint assessment is a mandatory
requirement in the Environmental Data Program. Schneider Electric
relies on PEPs to fulfill this requirement. A PEP is defined as a
product-oriented “summarized” version of a full LCA. It relies on
Product Category Rules (PCR) or Product Specific Rules (PSR),
as specified by the ISO 14025 standard related to EPD.
At Schneider, there are two types of PEP available:
• Certified – a Type III environmental declaration in compliance
with ISO 14025. The certified PEP is externally reviewed by
an accredited verifier and published by a program operator
according to the rules provided by this operator (for example,
PEP ecopassport®).
• Internal – the internal PEP follows the exact same rules as the
certified one. However, an internal PEP is reviewed internally
and therefore cannot be registered through an independent
program operator. A process of accreditation for internal
verifiers guarantees the adequate level of internal PEP
verifications. Verifiers check PEPs from lines of business other
than their own, thus ensuring independence. Internal PEPs
comply with the ISO 14021 self-completed declaration. In 2024,
more than 2,300 valid PEPs were publicly available online,
covering all of Schneider’s product lines, and more than 80% of
product lines are covered by an ISO 14025 Type III declaration.
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Digitization of PEP data
Since 2008, when the Green Premium™ program incorporated
the mandatory requirement related to the availability of a PEP,
Schneider Electric has published PEPs at product family level.
In 2021, the Group launched a pilot project to extrapolate PEP
data from product-family level to product-level, to produce more
granular PEP data and start sharing them with a few strategic
customers. Sharing more granular PEP data enabled those few
customers to enhance the accuracy of their respective carbon
accounting and develop services for their own customers to help
them purchase more sustainable products based on quantitative
environmental impact data. With this initiative, Schneider Electric
strengthened the relationship with strategic clients, being
positioned in the top suppliers thanks to sustainability efforts.
In 2024, the PEP digitization program, which uses artificial
intelligence (AI) and a dedicated software, enabled the Group to
extrapolate and digitize quality data on more than 100,000
products to date.
Thanks to the Group’s investment in those dedicated tools and
processes and a strong project coordination involving central
functions and all divisions, it is now possible to share PEP data at
product level with more customers, external databases, and design
firms and software, to position Schneider Electric as a key player
of the sustainable transformation of building, infrastructure, and
industry, and drive this transformation with quantitative data
issued from LCAs.
Schneider Electric position on LCA and product carbon
footprinting
Schneider Electric embarked on the LCA journey more than
20 years ago, with the aim of being transparent towards its
stakeholders on the environmental impacts of its offers, considering
the full lifecycle and a wide set of environmental impact indicators,
beyond product carbon footprint. The Group has advocated for
LCA since then, to comply with existing, recent, and future
regulations (e.g., the EU CSRD and Taxonomy, and the Netherlands
Environmental Performance of Buildings regulation), to meet
customers’ demand for LCA data and to deploy wise eco-design
strategies assessing and avoiding environmental impact tradeoffs.
The Group also advocates for strategies to improve the supply
chain representation in LCA and the comparability of LCA among
industry, at various levels from EU and international standardization
to cross-industry initiatives such as the PACT (Partnership for
Carbon Transparency) Pathfinder Framework project led by the
WBCSD (World Business Council for Sustainable Development),
and the need for a single and public LCA database, to ensure
LCA practitioners in the industry can leverage their individual
supply chain data and at the same time use identical LCA datasets
(LCA raw data for materials, processes, energy supply, etc.).
PEP ecopassport PCRed4
In 2021, Schneider Electric made a major contribution to the
development of the new Product Category Rules (PCR) of the
PEP ecopassport® association (PCRed4 issued in September
2021), which are:
• Compliance with the EN 50693:2019 standard: Product
category rules for life cycle assessments of electronic and
electrical products and systems – currently being mirrored in
the IEC TC 111 Working Group 15 (IEC 63366);
• Full alignment with the EN 15804+A2 standard: Sustainability
of construction works – Environmental product declarations –
Core rules for the product category of construction products;
• Integration of key elements of the EU Product Environmental
Footprint, such as mandatory impact indicators, end-of-life
formulae, and quality ranking;
• Alignment with ISO 14067:2018: Greenhouse gases – Carbon
footprint of products – Requirements and guidelines for
quantification, integrating the latest requirements of the French
regulatory texts from RE2020.
The application of PCRed4 enables electrical and electronic
equipment manufacturers to produce EPDs in accordance with the
best-known international standards, thus fostering cross-region
and cross-industry recognition. Schneider aims to use this new
PCR document to influence and strengthen the environmental
footprint practices of the sector through standardization (TC 111
Working Group, ZVEI initiative) and regulations (Sustainable
Product Initiative of the European Commission, Green Taxonomy).
Officially from 2023, all PEPs published by the Group are compliant
with PCRed4.
With all these data efforts, Schneider Electric strives to provide
quantified environmental footprint information systematically and
seamlessly to customers to differentiate its sustainable offers,
and therefore, be a change agent towards a low-carbon and
circular economy.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
Since the early 2000s, Schneider Electric has
adopted a sustainable approach with the Schneider
Sustainability Impact, measuring progress quarterly
across environmental, social, territorial, and
governance dimensions. This success has driven the
Group to explore future environmental and climate
scenarios while prioritizing inclusion through 5 key
priorities defined by the Corporate Citizenship team.
Context and commitments
Schneider Electric’s first priority is ensuring that the company and
its partners uphold human rights for everyone, including decent
work standards and a social label for products. Following the
update of its Human Rights Policy in 2022, Schneider published
guidelines to protect the dignity of migrant workers.
Currently, about 1 in 5 youth aged 8-16 are out of school (UN,
2022). As an Impact company, Schneider is dedicated to equipping
future generations with essential skills. The Youth Impact through
Learning initiative had a successful 2024, marked by increased
graduates from Schneider Electric Schools and exceeding
objectives in Youth Entrepreneurship Programs. In India, our
partnership with GIZ has effectively deployed energy management
training programs, contributing to our goal of training 1 million
individuals in energy management by 2025. The new Reconversion
Pass has been added to our PASS program, reflecting our
commitment to continuous improvement, alongside the accelerated
expansion of the Senior Talent Program globally.
Approximately 567 million people in sub-Saharan Africa lack
electricity (WHO). Schneider is committed to ensuring access to
clean energy and electrical safety, enhancing individual
development worldwide. This year, the Access to Energy initiative
(SSI #9) exceeded its 2025 ambition, and we will redefine our
five-year roadmap to increase our impact.
Innovation is key to empowering future leaders. Schneider believes
that directing capital and expertise toward social innovation
through impact investing is crucial for a just transition. In 2023, we
launched the GIEF II fund, focusing on investments in sub-Saharan
Africa to drive positive change.
Finally, this year marks the 25th anniversary of Schneider’s
foundation, showcasing employee engagement across North
America, India, and the Pacific. We are proud to have exceeded
the number of voluntary contribution days, highlighting our
employees’ dedication to making a difference.
Gilles Vermot Desroches
Chief Citizenship Officer & Senior Vice President Institutional Affairs
“At Schneider Electric,
we prioritize a fair
transition, promoting
social well-being and
planetary health
together.”
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2.3.2 Delivering social impact for a fair transition
(1) Tracking SDG 7: The Energy Progress Report 2024, produced by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the
United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO).
2.3.2.1 Improving lives through access to
green electricity
2.3.2.1.1 Context
Today, more than 1.5 billion people have limited access to reliable
electricity. In 2022, 685 million people had no electricity(1). Despite
significant progress in recent years, as SEforAll puts it, “electricity
access is growing, but not for everyone”.
In Sub-Saharan Africa, colossal additional efforts are required to
achieve universal access:
•
Around 571 million people do not have access to electricity.
Hundreds of millions more have only limited or unreliable
electricity.
•
The pace of electrification is not sufficient relative to population
growth, and the COVID-19 pandemic has slowed progress
even further.
•
Based on the pace of electrification vs. population growth,
in 2030, around 560 million people would remain without
electricity, which would be 85% of the unelectrified
world population.
Asia-Pacific is approaching universal electrification, thanks to
ambitious government programs. Nevertheless, the grid can be
unreliable or insufficient for productive use in remote areas where
it must be supplemented with renewable energy solutions.
Access to green electricity offers a chance to live a better life,
because it can have a positive multiplier effect on all socio-
economic dimensions of the individual or community: livelihood,
health, education, security, and empowerment of women, while
fighting against climate change by replacing fossil solutions.
2.3.2.1.2 Access to Energy Initiatives
Access to Energy’s purpose is to bring green and reliable
electricity to populations in emerging markets, both as a
fundamental right and a means for social and economic
development, by providing a safe, clean, affordable, reliable,
and sustainable energy offer. At Schneider, this is called Electricity
for Life and Electricity for Livelihood.
In 2024, Schneider has exceeded its 2025 ambition of bringing
green and reliable electricity to 50 million people, cumulatively
since the start of the program in 2009.
•
Electricity for Life means providing access to green electricity
to off-grid communities. These communities need energy as a
fundamental right to meet essential needs in homes (such as
lighting, communication, and education).
•
Electricity for Livelihood means providing access to green
electricity to communities with unreliable grids to support
economic development and poverty reduction. For example, it
empowers farmers by ensuring food security through irrigation,
food storage, and processing, enabling self-transformation.
The Access to Energy social business works in synergy with the
Youth Education & Entrepreneurship program and the Impact
Investment funds, in a virtuous circle of providing products and
solutions, capacity building, and support to startups.
2.3.2.1.3 Key segments
Access to Energy social businessfocuses on the following key
segments: healthcare, education, agriculture, and livelihood.
Clean and reliable energy for rural schools and
healthcare facilities
Solar solutions in healthcare facilities leads to marked
improvements in outpatient visitation rates. This initiative not
only transforms healthcare accessibility but also empowers the
community by ensuring reliable energy for essential medical
services. Meanwhile in schools, it provides a reliable power
source, ensuring uninterrupted learning and enabling digital
learning, thereby creating a more sustainable and resilient
learning environment.
In 2024, more than 2000 schools and health clinics in remote
and rural areas of South Asia and Africa have been equipped with
access to clean and reliable electricity through Schneider Electric’s
Homaya Hybrid and Homaya Pro solutions, benefiting students in
schools, and medical staff and patients in health clinics.
Clean energy for sustainable
agriculture and livelihoods
Providing clean, reliable, and affordable electricity has a
positive impact on the environment and farmers’ livelihoods,
leading to a more sustainable and resilient future. This helps
reduce reliance on fossil fuels and promotes socio-economic
development for farmers. Schneider has a range of clean
energy solutions for irrigation and agro-processing
applications.
Recently, Schneider has developed and implemented an
innovative, efficient, reliable, and low-cost integrated
“Climate Smart Village Solution”, which, in addition to
maintaining the high-capacity utilization of solar pumps that
increases the area under irrigation for farmers, also powers
agro-processing units and other livelihood applications. Even
more, this solution can be integrated to ensure reliable power
to households, streetlights and various community loads. In
2024, Schneider Electric has provided these integrated
Climate Smart Village Solutions in two villages in the eastern
part of India.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
2.3.2.2 Investing for high social impact
2.3.2.2.1 Context
Schneider Electric is committed to contributing to a transition
towards a fairer and more inclusive society, in line with the United
Nations Sustainable Development Goals (UN SDGs). According to
the UN, achieving these goals requires the mobilization of USD 5 to
USD 6 trillion every year, calling for a major reorientation of capital
towards sustainable activities. Impact Investments are part of the
solution to bridge this financial gap. They are “investments made
with the intention of generating a positive, measurable social and
environmental impact alongside a financial return” (GIIN(1)).
The ambition of Schneider Electric’s Impact Investing practice is to
fund and support high social and environmental impact initiatives in
the domain of clean energy services, to create a better future for all.
2.3.2.2.2 Group Impact Investing policy
All impact investing activities aim to leverage Schneider Electric
competencies toward a fair and inclusive transition, by creating and
facilitating coalitions with different stakeholders. As such, they
follow strict management rules to generate high social impact while
protecting the assets under management:
• Investing minority stakes in partnership with recognized players;
• Providing efficient pro bono support through our network and
expertise, to deliver the best social impact and minimize risk;
• Ensuring alignment with the Schneider Electric ecosystem;
• Ensuring respect of ethical business practices; and
• Since 2024, ensuring alignement with OPIM(2), impact
management principles designed by the GIIN to reinforce
impact funds’ strategies.
2.3.2.2.3 Governance
Each investment vehicle has its own governance structure
generally composed of at least two bodies:
(1) Global Impact Investing Network.
(2) Operating Principles for Impact Management.
• A Board of Directors or a Supervisory Board in charge of
ensuring compliance with all legal and ethical regulations.
In most cases investors are represented on this Board.
• A Management Investment Committee, either fully independent
or composed of investors, according to the legal structure. They
ensure compliance with investment policies and are regularly
updated on investment financial and impact performance.
• In some cases, an Advisory Committee, a Strategic Committee,
or an Impact Committee to help with setting up and managing
investment and impact strategies and policies.
All investment vehicles are supervised by independent auditors.
2.3.2.2.4 Actions and impacts
Schneider Electric is a pioneer in the Corporate Impact Investment
space, having launched its first investment vehicle, Schneider
Electric Energy Access (SEEA), as early as 2009. With the strong
belief that access to clean energy services is a fundamental right
and key development lever, the Company has since initiated or
participated in five vehicles to accelerate a just energy transition.
Each vehicle has a different geographical scope of operation, but
all 58 portfolio companies focus on impact generated by energy.
They operate in the sectors of safe and clean energy services,
affordable and energy-efficient housing, healthcare, digital and
financial inclusion, environmental protection, and education. They
also contribute to the creation of new jobs and the generation of
revenues for underprivileged populations, thereby participating in
the overall development of communities.
As such, between 2009 and 2023, Schneider Electric impact
investments have enabled portfolio companies to have a positive
impact on 38 million people, contributing to the creation of
7,306 direct jobs, the renovation of 81,000 m² of homes, the
recycling of 220,000 tons of waste, and the prevention of 10 million
tons of CO2 emissions.
Find more information about our Impact Investing 2024
highlights on YouTube
2009 –
SEEA
Solidarity-driven fund
2011 –
Livelihoods I
(2017 & 2021 Funds
II & III) Carbon Funds
2015 –
E3 Capital
Access to clean
and reliable energy
2020 –
SEEA Asia
Energy transition and
entrepreneurship
2023 –
GEIF II
Energy impact
fund
Total funding amount:
€7M
Investment amount
from SE:
€3M
Region:
Europe
Co-investors:
SE employees, MESE
and impact funds
Total funding amount:
€250M
Investment amount
from SE:
€35M
Region:
Worldwide
Co-investors:
Corporates
Total funding amount:
€75M
Investment amount
from SE:
€21.5M
Region:
Sub-Saharan Africa
Co-investors:
Development finance
institutions (DFIs)
Total funding amount:
€21M
Investment amount
from SE:
€6.3M
Region:
South and SE Asia
Co-investors:
DFIs and asset
management companies
Total funding objective
(closing on going):
€60-80M
Investment amount
from SE:
€20M
Region:
SubSaharan Africa
Co-investors:
Impact funds,
family offices and
institutional investors
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2.3.2.2.5 Examples of portfolio projects
SEEA: inclusive economy and energy poverty
Enogrid
Financed by SEEA, Enogrid is a French social company
dedicated to the development of local and sustainable
energy through collective self-consumption.
The company promotes this decentralized form of energy
production by providing producers with training and support
in implementation, as well as an operational monitoring
platform. It also encourages collective self-consumption
by associating producers with nearby consumers, grounding
the energy transition in local and concrete initiatives for
the citizens.
Since its creation in 2018, Enogrid has supported the
implementation of 420 projects and contributed to generate
12,600 MWh of clean energy and avoid the emission of
351 tons of CO2.
Confident in Enogrid’s team and its position in a new
and fast-growing market, SEEA decided to support the
continued expansion of the company with a follow-on
investment in 2024.
Gaia and E3 Capital: access to energy in Africa
Nuru
Financed by both Gaia Energy Impact Fund and E3 Capital
fund, Nuru is a Congolese (DRC) company providing
access to clean, safe, and reliable energy with off-grid
solar mini-grids.
The company contributes to the electrification of large towns
of the country by constructing and operating hybrid mini-
grids with digital management and prepayment solutions.
Its clients stem from individual households to small
businesses and institutions, in a country with a 21.5%
electrification rate.
With affordable prices and reliable energy, the company
improves the lives of millions, in line with Schneider Electric’s
commitment to provide access to clean energy to 50 million
people. Since the start of its activities and as of September
2024, it has created 109 jobs, benifiting approximately 15,000
people, and avoiding the emission of around 560,000 tons
of CO2eq.
SEEA Asia: access to clean and reliable energy
Carbon Masters
Financed by SEEA Asia, Carbon Masters is an Indian
company ensuring access to safe and clean energy with
bio-compressed natural gas.
The company structures and helps the development of
the entire biogas value chain. It receives organic waste
generated by municipalities, processes it for biomethanation
in plants owned and/or managed by the company, and
distributes two resulting products to end-users: bottled
Bio-CNG and organic fertilizers. This complete waste-
to-energy solution meets several needs of the region:
energy poverty, lack of waste management, poor income
opportunities, low soil fertility, and high-carbon emissions.
As of December 2024, Carbon Masters has contributed to
over 37,800 tons of CO2 avoided, created a total of 57 decent
jobs and impcted a total of 26,900 beneficiaries directly with
its products.
Livelihoods: Carbon Fund and social impact
Océanium
Financed by the Livelihoods Carbon Fund, the Senegalese
non-governmental organization (NGO) Océanium aims to
reduce net carbon emissions by restoring disappearing
mangroves in coastal areas of the region.
The NGO employs local communities to plant trees in
mangrove land damaged by deforestation and poor climate
conditions. These rich ecosystems guarantee soil fertility and
fresh water sources by maintaining low water salinity. Losing
them jeopardizes food security and habitability of the region.
Since 2008, 8,000 hectares of mangrove land have been
restored by 100,000 inhabitants from 250 local villages.
This led to the reappropriation of the mangrove by the
communities, the revival of productive fishery and agriculture,
and an expected 500,000 tons of CO2eq captured by the
80 million planted trees by 2028.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
2.3.2.3 The Schneider Electric Foundation
2.3.2.3.1 Context and goals
Today’s younger generation is uniquely positioned as the first to
experience the direct impact of climate change and certainly the
last one with the capability to take decisive action and make a
real difference.
More and more, the youth is already heavily involved in just
transition initiatives led by civil society, but also through their
career choices, volunteering, involvement in NGOs, and more.
To successfully secure a sustainable future for humanity, younger
generations express the same need for guidance, training, and
recognition. The Schneider Electric Foundation’s goal, under the
aegis of Fondation de France, is to support and empower them to
get involved and innovate, so that they can take their rightful place
in the world of tomorrow. The Foundation goes about fulfilling this
objective every day, all over the world, through concrete initiatives
and programs.
2.3.2.3.2 Group policy
The Group’s first Philanthropy Policy was implemented in 2023 and
reviewed in 2024. Available in eight languages, its objective is to
define Schneider Electric’s position on philanthropy, its priorities,
and its principles of action, in line with the 17 UN SDGs. It provides
a coherent and consistent framework and process enabling
Schneider Electric entities and employees to contribute and act.
In 2024, the EUR 4 million annual budget of the Schneider Electric
Foundation was invested in more than 110 projects, supporting
245,695 youths with a key engagement of the Schneider Electric
community, contributing with 17,206 days of volunteering.
This commitment is being amplified with an additional EUR 33
million from Schneider Electric’s entities and employees giving
back in their communities. In total, more than EUR 37 million has
been invested to help local communities worldwide.
2.3.2.3.3 Governance
Fondation de France is a non-profit organization that, since its
creation in 1969, has been the bridge between donors, founders,
and field structures in order to support projects across a range of
general interest areas. It supports other foundations (977 in 2024)
whose operations are governed separately, but who are legally
part of Fondation de France. It is responsible for ensuring that
their actions comply with its by-laws. The Executive Committee of
the Schneider Electric Foundation determines the key focuses of its
initiatives and the projects it supports.
Since 2019, the composition of the Schneider Electric Foundation’s
Executive Committee is as follows:
• Ten members: five from Schneider Electric (including the
CEO, two members of the executive committee and two
representatives of the employees) and five external experts.
• One observer from Fondation de France.
Its missions are the following:
• Define the strategic directions of the Foundation.
• Validate the activity report and financial report.
• Decide on the allocation of budgets by program.
• Validate commitments exceeding EUR 200,000.
One to two Executive Committee meetings are organized each year.
Lastly, the Foundation’s Selection Committee meets every month
and is composed of:
• General Delegate;
• Corporate Philanthropy Director; and
• Program Director, Youth Education & Entrepreneurship.
2.3.2.3.4 Key actions driven by the Schneider
Electric Foundation
Schneider Electric’s global presence allows it to have a greater
reach and impact on underserved communities. The Group
believes in contributing through different initiatives such as the
Schneider Electric Foundation programs and initiatives. Through
charity and donations, teaching and lending its time, the Company
and its Foundations will support local organizations and stimulate
communities. Six main actions are driven by the Schneider
Electric Foundation:
1. Developing access to education and entrepreneurship for the
youth with the Youth Education & Entrepreneurship program
deployed globally.
2. Developing volunteering and social mentorship as a key
contribution to the success of youth projects and initiatives.
3. Acting as a corporate citizen by supporting international causes
with the Tomorrow Rising Fund.
4. Strengthening its impact thanks to Schneider Electric Sister
Foundations (North America, India, Australia).
5. Support innovation with emblematic projects.
6. Measuring the impact of all the programs.
2.3.2.3.5 Youth Education & Entrepreneurship
program deployed
Context and goals
Today’s young people are forward-thinking and creative. We need
to empower them with the necessary skills and support to create
a life aligned with their dreams and aspirations. Education,
technological, social innovation, and entrepreneurship are all
essential ingredients to ensure that these initiatives are relevant
and effective. They should be equipped to bring the biggest
possible impact and appropriate responses to the needs
of beneficiaries.
The Youth Education & Entrepreneurship program aims to give
all young people the means to build solutions for a better life,
contribute to a fairer, low-carbon society, and transform the world.
By funding projects, sharing its expertise, volunteering
employees’ time, and collaborating with its partners on the ground,
Schneider Electric is empowering younger generations and the
broader community to achieve a better future through
sustainable development.
The Schneider Electric Foundation promotes volunteering activities,
through the VolunteerIn association, and mentorship as key
contributions to the success of youth projects and initiatives
through the mobilization of Schneider Electric employees. One of
Schneider Electric’s objectives is to skill and empower one million
young people in energy management by 2025, to train 10,000
trainers and support 10,000 entrepreneurs.
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Governance
The program follows the rules and governance of the Schneider
Electric Foundation and Fondation de France.
The program is led by zone representatives and in-country leaders
who correspond daily. A global coordinator sets up regular
meetings to support the zone representatives and guarantee the
progress of the program in each zone. Every quarter, the zone
representatives use a centralized tool to report on the impact of the
program, and data is reviewed by an external auditor. With rare
exceptions, all projects benefit from monitoring by employees of
Schneider Electric entities operating in the countries concerned.
Actions
The program is divided into three main areas:
1. Support access to qualitative jobs through vocational
and entrepreneurship training in the energy field, key
drivers of socio-economic and sustainable development
across generations.
2. Learn new skills for the future, technical and soft, linked to
the energy transition, giving younger generations the boost they
need to succeed and build the world of tomorrow.
3. Create the right ecosystem to spread entrepreneurial
spirit and encourage innovation, enhancing younger
generations to define their future and take part in social
and environmental challenges.
Celebrating 25 years of impact
For a quarter-century, the Schneider Electric Foundation has
led the way in promoting positive initiatives contributing to a
just transition, with many innovations being spearheaded
by youth globally. In celebration of its 25th anniversary, the
Foundation is honoring the next generation by investing in
their future, our future.
Gilles Vermot Desroches, Senior Vice President of Schneider
Electric Corporate Citizenship and Institutional Affairs and
General Delegate of the Schneider Electric Foundation
declared: “The younger generation is playing an influential
role in how we shape tomorrow’s innovative solutions. From
the outset, our Foundation has valued the contribution of
youth, and therefore, considers the importance of supporting
young people to nurture both future generations and our
planet.”
Youth Innovation for a
Sustainable Future
Marking an important milestone, the “Youth Innovation for
a Sustainable Future” call for projects aims to empower
youth-serving NGOs, in partnership with Ashoka. A total of
25 social entrepreneurs across the globe – South and North
America, Asia-Pacific, Europe, the Middle East, and Africa,
have been rewarded as they champion the field of just
transition and powerfully showcase the Foundation’s 25 years
of impact on local communities.
2.3.2.3.6 Volunteering and social mentorship for
successful youth projects and initiatives
The Schneider Electric Foundation strongly focuses on the
Company’s employee engagement in all its activities. In 2012, the
Schneider Electric VolunteerIn NGO was created to organize
volunteer initiatives, empowering people – the Foundation
delegates or employees volunteer, to share time and skills, and be
actors and ambassadors of societal commitments in the fields of
youth education, planet, poverty, and communities.
The digital platform known as VolunteerIn brings together all the
missions proposed by the Foundation locally and internationally.
Available in 27 languages, the platform can be accessed by
Schneider Electric employees all over the world, enabling them to
apply for volunteer assignments benefiting the Foundation’s
partners and their beneficiaries.
The Schneider Electric VolunteerIn Executive Board is composed
of Schneider Electric leaders:
• Chairman, Chief Human Resources Officer.
• Two Vice-Presidents, including Executive Vice-President Global
Supply Chain.
• Secretary, in charge of the Youth Education & Entrepreneurship
program.
• Treasurer, in charge of the SEEA solidarity investment fund.
• Member, Vice-President, Diversity, Equity, Inclusion
and Well-Being.
• Member, volunteer representative.
• Member, Chief Citizenship Officer and Senior Vice-President
Institutional Affairs.
One to two Executive Board meetings are organized each year.
The Schneider Electric Foundation draws on a network of around
80 delegates covering 100 countries. Their role is to identify and
select local partners empowering the youth, and to support
entrepreneurship, sustainability awareness, and volunteering
initiatives, particularly social mentorship. The delegates inform
employees about their entity’s activities, and about the Foundation.
Each proposed project is subject to a review process based on
administrative and financial data by the Schneider Electric
Foundation and by Fondation de France before funds are released.
Following a project’s launch, progress and reporting are monitored
by the delegates.
Finally, the Foundation delegates coordinate the organization of
the Schneider Electric Foundation’s campaigns for international
mobilization.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
Employee engagement, cumulated per region since 2018
10,088
13%
10,843
14%
22,121
29%
2,557
3%
2,324
3%
2,547
3%
23,360
31%
Total 75,461
volunteering days
Global*
1,623
2%
Volunteering days
Distribution
* Days in global/multi-country initiatives.
2.3.2.3.7 Acting as a corporate citizen: Tomorrow
Rising Fund
Context and goals
Since its creation, the Schneider Electric Foundation has proposed
23 specific emergency and rebuilding campaigns. It acts as a relay
and amplifies the mobilizations of local Schneider Electric entities
following natural disasters or emergency situations in the
concerned countries.
Actions and impacts
Schneider Electric employees and entities have always
demonstrated and incredible spirit of solidarity. In 2024, they
contributed to a campaign following the floods in the Valencia area
in Spain.
2.3.2.3.8 Strengthening its impact thanks to
Schneider Electric Sister Foundations
The Schneider Electric Foundation operates in a 100 countries
across all continents. Its impact is reinforced in some regions
through the activities of Sister Foundations in North America,
India, and Australia.
North America
The Schneider Electric North America Foundation provides
financial support, products, expertise, and volunteers to non-profit
organizations that align with business priorities, values, and
geographies. The Foundation’s goal is to make an impact in
communities where we live and work.
They have strategic partnerships that focus on supporting focus
areas of energy equity, STEM (science, technology, engineering,
and mathematics) education, disaster relief, DEI (diversity, equity,
and inclusion), and well-being. They offer employee programs to
support their commitment and efforts in their communities which
include Matching Gift, Dollars for Doers, Sponsorship Grants, New
Hire Gift, Service Days, and Volunteer Events.
In 2024, the North America Foundation contributed to over USD 9
million in cash and product donations to roughly 1,700 charitable
organizations and participated in 27,000 employee hours.
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India
In 2024, Schneider Electric India Foundation has impacted many
lives through various programs targeted for youth, children, and
community development.
1. Skill and entrepreneurship development:
• 43,800 unemployed youth including 9,010 women were
provided training on electricity automation, solar energy
and entrepreneurship.
• 445 trainers trained under the “train the trainer” initiative.
2. Clean energy for sustainable livelihood:
• 2,565 indigenous farmer families benefited though 171 solar
irrigation pumps.
• 4 Health Centers in remote villages were provided with
solar solutions.
• Two Climate Smart Villages project implemented to provide
reliable and clean energy to 190 tribal families for their
household and community need, irrigation, and productive use.
3. 30,000+ school children provided access to digital education
with 190 solar powered digital classrooms.
4. 10,000+ school children trained on conservation of energy
and environment.
5. 900 employees volunteered in various programs contributing
5,800 volunteering hours.
Pacific
In 2024, Schneider Electric Pacific Foundation contributed AUD
350,000 to major Australian charity partners – Raise Foundation,
Beacon Foundation, and Australian Torres Strait Islander
Mathematics Alliance (ATSIMA), and in New Zealand, NZD 40,000
has supported Puhoro and the Graeme Dingle Foundation.
Through the Giving@SE program, a total of more than AUD 147,475
and NZD 10,199 was donated to not-for-profit organizations thanks
to individual employees and matched donations from Schneider
Electric (up to AUD 5,000 or NZD 5,000/employee/year).
2.3.2.3.9 Support innovation with emblematic
projects
The Schneider Electric Foundation also supports emblematic and
international programs by making available its knowledge of energy
systems management, through donations in resources and/or
knowledge, to encourage innovation for the energy transition. It has
made a four-year commitment to the Solar Impulse Foundation,
which selects 1,000 solutions that contribute to the achievement of
at least five SDGs:
• Clean Water and Sanitation for All (SDG 6);
• Affordable and Clean Energy (SDG 7);
• Industry, Innovation and Infrastructure (SDG 9);
• Sustainable Cities and Communities (SDG 11); and
• Responsible Consumption and Production (SDG 12).
The selected solutions must meet the following criteria: technical
feasibility, environmental benefits, and economic viability.
Schneider Electric employees are mobilizing their skills to analyze
the various solutions within their field of expertise.
Atelier 21, a Foundation partner, has been granted two Solar
Impulse Efficient Solution labels:
• Solar sound systems for events powered by renewable energies
(solar or bike-powered). With seven systems in place in France
and Switzerland, Solar Sound System has set up solidarity
projects in Haiti, Brazil, India, Taiwan, and Cameroon and has
projects in Réunion, the US, and South Africa.
• Regenbox, the first do-it-yourself “non-rechargeable” alkaline
battery charger. Regenbox aims to be ecological and anti-
planned obsolescence. This project is also an educational
tool and a means of raising awareness about a different use
of batteries in order to reduce the amount of electronic waste
so present in our daily lives.
Bertrand Piccard, Chairman of the Solar Impulse Foundation,
is promoting this portfolio of solutions to corporate and political
leaders worldwide. At the end of 2021, 1,000+ solutions had
already been granted the Solar Impulse Efficient Solution label.
These included insulating blocks made from hempcrete, wind
turbine floats, and a web-based pallet exchange platform. At the
occasion of COP 28, a two-year partnership has been renewed
with a strong focus on advocacy, education, and promotion
of solutions.
2.3.2.3.10 Measuring the impact of all the programs
The Schneider Electric Foundation aims to create meaningful,
positive change through its programs, fostering real stories of
transformation with a focus on sustainable social impact. Over the
years, the Foundation has assessed the social impact and tangible
changes brought by its initiatives, ensuring genuine and lasting
impact is felt by the beneficiaries, going beyond mere perceptions
or numerical figures.
In line with the previous year’s strategy, the Foundation has
continued to invest in the innovative approach initiated in 2023:
a new global Social Impact framework, applied for the first time to
the Youth Education and Entrepreneurship program. It represents
a crucial mindset shift, empowering partners to autonomously
evaluate the impact of their initiatives within their local contexts.
In 2024, the Schneider Electric Foundation implemented an
incremental approach, characterized by two main phases. Firstly,
a pilot phase was completed to validate the value of this new
methodology. The pilot provided initial aggregated data, revealing
key insights such as: 72% of trainees reported being employed
after the training (in a company, self-employed, or with their family),
51% found jobs in the electricity or transition sector, 56.6%
experienced an increase in purchasing power, and 72% stated that
they would not have achieved the same results without the training.
(Data collected post-training – Margin of error: 7.8% – Population:
176). Following the success of the pilot, a global deployment phase
was initiated, collaborating with 60 training program partners in
28 countries, marking a significant step forward in the commitment
to creating sustainable social impact.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
2.3.2.4 Next Gen Academy: the workforce
of tomorrow
2.3.2.4.1 Context and goals
For over a decade, Schneider Electric has partnered with over
850 local and global stakeholders in 60 countries to develop
the Youth Impact Through Learning initiatives. This initiative
encompasses a range of programs, including the Youth Education
& Entrepreneurship program, designed to equip 1 million young
with training, tailored to local job market demands and integrated
with the latest technological advances. It supports training of
trainers and industry exposure for the beneficiaries, adapting
training length to local realities (from 3 months to 3 years). This
comprehensive approach not only empowers individuals but also
contributes to sustainable community development.
2.3.2.4.2 Youth Education & Entrepreneurship
program
1. Support access to qualitative jobs through technical
and vocational education training in the energy
sector
Schneider Electric and its Foundation are committed to advancing
gender equality and empowering individuals from vulnerable
communities through targeted training initiatives in the energy field.
A prime example of this commitment is the Green Innovation Hub
(GIH) at Kutupalong Refugee Camp in Cox’s Bazar, Bangladesh.
Supported by the Schneider Electric Foundation and operated in
partnership with UNHCR and NGO Forum, GIH addresses critical
issues such as e-waste management and access to energy in the
camp. Leveraging Schneider Electric EcoStruxure™ solution, the
project has implemented augmented reality simulated training
equipment, aiming to enhance access to learning materials through
digitization for a more effective learning journey.
The hub trains refugees, emphasizing women in solar equipment
installation, maintenance, and repair, providing essential skills in a
region lacking formal electrical infrastructure. This training fosters
economic independence and enhances safety and sustainability
by reducing e-waste. The initiative’s “Training of Trainers”
program enables trained refugees to educate others, thereby
expanding local capacity. The program has supported more than
9,000 trainers globally.
The curriculum, divided into short, flexible modules that combine
theoretical and practical knowledge, is accessible to all
participants, including those who may have limited formal
education. It incorporates digital tools to familiarize trainees with
various solar technologies, enhancing their learning experience
and employability.
Upon completing the courses, both trainers and trainees receive
certifications that recognize their skills and improve their job
prospects, directly contributing to their ability to earn a sustainable
income. Through these efforts, Schneider Electric is not only
promoting a just energy transition but also aligning with global
efforts to empower vulnerable populations by providing them with
the tools to succeed in a green economy.
2. New Skills for the Future and Innovation for a just
energy transition
Beyond simply addressing climate change and advancing the
energy transition, the New Skills for the Future & Innovation
initiatives fundamentally empower future generations to become
Impact Makers and invest in resilience. By equipping them with
21st century skills and knowledge on the energy transition, the
projects enable them to not only contribute to building a sustainable
future but also to create lasting change within their communities
and to enhance their overall quality of life.
Schneider Electric and its Foundation have significantly supported
innovation for a just energy transition through their global long-
standing collaboration with Enactus. This partnership has reached
over 120,000 university students across ten countries, including
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Mexico, Guatemala, Brazil, Colombia, Senegal, South Africa,
Nigeria, Kenya, Egypt, and France. Through a year-long program,
students engage in identifying social issues and devising
entrepreneurial solutions to be Impact Makers and take part in the
energy transition. Schneider Electric’s involvement extends beyond
traditional mentorship; its employees contribute as content experts
and competition judges, enhancing the learning experience and
ensuring practical industry insight.
The program has successfully empowered young entrepreneurs
and driven positive community change while promoting gender
equality through targeted educational initiatives. Notable
achievements include projects by Brazil’s Faculdade Facimp team
creating ecological bricks from açaí fruit waste, Egypt’s Arab
Academy team developing local solutions for air pollution, and an
all-women team from Mexico’s University of TEC Milenio innovating
in sustainable shrimp waste utilization. These youth-led projects
were showcased by the participants at the Enactus World Cup in
Astana, Kazakhstan, in October 2024.
In addition, Schneider Electric and its Foundation initiated the
Battery Innovation Challenge to serve as a platform for young
innovators in South Africa, Zimbabwe, Kenya, and Nigeria to
develop and display battery technologies addressing energy
challenges. The Central University Of Technology team of South
Africa, distinguished themselves with their “Kratos Batteries”
project, which features:
• Use of recyclable materials such as polyethylene and
polycarbonate for the battery’s separator and casing.
• Integration of an AI-enhanced battery management system
that utilizes machine learning to optimize charging processes,
extend battery life, and monitor health and charge status in
real time.
The top three teams received considerable financial support from
the Schneider Electric Foundation, fostering further development
of their innovative solutions. This challenge reflects the participants’
ability to be Impact Makers and green ambassadors to contribute
to a sustainable energy transition through creativity and
technical skill.
3. Spread entrepreneurial spirit and encourage
innovation for the energy transition
Schneider Electric and its Foundation have significantly advanced
their support for youth entrepreneurship, achieving remarkable
success beyond their initial goals. The Youth Education &
Entrepreneurship program, initially targeting the empowerment
of 10,000 entrepreneurs by 2025, has already surpassed
this milestone by supporting 10,997 entrepreneurs. This
accomplishment highlights Schneider Electric’s dedication to
promoting economic growth and enhancing skill development
among young people.
Schneider Electric champions gender equality by supporting
specialized organizations that create inclusive ecosystems offering
training, mentorship, and funding. These efforts aim to integrate
women throughout the energy value chain and enhance female
leaders who can drive the energy transition and promote
climate justice.
A prime example of these efforts is the DESFERS initiative
(Economic and Social Development of Women through Renewable
Energies in the Sahel), empowering women and local communities
through renewable energy through multi-stakeholder, multi-prong
collaboration with non-profit organizations, government institutions,
quality assurance, and research bodies. The initiative led by
Plan International is methodically designed around a three-phase
process aimed at holistic development:
• Training: This phase focuses on creating awareness around the
energy sector and breaking stereotypes with community
discussions. As well as training women in the practical and
theoretical aspects of solar energy technologies after reinforcing
trainers’ competencies and implementing training laboratories.
• Electrification: Efforts in this phase include the installation of
microgrids that enhance rural electrification and provide reliable
energy access in women villages.
• Empowerment: The final phase supports women in utilizing their
new skills for economic gain. Offering business management
and financial literacy training to help develop economic
activities and gather in creating companies.
These targeted actions not only improve access to energy but
also facilitate social and economic empowerment, effectively
transforming traditional gender roles in rural West Africa.
Furthermore, these initiatives contribute significantly to Schneider
Electric’s overarching goal of fostering a just, inclusive, and
sustainable energy transition.
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2.3 Sustainable impact for all
4. Digital learning
The Youth Education & Entrepreneurship program is focused on
youth empowerment through targeted digital education initiatives,
bringing the latest technologies to advance technical training in
the energy field and disseminate competencies around the
energy transition.
Schneider Electric has committed to creating a digital learning
path, with the fundamentals of the electrician profession with
materials such as procedure blocks, flashcards, podcasts,
interactive images, and professional case studies. All the
modules are hosted on the Schneider University platform
and deliver certificates.
In India, Schneider Electric partnered with the Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to
increase the number of qualified and skilled workers in the energy
sector. The cooperation runs under the framework of the develop
funding program, which GIZ implements on behalf of the German
Federal Ministry for Economic Cooperation and Development
(BMZ). The aim of this public-private partnership is to increase
the supply of industry-ready and employable skilled workers by
upgrading the quality of the practical training. Focus is placed
on solar technician and electrician jobs at public and private
vocational training institutes in India.
The future-oriented training program includes simulation-based
practical training sessions which complement the current courses
offered at the Institutional Training Institutes.
Schneider Electric and its Foundation have also partnered with
INCO to launch the “Get into Energy Transition” digital learning
program. This partnership is designed to enhance training in
sustainability and renewable energy, particularly for high school
and university students in Sub-Saharan Africa. It includes
122 hours of digital modules that cover essential skills and
project-based learning specific to the energy transition sector.
Schneider Electric has also developed a series of masterclasses
in partnership with the International Trade Center (ITC), a
United Nations agency. Through these masterclasses, young
entrepreneurs worldwide learn about various key trends around
the energy transition.
Finally, to promote industry and energy-related jobs, Schneider
launched three virtual tours of Schneider Electric’s factories in
France, focused on: circular economy, women in industry, and
industry 4.0.
Youth
trained
824,404
Entrepreneurs
supported
11,295
Trainers
trained
11,140
1M
2025 ambition
2025 ambition
2025 ambition
10K
10K
Youth Education & Entrepreneurship program: key figures and 2025 ambitions
Americas
Africa & Middle East
China
Asia & Indonesia (excl. China, India)
India
OECD Countries
204,555
youth trained
25% of total
72,092
youth trained
8% of total
279,095
youth trained
34% of total
106,335
youth trained
13% of total
107,879
youth trained
13% of total
54,448
youth trained
7% of total
Breakdown of people trained by geography since 2009
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Schneider Electric, the ITC, and the French NGO Atelier 21,
developed an online training module about the energy transition.
Titled “Become a Player in the Energy Transition”, the course is free
to access and is available to everyone in English.
It aims to raise public awareness and understanding of the political
and technological challenges and the benefits of the transition.
Encompassing a variety of case studies from rural and urban
settings marked by differing levels of development, the module also
encourages participants to consider professional opportunities in
the clean energy sector by directing them to more technical
courses on solar power, wind power, and other specialized areas.
For the two sessions already launched more than 800 people
from more than 60 countries registered, with a quarter
earning certification.
5. Didactic solutions for developing digitally competent
technicians and engineers
Schneider Electric is enlarging its training offer by designing
and equipping education centers to help youths to be digitally
competent technicians and engineers. It is a scalable, self-
sustaining business model. Building on its experience, the Group
is actively working with various education providers, vocational
training centers, engineering colleges, and universities in the fields
of electricity, automation, and energy management.
Training young individuals through practical exercises for the jobs
of the future and allowing them to visualize what is possible today
will not only make a difference in their lives but will enrich Schneider
Electric’s communities now and for the future. They are the people
at the heart of energy transition; the future professionals who will
have to juggle multiple technologies: digital skills, information
technology, and operational technology integration, together with
energy efficiency, renewable energy, electric vehicles, smart grids,
robotics, cybersecurity, Industry 4.0, and many more.
Since 2021, Schneider Electric has implemented more than
70 projects impacting more than 10,000 youths every year and
prepare them as skilled technicians and engineers in the
digital field.
6. The Schneider Electric School
In 1929, Schneider Electric founded its own school – Paul-Louis
Merlin – in Grenoble, to address the difficulty of recruiting skilled
labor in the energy industry and help young people in precarious
situations to access promising jobs. Today, it continues to focus on
vocational training in Schneider Electric areas of expertise, with
innovative training approaches and close alignment with actual
industry practices.
Students leave with qualifications enabling them to continue in
higher education or take employment in innovation-rich energy-
sector fields such as renewable energies, smart home, smart
buildings, energy management, as well as Industry 4.0.
In 2019, to reinforce the link with the Group, the school changed its
name to École Schneider Electric and new vocational training was
added to support the creation of its CFA (Centre de Formation
d’Apprentis or Apprentices Training Center).The Schneider Electric
School now includes a high school and a CFA.
The training offer of the CFA is focused on technical training of
excellence; it covers training on Schneider domains of expertise.
It combines academic education and practical experience gained
through professional activity within a company, resulting in a
professional certification, diploma, or title.
Throughout their training, the CFA provides support to apprentices
for various administrative tasks (registration, apprenticeship
contract, assistance with obtaining a driving license or housing,
etc.), ensuring a smooth journey towards professional integration.
In September 2023, to meet the ever-increasing need for skills in
the energy and electrical sectors, and against the backdrop of
increasing concern about the professional future of young people
Schneider Electric School continued its development:
• A new electrical engineering training path was launched at two
levels with the baccalaureate and BTS (Brevet de Technicien
Supérieur) in the high school which now trains a total of 160
students.
• The CFA took new steps forward and expanded its range of
training courses both geographically and in terms of content by
forging new partnerships. In addition to the BTS “Fluids,
Energies, Home Automation” and the Licence professionnelle
(bachelor’s degree) “Connected Buildings and Intelligent
Energy Management” courses offered by the CFA there are now
new partnerships to increase its footprint in France:
−The vocational baccalaureate MELEC (Electrical Trades and
Connected Environments) with the Lycée Pablo Neruda in
Saint-Martin-d’Hères.
−The BTS CRSA (Design and Production of Automatic
Systems) with six partner schools: Vaucanson High School in
Grenoble, Gustave Monod and Leonard de Vinci High
Schools in Paris area, Louis Delage High School in Cognac,
Leonce Vieljeux High School in La Rochelle, and Nelson
Mandela High School in Poitiers.
−The BTS FED Home Automation and Communicating
Buildings, with three partner schools in Grenoble and Pays
de La Loire, extended to a new geographical area, with
Maximilien Perret High School in Alfortville and Gustave Eiffel
High School in Paris area.
−Professional licence in building, smart cities, and global
smart energy management in partnership with the Grenoble
University of Alps.
2024 was a successful year for the Schneider Electric School with:
• 100% success in the baccalaureate diploma; and
• 198 apprentices with 90% graduating, 53% continuing studies,
and 46% gaining employment.
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
2.3.2.5 Future Ready program
The Future Ready program is dedicated to empowering all,
regardless of their generation, to build their desirable future based
on their individual aspirations by providing opportunities for
everyone, everywhere.
2.3.2.5.1 Risks, impacts and opportunities
There is an increasing risk of a worker shortage that must be
addressed. Globally, the gap between the skills and competencies
needed to drive the just energy transition and the existing ones is
growing due to two main reasons: technological advancements
and demographic shifts of an aging population. These skills,
including knowledge in electricity and digital, are becoming
increasingly essential for the transformation needed and can be
hard to acquire. This gap is, in part, the result of many groups
(particularly young adults) being in situations of unemployment
and/or with no access to education (for diverse reasons of social
inequality). Investments are required to close this skills gap during
a worker shortage and give everyone the opportunity to take
control of their professional future. The Group’s workforce, as well
as its external communities, must be supported and trained to
accomplish our common goal.
2.3.2.5.2 Empowering all generations to learn and
design their professional journey
Schneider Electric believes all employees are talented and deserve
equitable career development opportunities to reach their fullest
potential and create their desirable professional future, at all stages
of their career. The Group leverages actions led by the Future
Ready program to enable employees, and even youth outside of
the Company primarily from disadvantaged backgrounds, to
design and build their career path. To learn more about Schneider
Electric’s actions for harnessing the power of all generations,
see section 2.1.1.2 Long-term commitments and tools to measure
progress on page 71.
2.3.2.5.3 Actions for multi-generational
empowerment
To accompany employees in creating a future based on their
individual aspirations, Schneider Electric Initiatives (which groups
Creation Pass, Solidarity Pass, Competencies Pass, Education
Pass, and Reconversion Pass) offers five innovative pathways to
support employees in designing their professional future while
having a positive impact on the local community.
1. The Creation Pass: an internal support system to help
employees start their own business. In the past 11 years, 795
(54 in 2024) projects have been supported and 417 (12 in 2024)
of them have resulted in the creation or takeover of a business.
These businesses have created more than 520 (22 in 2024)
jobs.
2. The Solidarity Pass: a skill sponsorship which allows employees
to offer their skills, energy, and dedication to an NGO. In the
past 11 years, 147 (33 in 2024) employees have benefited from
a Solidarity Pass.
3. The Competencies Pass: a skill sponsorship where employees
offer start-ups/SMEs their knowledge and skills to enable local
economic development. In the past 11 years, 12 employees
have benefited from a Compentencies Pass.
4. The Education Pass: a skill sponsorship where employees can
offer their knowledge and skills to an educational body (e.g.,
partner universities and educational ministries). This Pass
envelops the already known IPE (Ingenieurs pour l’école or
Engineers for Schools) with 20 employees participating in 2024
and a new option as a professor or training project leader in the
Schneider Electric School or with a partner of the Schneider
Electric School. In 2024, one employee benefited from this
new format.
5. The Reconversion Pass: this new format was added in 2024 to
support an employee to be trained in a new profession and then
transfer to a new job externally.
Starting this year, employees are given even more flexibility to
design their own career paths through offers with DuoPro, allowing
them to continue working for Schneider Electric on a part time basis
and using that extra time to either (1) work for another non-
competing company, (2) freelance, or (3) create their own business.
In France, these initiatives are connected to, represented in, and
support local business networks, local public stakeholders, and
local NGOs.
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Actions for youth empowerment
To support the Group’s conviction of empowering young adults,
especially those from disadvantaged backgrounds, Schneider
Electric is involved in three major national French programs
dedicated to young people facing concerns related to education,
apprenticeship, network, or unemployment. “PaQte” and Les
Entreprises s’engagent, are sponsored by the French Government.
Le Collectif d’Entreprises pour une Économie plus Inclusive,
gathers 38 major French companies deploying collective actions
concerning youth employment (particularly in 15 French cities),
inclusive offers, and procurement. The actions on youth
employment are being led by Schneider Electric and Engie.
This year, the NGO 100 Chances 100 Emplois (100 Opportunities
100 Jobs) celebrated 20 years since its creation by Schneider
Electric. The Group still strongly supports the NGO to help young
people find their own path and develop their talents. This initiative
(focused on coaching, mentoring, and networking) has already
helped more than 10,000 young people make progress
towards employment.
Schneider Electric is also focusing on its mission of empowering
young adults by offering more opportunities for professional
integration to apprentices, interns, and doctoral students. For more
information see Chapter 2.2.3 – Social information – Training and
skills development – Attracting the talent to shape the workforce
of the future on page 228.
These actions complement the wider ecosystem of youth as part
of the NextGen Academy strategy.
Actions for senior empowerment
Within this journey to further develop talent and enable all to
take control of their career path, the Senior Talent program was
launched in 2021 connecting Schneider’s people and
sustainability strategies with a strong focus on meaningful career
conversations, career development opportunities, recognition,
and knowledge transfer.
In 2024, the Group accelerated its global deployment of the
program, in connection to SSE #23. Best practices and external
recognitions have emerged throughout the year. For instance,
Mexico and Central America created a professional learning
community to connect senior leaders with young talent for mutual
mentoring and to grow their networks for new development
opportunities. India has a work after retirement through freelance
offer. And France developed a plan with 29 initiatives and was
recognized through a Senior Talent Inclusion award.
The Group was also highlighted by the Organisation for Economic
Co-operation and Development (OECD) as a best practice
example of career opportunities and development for
experienced employees.
For more information on the program, you can read
the Senior Talent Whitepaper, launched this year on
www.se.com, or check Chapter 2.2.3 – Social
information – Training and skills development –
Enabling sustainable careers on page 229.
To see the results of SSE #23, refer to section Chapter 2 –
Sustainable Development 2.1.1.2.1 Our tools to measure progress
on page 75.
The Senior Talent program
Powering the talent and aspirations
of our experience #SEGreatPeople
“I still have lots of plans and
I still see lots of opportunities.
I always have new space to
develop myself, to try new
things, and broaden my
knowledge.”
Sonja Boots
Inside Sales Manager – Netherlands
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Chapter 2 – Sustainable development
2.3 Sustainable impact for all
In today’s rapidly evolving global landscape, the
importance of advocating responsibly and ensuring
compliance cannot be overstated. Therefore,
Schneider Electric wishes to report on additional
compliance matters, beyond those covered by CSRD
requirements.
Context and commitments
This chapter delves into our approach to responsible lobbying as well as
our commitment to compliance with competition law, tax regulations,
and export control.
At Schneider Electric, we are committed to uphold the highest
standards of ethical conduct and transparency in all our activities based
on our Trust Charter, the Group’s code of conduct, which serves to
guide our interactions with all our stakeholders. For us, compliance goes
beyond regulations and laws, it is an anchor of resilience because
implementing those highest standards is the best way to keep the trust
of all our stakeholders. And the trust built by Schneider Electric keeps
customers, employees, suppliers, and partners continuously engaged.
As a global company, we consider that we have a role to play in the
public debate addressing issues where our contribution is relevant
such as climate action or the energy landscape. With regards to
responsible lobbying, we believe that transparent and fair
representation of interests is essential for fostering trust and
understanding among all parties involved.
Our Competition Law Program is designed to raise awareness, identify
and manage risks, and prevent anti-competitive behavior through
rigorous training and internal controls.
In the realm of tax compliance, Schneider Electric’s global Tax Policy
emphasizes governance, compliance with national and international
tax regulations and transparency. By doing this, we aim to operate
responsibly and sustainably, preventing operational, transactional
and reputational risks.
Lastly, our Export Control Program underscores our commitment
to ethical business practices and compliance with international
regulations. Through robust policies, continuous training, and
processes, we strive to mitigate risks and enhance our
competitive advantage.
As we navigate the complexities and uncertainties of the modern
business environment, Schneider Electric remains steadfast in its
willingness to ensure compliance across all facets of our operations
and advocate responsibly.
Keeping the trust that each of our stakeholders has placed in us, is
the best way to build resilience.
Hervé Coureil
Chief Governance Officer & Secretary General
“At Schneider Electric,
we are committed
to uphold the
highest standards
of ethical conduct
and transparency.”
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2.3.3 Advocating responsibly and ensuring compliance
2.3.3.1 Responsible lobbying, political
activity and donations
Through its Trust Charter, Schneider Electric has taken a clear
stance with regards to responsible lobbying, political influence
activity, and donations. As a global company, Schneider has a
role to play in the public debate addressing leading issues with
the global community. It is necessary that the Group states its
positions clearly, participates in technical discussions, and
supports responsible public policy development. In this spirit, in
2022 the Group signed Corporate Knights’ Action Declaration on
Climate Policy Engagement together with more than 50 other
companies to support climate action aligned with the Paris
Agreement when engaging with policymakers, working with trade
associations, and monitor and disclose climate policy alignment.
Schneider believes that this representation of interests should be
conducted in a transparent and fair manner, allowing third parties
and stakeholders to understand its activities, positions, and
statements. Donations and lobbying activities are risks specifically
addressed in the Anti-Corruption Policy, in particular, Schneider
Electric does not make corporate contributions (either monetary or
in-kind) to political candidates, parties or similar bodies and does
not get involved in unauthorized political activity or representation.
In 2024, Schneider Electric was not involved in sponsoring local,
regional, or national political campaigning.
In the US, a Political Action Committee (PAC) is expected to be set
up in 2025. The Schneider US Political Action Committee will be a
voluntary group of Schneider Electric employees with the mission
to increase the Company’s voice in the political arena. Schneider
Electric PAC will support state candidates, complying with an equal
contribution principle.
Schneider Electric presents information about its lobbying
activities in the French High Authority for Transparency in Public
Life, in the EU transparency register, and in the US Lobbying
Disclosure Act Registration.
From 2019 to 2024, the Group discloses membership fees
expenses towards trade associations, business coalitions, and
think-tanks that are dedicated by those organizations to lobbying
or advocacy. Generally, the budget allocated to lobbying in these
organizations is small as these associations mostly organize
business workshops, peer-learning groups, or work on
standardization. Schneider Electric updated its reporting
methodology compared to previous years and since 2022
discloses the budget allocated to lobbying or representation rather
than total membership fees. The data collected covers the main
Group geographies, in particular Europe, and also including,
North America, China, India, Indonesia, and the Philippines.
Total contributions globally amounted to about EUR 0.5 million in
2019, EUR 0.6 in 2020, EUR 1.2 million in 2021, EUR 1.1 million in
2022, EUR 1.4 million in 2023, and EUR 1.6 million in 2024.
The main contributions concern two main engagement topics:
• The first is “Sustainable energy for all”: Schneider Electric
believes that energy management and energy efficiency are
• critical to move towards a new energy landscape and therefore
supports a policy framework that unleashes business and
climate opportunities related to the new energy landscape.
Contributions and expenditures on this topic amounted to
around EUR 0.9 million in 2024 (EUR 0.9 million in 2023)
globally.
• The second is “Powering the digital economy”: the Group
supports the emergence of the digital economy to bring new
opportunities for businesses and people and therefore supports
a policy framework that facilitates the digital transformation
globally. Contributions and expenditures on this topic amounted
to around EUR 0.4 million in 2024 (EUR 0.3 million in 2023)
globally.
2.3.3.2 Compliance with competition law
2.3.3.2.1 Context
As outlined in Schneider Electric’s Trust Charter, upholding fair
competition and complying with applicable antitrust and
competition laws is a core business principle for Schneider Electric
and governs our activities across the world.
Competition law sets out the legal framework to ensure that markets
remain open and competitive and to protect customers from market
arrangements where competitors agree not to compete with each
other, or companies in other ways restrict competition. Although the
scope and content of competition law may vary from jurisdiction to
jurisdiction, it is generally prohibited for companies to (i) enter into
agreements with its competitors or customers which, for example,
seek to fix prices or otherwise limit competition, and (ii) abuse a
dominant position on a given market.
Schneider Electric has a strong brand and operates in many
markets and at several levels of the supply chain. The activities of
Schneider Electric are subject to a variety of competition laws and
regulations on both national and supranational levels, affecting all
aspects of Schneider Electric’s business strategies and day-to-day
operations. Any violation can cause severe consequences for
Schneider Electric, and the individuals involved in such activities,
including substantial fines and a serious loss of reputation.
2.3.3.2.2 Risks, impacts and opportunities
Schneider Electric’s Competition Law Program is an integrated
and essential part of Schneider Electric’s commitment to trust and
serves to:
• Raise awareness about applicable competition laws and the
importance of compliant behavior;
• Identify and assess risk areas where the Group may be
exposed to anti-competitive behavior;
• Manage potential risks through internal procedures, escalation
routes, and controls;
• Prevent potential anti-competitive behavior through training
and communication;
• Detect early potential violations of competition law through a
strong risk awareness throughout the business and accessible
reporting mechanisms; and
• Manage any exposure to violation of competition law.
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2.3 Sustainable impact for all
To raise awareness about applicable competition laws and identify
and manage areas of risk, Schneider Electric’s Competition Law
Program is based on:
• Policies, guidelines, and procedures.
• E-learnings and in person trainings.
• Internal controls and audits.
• Internal reporting mechanisms including local management,
Human Ressources, Regional Compliance Officers, Legal, and
Schneider Electric’s whistleblowing tool Trust Line.
The whistleblowing system of Trust Line for employees and external
stakeholders such as suppliers and customers is managed to
identify any inappropriate practice or behavior with competitors
or business partners that may be reported.
On October 29, 2024, Schneider Electric was fined €207 million by
the French Competition Authority concerning electrical distribution
activities in France. This decision relates to the previously disclosed
investigation initiated by the French Competition Authority in
September 2018. Schneider appealed the decision of the French
Competition Authority on December 19, 2024. The Group remains
committed to compliance and has fully cooperated with authorities.
For more details, see section Key risks and
opportunities of Chapter 3 on page 376.
2.3.3.2.3 Governance
Schneider Electric’s Competition Law Program is endorsed by
the Board of Directors and has backing from Executives and
Senior Managers.
The Competition Law Program is managed by a Global Competition
Law team with full support from the Global Legal team. It is
continuously assessed and adapted to developments in applicable
antitrust and competition laws and the interpretation of such laws
as well as the development of Schneider Electric’s activities and
market presence.
2.3.3.2.4 Group policy
Schneider Electric published and deployed an updated and
enhanced Group Competition Law Policy in 2022. In addition, nine
topic-specific Competition Law Guidelines were also launched in
2022 including topics related to information exchange, procurement,
distribution, e-commerce, and mergers and acquisitions.
Both the Group Competition Law Policy and the Competition
Law Guidelines have been translated into over 30 languages and
are accessible to all employees via Schneider Electric’s internal
policy platform.
2.3.3.2.5 Actions and resources
During 2024, Schneider Electric continued to strengthen the
Competition Law Program and to reinforce processes and tools.
One of the key cornerstones to a successful Competition Law
Program is continuous efforts to train employees and communicate
the Group Competition Law Policy, the accompanying Guidelines,
and other internal rules and recommendations. Providing targeted
in-person Competition Law trainings to employees in identified risk
teams and roles continues to be a priority worldwide and an
essential part of our program in the years to come.
Considering the size and scope of Schneider Electric as a global
Company, another cornerstone to a successful Competition Law
Program is to reinforce the Program across the Group, including:
• Adapting to market conditions and the expansion and
development of our offers in new markets;
• Supporting digital transformations;
• Strengthening connections with other internal functions,
including marketing, purchasing, data, and HR;
• Determine and coordinate existing compliance efforts in
other areas, including commercial compliance, and Ethics
and Compliance; and
• Reinforcing the compliance network across the entire
geographic scope of the Group, including local legal teams and
regional channel.
2.3.3.3 Compliance with tax regulations
2.3.3.3.1 Context
The current international tax system in which the Group operates is
made of multiple complex international and local tax regulations
since all the countries in the world have their own set of tax rules.
To operate responsibly, ethically, and efficiently in this complex
and uncertain environment the Group believes that a fair and
sustainable Group tax policy is a fundamental requirement. It aims
at preventing operational, transactional, and reputational risks.
2.3.3.3.2 Group policy
The Group’s global Tax Policy focuses on four key principles:
Governance and control
The Tax Policy is endorsed by the Tax Department and the Group
CFO and validated by the Audit and Risks Committee.
The Tax Department reports to the Group CFO and is a global
function which allows consistency and standardization wherever
possible. In addition, dedicated tools and processes, as well as a
strong presence of tax experts in the most significant countries,
ensure strong and consistent decision process.
Regular reports are done on noteworthy new tax regulations and
risks to the Audit and Risks Committee.
Compliance with national and international
tax regulations
The Group and the Tax department are committed:
• To comply with the national and international tax laws, rules and
regulations as the ones set out by the OECD regarding notably
the minimum 15% taxation implemented under the Pillar 2 set
of rules;
• To respect in good faith both the letter and the spirit of the law;
and
• To align the tax strategy with the Group’s commercial strategy
and operational activity, and to challenge the in-house reading
and interpretation of the law, with external tax advisors as
required to ensure correct analysis and treatment are
conducted.
Transparency and Trust
All employees with tax responsibilities or activities are committed:
• To cooperate openly and transparently with the tax authorities
on the Group’s tax affairs and to disclose relevant information in
a timely, positive, and professional manner for them to carry out
their audits;
• In the event a tax discussion arises, to work proactively to seek
a consensual agreement, where possible, and reach solutions;
and
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C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
• Whenever necessary, to discuss issues and raise questions to
the tax authorities to obtain clarifications in a preventive manner.
As an example, the Group made the election for the “Trust
relationship” (“Relation de confiance”) regime existing in France.
Preserve value and competitiveness
The Group strives to preserve the value created by its operations.
The Tax Department assists operational business by providing
tax advice and determining the tax positions best suited to
operational reality.
The Tax Department thus contributes to creating value and
protecting shareholders’ assets by limiting tax risks while remaining
compliant with national and international tax regulations.
The Group’s detailed Tax Policy can be consulted
on our website at www.se.com
2.3.3.4 Export control and sanctions
2.3.3.4.1 Context
As a multinational Company operating across more than 100
different countries worldwide, Schneider electric is subject to
International, foreign, and national export control laws and
regulations which govern the transfer of goods, services, and
technologies within a country or between countries and/or their
nationals. The Group must constantly ensure full compliance to
such laws and regulations by implementing a robust corporate
export control compliance program, as any implications may result
in a significant impact on the Group’s businesses, results,
reputation, and financial position.
Although Schneider Electric’s portfolio has a limited range of
products that may be used in sensitive applications, restriction or
licensing requirements may apply to those products, especially if
associated with politically sensitive countries and destinations.
2.3.3.4.2 Risks, impacts and opportunities
The key risks for export controls and sanctions are related to
conducting business with restricted parties, sharing restricted
software, technology, products, or services without a license, and
ensuring those we do business with abide by applicable export
control and sanctions regulations. These risks create opportunities
for Schneider Electric to develop and automate processes related
to third-party screening, export control classification for products,
software, and technology, and ensuring we obligate our third-
parties through contractual commitments to comply with applicable
export control regulations and sanctions.
Schneider Electric’s robust Export Control Program increases our
competitive advantage by demonstrating our commitment to ethical
business practices and compliance with international regulations
and sanctions.
2.3.3.4.3 Governance
Schneider Electric has comprehensive policies and processes
to ensure compliance with applicable export control laws and
regulations (Schneider Electric Export Control Program) and to
mitigate the above-described risks. The Group has also
established mechanisms for reporting any suspicious or non-
compliant activities and takes appropriate corrective actions via
the Trust Line and Trust Center.
The Global Export Control Center of Excellence team conducts
regular training programs to educate all Schneider Electric
permanent and temporary employees about export control
regulations, their responsibilities, and the potential risks and
consequences of non-compliance. The goal is to foster a culture
of compliance by raising awareness and providing resources for
employees to seek guidance.
2.3.3.4.4 Group policy
Schneider Electric’s export control approach is articulated around
our mission to provide education, advisory, business operations
support, and enforcement of the Export Control Policy and strategy.
The policy outlines our commitment to prevent the unauthorized
export of goods, services, technologies, and information that could
pose risks to national security, international trade, or other
regulatory concerns. The roles and responsibilities of businesses,
functions, and employees to ensure export control compliance are
clearly defined. The responsibilities include designating individuals
or teams responsible for overseeing export control activities and
implementing necessary controls. The policy, signed by the Group
Chief Executive Officer, sets the tone from the top, and is
applicable to all Schneider Electric employees.
2.3.3.4.5 Actions and resources
The Schneider Electric Export Control Center of Excellence has
streamlined and standardized export control and sanctions
processes globally. A change management process with a
supporting communications and training plan has been developed
and executed transversally across Schneider Electric. This includes
but is not limited to a change review board to review regulations,
impact, and give guidance to ensure compliance.
A key initiative has been the automation of third-party screening.
Schneider Electric developed a new capability to automatically
screen all legacy and newly created/modified third-parties for risks
of anti-corruption and export control. The Group integrated
authoritative data sources of third parties with a best-in-class
external screening engine which is updated with the latest
regulatory and sanction lists in real-time. A dedicated screening
team was formed to independently review potential matches arising
and flag entities by risk level with a new screening flag attribute.
Third-party master data systems synchronize the screening flag
values with major business systems in real time to ensure
consistency. Screening flags are used to develop upstream and
downstream processes needed to mitigate risk as explained in the
relevant sections of this document.
Additionally, the Export Control Center of Excellence is subject to
periodic internal compliance reviews and audits to assess the
effectiveness of export control measures, identify any areas of
non-compliance, and implement corrective and preventive actions.
In parallel, the topic of export control is also part of Schneider
Electric’s KICs program applicable to all Schneider Electric entities
and their subsidiaries. This helps ensure ongoing compliance to
current export control regulations and continuous improvement.
For more details, see section Key risks and
opportunities of Chapter 3 on page 374.
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2.4 Methodology, external assurance and indicators
2.4 Methodology, external assurance
and indicators
In this section
2.4.1
Methodology elements on the
published indicators
310
2.4.1.1
Indicators from the Schneider Sustainability Impact 311
2.4.1.2
Indicators from the Schneider
Sustainability Essentials
316
2.4.2
TCFD and SASB correspondence tables
322
2.4.2.1
Sustainability Accounting Standard (SASB)
Correspondence table
322
2.4.2.2
Task Force on Climate-related Financial
Disclosures (TCFD) correspondence table
324
2.4.3
Reports of assurance
330
2.4.3.1
Report on the certification of sustainability
information and verification of the disclosure
requirements under Article 8 of Regulation
(EU) 2020/852
330
2.4.3.2
Independent practitioner’s limited assurance report
on certain Schneider Electric SE’s corporate
social responsibility (CSR) data
336
2.4.3.3
Independent practitioner’s reasonable assurance
report on certain Schneider Electric SE’s
corporate social responsibility (CSR) data
340
2.4.4
Indicators
342
2.4.4.1
Environmental and climate indicators
342
2.4.4.2
Social indicators
348
2.4.4.3
Societal indicators
356
2.4.1 Methodology elements on the published indicators
In conformity with regulations in place and in the spirit of
transparency with its stakeholders, Schneider Electric regularly
publishes corporate social responsibility (CSR) data, which
notably includes:
• Indicators of the Schneider Sustainability Impact (SSI),
published quarterly and externally assured annually;
• Indicators of the Schneider Sustainability Essentials (SSE),
published and externally assured annually;
• Other standard human resources (HR), safety, and
environmental indicators published and externally assured
annually for the most material ones.
Reporting year
Annual CSR data is reported for the calendar year (CY) preceding
the publication year, i.e. 2023 in this report, in line with the financial
reporting calendar.
Reporting perimeter
As a general rule and subject to any particular exception described
below:
(i)
Schneider Electric reports CSR data at Group level for all
financially consolidated entities over which it has operational
control.
(ii) New acquisitions are included in the reporting scope within
2 years, meaning that data is consolidated into Group
reporting at the latest from the third year post acquisition.
(iii) Companies accounted for by the equity method are not
included in the reporting.
(iv) Within the above scope, small entities may exceptionally be
excluded if their collective exclusion does not exceed 5% of
consolidated revenues or total number of employees.
Reporting coverage is provided together with indicators’
tables.
Timing for inclusion may differ between indicators. Typically
financial or HR data are deployed more rapidly as acquired
companies usually have existing systems and teams in place,
which is not necessarily the case for environmental systems.
Progressive consolidation of new acquisitions into
the Group CSR reporting
All majority-owned, financially consolidated entities shall participate
in all relevant Schneider Electric’s SSI, SSE, and other
environmental, social and ethical programs and adopt the required
policies and reporting practices as per each respective Trust
Standard. Unless otherwise agreed with Schneider Electric’s
Sustainability team for practical or cost-effectiveness reasons, the
following calendar shall be respected:
• Year +1: strategic alignment and material KPIs selection;
• Year +2: data cleaning and baseline and target setting;
• Year +3: start of consolidated reporting into Group public
reporting.
When an entity is not fully integrated into Schneider’s IT systems,
the consolidation of CSR data is done manually and may take
longer than the standard calendar above. For those entities, if the
cost of reporting is deemed unreasonable compared to the size of
the company, the entity may ask to opt-out from CSR reporting.
This may be granted on a case-by-case basis. However these
entities still need to follow applicable Trust Standards.
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The scope of environmental reporting is that of ISO 14001-certified
sites, and certain non-certified sites on a voluntary basis and
without interruption in time. All production and logistics sites with
50 or more full-time equivalent (FTE) employees must obtain ISO
14001 certification before the end of the third full calendar year of
operation or membership of the Group. Administrative, R&D and
sales sites with 500 FTE employees or more also have to obtain
ISO 14001 certification. Other sites may seek certification and/or
report on a voluntary basis. A difference can thus be recorded with
respect to the scope of financial consolidation.
Notable exclusions in 2024 (apart from SSI #1 Schneider Impact
revenues, which is calculated on the same scope as the financial
perimeter due to data availability) are presented in the table below.
Details for data coverage are specified in tables page 342 for each
topic and are generally well above 85%.
The Group has set a plan to increase its reporting coverage
progressively to at least 95%, as described above.
The main non-IT integrated entities have been included in the
sustainability statements as of 2024, and will be included in the next
SSI-SSE cycle.
Company
Acquisition
year
% Group
employees
% Turnover
Comments
AVEVA
(including OSIsoft)
2018
(2021)
3.5%
3.9%
AVEVA is excluded from all KPI calculations except SSI #1.
Lauritz Knudsen
Electrical and
Automation
2020
2.4%
2.7%
HR statistics are included in the Group results, which include SSE #13, SSE #16,
SSE #18, SSE #20, SSE #23 and SSE #24 in 2023. An exception is made for SSI
#8, which is calculated on a constant scope.
RIB Software
2020
1.6%
0.7%
RIB Software is excluded from all KPI calculations except SSI #1.
Other exclusions
–
3.1%
3.1%
Other exclusions concern either non-integrated entities or recently acquired
entities grouped here for readability.
Total maximum
exclusions
–
10.6%
10.4%
Total exclusion figures presented in this table represent the maximum exclusions
for given KPIs. More precise reporting perimeter estimates are provided in each
data table.
Note that exclusions of software companies have limited impact on environmental
KPIs, and no impact on product-related KPIs at Group level given the nature of
their activities.
Internal control
Schneider Electric has drawn up a frame of reference with
dedicated reporting protocols for SSI and SSE indicators, and for
other HR, safety and environmental data. This frame of reference
includes the scope, collection and consolidation procedures and
definitions for these indicators.
The HR, safety and environmental data comes from our HR
Analytics for HR data, EcoStruxure™ Resource Advisor for
environmental data and GlobES (Global Environment and Safety)
for safety data. Its consolidation is placed respectively under the
Global Human Resources, Global Environment, and Global Supply
Chain functions. Data reliability checks are conducted at the time
of consolidation (review of variations, inter-site comparison, etc.).
External assurance
Schneider Electric SE appointed PricewaterhouseCoopers Audit
(“PwC”) and Forvis Mazars as statutory auditors for the certification
of sustainability information (Sustainability statements – CSRD).
Once a year, they issue a limited assurance report certifying the
sustainability information and verification of the information
disclosure requirements set out in Article 8 of Regulation (EU)
2020/852. In addition, with its commitment to continuous
improvement, Schneider Electric asked one of its statutory auditors
to perfom two additional assurance engagements, in accordance
with the international assurance standard ISAE 3000 (revised),
in order to obtain:
• a limited assurance engagement on all SSI and SSE indicators
(see independent verifier’s report on page 336).
• a “reasonable” level of assurance for strategic indicators
(energy consumption, Scope 1 and 2 CO2 emissions, safety,
gender diversity – SSI #8) (see independent verifier’s report
on page 340).
This external assurance practice has been in place at Schneider
Electric since 2006.
2.4.1.1 Indicators from the Schneider
Sustainability Impact
SSI #1: Grow Schneider Impact revenues to 80%
Schneider Impact revenues are defined as offers that bring energy,
climate, or resource efficiency to our customers. Schneider Impact
revenues are split into four categories described thereafter.
Activities included are:
1. Energy efficiency architectures bringing energy and/or
resource efficiency to customers. Offers include building
management systems, power management systems, lighting
and room control, thermal control, variable speed drives,
Sustainability Business (SB), and industry automation. Neutral
technologies such as signaling, racks and enclosures, access
control, or emergency lighting are excluded.
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2. Grid reinforcement and smart grid architectures
contributing to electrification and decarbonization. This
includes all technologies and architectures contributing to a
“New Electric World”, helping grid and electrification come to
life: smart grid and microgrid technologies, electric vehicles
charging infrastructure, medium voltage systems to upgrade
electricity distribution networks, low voltage connectable offers
enabling smart grid management and energy efficiency, secure
power and switches that enable security, and security of supply.
3. Products with differentiating green performance, flagged
thanks to our Green Premium™ program. Green Premium™
products offer environmental transparency (with digital lifecycle
analysis and circular end-of-life instructions), superior
compliance to stringent environmental regulations, and
differentiating environmental performance through specific
environmental attributes (note: double-accounting with
categories 1 or 2 is removed).
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 equipment 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 finance
practices, even though Schneider Electric’s technologies deliver
resource and carbon efficiency in such sectors as well. In line with
Schneider Electric’s strategy to phase down SF6 from offers by
2025, SF6-containing switchgear for medium voltage applications
are also excluded. In addition, neutral technologies such as
signaling, racks and enclosures, access control, or emergency
lighting are excluded.
All revenues consolidated in financial accounts are taken into
account. Calculation is based on revenues per line of business.
Exclusion of fossil revenues is based on orders per customers’
end-segment, with extrapolation to estimate destination of
transactional sales.
PwC provided limited assurance on this indicator.
SSI #2: Deliver 800 million tonnes of
saved and avoided CO2 emissions to
our customers
This indicator measures CO2 savings and avoidances delivered by
Schneider Electric offers to customers.
CO2 savings and avoidances are calculated for global sales of the
reporting year and cumulated over the offers’ lifetime. Net
emissions are calculated as the difference between emissions with
Schneider Electric’s offer and emissions in the reference situation.
The ambition for this indicator has been increased in 2021 with the
definition of the new sustainability strategy: Schneider is committed
to save and avoid 800 million metric tonnes of CO2 thanks to
EcoStruxure™ for its customers.
The difference between “saved” and “avoided” emissions is key:
saved CO2 emissions correspond to brownfield sales that enable
reduction of global CO2 emissions compared to previous years,
and avoided CO2 emissions correspond to greenfield sales that
enable a limitation of the increase of global emissions.
• Brownfield sales correspond to the situation where the offer
sold replaces or upgrades an existing system, leading to a
change of GHG emissions of installed infrastructure vs. the
previous year. For “saved” emissions, the “brownfield reference
situation” is defined as the situation before the new solution is
sold and installed at the customer’s site.
• Greenfield sales correspond to the situation where the solution
is installed into a new system, allowing a better performance
with respect to the market alternative.
The calculation of CO2 impact of offers over their lifetime is based
on sales data per product range. The electricity emission factors
are forward looking, integrating the decarbonization of the global
energy mix as per scenario of the International Energy Agency
(IEA). Market data and expert assumptions are used to determine
the use-case scenario of offers and the associated CO2 impact.
This methodology is associated to typical uncertainties of CO2
corporate accounting methodologies, and conservative
assumptions are preferred.
Since the launch of the program, the scope of the indicator has
been widened to include sales data for certain manufacturing sites
not initially consolidated and new sub-offers. However, the baseline
was not modified. As of 2023, these added offers or sites have
contributed to less than 1% of the indicator’s performance.
More methodological details can be found on se.com that has
been made public in 2019.
PwC provided limited assurance on this indicator.
SSI #3: Reduce CO2 emissions from
top 1,000 suppliers’ operations by 50%
Under this program, also called The Zero Carbon Project, the
Group partners with 1,000 of its suppliers, who commit to reduce
their company’s CO2 emissions (mandatory Scope 1 and 2;
Scope 3 is optional) at enterprise level and not just on the
proportion of sales to Schneider Electric. The active participation of
upstream supply chain is critical because it represents multiple
times GHG emission compared to Schneider Electric’s own
operations. The top 1,000 suppliers come from 65 categories
across direct material, indirect material, and project procurement,
and have been nominated by the respective procurement teams.
To ensure suppliers get adequate handholding during the
implementation, several capacity building and engagement
modules have been deployed. These initiatives sensitize the
suppliers on various approaches and technical levers for
decarbonization, including training, technical requirements,
calculations and on-site implementation support by Sustainable
Procurement Experts. Moreover, Schneider attempts to support
and drive collaborations with suppliers through various digital
decarbonization solutions.
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C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
As a first step in the long-term journey to decarbonize, the top
1,000 suppliers are required to quantify their carbon emissions and
take ambitious reduction targets and deploy roadmap to achieve
them. Suppliers are required to share the carbon emission
performance via the dedicated Schneider Supplier Portal –
Supplier Relationship Management (SSPSRM). To measure the
carbon emission reduction achieved, Schneider calculates the
average carbon intensity reduction achieved by responding
suppliers, multiplied by the percentage of suppliers reporting
carbon emission data. Carbon intensity is calculated as Scope 1
and 2 CO2 emissions divided by financial turnover.
PwC provided limited assurance on this indicator.
SSI #4: Increase green material content in our
products to 50%
A green material is defined as either of the following:
• a material with a lower environment footprint; or
• a material that is the output of an industrial technology which is
a key enabler for a 1.5°C climate scenario and/or a more circular
economy.
For 2021, the scope of this KPI covers commodities identified as
relevant in terms of volume (circa 29% of total products volume in
2019), environmental impact (carbon footprint and biodiversity
assessment), and industry readiness, meaning:
• steel and aluminum direct purchases;
• thermoplastic direct and indirect purchases.
Overall, the materials in scope represent approximatively 400,000
metric tonnes.
Cross-functional experts at Schneider Electric (Procurement, R&D,
Environment) have worked in close relationship with suppliers to
define the Green attributes for each commodity in scope, based on
existing international schemes and standards.
Thermoplastics are qualified as “green” when the supplier is
bringing evidence of a minimum recycled content, biobased
content (minimum threshold depends on whether the compound is
halogenated or not), or is using a green flame retardant.
Steel is qualified as “green” when the supplier is bringing evidence
that the mill of origin from an technology with a low carbon
emissions potential today (an electric arc furnace (EAF) or a blast
furnace using direct reduced iron steel (DRI-BOF) or Hot Bricket
Iron (HBI-BOF)), or has a green certificate such as the ones
delivered by Responsible Steel.
Aluminum is qualified as “green” when the supplier is bringing
evidence that the product carbon footprint is below 8 tonnes of CO2
per ton of aluminum, is using a minimum of 90% of recycled content
in its product, or that the mill of origin has a green certificate such
as the ones delivered by the Aluminium Stewardship Initiative.
The scope will be reassessed annually as the program matures
and the transparency of supply chains improve.
To consolidate the KPI, several sources of data are used. The
volumes of green materials are identified using Prism extract for
metals and Puma extract for thermoplastic, with both tools
providing budgeted volumes. The total volume in scope (the
denominator of the KPI) is determined using Raw Material Inventory
(RMI) extracts for thermoplastic, steel and aluminum providing
purchased volumes in metric tons. For silicon steel there is no
consolidation in RMI since silicon steel is not a market index, thus
the volume is estimated based on a negotiation file of the Regional
Category Manager from procurement team. Schneider Electric
decided to identify reported and tracked green materials using
“budgeted” volume since the precision of the reporting tool is
better compared to RMI extract. Prism and Puma enables the two
levers mentioned above by allowing Schneider Electric to track
suppliers and material grade.
PwC provided limited assurance on this indicator.
SSI #5: 100% of our primary and secondary
packaging is free from single-use plastic and uses
recycled cardboard
This program has been designed to:
• Ensure legal compliance through the selection of our packaging
materials and the availability of adequate take-back, collection,
and sustainable options for our customers.
• Support the achievement of our 2025 green packaging
commitment:
−
100% of our primary and secondary packaging uses
recycled cardboard.
−
100% of our primary and secondary packaging is free
from single-use plastic.
−
Define the best practices to offer differentiating green
packaging solutions to our customers.
The scope includes tier-one strategic suppliers with a direct
purchase of cardboard and plastics in the Schneider Electric
procurement system. Geographically, all regions under the global
supply chain will be covered, as well as Equipment & Transformers.
Cardboard is considered as recycled when it includes at least 70%
of recycled fiber by weight. Temporary exemption is made for North
America, where an average of 50% of recycled fiber by weight is
required to be considered recycled.
Every reporting period, the spend on cardboard and plastics is
extracted from the system and each element is classified as
sustainable or not based on criteria mentioned above. Verification is
done for sustainable declarations on the definitions already provided
as well as certificates and other documentary evidence from
suppliers. The list of eligible certificates/documents is continually
updated to make it exhaustive and to cover countries’ specificities.
A global campaign is being run in all global supply chain regions to
progressively move the spend to sustainable sources and remove
single-use plastic usage with sponsorship from top management.
PwC provided limited assurance on this indicator.
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SSI #6: 100% of our strategic suppliers provide
decent work to their employees
Schneider Electric has deployed a series of engagement on the
topic of working conditions to correct malpractices, however the
Company proactively works to introduce measures which will
prevent the likelihood of occurrence of such violations in future.
This philosophy is the foundation of the Decent Work program
(DPW).
Taking inspiration from the pioneering work of the International
Labour Organization (ILO), Schneider has defined 10 pillars of
Decent Work:
1. Employment opportunities;
2. Adequate earnings and productive work;
3. Decent working hours;
4. Stability and security of work;
5. Social dialogue and workplace relations;
6. Fair treatment in employment;
7. Safe work;
8. Social protection;
9. Purchasing practices; and
10. Balancing work and family life.
The program requires strategic suppliers to develop a proactive
policy as a means to extend safe, attractive and inclusive
workplace to their employees. Criteria defined for each Decent
Work pillar may also overlap with ISO 26000 standard and are
validated by the Global Procurement, Human Resources, Supply
Chain, and Sustainability teams.
The suppliers will be assessed through remote questionnaires
supported by relevant documentation, as well as on-site visits and
spot audits, and their performance will be monitored by experts. All
questions have a minimum acceptable answer defined. Suppliers
responses will be evaluated against the minimum acceptable
criteria to qualify as Decent Work compliant. Program deployment
is ensured by specialists of Sustainable Procurement from Global
Procurement function, who are responsible to onboard, train, and
assess suppliers. The program implementation is supported by the
Global Procurement Services.
Through DWP, Schneider aims to enhance social integration,
equity, security, dignity, satisfaction, and overall improvement in the
quality of life for the workers, and their family. For a supplier to fully
adhere to the DWP, the Global Procurement team will look at
inclusion of the requirements in the supplier’s organizational
framework by means of policies, processes etc. Incase of missing
or non alignment, the suppliers need to initiate corrective measures
which aim to institutionalise the requirements within the company.
The evaluation of this is undertaken and supported by review of
relevant documentations. If the requirements are effectively
incorporated in the policies and processes, the supplier can be
counted as conforming to DWP in the KPI calculation. Otherwise,
it is still counted as non-compliant regarding the requirements of
the program.
A pilot for this indicator was launched in 2022, and its was
integrated to the SSI score computation in the same year.
PwC provided limited assurance on this indicator.
SSI #7: Measure the level of confidence of our
employees to report behaviors against our
principles of Trust
Our “Speak Up” mindset helps to maintain high standards, a strong
reputation, and a healthy and productive working environment, and
protects Schneider Electric and its employees from multiple risks.
Misconduct situations will be less likely to occur if people,
employees, and stakeholders feel safe to speak up about
concerns, dilemmas, or issues in good faith, respectfully, and
without fear of retaliation.
Our Trust Charter and Ethics & Compliance program participate to
transform this belief into practical actions, notably offering multiple
fair, neutral, and confidential reporting channels to our employees
to make them feel confident to report unethical conduct.
In order to assess this KPI, the question “I can report an instance of
unethical conduct without fear” is annually asked to all Schneider
Electric employees in the OneVoice survey. The percentage of
“Agree” and “Strongly Agree” amongst the answers determines
the level of confidence of Schneider Employees to report unethical
conduct. Responses are anonymized and aggregated for
compliance purposes.
This indicator was calculated for the first time in 2021 and reached
an 81/100 performance. This KPI is integrated to the SSI score
computation since 2022.
PwC provided limited assurance on this indicator.
SSI #8: Increase gender diversity, from hiring
(50%) to front-line managers (40%) and leadership
teams (30%)
Schneider Electric is strongly committed to building a diverse
organization at every level, with a workforce that reflects the
diverse markets in which Schneider operates. This indicator
measures female representation within Schneider, at the hiring,
front-line manager, and leadership levels.
It covers all new hires within the Company, including both non-
direct variable costs (NDVC, i.e., white-collar) and direct variable
costs (DVC, i.e., blue-collar) positions; managers who are in NDVC
positions, at the junior and mid-management level and whose
direct reports are individual contributors only; and all leaders in
Senior Vice-President and Vice-President positions.
This is a composite indicator: the progress of each metric (new
hires, front-line managers, leaders) is being evenly weighted (1/3)
to calculate the achievement of this commitment.
At the end of each quarter:
• Percentage of female new hires: count of new hires that are
women divided by total new hires in the current year x 100%.
• Percentage of female frontline managers: count of front-line
managers that are women divided by total front-line manager
population x 100%.
• Percentage of female leaders: count of women leaders
divided by count total leaders x 100%.
• Blended achievement percentage: weighted 1/3, based on
annual percent progression from base year to total five-year
achievement.
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−50% new hires progression: subtract current period percent
of women who are new hires from 2020 baseline and divide
by targeted 5-year progression ambition (9%).
−40% front-line managers progression: subtract current
period percent of women who are front-line managers from
2020 baseline and divide by targeted five-year progression
ambition (15%).
−30% leaders progression: subtract current period percent of
women who are leaders from 2020 baseline and divide by
targeted five-year progression ambition (6%).
−Calculate blended progression achievement percent: 1/3 of
each KPI current period progression.
From 2025 onwards, diversity targets shall not impact local
incentives in countries or entities prohibiting the establishment of
such targets.
PwC provided reasonable assurance on this indicator.
SSI #9: Provide access to green electricity to 50
million people
Schneider aims to provide access to electricity from renewable
sources to 50 million people, thanks to the products and solutions
that are developed and/or commercialized under the Access to
Energy (A2E) program, from 2009 to end-2025.
Geographical scope are countries where the A2E program is
operating, in Asia-Pacific, Africa, Middle East, South America, and
Central America. Within these A2E countries, the impact is
calculated based on:
• Individual and domestic electrification: the number of units
sold is counted out of the defined list of references providing
access to green electricity, and a coefficient is applied to
translate into an estimated number of people impacted.
• Collective electrification for residential areas and productive
uses: the total power sold is counted out of the defined list of
references giving access to green electricity; it is translated into
a number of people impacted from an average energy
consumption of a household in the targeted areas, estimated
from external databases and studies.
• Electrification projects for community centers and services
or specific A2E projects: as an alternative to the above
method, actual or statistical number of people connected can
be taken into account.
• Impact funds (SEEA, SEEA Asia, EAV and GEIF II): 100% of the
impact of companies that contribute directly to the Schneider
A2E mission of providing green and reliable electricity in Africa
and in Asia are taken into account, as well as 50% of the impact
of companies that contribute indirectly. To this result, Schneider
applies the percentage of its participation in the fund.
An exhaustive list of products and solutions considered with
reference codes is available and maintained. Considered products
and solutions are those already available at the end of 2020, and the
forthcoming products and solutions providing access to electricity.
Products and solutions that are out of scope: A2E products and
solutions that are sold out of A2E countries, except in cases of A2E
products and solutions provided for relief work in any country struck
by a disaster or a catastrophic event; other A2E products and
solutions, not directly providing access to electricity (such as MPPT,
EcoStruxure™ for Energy Access, batteries, etc.).
The impact calculation methodology described in this document is
that applied as of full year 2021. This methodology is a model using
the best available data to estimate the impact of the Access to
Energy business in terms of number of people. It is subject to
potential revisions, in order to adapt to changes in the external
sources that are used as parameters. The unit of the indicator
“people impacted” should be interpreted with caution, as this is a
qualitative approach with uncertainty on the actual impact in terms
of people.
PwC provided limited assurance on this indicator. The methodology
and 2021 onwards performance was audited, not values cumulated
before 2021.
SSI #10: Create 2x opportunities for the next
generation
The purpose of this initiative is to ensure Schneider Electric has a
sustainable talent strategy to develop a Next Generation (Next
Gen) pipeline of talent through full-time and temporary
opportunities. Its goal is to provide access to professional
opportunities for young adults, educating them about sustainability
and how Schneider Electric plays a part in this endeavor.
To achieve this ambition to double opportunities, the Group
accounts for the various ways it interacts with talent considered to
be part of the next generation pipeline, including student
opportunities and recent graduate hires:
• Student opportunities are defined as the workforce on the
cusp of entering the job market, engaged in a temporary
relationship with Schneider Electric with a defined start and end
date at the onset (i.e., interns, apprentices, co-ops).
• Recent graduate hires are recent graduates or early career
professional hires from a formal education program whose
relationship with Schneider has a defined start date but
open-ended end date (i.e., open ended contract, fixed term
contract).
Calculations are based on actual external requisition positions filled
in the Global Applicant Tracking.
PwC provided limited assurance on this indicator.
SSI #11: Train 1 million people in energy
management
Today’s young people are forward-thinking, creative and one of the
largest demographics. We need to empower them with the
necessary skills and support to create a life align with their dreams
and aspirations.
Schneider Electric is committed to upskilling and empowering
young people:
• By supporting the development of Technical and Vocational
Education and Training (TVET). The key challenge of training in
the energy sector is to provide the knowledge and skills to carry
out a trade in a safe and responsible way, allowing to acquire
long-term competencies and securing access to employment.
The courses counted by the indicator lead to a certificate or a
diploma. The minimum duration of these courses is 3 months (or
totaling 100 hours). For online programs, students will only be
counted if they receive a certificate after online evaluation.
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• By providing access to technical and soft skills, supporting their
project and mentoring them. Youths reported benefit from at
least 3 months programs delivered by Schneider’s partners.
• By empowering them to innovate and become entrepreneurs
and contribute to the social and energy transition. Are included
in the indicator Youths who have declared benefitting from at
least 3 months programs delivered by our partners.
In partnership with local and international NGOs and local
authorities, the Schneider Electric Foundation and the Company’s
local entities provide direct and indirect contributions to training
partners.
Schneider’s contributions may include (cumulative possible):
• funding of electrical and didactic equipment, donation of
requested first generation equipment for practical work;
• funding of activities to deploy energy transition program to
students;
• knowledge transfer through trainer training, and support for
future entrepreneur training.
The KPI score is calculated with the number of students enrolled in
trainings courses, supported by Schneider Electric through
partnership agreement (supporting documents required, such as
list of young people trained).
PwC provided limited assurance on this indicator.
SSI #+1: 100% of Country and Zone Presidents
define 3 local commitments that impact their
communities in line with our sustainability
transformation
Since its creation in 2005, the former Planet & Society barometer
(now the SSI), has focused on measuring progress against key
sustainability performance indicators at worldwide level.
In SSI 2021–2025 Schneider Electric introduces a new component
to measure local impact because:
• There is a high internal demand for local communication on
progress, as well as to locally empower collaborators to
contribute to our meaningful purpose.
• Sustainability priorities are highly dependent on local context
therefore it makes sense to not only deploy worldwide
programs, but also local actions close to local context
and needs.
In order to boost local impact towards communities close to
Schneider Electric, countries with at least 100 employees have
set three commitments aligned with the Group’s sustainability
strategy, on different pillars: Climate, Resources, Trust, Equal,
Generations, and Local.
Progress against these commitments is measured by precise KPIs.
The assessment of this objective goes as follows: KPIs are
validated by Zone/Country Presidents, and a local SSI lead is
designated and communicated to the Sustainability team. This local
SSI lead is in charge of consolidating KPI performance on an
annual basis.
This indicator was not audited by PricewaterhouseCoopers and is
not included in the SSI score.
2.4.1.2 Indicators from the Schneider
Sustainability Essentials
SSE #1: 150 Zero-CO2 sites
A site achieves Zero-CO2 site status if it emits zero GHG emissions
related to energy consumption and has in place Digital Energy
Monitoring. Additionally, the site must have no SF6 leaks. Exclusions
for energy-related GHG emissions are considered for small
sources (<3%) of a site’s total energy where no feasible fossil-free
solution exists today. Digital Energy Monitoring is defined as having
energy data connected to a Schneider Electric solution (such as
Power Monitoring Expert, EcoStruxure™ Building Operation,
EcoStruxure™ Resource Advisor, etc.). For larger sites, this requires
a significant proportion of the site’s energy to be measured and
monitored through real-time connected meters. For smaller sites,
this requires energy invoices to be available in Schneider Electric’s
EcoStruxure™ Resource Advisor solution. This indicator relates to all
sites within the Group’s full real estate footprint.
PwC provided limited assurance on this indicator.
SSE #2: 100% substitution with SF6-Free medium
voltage technologies
This indicator measures the ability of Schneider Electric to offer to
the market (i.e. SELL gate of our Offer Creation Process)
industrialized SF6-free solutions for all geographies.
The range considered for the calculation of this KPI are primary
and secondary switchgears up to 40.5 kV, indoor only:
A SF6-free ranges ready in 2020: Vacuum components, Premset,
primary AIS with vacuum CB, HVL, Masterclad…
B SF6 ranges in 2020: RM6, FBX, Ringmaster, DVCAS, Flusarc,
SM6, RN2C, GMA, GMAe GHA, WS, WSG, CGBS-0, CGBS-1,
HVL-CC, Mcset, F400
C SF6 free offers to be launched from 2021–2025: SM AirSeT,
Air PacT, RM AirSeT, RingmasterX, GM AirSeT, HVLCCX, etc.
Products above 40.5 kV (WI, CBGS-2, Kite), outdoor equipment
such as pole mounted, reclosers, sectionalizers, and instrument
transformers, as well as ranges manufactured by JVs and local
offers adaptation are excluded.
The performance is measured as the percentage of the quantity of
SF6-free offer ranges available for order (A+C above) compared to
the total quantity of the current ranges sold in the 2019 reference
base (for both medium voltage switchgears and components). The
current range for 2019 reference base is defined as the sum of the
current SF6 and non-SF6 (Air, Vacuum) ranges sold in quantities
(A+B above).
For the calculation, as an example, 1 RM AirSet = 1 RM6.
Calculation: KPI % = (A + C) / (A + B). Reference base: total
quantities by range sold in 2019.
PwC provided limited assurance on this indicator.
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SSE #3: 90% of electricity sourced from
renewables
This program measures the share of renewable electricity in
Schneider Electric electricity supply, on the scope of environmental
reporting (industrial sites >50 employees and tertiary sites >500
employees certified ISO 14001).
Four different types of renewable sourcing are taken into account:
• Renewable electricity produced on-site and consumed on-site;
• Renewable power purchase agreements (PPAs);
• Green tariffs; and
• Renewable certificates (depending on the country: REC, iREC,
GO, EAC, etc.).
Electricity purchased with no specific renewable electricity claim is
not taken into account, even if the electricity mix of the supplier
includes a share of renewable power.
PwC provided reasonable assurance on this indicator.
SSE #4: 15% CO2 efficiency in transportation
Transport within Schneider Electric is a significant generator of CO2
due to dependence on fossil-fuels. To achieve its Net-Zero target,
the Group must engage with its transport providers on both
efficiency opportunities as well as technical advancements in
transport assets.
This KPI measures the Group progress against an annual 3% CO2
emissions for its transportation footprint for each of the next
5 years, or 15% total reduction from 2020 to 2025. The scope of the
program covers all shipments globally with all transportation
providers and modes where the freight is paid by the Group. This
equates to approximately two-thirds of the total freight CO2 impact
to the Group. The base calculation for CO2 efficiency uses an
activity-based method of weight multiplied by distance and by
mode/equipment CO2 factors. Data collection covers 72% of
transport expenditure and emissions linked to uncollected data are
estimated. Progress is measured using CO2 emissions per tonne
shipped as unit.
PwC provided limited assurance on this indicator.
SSE #5: 15% energy efficiency in our sites
This program measures the normalized energy reduction of the
Group’s largest energy-consuming sites against a baseline.
The objective is to reduce energy consumption by ~3% each year,
for a total reduction of 15% over the whole duration of the program
(2021–2025) using Schneider Electric solutions and services.
The program focuses on Schneider sites within the scope of
environmental reporting that consume >3 GWh of total energy,
along with other sites the Group considers strategic (213 sites
in 2021).
Energy savings are calculated vs. a baseline year (2019) for the
whole duration of the program. In order to ensure a fair calculation
of the savings, the actual consumption of a site is normalized vs.
the baseline year.
This normalization is based upon a site-specific linear regression
model enabling climate and changes in production levels to be
taken into account. All energy consumption that can be modeled is
taken into account and converted into MWh.
PwC provided reasonable assurance on this indicator.
SSE #6: 80% of product revenues covered by
Green Premium™
Schneider Electric provides environmentally conscious products to
customers that support their sustainability goals and ambitions. The
2025 target is a transformation of the existing program, for products
focused on green materials, low CO2, circularity, and digitization of
data.
Green Premium™ products provide detailed information on their
regulatory compliance, material content, environmental impact, and
circularity attributes. They deliver market-driven value propositions
through third-party labels, such a Green Building and product
certifications, that support our customers’ sustainability ambitions.
All globally sold products are within the scope of Green Premium™.
The product must be identifiable by an individual commercial
reference number sold under a recognized brand of Schneider
Electric. The Group provides resource-efficient products (energy at
usage, low CO2, material efficiency) whose footprints are fully
available through the “Product Environmental Profile” relying on
lifecycle assessment; Green Premium™ offers also come with
“circularity profiles”, providing information on a product’s circularity
through product end-of-life instructions and take-back services.
Green Premium™ offers are regulatory compliant.
Schneider Electric is going beyond regulatory compliance with
step-by-step substitution of certain materials and substances from
our products. All this information is provided digitally to our
customers.
PwC provided limited assurance on this indicator.
SSE #7: One-third of corporate vehicle fleet
comprised of electric vehicles
Schneider Electric has joined the EV100 initiative of the Climate
Group to reduce its carbon emissions by committing to electrify
100% of its fleet by 2030. The fleet reporting structures the fleet
carbon emissions calculations, the calculation of EVs share in the
fleet, and allows support of countries in the transition. As a
mid-term objective, by 2025, Schneider commits to switch a third
(1/3) of its fleet to EVs.
Schneider Electric uses the definition by the Climate Group for EVs,
including:
• Battery Electric Vehicle (BEV);
• Plug-in hybrids (PHEV): Extended Range Vehicle (EREV) and
Fuel Cell Electric Vehicle (FCEV) – with at least 50 km of
electrical autonomy.
Vehicles’ spot count is taken on 31st December. The share of EVs in
fleet is calculated by dividing EV count by total vehicle count.
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Fleet leasers are the source of information; global leasers operate
the largest share of Schneider Electric’s fleet and provide data on
multiple countries by region. A detailed reporting is asked of all
countries to eventually correct, complete, or complement the
information (considering for instance vehicles under local leasers).
PwC provided limited assurance on this indicator.
SSE #8: 100% of sites with local biodiversity
conservation and restoration programs
This program measures, for each site in scope, the percentage
completion of a set of biodiversity-related actions. The scope is
Schneider Electric sites within full real estate footprint that have
>50 people.
Initiatives are defined as “eliminate single-use plastic”, and “local
biodiversity action” (two required for large ISO 14001 sites, one for
small sites).
Each site reports initiatives at completion. At Group level,
performance is calculated by dividing completed initiatives by total
required initiatives.
This indicator is audited annually by PricewaterhouseCoopers.
SSE #9: 200 “Waste-to-Resource” sites
A site achieves “Waste-to-Resource” status if it recovers more than
99% (by weight) of its non-hazardous waste while leveraging
waste-to-energy solutions for less than 10% of its non-hazardous
waste. Additionally, if a site generates hazardous waste, it must
ensure 100% proper handling and treatment of that waste. Proper
handling and treatment of hazardous waste means that hazardous
waste shall be handled as per Schneider Electric’s requirements
and local regulations, whichever is the most restrictive. Waste is
considered as recovered if it is reduced, reused, or sent to a waste
provider for recycling or disposal in any manner except landfill and
incineration without energy recovery. Waste composting and
energy recovery systems qualify as recovered. This indicator
relates to all sites within the Group’s full real estate footprint.
PwC provided limited assurance on this indicator.
SSE #10: 420,000 metric tonnes of avoided
primary resource consumption through ‘take-back
at end-of-use’ since 2017
The aim of this KPI is to measure Schneider Electric’s Circular
Economy efforts, meaning all the industrial activities that contribute
to the Circular Economy model, such as repair, reuse, refurbish,
and recycling, thus avoiding waste, material and energy
consumption, CO2 emissions, and/or water depletion.
Activities in this KPI will enrich on the basis of Schneider Electric’s
increasing focus on circularity business models, and are currently
constituted of:
• Batteries take back and recycling;
• Volume of devices refurbished and repaired in our repair
centers (e.g., UPS, drives);
• Volume of MV, LV, and Transformers refurbished or recycled in
our ECOFIT Centers.
Due to some local regulatory changes in 2024 and related yearly
timing of official figures, 55% of reporting are conservative
estimates which will be adjusted as part of the next reporting cycle.
PwC provided limited assurance on this indicator.
SSE #11: 100% of sites in water-stressed areas
have a water conservation strategy and related
action plan
This program measures the percentage completion of a set of
water conservation actions that sites in water-stressed areas must
complete. The scope is Schneider Electric sites within the scope of
environmental reporting that are classified as “high” or “extremely
high” baseline water stress, as defined by the World Resources
Institute (WRI) Aqueduct Water Risk Atlas. Actions are defined
based on the amount of water that a site consumes along with the
application(s) that the site uses water for. At the Group level,
performance is calculated by totaling all completed site actions and
dividing by the total required actions.
PwC provided limited assurance on this indicator.
SSE #12: Deploy a “Social Excellence” program
through multiple tiers of suppliers
This indicator has not yet been deployed by Schneider Electric.
SSE #13: 100% of employees trained every year on
Cybersecurity and Ethics
As per our Ethics & Compliance and Cybersecurity programs,
training of employees on ethics, corruption risks (for eligible employees),
and cybersecurity is mandatory. To ensure this, Schneider Electric
launched 3 new trainings as part of the Global Schneider Essentials
training campaign, reconducted every year with new content:
• Since 2018: Training on the Principles of Responsibility
(replaced in September 2021 by the Trust Charter, Schneider’s
Electric Code of Conduct) and Anti-corruption.
• Since 2020: Training on Cybersecurity.
The scope of this KPI is all employees registered in TalentLink
(legal entities integrated in Talent Link, core HR data system) as of
November 15:
• Principle of Responsibility and Cybersecurity e-learnings:
all active employees with open ended contracts (OEC)
(exception: Chinese and Bulgarian fixed-term contracts (FTC)
are included), present in the Group on December 31st and hired
before December 1st.
• Anti-corruption e-learning: exposed employees identified
based on the job description (Schneider Electric System of
Reference – description of functions), active, with connectivity
type online-corporate credentials, with OEC (exception: Chinese
and Bulgarian FTC) present in the Group on December 31st and
hired before December 1st.
PwC provided limited assurance on this indicator.
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SSE #14: 0.38 or below Medical Incident Rate
Safety is one of the five pillars of Schneider Electric’s Trust Charter,
which emphasizes the importance Schneider Electric is placing
on its employees, customers, and contractors. Schneider works
with many VIP global customers, and they demand the highest
standards of Health and Safety management and performance
before they engage and continue to do business with
Schneider Electric.
Moreover, at Schneider Electric our mission is to ensure the
occupational health and safety of employees, customers,
contractors, and visitors to our locations. The Group also strives to
provide employees safe, pleasant, and efficient workplaces for
enhanced well-being and effectiveness. As such, we aim to reduce
the Medical Incident Rate (MIR) to 0.38 by 2025.
The MIR is the number of work incidents requiring medical
treatment per million hours worked (i.e., average hours of 500
employees working for one calendar year). Work-related injuries
and occupational illnesses requiring medical treatment are
included. Work incidents may or may not have resulted in time
off work.
All work-related incidents reported on Schneider Electric sites are
counted (including therefore incidents affecting Schneider
employees and other employees working under the supervision of
Schneider, i.e., temporary workers). All Schneider sites within
scope are considered. Medical incidents do not include: visits to a
physician or other licensed healthcare professional solely for
observation or counseling; the conduct of diagnostic procedures,
such as x-rays and blood tests, including the administration of
prescription medications used solely for diagnostic purposes (e.g.,
eye drops to dilate pupils); or first aid.
PwC provided reasonable assurance on this indicator.
SSE #15: Reduce total number of safety recalls
issued to 0
When sustainability supports customer satisfaction, it translates into
new processes and policies to allow returns of adapted products
for reuse, remanufacture, and refurbishment. The benefits can be
seen at a customer satisfaction level: by producing and delivering
back orders impacted by component shortages, by serving new
customer orders, and on Sustainability level by anticipating
upcoming regulation compliance (anti-waste laws), reducing
carbon footprint of our supply chain, and reducing the cost of poor
quality due to product recalls.
Schneider Electric has an Offer Safety Alert (OSA) process to alert
the relevant line of business and other interested parties as soon as
it is suspected that customers’ health or property safety may be put
at risk by Schneider products, solutions, or projects.
The Offer Safety Alert Committee (OSAC) is a permanent corporate
committee that oversees and regulates the management of OSA.
Its mission is to ensure all OSA are managed with the due diligence
and urgency to minimize safety risks to customers.
(1) Bitsight scores for non-integrated entities (e.g. AVEVA) are not included and are monitored separately.
Its independent, multi-discipline nature allows the OSAC to make
decisions in our customers’ best interest. As part of the Trust pillar
of SSE 2021–2025, Schneider is committed to reducing the total
number of safety recalls issued to 0.
This KPI covers customer notification and remediation actions
from any suspected condition in Schneider Electric’s offer that
may cause customer bodily injury or property damage with OSAC
Go decision.
PwC provided limited assurance on this indicator.
SSE #16: In the Top 25% in external ratings for
Cybersecurity performance
Schneider Electric is continuously and consistently monitoring the
security of its digital footprint with the support of cyber scoring
agencies and this discipline is applied across the extended
ecosystem(1) (e.g., integrated and non-integrated entities).
Our primary scoring agency is BitSight which rates company
security maturity between 300 to 820. This rating is calculated in
real time with a proprietary algorithm that examines two classes of
externally observable data:
• configuration information, which represents how diligent a
company is in implementing best practices to mitigate risk.
• observed security events, which are evidences of cyber events
like system compromises or data breaches, etc.
Security incidents or identified vulnerabilities can negatively impact
the Company’s rating. They are addressed in a timely manner and
the Group strives to maintain the score above 800.
PwC provided limited assurance on this indicator.
SSE #17: 4,000 suppliers assessed under our
“Vigilance Program”
Schneider Electric seeks to be a role model in its interactions with
customers, partners, suppliers, and communities, when it comes to
ethics and the respect and promotion of human rights. The Group’s
Vigilance Plan reflects this ambition. It also complies with the
provisions of 2017 French law on Corporate Duty of Vigilance: the
Duty of Vigilance introduced a new legal framework by which
French authorities could hold corporations accountable.
Risks within our supply chain are multiple: potential violations of
human rights and fundamental freedoms, serious bodily injury,
environmental damage, health and safety risks, etc. Impacts are
therefore quite varied: reputational impacts, legal impacts, people
health and safety, environmental pollution, etc.
To mitigate these risks with suppliers, the 2021–2025 plan is to
deploy on site and remote audits for 4,000 suppliers:
• 1,000 identified in “high risk” level (by a third-party
methodology, RBA, or other) with on-site audits; and
• 3,000 others through remote self-declarative assessment.
Suppliers answering are counted, removing, if any, suppliers
that have been audited in the current or past years.
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The KPI adds the total number of audits performed. The baseline
takes into account on-site audits performed between 2018 and
2020 (i.e., 374 audits); this value has been audited and validated by
PricewaterhouseCoopers in the previous years.
PwC provided limited assurance on this indicator.
SSE #18: <1% pay gap for both females and males
Prior to 2021, Schneider Electric has proactively worked to identify
and address female pay gaps with appropriate corrective actions
through a country-driven approach. Given the progress made on
pay equity and to support its inclusion philosophy, starting in 2021,
Schneider Electric has made a commitment to attain and maintain a
pay gap below 1% by 2025 for both females and males, as per the
internal methodology.
Measurement of the individual pay gap is achieved by comparing
each employee to a peer group median total target salary “TTC”
(base salary + target short-term incentive + fixed allowances if
applicable for a country) for all genders. In other words, an
individual’s TTC is assessed against the median TTC of their
comparator group (individual TTC / median of comparator group
TTC – 1). The comparator group is defined by the drivers of job
level (grade) and salary structure within a country.
PwC provided limited assurance on this indicator.
SSE #19: 60% subscription in our yearly
Worldwide Employee Share Ownership Plan
(WESOP)
The World Employee Share Ownership Plan (WESOP) is one of the
Group’s recurring key annual reward programs, offering employees
across the world an opportunity to become owners of the
Company, at preferred conditions. Schneider Electric commits to
achieve a 60% subscription rate among eligible employees in the
yearly WESOP by 2025.
The scope concerns 28 recurring participating countries,
representing 91% of the eligible headcount, which are all long-term
employees of countries participating in WESOP with seniority of 3
months in the Company. The KPI is calculated by collecting the
number of subscribers from the subscription tool, divided by the
number of eligible employees in the 29 countries as per data from
our global HRIS system.
PwC provided limited assurance on this indicator.
SSE #20: 100% of employees paid at least a living
wage
In line with its Human Rights Policy and Trust Charter, Schneider
Electric believes earning a living wage is a basic human right.
Schneider Electric is committed to paying 100% of employees at or
above the living wage to meet their families’ basic needs. By basic
needs, the Group considers basic household expenditures (food,
housing, clothing, sanitation, education, healthcare, transport),
plus discretionary income for a given local standard of living.
There is no universal benchmark or methodology on how to
calculate a living wage, which is why Schneider Electric has been
working with an external consultant since 2018 to calculate living
wages for all its locations worldwide. To calculate a living wage, the
external consultant estimates the basic household expenditures of
employees, as well as the number of persons earning a wage in a
“typical” household based on various sources of cost of living and
macroeconomic data (national statistics, Organisation for
Economic Co-operation and Development (OECD), United Nations
agencies, etc.).
To measure compliance with the living wage, a gap analysis is
conducted every year post salary review for all our Schneider
Electric employees treated as permanent workforce. All employees
employed by fully integrated entities, with open-ended or fixed-
term contracts, whether full-time or part-time, are considered part
of the permanent workforce. The Reward team centrally compiles
and analyses total employee remuneration data (base salary and
allowances; if applicable for a country, variable elements were
excluded this year) to compare it with the agreed living wage.
Employees are benchmarked to their work location living wage. To
calculate employee remuneration, the Reward team uses data
available in its global HRIS system, as well as local payroll.
For final reporting of the year-end results, Schneider Electric can
disclose a final score that considers living wage gaps closed by
countries until the end of the year after they have been identified.
PwC provided limited assurance on this indicator.
SSE #21: 4x the number of employee-driven
development interactions on the Open Talent
Market
The purpose of this initiative is to create an integrated and digital
Open Talent Market (OTM) that enables employees to drive their
own career development. The platform is borderless, neutral, and
uses AI to help achieve best matches. The ambition is to multiply
the number of employee-driven interactions within OTM by four in
the next five years.
Interactions are tracked in the tool for each feature of OTM. At the
start of 2021, current features available to employees are positions;
projects; mentorships; and career mapping.
These three features work best when employee profiles are robust
and rate a 3/4 for completeness. The scope of this initiative extends
to the connected population of Schneider Electric as defined in
January 2021, thus excluding non-connected workers (i.e., plant),
contractors, and interns/apprentices.
PwC provided limited assurance on this indicator.
SSE #22: >90% of employees undergo digital
upskilling
The Group is committed to growing employee digital citizenship
and aims to achieve digital upskilling for >90% of employees by
2025. The progress combines white collar and worker
populations’ KPIs.
• For white collars, the Group aims to achieve >90% eligible
employees reaching Intermediate, Advanced, or Expert Digital
Citizenship level by 2025. The Digital Citizenship level of all
employees will be assessed by their managers each year.
Eligible employees in 2024 are active employees hired before
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excludes employees in non-integrated entities and further
exclusions defined by country.
• For workers, the Group aims to achieve >90% of workers
complete 2 hours of training per year offered by the GSC
Academy on digital transformation, such as the Smart Factory
program, Cybersecurity, and Digital knowledge. The scope
covers active workers populations and plant team leaders
defined by specific job codes and hired before January 31st
2024, open-ended and fixed-term contracts (China only) in
relevant operating units, and excludes workers on extended
leave of more than six months during the year, and factories
which planned to be closed before Q2 of the following year.
The scope and exclusions of this indicator will be reviewed at the
beginning of each year.
The KPI is an aggregated percentage based on the percent of
employees meeting the target defined for white collars and workers
to the total employee population in scope (white collars and
workers).
PwC provided limited assurance on this indicator.
SSE #23: 90% of employees have access to a
program that supports meaningful development in
the later stages of their professional career
The Group is committed to support talent near or at the later stages
of their career to have meaningful development, and to recognize
their unique contribution. The Senior Talent Program is anchored in
career conversations resulting in a robust development plan linked
to their unique career aspirations and supported by different offers.
The ambition is to provide access to meaningful career
development programs for at least 90% of employees during the
later stages of their career. The KPI is calculated as an aggregated
% of the following dimensions:
• Part A (80%): >90% of employee working in countries offering
career development program that support later career stages. A
program is in place when it meets 2 criteria:
1. A specific locally deployed training, coaching or 1:1 support
for targeted employees and their managers, enabling them
to have a career conversation;
2. Minimum 3 new or enhanced offers since the launch in
January 2021 such as new contractual schemes, upskilling,
knowledge transfer, pivoting, recognition, care, and personal
planning among others. Calculation: % total headcount in the
countries where a program is in place versus overall
Schneider headcount.
• Part B (20%): >90% of targeted employees having the career
conversation. Calculation: % of employees in the later stages of
their career replying affirmatively to the question “In the last 12
months, I had a career discussion with my manager” from the
career development survey launched every year to all
employees.
Pilot programs were launched fully in 2022. As such, the baseline
year for this indicator is 2022.
PwC provided limited assurance on this indicator.
SSE #24: 75% employee engagement score
A high Employee Engagement Index is linked to higher sales
growth, higher operating income, and ultimately higher customer
satisfaction and loyalty toward the Company. This index is
calculated once a year through a survey called OneVoice, sent to
100% of the Group employees, and serves a starting point to adapt
its people strategy and action plans.
The computation of this KPI includes all Schneider employees
treated as permanent workforce (i.e., open-ended and fixed-term
contracts over 3 months), thus excluding interns or third-party
contractors.
The Kincentric employee engagement model is used, composed of
6 questions, 2 per item (SAY, STAY, STRIVE), scored on a 6-point
scale by employees:
• Employee Engagement Index: is the percentage of people
for which the average of the six questions is equal or higher
than 4.5;
• Employee Disengagement: percentage of people for which the
average of the six questions is equal or lower than 3.5;
• Neutral: is the percentage of people for which the average of the
six questions is scored between 3.5 and 4.5.
PwC provided limited assurance on this indicator.
SSE #25: 50,000 volunteering days since 2017
Schneider Electric employees’ volunteering activities mainly take
place in vocational or educational NGOs (vocational and technical
training, schools, universities, etc.), and companies supported by
the Schneider Electric Access to Energy Fund, and more globally in
all organizations referenced by the Schneider Electric Foundation
delegates in their countries. They principally fall into actions
benefiting young people, underprivileged families, and the
environment, and are organized depending on the personal or
professional skills of the volunteers as well as the needs identified
by the supported organizations (specialized or non-specialized
needs). Missions are posted on a dedicated digital and multilingual
platform called VolunteerIn enabling Group employees to apply for
volunteer missions among the Foundation’s partners. Local and
spontaneous initiatives organized by the Schneider Electric
Foundation delegates and their partners in which employees
engage are also taken into account.
In 2021, the Schneider Electric Foundation and partner NGOs have
increased the number of digital missions offered to employees,
enabling them to continue in social mentoring, share skills, and
participate in one-time volunteering. One day of volunteering is
counted when a collaborator dedicates 5 hours of their time to one
of these partner organizations. Only missions lasting a minimum of
0.5 days are considered. The indicator also includes the training
missions organized abroad that last at least 5 days.
PwC provided limited assurance on this indicator.
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2.4 Methodology, external assurance and indicators
2.4.2 TCFD and SASB correspondence tables
2.4.2.1 Sustainability Accounting Standard (SASB) Correspondence table
Topic
Accounting metric
Category
Unit of measure
Code
Energy
Management
(1) Total energy consumed
Quantitative
Gigajoules (GJ)
RT-EE-130a.1
(2) percentage grid electricity
Percentage (%)
(3) percentage renewable
Hazardous
Waste
Management
Amount of hazardous waste generated, percentage
recycled
Quantitative
Tonnes (t),
Percentage (%)
RT-EE-150a.1
Number and aggregate quantity of reportable spills,
quantity recovered
Number, Kilograms
(kg)
RT-EE-150a.2
Product Safety
Number of recalls issued, total units recalled
Quantitative
Number
RT-EE-250a.1
Total amount of monetary losses as a result of legal
proceedings associated with product safety
Reporting
currency
RT-EE-250a.2
Product
Life cycle
Management
Percentage of products by revenue that contain IEC
62474 declarable substances
Quantitative
Percentage (%)
by revenue
RT-EE-410a.1
Percentage of eligible products, by revenue, certified to
an energy efficiency certification
RT-EE-410a.2
Revenue from renewable energy-related and energy
efficiency-related products
Reporting
currency
RT-EE-410a.3
Materials
Sourcing
Description of the management of risks associated with
the use of critical materials
Discussion
and Analysis
n/a
RT-EE-440a.1
Business
Ethics
Description of policies and practices for prevention of:
(1) corruption and bribery and
(2) anti-competitive behavior
Discussion
and Analysis
n/a
RT-EE-510a.1
Total amount of monetary losses as a result of legal
proceedings associated with bribery or corruption
Quantitative
Reporting
currency
RT-EE-510a.2
Total amount of monetary losses as a result of legal
proceedings associated with anti-competitive behavior
regulations
Quantitative
RT-EE-510a.3
Activity metrics
Number of units produced by product category
Quantitative
Number
RT-EE-000.A
Number of employees
RT-EE-000.B
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Response/ Data/ Reference
Topic
The following KPIs covers the measured energy consumption (about 73% of Group energy consumption):
(1) 3,179,304 GJ (883,140 MWh)
(2) 34.0% (299,899 MWh)
(3) 73.7% (650,196 MWh)
Energy
Management
Hazardous waste generated: 9,244 tonnes.
Hazardous waste channeled according to legal requirements and Schneider Electric expectations: 9,244 tonnes.
Hazardous
Waste
Management
Zero reportable spills in 2024, therefore no recovered quantity to report.
5 product recalls have been issued in 2024, amounting to approximately 3,000 units recalled or reworked. Schneider
Electric has an Offer Safety Alert (OSA) process to alert the relevant Line of Business and other interested parties as soon
as it is suspected that customers’ health or property safety may be put at risk by Schneider products, solutions, or
projects. A dedicated permanent committee ensures that all OSA are managed with the due diligence and urgency to
minimize safety risks to customers. Its independent, multi-discipline nature allows the committee to make decisions in
customers’ best interest.
Product Safety
No material loss at the Group level.
Around 80% of Schneider Electric’s products are assessed on the presence or absence of IEC 62474 DSL (Declarable
Substance List). With the current information collected from its supply chain, the Group manages to cover nearly all
substances and regulations. More details on Products Stewardship can be found in section 2.3.1.2.1 page 287.
Product
Life cycle
Management
Revenues derived from products certified to energy efficiency certifications, such as ENERGY STAR, are included in
Schneider Electric’s Impact revenues measure (see below).
Schneider Electric measures “Impact revenues”, i.e., revenues coming from offers that bring energy, climate, or resource
efficiency to customers. In 2024, 74% of Group revenues qualify as Impact revenues. The Group aims to grow its Impact
revenues to 80% by 2025 (SSI #1).
Details regarding sustainable procurement practices are provided in section 2.2.2.2.1 on page 162, in particular Conflict
Minerals and Extended Minerals programs.
Critical materials supply risks related to potential scarcity in the market has been fully assessed and is acknowledged in
our design roadmap. Top strategic partnerships with key suppliers have been reinforced through long-term agreements
and C-Level connections, with a particular focus on electronic semiconductor players. A procurement and planning hub in
Singapore has been established to manage the direct supply of critical materials and strategic stocks, with a focus on
active electronics and copper cathodes.
Materials
Sourcing
As stated in its Trust Charter, Anti-Corruption Policy, Competition Law Policy, and various other policies, Schneider Electric
is committed to complying with all applicable laws and regulations, such as the OECD’s Convention on Combating Bribery
of Foreign Public Officials in International Business Transactions, the US Foreign Corrupt Practices Act (FCPA), the UK
Bribery Act, the French Sapin II law, and the various antitrust laws and competition rules globally.
Schneider Electric has a zero tolerance policy with regard to corruption and breaches of competition laws and considers
that “doing the right thing” is a key value-creation driver for all its stakeholders. This commitment materialized through
strong and continuously developing programs such as its Anti-Corruption Compliance program (part of its Trust program,
see section 2.2.4.1 on page 258), and its Competition Law Compliance program (see section 2.3.3.2 on page 307).
Business
Ethics
No material losses.
The French Competition Authority issued on October 29, 2024 a decision to sanction several companies concerning the
electrical distribution activities in France, including Schneider Electric for a EUR 207 million penalty considering that the
pricing autonomy of some distributors in the French market had been limited by Schneider Electric, in breach of
competition rules. This fine will be paid in the coming months by Schneider Electric France.
Schneider Electric strongly disagrees with the conclusion of the French Competition and has appealed the decision in
front of the Paris Appeal Court. For more information, please see Note 26.2 on page 553.
A breakdown of revenues by activity is provided page 3 and page 567.
Activity metrics
147,127 (spot 2024 year-end headcount, excluding supplementary workforce).
More workforce statistics in section 2.4.4.2 on page 348.
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2.4 Methodology, external assurance and indicators
2.4.2.2 Task Force on Climate-related Financial Disclosures (TCFD) correspondence table
Climate change has been clearly identified as crucial to both Schneider Electric’s internal and external stakeholders during the various
materiality assessments that took place in 2014, 2017, 2020 and 2024. Overall, transformations linked to climate change are a source of
opportunities for Schneider Electric, the main risk being to fail leading by example and thereby lose traction with customers, investors, new
talents, and collaborators in the Company. Concrete climate-related programs to either grab opportunities or mitigate risks are deployed
every 3 to 5 years in the Schneider Sustainability Impact (SSI) program and complement the Group’s Net-Zero Commitment. Schneider
Electric presents below its main climate-related disclosures in line with TCFD recommendations.
Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
1. Governance: Disclose the organization’s governance around climate-related risks and opportunities.
1. a) Describe the board’s
oversight of climate-
related risks and
opportunities.
CDP – 4.1.2
URD – Chapter 2
(2.2.1.1.2, 2.2.2.1.2)
Chapter 3 (3.2.2)
Several governance bodies are involved in the process of designing and
continuously monitoring the SSI program, which includes a sustainability risks and
opportunities assessment (including climate) and leads to the design of concrete
transformation initiatives to align the Company on the challenges identified:
• The Board of Directors has oversight of climate-related issues notably through its
Governance, Nominations and Sustainability Committee. This Committee has six
Director members who report to the Board of Directors, and reviews Schneider’s
CSR strategy, follows up on progress made, and ensures implementation of the
Group’s long-term sustainability commitments.
• The Executive Committee has a dedicated Function Committee, which meets
quarterly. It decides on the sustainability strategy and validates the SSI and
carbon pledge.
• The SSI Steering Committee was formed in 2020 to propose precise and
measurable transformation programs for the 2021 – 2025 SSI, which were then
submitted to the Group Sustainability Committee for approval.
• The Sustainability Department coordinates the overall sustainability strategy of the
Group and the rollout of action plans.
• Three Committees involving Group Executive Vice-Presidents and Senior
Vice-Presidents are dedicated to overseeing the implementation of the Group’s
decarbonization roadmap, respectively focusing on the supply chain, low-carbon
product design, and the decarbonization of Schneider Electric’s operational
emissions.
Additionally, environmental transformations are driven by a network of leading
experts in various environmental fields such as ecodesign, energy efficiency, circular
economy, or CO2. Environment leaders coordinate a network of more than 600
managers responsible for the environmental management of sites, countries, product
design, and marketing.
1. b) Describe
management’s role in
assessing and managing
climate-related risks and
opportunities.
CDP – 4.3, 4.3.1
URD – Chapter 2
(2.2.1.1.2, 2.2.2.1.2)
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Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
2. Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities in the organization’s businesses,
strategy and financial planning where such information is material.
2. a) Describe the
climate-related risks
and opportunities the
organization has
identified over the short,
medium, and long term.
CDP – 2.1, 2.2.2, 2.4, 3.1,
3.1.1, 3.6, 3.6.1
URD – Chapter 2
(2.2.1.2.2, 2.2.2.1.2)
To identify and price the materiality of climate-related risks and opportunities, the
Group mandated an external consultant to perform a scenario-based risk and
materiality analysis. Five emissions pathways and three time horizons have been
considered: SSP5-8.5, SSP3-7.0, SSP2-4.5, SSP1-2.6, and SSP1-1.9 by 2025, 2030,
and 2050. Significant climate-related risks and opportunities identified for Schneider
Electric include:
• Transition risks and opportunities, relating to market, policy, reputation, and
technology;
• Physical risks and opportunities, relating to damage to property and assets, and
supply chain disruption.
Market: The growing demand for low-carbon products and services generally
presents significant business opportunity for Schneider Electric. The Group is
already exploring ways to enhance the efficiency and emissions profile of existing
products through innovations, such as SF6-free medium voltage switchgears. The
low-carbon transition can present risks with potential financial impacts for companies
delaying the change, as well as opportunities for sustainability leaders. For example,
consumer preferences may change and further veer toward environmentally
sustainable alternatives. In 2024, 74% of the Group revenues qualify as Schneider
Impact revenues, defined as revenues from offers that bring energy, climate, or
resource efficiency to customers, while not generating any significant harmful
impacts to the environment. The Group aims to grow its Impact revenues to 80% by
2025.
Additionally, maintaining industry-leading offers on the market for more efficient,
low-emission products and services that support the transition to a low-carbon
economy needs adapted investments in research and development (R&D).
Schneider Electric invests about 5% of its annual revenues in R&D each year. This
also includes a sharp focus on product quality and performance to prevent potential
trade-offs associated with products’ enhanced sustainability profile.
Schneider Electric has defined short and medium-term financial investments
priorities in order to set the course towards its SBTi validated Net-Zero commitment,
and more broadly to meet its long-term commitments for climate, and to preserve
natural resources. Read more in section 2.2.2.1.3 on page 138.
Policy: A number of governments have introduced or are contemplating regulatory
changes to address climate change. For example, Emissions Trading Systems and
carbon taxes are now implemented or scheduled in many countries and markets.
Given the relatively low level of the Group’s Scope 1 and 2 carbon emissions, carbon
pricing mechanisms primarily present the potential for indirect rather than direct
impacts, namely by higher raw materials and manufactured components costs, and
increasing costs incurred by consumers during use of sold products.
Schneider Electric supports the shaping of climate policies that can move the
industries and world forward. In 2024, 90% of the Group’s revenues came from
economic activities listed as eligible in the EU Taxonomy for sustainable activities,
demonstrating the prominence of Schneider Electric’s markets in the transition
towards a sustainable economy. The Group is committed to keeping its position as
sustainability leader to capture associated opportunities through various strategies,
including decarbonization, incorporation of a shadow carbon price, and policy
advocacy. Read more on climate policy advocacy in section 2.2.2.1.2 on page 126.
2. b) Describe the impact
of climate-related risks
and opportunities on the
organization’s business,
strategy, and financial
planning.
CDP – 3.1.1, 3.6.1, 5.1,
5.1.1, 5.2, 5.3.1, 5.3.2
URD – Chapter 2 (2.2.2.1)
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2.4 Methodology, external assurance and indicators
Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
2. a) and 2. b) (continued)
Reputation: Schneider Electric has been working to reduce its own GHG emissions
for over 17 years and has a proven track record of success with its past commitments
related to reducing its own emissions, proving that the Group remains diligent in
protecting brand reputation through accurate and transparent communication and
marketing. Yet, there is a risk that the Group’s actual or perceived failure to achieve
its environmental sustainability targets or commitments could negatively impact its
reputation or otherwise materially harm its business. In addition, the Group remains
diligent in protecting brand reputation through accurate and transparent
communications and marketing. In 2024, as litigation and legislative developments
surrounding green claims rose, and public focus on greenwashing heightened,
Schneider Electric sharpened its focus on environmental claims and language used
regarding sustainability.
Technology: As the global economy transitions towards a low-carbon future,
technological innovation will accelerate the impairment of fossil-fuel intensive assets.
Schneider Electric has launched several transformations as part of its commitment to
be “Net-Zero ready” in its operations by 2030. Read more in section 2.2.2.1.3 on
page 138.
Damage to property and assets: Physical risks resulting from climate change can
have financial implications for the Group, such as direct damage to property and
assets. As a result, climate and weather-related risks are part of the Group’s
Business Continuity and Risk Management program, leading to preventive
investment to secure assets and adapt to material climate and weather risks. Both
exogenous threats and endogenous risks were measured and weighed for industrial
and logistics sites worldwide. The cost of management can be approximated by that
of insurance plans. The cost (including tax) of the Group’s main global insurance
programs, excluding premiums paid to captives, totaled around EUR 30 million in
2024.
Supply chain disruption: Schneider Electric has over 300 industrial and logistics
sites globally and is exposed to the physical effects of climate change in the form of
more frequent and severe acute weather events. Climate-related damages to assets,
business operations, as well as human and environmental consequences, and
supply chain disruptions in the upstream and downstream supply chain can translate
directly into revenue losses, higher costs, and increased working capital
requirements. Delays in production and delivery can impact customer experiences.
Read more on the methodology and results of scenario analysis in section 2.2.2.1.2
on page 126, and in Chapter 3 on page 384.
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Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
2. c) Describe the
resilience of the
organization’s strategy,
taking into consideration
different climate-related
scenarios, including a 2°C
or lower scenario.
CDP – 5.1, 5.1.1
URD – Chapter 2 (2.2.2.1)
Several scenarios to 2050 were developed in 2019, which included critical reviews of
the geopolitical landscape, commodity and resource availability, economic and
financial evolutions, climate sensitivity and evolving policies, energy transition
pathways and technology developments, among others, with consequences
quantified, looking at ten regions and a number of sectors individually, framing the
business landscape in which Schneider operates.
All of the scenarios used in resilience modelling empower Schneider Electric to
quantify their exposure to physical and transition-related climate risks over 5- and
10-year time horizons for a range of futures. The futures mapped out in
this modelling range in assumed warming (relative to Industrial levels) of between
1.5° – over 4°C by 2100.
Key findings are regularly cross-checked with new publications, particularly the ones
from the IEA, BNEF, the IRENA, among others.
Governance is well in place, under the leadership of the Chief Sustainability Officer,
and both short- and long-term analyses are shared internally and used to inform
strategic priorities across business and operations.
As part of the analysis, the Group identified that a growing demand for greener,
low-carbon products and services creates a strong business opportunity for
Schneider Electric. Key takeaways from the analysis are the dominant role of:
• Electrification: the world is becoming more electric, with demand growing
potentially up to 3x by 2050;
• Digitalization: with the increase in connectivity, complemented by real-time
information and competitive computing capabilities, digital technologies play a
major role in reaching decarbonization targets while augmenting economic
productivity, notably around efficiency in energy and resource use and circularity,
as well as increased resiliency and security.
All these findings, and their potential financial impact on its business, have helped
the Group to fine-tune key development areas that will allow its active contribution to
the low-carbon transition, enabling notably the development of its sustainability
portfolio of offers.
Read more in section 2.2.2.1.2 on page 126.
3. Risk Management: Disclose how the organization identifies, assesses, and manages climate-related risks.
3. a) Describe the
organization’s
processes for identifying
and assessing climate-
related risks.
CDP – 2.1, 2.2.1, 2.2.2, 2.4
URD – Chapter 2 (2.1,
2.2.2.1)
Environment and climate-related risks are included in Schneider’s Enterprise Risk
Management framework and risk taxonomy (more details in section 2.2.2.1.2 on
page 126). In addition to the risk identification processes described above, risks are
identified and assessed at Group level through interviews with experts and leaders,
run by the Internal Audit Department and the Group Risk Management Department
each year. In addition, a double materiality analysis was conducted by the
Sustainability Department by engaging with various stakeholders to identify and
prioritize material environmental, social, and governance (ESG) from a financial
perspective (outside-in) and an impact perspective (inside-out).
3. b) Describe the
organization’s processes
for managing climate-
related risks.
CDP – 2.2, 2.2.1, 2.2.2
URD – Chapter 2 (2.1,
2.2.2.1), Chapter 3 (3.3)
3. c) Describe how
processes for identifying,
assessing, and managing
climate-related risks are
integrated into the
organization’s overall risk
management.
CDP – 2.1, 2.2, 2.2.2
URD – Chapter 2 (2.1,
2.2.2.1)
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2.4 Methodology, external assurance and indicators
Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
3. a), 3. b) and 3. c)
(continued)
Schneider Electric places dependency analysis at the heart of its risk management
and has performed a forward-looking climate risk and vulnerability assessment with
an independent third party to identify and price the materiality of physical and
transition climate risks that may affect its own operations and sites, its extended
value chain (upstream and downstream), and overall economic activities in the short,
medium, and long term, using scenario analysis. This assessment covers acute and
chronic climate physical risks, legal and regulatory risks and opportunities linked to
current and emerging climate regulations, as well as market, technology, and
reputational risks and opportunities linked to changes in customer behaviors. The
Group has developed a scenario-based analysis of climate physical and transition
risks, applying climate-related risk scenarios entailing different emission pathways
between 1.5°C and >4°C temperature rise by 2100, with a digital-twin of the
Company including financial projection, market breakdown, supply chain, and
carbon footprint to quantify financially the physical and transition risks for the Group.
Climate adaptation risks are also studied and mitigated at site level for the Group’s
industrial and key logistic sites. The Property Damage and Business Interruption
program, aligned with ISO 22301 standard, maps substantive risks of financial
impact on the business, including asset destruction (buildings, equipment,
inventories) and profit loss due to business interruption, and ensures crisis
management from the initial phase following an incident all the way to the recovery of
critical activities. Typically, all critical industrial sites are externally audited on-site at
least every two years. Schneider Electric then deploys protection measures to
mitigate or avoid risks identified. The cost of response is based on surveyors’ opinion
on the cost of the work required to mitigate and adapt to the event.
For its supply chain operations, the Group also works with a third-party company
providing predictive risk analytics for its supply chain operations. Risks are assessed
on a continuous basis covering sustainability, quality, and financial risks, among
others.
The different governance bodies involved in the definition and monitoring of
Schneider Electric’s sustainability roadmap and programs (SSI), and in particular the
Carbon committee, are in charge of defining strategic mitigation programs in
response to the risks and opportunities identified. Strategic programs defined at
Group level are then cascaded into business divisions down to the sites for
implementation and are monitored through the digital platform EcoStruxure™
Resource Advisor. Performance against those programs is tracked and published
quarterly in the Schneider Sustainability Impact (SSI), and annually in the Schneider
Sustainability Essentials (SSE) and Universal Registration Document. Each program
of the SSI has a dedicated pilot in charge of driving the transformation and is
sponsored at the Senior Vice President and Executive Committee level to ensure
management control and oversight.
In addition, an Integrated Management System covers the Group’s main plants,
distribution centers, and large offices, and hosts ISO 14001, ISO 50001, ISO 9001,
and OHSAS 18000/ISO 45001 management systems. Each site is audited
periodically, either externally by Bureau Veritas (every three years), or internally.
With suppliers, sustainability risks (including natural and climate-related hazards),
are embedded into the Supplier Risk Assessment. This process enables the Group
to develop a risk mitigation approach with strategic stocks in the short-term and a
double sourcing strategy in the medium-term. Leveraging external data providers,
the Group monitors events across 10,000 logistics nodes (such as ports and critical
supplier locations) to shorten reaction time when events occur and minimize business
impact.
Read more on Schneider Electric’s climate-related risk management in section
2.2.2.1.2 on page 126.
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Recommended
Disclosure
CDP Corporate
and URD 2024 references
Brief description (please refer to CDP Corporate response and other sections of this
Universal Registration Document for further details)
4. Metrics and Targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and
opportunities where such information is material.
4. a) Disclose the metrics
used by the organization
to assess climate-related
risks and opportunities in
line with its strategy and
risk management process.
CDP – 7.52, 7.54, 7.54.1,
7.54.2
URD – Chapter 2 (2.1,
2.2.2.1, 2.4)
Each year, Schneider Electric measures and transparently discloses its end-to-end
carbon footprint (Scope 1, 2, and 3) and obtained in 2024 a “reasonable” assurance
from an independent third-party verifier on Scope 1 and 2 emissions, and a “limited”
assurance on Scope 3. The carbon footprint of the Group helps to pinpoint and
understand the magnitude of climate-related risks and opportunities, and is also
used to monitor progress. Scope 3 emissions represent more than 99% of the
Group’s carbon footprint, of which 85% are due to the use phase and the products’
end of life, and around 12% comes from the purchase of raw materials, equipment,
and services. While the carbon footprint of the Group is made only from induced
emissions, the saved and avoided emissions due to its products and services are
shown separately, as part of the SSI #2 reporting. Key metrics over the last four years
(from publication year) on GHG emissions are published in section 2.2.2.1.5 on
page 147 of this Universal Registration Document.
Emissions calculations are done using the Greenhouse Gas Protocol methodology.
The carbon footprint methodology is compliant with ISO 14069 principles. The results
are calculated in tonnes of CO2 equivalent, taking into account all GHGs included in
the Kyoto Protocol.
The Group has launched several concrete programs aiming at either directly or
indirectly reducing GHG emissions, under the Climate and Resources pillars of its
2025 strategy. These programs are presented under the SSI and SSE 2021 – 2025
programs on pages 71 to 79. These programs cover the performance of the Group’s
operations (such as energy efficiency, renewable electricity procurement, fleet
electrification), suppliers (such as The Zero Carbon Project, green materials or
sustainable packaging) and customers (SF6-free alternative offers, CO2 savings and
avoidance quantification on customers’ end thanks to EcoStruxure™).
The overall performance of the SSI represents 20% of the short-term incentives for
more than 71,000 employees worldwide (collective share). The Schneider
Sustainability External and Relative Index (SSERI), which measures Schneider’s
performance in four major ESG external ratings: CDP Climate Change, Moody’s
(ex-Vigeo Eiris), DJSI and EcoVadis. The SSERI impacts 25% of the long-term
incentives (LTI) for 3,000+ top leaders.
In addition, Schneider is committed to embed a carbon pricing of EUR 0-647 per
metric tonne (depending on time horizons) in strategic supply chain and R&D
decisions, to assess the performance and resiliency of operations as well as to
assess whether the investment and reduction efforts are in line with the cost of CO2
externalities.
Schneider Electric is a signatory of the Business Ambition for 1.5°C initiative aimed at
setting GHG emissions reduction targets in line with the global effort to limit warming
to 1.5°C.
In August 2022, Schneider Electric was one of the first companies to see its GHG
reduction targets validated by the SBTi, in alignment with its “Corporate Net-Zero
Standard” published in October 2021. As part of its Net-Zero commitment, the Group
has defined mid and long-term targets. Ultimately, the Group is committed to be
Net-Zero across its entire value chain by 2050, which means that the Group aims to
reduce its 2021 footprint by an absolute 90% by 2050 and neutralize residual
emissions with high-quality and durable carbon removal credits.
The Group aims to:
• By 2030, reduce value chain emissions by 25% and be “Net-Zero ready” in
operations.
• By 2050, reach Net-Zero CO2 emissions across the entire value chain.
• Reach carbon-neutral operations and a carbon-neutral value chain in 2025 and
2040 respectively.
4. b) Disclose Scope 1,
Scope 2, and if
appropriate, Scope 3
greenhouse gas (GHG)
emissions, and the
related risks.
CDP – 7.3, 7.6, 7.7, 7.8
URD – Chapter 2 (2.2.2.1,
2.4)
4. c) Describe the
targets used by the
organization to manage
climate-related risks
and opportunities
and performance
against targets.
CDP – 7.53, 7.53.1, 7.53.2,
7.54, 7.54.1, 7.54.2
URD – Chapter 2 (2.1,
2.2.2.1, 2.3.2, 2.4)
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.3 Reports of assurance
2.4.3.1 Report on the certification of sustainability information and verification of the
disclosure requirements under Article 8 of Regulation (EU) 2020/852
This is a translation into English of the statutory auditors’ report on the certification of sustainability information and verification of the
disclosure requirements under Article 8 of Regulation (EU) 2020/852 of the Company issued in French and it is provided solely for the
convenience of English-speaking users.
This report should be read in conjunction with, and construed in accordance with, French law and the H2A guidelines on “Limited
assurance engagement on the certification of sustainability information and verification of disclosures requirements under Article 8
of Regulation (EU) 2020/852”.
Year ended December 31, 2024
To the Shareholders
SCHNEIDER ELECTRIC SE
35 rue Joseph Monier
92500 Rueil Malmaison
This report is issued in our capacity as statutory auditors of Schneider Electric SE. It covers the sustainability information and the information
required by Article 8 of Regulation (EU) 2020/852, relating to the year ended December 31, 2024 and included in the group management
report and presented in section 2.2 “Sustainability statements (CSRD)” (hereinafter the “CSRD Report”).
Pursuant to Article L. 233-28-4 of the French Commercial Code, Schneider Electric SE is required to include the above-mentioned
information in a separate section of the group management report. This information has been prepared in the context of the first-time
application of the aforementioned articles, a context characterized by uncertainties regarding the interpretation of the laws and regulations,
the use of significant estimates, the absence of established practices and frameworks in particular for the double-materiality assessment,
and an evolving internal control system. It enables an understanding of the impact of the activity of the group on sustainability matters, as
well as the way in which these matters influence the development of the business of the group, its performance and position. Sustainability
matters include environmental, social and corporate governance matters.
Pursuant to Article L.821-54 paragraph II of the aforementioned Code our responsibility is to carry out the procedures necessary to issue
a conclusion, expressing limited assurance, on:
• compliance with the sustainability reporting standards adopted pursuant to Article 29 ter of Directive (EU) 2013/34 of the European
Parliament and of the Council of 14 December 2022 (hereinafter ESRS for European Sustainability Reporting Standards) of the process
implemented by Schneider Electric SE to determine the information reported, and compliance with the requirement to consult the social
and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French Labour Code;
• compliance of the sustainability information included in the CSRD Report with the requirements of article L. 233-28-4 of the French
Commercial Code, including the ESRS; and
• compliance with the reporting requirements set out in Article 8 of Regulation (EU) 2020/852.
This engagement is carried out in compliance with the ethical rules, including independence, and quality control rules prescribed by the
French Commercial Code.
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It is also governed by the H2A guidelines on “Limited assurance engagement – Certification of sustainability reporting and verification of
disclosure requirements set out in Article 8 of Regulation (EU) 2020/852”.
In the three separate sections of the report that follow, we present, for each of the sections of our engagement, the nature of the procedures
that we carried out, the conclusions that we drew from these procedures and, in support of these conclusions, the elements that to which
we paid particular attention and the procedures that we carried out with regard to these elements. We draw your attention to the fact that
we do not express a conclusion on any of these elements taken individually and that the procedures described should be considered in
the overall context of the formation of the conclusions issued in respect of each of the three sections of our engagement.
Finally, where deemed necessary to draw your attention to one or more disclosures of sustainability information provided by Schneider
Electric SE in the group management report, we have included an emphasis of matter paragraph hereafter.
Limits of our engagement
As the purpose of our engagement is to provide limited assurance, the nature (choice of techniques), extent (scope) and timing of the
procedures are less than those required to obtain reasonable assurance.
Furthermore, this engagement does not provide guarantee regarding the viability or the quality of the management of Schneider Electric SE,
in particular it does not provide an assessment, of the relevance of the choices made by Schneider Electric SE in terms of action plans,
targets, policies, scenario analyses and transition plans, which would go beyond compliance with the ESRS reporting requirements.
It does, however, allow us to express conclusions regarding the entity’s process for determining the sustainability information to be reported,
the sustainability information itself, and the information reported pursuant to Article 8 of Regulation (EU) 2020/852, as to the absence of
identification or, on the contrary, the identification of errors, omissions or inconsistencies of such importance that they would be likely to
influence the decisions that readers of the information subject to this engagement might make.
Our engagement does not cover any comparative information, nor does it cover the compliance by the entity with the legal and regulatory
provisions relating to the vigilance plan published pursuant to article L. 225-102-1 of the French Commercial Code.
Compliance with the ESRS of the process implemented by Schneider Electric SE to determine the information reported,
and compliance with the requirement to consult the social and economic committee provided for in the sixth paragraph of
Article L. 2312-17 of the Labour Code
Nature of procedures carried out
Our procedures consisted in verifying that:
• the process defined and implemented by Schneider Electric SE has enabled, in accordance with the ESRS, to identify and assess its
impacts, risks and opportunities related to sustainability matters, and to identify the material impacts, risks and opportunities, that are
disclosed in the CSRD Report, and
• the information provided on this process also complies with the ESRS.
We also checked the compliance with the requirement to consult the social and economic committee.
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Conclusion of the procedures carried out
On the basis of the procedures we have carried out, we have not identified any material errors, omissions or inconsistencies regarding
the compliance of the process implemented by Schneider Electric SE with the ESRS.
Concerning the consultation of the social and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French
Labour Code, we inform you that as of the date of this report, this consultation has not yet taken place.
Elements that received particular attention
We set out below the elements that have been the subject of particular attention in relation to our assessment of compliance with the ESRS
of the process implemented by Schneider Electric SE to determine the information reported.
Information relating to the identification of stakeholders, risks and opportunities, as well as the assessment of the impact materiality and
financial materiality is set out in section 2.2.1.2 “Main sustainability impacts, risks and opportunities” of the CSRD Report.
• Concerning the identification of stakeholders
We reviewed the analysis conducted by the entity to identify stakeholders, who can affect or be affected by the entities within the scope of
the information, through their activities and direct or indirect business relationships across the value chain.
We interviewed management and examined the available documentation. Our work consisted primarily in assessing the relevance of the
main stakeholders identified by the entity in view of the nature of its activities and its geographical location, taking into account its business
relationships and value chain.
• Concerning the identification of impacts, risks and opportunities
We gained an understanding of the process implemented by the entity to assess actual or potential impacts – both negative and
positive – risks and opportunities (IROs), in relation to the sustainability matters mentioned in paragraph AR 16 of ESRS 1,
“Application requirements”.
In particular, we assessed the approach taken by the entity to determine its impacts and dependencies, which may be a source of risks
or opportunities, including the dialogue engaged, where appropriate, with stakeholders.
We familiarised ourselves with the entity’s mapping of identified IROs, including a description of their distribution within the entity’s own
operations and value chain, as well as their time horizon (short, medium or long term), and assessed the consistency of this mapping with
our knowledge of the entity and, where applicable, with the risk analyses conducted by Group entities.
• We carried out the following procedures:
−assessed how the entity has taken into account the list of sustainability matters set out in ESRS 1 (AR 16) in its analysis;
−assessed the consistency of the actual and potential impacts, risks and opportunities identified by the entity with our knowledge
of the entity;
−assessed whether the entity has taken into account the risks and opportunities that may arise from both past and future events as
a result of its own activities or business relationships, including the actions taken to manage certain impacts or risks.
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• Concerning the assessment of impact materiality and financial materiality
Through interviews with management and the examination of available documentation, we obtained an understanding of the process
implemented by the entity to assess impact materiality and financial materiality and assessed its compliance with the criteria defined
in ESRS 1.
In particular, we assessed the way in which the entity established and applied the materiality criteria defined in ESRS 1, including those
relating to the setting of thresholds, in order to determine the metrics relating to material IROs identified in accordance with the relevant
ESRS standards.
Compliance of the sustainability information included in section 2.2 – CSRD Report of the group management report with the
requirements of Article L.233-28-4 of the French Commercial Code, including the ESRS
Nature of procedures carried out
Our procedures consisted in verifying that, in accordance with legal and regulatory requirements, including the ESRS:
• the disclosures provided enable an understanding of the general basis for the preparation and governance of the sustainability
information included in the CSRD Report, including the basis for determining the information relating to the value chain and the
exemptions from disclosures used;
• the presentation of this information ensures its readability and understandability;
• the scope chosen by Schneider Electric SE for providing this information is appropriate; and
• On the basis of a selection, based on our analysis of the risks of non-compliance of the information provided and the expectations
of users, that this information does not contain any material errors, omissions or inconsistencies, i.e. that are likely to influence the
judgement or decisions of users of this information.
Conclusion of the procedures carried out
Based on the procedures we have carried out, we have not identified material errors, omissions or inconsistencies regarding the
compliance of the sustainability information included in the CSRD Report, with the requirements of Article L.233-28-4 of the French
Commercial Code, including the ESRS.
Emphasis of matter
Without qualifying the conclusion expressed above, we draw your attention to the information provided in section 2.2.1.3 “Basis for
preparation” in the CSRD Report, which notably describes the challenges on data collection faced by the Group regarding specifically
Scope 3 GHG information, substances of concern and very high concern and scope matters.
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2.4 Methodology, external assurance and indicators
Elements that received particular attention
We set out below the elements that have been the subject of particular attention in relation to our assessment of compliance of the
sustainability information included in section 2.2.2.1 Leading on Decarbonization (ESRS E1)” of the CSRD Report with the requirements
of Article L.233-28-4 of the French Commercial Code, including the ESRS.
• Information provided in application of environmental standards (ESRS E1 to E5)
Our work consisted primarily in:
• based on the interviews conducted with management, assessing whether the description of the policies, actions and targets
implemented by the entity address the following areas: climate change mitigation, climate change adaptation and energy efficiency;
• assessing the appropriateness of the disclosures provided in the notes to the environmental section of the sustainability information
included in the CSRD Report and its overall consistency with our knowledge of the entity.
• With regard to the information published on the greenhouse gas emissions assessment:
−we familiarised ourselves with the greenhouse gas emissions inventory protocol used by the entity to draw up its greenhouse gas
emissions assessment, and checked its application, for a selection of emissions categories and sites, for Scope 1 and Scope 2;
−with regard to Scope 3 emissions, we assessed the justification for the inclusion and exclusion of the various categories and the
transparency of the disclosures provided in this respect;
−we assessed the appropriateness of the emission factors used and the calculation of the related conversions, as well as the
calculation and extrapolation assumptions, taking into account the uncertainty inherent in the state of scientific or economic
knowledge and the quality of the external data;
−for physical data (such as energy consumption), we reconciled, using sampling techniques, the underlying data used to draw up the
greenhouse gas emissions assessment with supporting documents;
−with regard to the estimates that we considered to be critical, used by the entity to prepare its greenhouse gas emissions
assessment, we obtained, through interviews with management, an understanding of the method used to calculate the estimated
data and the information sources on which the estimates were based.
−With regard to our procedures regarding the transition plan for climate change mitigation, our work mainly consisted of assessing
whether the information published in the transition plan meets ESRS E1 requirements with an appropriate description of the plan’s
underlying key assumptions, it being understood that we are not required to express a conclusion on the appropriateness or the level
of ambition of the transition plan’s objectives.
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Compliance with the reporting requirements set out in Article 8 of Regulation (EU) 2020/852
Nature of procedures carried out
Our procedures consisted in verifying the process implemented by Schneider Electric SE to determine the eligible and aligned nature of
the activities of the entities included in the consolidation.
They also involved verifying the information reported pursuant to Article 8 of Regulation (EU) 2020/852, which involves checking:
• the compliance with the rules applicable to the presentation of this information to ensure that it is readable and understandable;
• on the basis of a selection, the absence of material errors, omissions or inconsistencies in the information provided, i.e. information
likely to influence the judgement or decisions of users of this information.
Conclusion of the procedures carried out
Based on the procedures we have carried out, we have not identified any material errors, omissions or inconsistencies relating to
compliance with the requirements of Article 8 of Regulation (EU) 2020/852.
Elements that received particular attention
We set out below the elements that have been the subject of particular attention on our part as regards the compliance of this information
with the requirements of EU Taxonomy Regulation.
• Concerning the alignment of eligible activities
Information on the alignment of activities is set out in section 2.2.2.1.9 “Contribution to a more sustainable world” of the CSRD Report.
Our work consisted primarily in:
• based on the interviews conducted with management, understanding the process deployed by the Group in order to answer the
eligibility and alignment identification and the compliance with the EU Taxonomy Regulation;
• assessing, on a sample basis, the elements on which management based its judgement when assessing whether eligible economic
activities met the cumulative conditions, derived from the Taxonomy Regulation, needed to qualify as aligned and particularly that they
“do not significant harm” to any of the other environmental objectives;
• assessing the analysis conducted regarding compliance with the minimum safeguards, primarily in light of the information gathered
when obtaining an understanding of the entity and its environment;
• assessing the consistency of the information disclosed in the CSRD Report by reperforming calculation.
The statutory auditors,
Forvis Mazars SA
Paris La Défense, March 12, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine, March 12, 2025
Juliette Decoux Guillemot
Partner
Mathieu Mougard
Partner
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.3.2 Independent practitioner’s limited assurance report on certain Schneider Electric
SE’s corporate social responsibility (CSR) data
This is a translation into English of the statutory auditors’ report on
the consolidated financial statements of the Company issued in
French and it is provided solely for the convenience of English
speaking users. This statutory auditors’ report includes information
required by European regulation and French law, such as
information about the appointment of the statutory auditors or
verification of the information concerning the Group presented in the
management report and other documents provided to shareholders.
This report should be read in conjunction with, and construed in
accordance with, French law and professional auditing standards
applicable in France.
To the directors of SCHNEIDER ELECTRIC SE,
SCHNEIDER ELECTRIC SE
35 rue Joseph Monier
92500 Rueil Malmaison
Limited assurance conclusion
We have conducted a limited assurance engagement on certain
corporate social responsibility (CSR) data of Schneider Electric SE
(the “Company”) presented below and included in the “2.1.1.2
Long-term commitments and tools to measure progress” and
“2.4.4 Indicators” sections of the Universal Registration Document
of Schneider Electric SE (the “URD 2024”) (the “Sustainability
Information”), as at 31 December 2024:
• KPI n°1: SSI #1 – Grow Schneider Impact revenues for a value
of 74%;
• KPI n°2: SSI #2 – Help our customers save and avoid millions of
tons of CO2 emissions for a value of 679 million TCO2e;
• KPI n°3: SSI #3 – Reduce CO2 emissions from top 1,000
suppliers’ operations for a value of 40%;
• KPI n°4: SSI #4 – Increase green material content in our
products for a value of 38%;
• KPI n°5: SSI #5 – Primary and secondary packaging free from
single-use plastic, using recycled cardboard for a value of 78%;
• KPI n°6: SSI #6 – Strategic suppliers who provide decent work
to their employees for a value of 63%;
• KPI n°7: SSI #7 – Level of confidence of our employees to report
unethical conduct for a value of 83%;
• KPI n°8: SSI #8 – Increase gender diversity in hiring (50%),
front-line management (40%) and leadership teams (30%) or
a respective value of 42%, 30% and 31%;
• KPI n°9: SSI #9 – Provide access to green electricity to 50M
people for a value of 53.4 million people;
• KPI n°10: SSI #10 – Double hiring opportunities for interns,
apprentices and fresh graduates for a value of x1.59;
• KPI n°11: SSI #11 – Train people in energy management for a
value of 824,404 people;
• KPI n°12: SSE #1 – Decarbonize our operations with Zero-CO2
sites for a value of 154 sites;
• KPI n°13: SSE #2 – Substitute relevant offers with SF6-Free
medium voltage technologies for a value of 69%;
• KPI n°14: SSE #3 – Source electricity from renewables for a
value of 96%;
• KPI n°15: SSE #4 – Improve CO2 efficiency in transportation for
a value of -0.4%;
• KPI n°16: SSE #5 – Improve energy efficiency in our sites for a
value of 16%;
• KPI n°17: SSE #6 – Grow our product revenues covered with
Green Premium™ for a value of 82%;
• KPI n°18: SSE #7 – Switch our corporate vehicle fleet to electric
vehicles for a value of 31%;
• KPI n°19: SSE #8 – Deploy local biodiversity conservation and
restoration programs in our sites for a value of 85%;
• KPI n°20: SSE #9 – Give a second life to waste in ‘Waste-to-
Resource’ sites for a value of 135 sites;
• KPI n°21: SSE #10 – Avoid primary resource consumption
through ‘take-back at end-of-use’ since 2017 for a value of
359,080 tons;
• KPI n°22: SSE #11 – Deploy a water conservation strategy and
action plan for sites in water-stressed areas for a value of 90%;
• KPI n°23: SSE #13 – Train our employees on Cybersecurity and
Ethics every year for a value of 99%;
• KPI n°24: SSE #14 – Decrease the Medical Incident rate to 0.38
or below for a value of 0.6;
• KPI n°25: SSE #15 – Reduce total number of safety recalls
issued to 0 for a value of 5 recalls;
• KPI n°26: SSE #16 – Be in the top 25% in external ratings for
Cybersecurity performance for a value of Top 25%;
• KPI n°27: SSE #17 – Assess our suppliers under our ‘Vigilance
Program’ for a value of 4,052 suppliers;
• KPI n°28: SSE #18 – Reduce pay gap for both females and
males for a respective value of -0.84% and 0.66%;
• KPI n°29: SSE #19 – Increase subscription in our yearly
Worldwide Employee Share Ownership Plan (WESOP) for
a value of 62%;
• KPI n°30: SSE #20 – Pay our employees at least a living wage
for a value of 100%;
• KPI n°31: SSE #21 – Multiply the number of employee-driven
development interactions on the Open Talent Market for a
value of x2.3;
• KPI n°32: SSE #22 – Support the digital upskilling of our
employees for a value of 80%;
• KPI n°33: SSE #23 – Provide access to meaningful career
development programs for employees during later stage of
their career for a value of 85%;
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I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
• KPI n°34: SSE #24 – Increase our employee engagement level
for a value of 73%;
• KPI n°35: SSE #25 – Increase the number of volunteering days
since 2017 for a value of 75,461 days;
• KPI n°36: Spot workforce at year-end excluding supplementary
employees (including by gender), hires and departures for a
respective value of 147,127 people (of which 35% women),
27,250 people and 18,341 people;
• KPI n°37: Number of training hours for a value of
3,246,478 hours;
• KPI n°38: Number of hours worked for a value of
328,372,715 hours;
• KPI n°39: Lost-Time Injury Rate (LTIR) for a value of 0.28;
• KPI n°40: Lost-Time Day Rate (LTDR) for a value of 9.13;
• KPI n°41: Occupational Illness Frequency Rate (OIFR) for a
value of 0.009;
• KPI n°42: Waste generated for a value of 135,510 tons of which
(1) non-hazardous waste reused or recycled for a value of
115,541 tons, (2) non-hazardous waste incinerated with energy
recovery for a value of 7,060 tons, (3) non-hazardous waste
landfilled or incinerated without energy recovery for a value of
3,665 tons, and (4) hazardous waste channeled according to
Schneider Electric expectations for a value of 9,244 tons;
• KPI n°43: Water withdrawals by source for a value of
1,843,662 m3 of which (1) surface water for a value of 18,797 m3,
(2) groundwater for a value of 452,489 m3, (3) third party
sources for a value of 1,342,149 m3, et (4) other sources for
a value of 30,227 m3;
• KPI n°44: Measured energy consumption by source for a value
of 883,140 MWh of which (1) grid electricity for a value of
27,058 MWh, (2) purchased renewable electricity for a value of
625,289 MWh, (3) self-generated renewable electricity for a
value of 24,907 MWh, (4) district heating for a value of
14,615 MWh, (5) petroleum products for a value of 10,490 MWh,
(6) natural gas for a value of 180,235 MWh, (7) coal for a value of
0 MWh, and (8) renewable fuel and heat for a value of 547 MWh;
• KPI n°45: SF6 emissions and leakage for a value of 4,951 TCO2e;
• KPI n°46: Complete greenhouse gas footprint according to GHG
Protocol (scope 1, scope 2 market-based, scope 2 location-
based, all scope 3 categories) for a respective value of
106,360 TCO2e, 37,348 TCO2e, 433,505 TCO2e and
55,649,186 TCO2e;
• KPI n°47: VOC emissions for a value of 294,801 kg.
Based on the procedures we have performed and the evidence we
have obtained, nothing has come to our attention that causes us to
believe that the Sustainability Information is not prepared, in all
material respects, in accordance with the reporting framework
(KPI n° 1 to 5, 12 to 22 and 42 to 47: « GED 001 Energy and
Environment, version updated in April 2024 », KPI n° 24 and 38
to 41: « GHSD017 Global Occupational Health Safety KPI Metric
Reporting, version updated in January 2025 » and KPI n° 6 to 11,
23 and 25 to 37: « HR Data Reporting Protocol, version updated in
September 2022 »), available at the Company’s headquarter on
request and applied as explained in “2.4.1 Methodology elements
on the published indicators” section of the URD 2024.
Basis for conclusion
We conducted our limited assurance engagement in
accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised), Assurance engagements
other than audits or reviews of historical financial information
(“ISAE 3000 (Revised)”), issued by the International Auditing
and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our conclusion.
Our responsibilities under this standard are further described
in the Practitioner’s responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical
requirements of the French Code of Ethics for Statutory Auditors
(Code de Déontologie) as well as the provisions set forth in article
L.821-28 of the French Commercial Code (Code de Commerce)
and the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the
International Ethics Standard Board for Accountants (IESBA Code),
which is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behaviour.
The firm applies International Standard on Quality Management 1,
which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Emphasis of matter
We draw attention to the paragraph “SSE #10: 420,000 metric
tonnes of avoided primary resource consumption through
‘take-back at end-of-use’ since 2017” of the section
“2.4.1.2 Indicators from the Schneider Sustainability Essentials”
of the URD 2024 which describes the context and uncertainties
related to the estimates made by Schneider Electric SE for
determining this quantitative indicator. Our conclusion is not
modified in respect of this matter.
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
Responsibilities for the Sustainability Information
Management of the Company is responsible for:
• The preparation of the Sustainability Information in accordance
with the reporting framework (KPI n° 1 to 5, 12 to 22 and 42 to
47: « GED 001 Energy and Environment, version updated in
April 2024 », KPI n° 24 and 38 to 41: « GHSD017 Global
Occupational Health Safety KPI Metric Reporting, version
updated in January 2025 » and KPI n° 6 to 11, 23 and 25 to 37:
« HR Data Reporting Protocol, version updated in September
2022 »), applied as explained in “2.4.1 Methodology elements
on the published indicators” section of the URD 2024
(the “Criteria”);
• Designing, implementing and maintaining such internal control
as management determines is necessary to enable the
preparation of the Sustainability Information, in accordance
with the Criteria, that is free from material misstatement, whether
due to fraud or error; and
• The selection and application of appropriate sustainability
reporting methods and making assumptions and estimates
that are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the
Company’s sustainability reporting process.
Inherent limitations in preparing the Sustainability Information
The absence of a significant body of established practice upon
which to draw to evaluate and measure non-financial information
allows for different, but acceptable, evaluation and measurement
techniques that can affect comparability between entities, and
over time.
Moreover, some information is sensitive to the choice of
methodology and the assumptions and/or estimates used
for its preparation.
In addition, greenhouse gas quantification is subject to inherent
uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine
emissions of different gases.
Practitioner’s responsibilities
Our responsibility is to plan and perform the assurance engagement
to obtain limited assurance about whether the Sustainability
Information is free from material misstatement, whether due to fraud
or error, and to issue a limited assurance report that includes our
conclusion. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence decisions of users taken on
the basis of the Sustainability Information.
As part of a limited assurance engagement in accordance with
ISAE 3000 (Revised) we exercise professional judgement and
maintain professional scepticism throughout the engagement.
We also:
• Determine the suitability in the circumstances of the Company’s
use of the Criteria as the basis for the preparation of the
Sustainability Information.
• Perform risk assessment procedures, including obtaining an
understanding of internal control relevant to the engagement,
to identify where material misstatements are likely to arise,
whether due to fraud or error, but not for the purpose of
providing a conclusion on the effectiveness of the Company’s
internal control.
• Design and perform procedures responsive to where material
misstatements are likely to arise in the Sustainability Information.
The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
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I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Summary of the work performed
A limited assurance engagement involves performing procedures
to obtain evidence about the Sustainability Information. The
procedures in a limited assurance engagement vary in nature and
timing from, and are less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in
a limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable
assurance engagement been performed.
The nature, timing and extent of procedures selected depend
on professional judgement, including the identification of where
material misstatements are likely to arise in the Sustainability
Information, whether due to fraud or error.
In conducting our limited assurance engagement, we:
• Understood the Sustainability Information included in the
URD 2024;
• Understood the Company’s activities and organization;
• Understood:
−the process of communicating the Criteria within the group
and sites, the reporting procedures, and any additional
instructions communicated by the Company to the group
entities within the consolidation scope used for the
production of the Sustainability Information, as well as the
related control environment implemented;
−the process for collecting and compiling the Sustainability
Information, the Company’s control environment and the
information systems relevant to the preparation of the
Sustainability Information;
• Assessed whether the methods and assumptions used by
the Company for determining the Sustainability Information
are appropriate with regard to the Criteria and, where
applicable, assessed the relevance of changes in methods
and assumptions;
• Assessed the data collection and compilation process
regarding completeness and consistency of the information
collected and implemented procedures to verify the correct
consolidation of this data;
• Performed test of details, on a sample basis and using other
selection methods, to verify the correct application of the
calculation methods and assumptions applied and reconciled
the underlying data with supporting documents;
• Performed analytical procedures, where applicable;
• Assessed the overall consistency of the Sustainability
Information in relation to our knowledge of the Company.
Neuilly-sur-Seine, March 18, 2025
One of the Statutory auditors
PricewaterhouseCoopers Audit
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.3.3 Independent practitioner’s reasonable assurance report on certain
Schneider Electric SE’s corporate social responsibility (CSR) data
This is a translation into English of the statutory auditors’ report on
the consolidated financial statements of the Company issued in
French and it is provided solely for the convenience of English
speaking users. This statutory auditors’ report includes information
required by European regulation and French law, such as
information about the appointment of the statutory auditors or
verification of the information concerning the Group presented in the
management report and other documents provided to shareholders.
This report should be read in conjunction with, and construed in
accordance with, French law and professional auditing standards
applicable in France.
To the directors of SCHNEIDER ELECTRIC SE,
SCHNEIDER ELECTRIC SE
35 rue Joseph Monier
92500 Rueil Malmaison
Reasonable assurance opinion
We have conducted a reasonable assurance engagement on
certain corporate social responsibility (CSR) data of Schneider
Electric SE (the “Company”) presented below and included in the
“2.1.1.2 Long-term commitments and tools to measure progress”
and “2.4.4 Indicators” sections of the Universal Registration
Document of Schneider Electric SE (the “URD 2024”) (the
“Sustainability Information”) as at 31 December 2024:
• KPI n°1: SSE #14 – Decrease the Medical Incident rate to 0.38
or below for a value of 0.6;
• KPI n°2: Number of hours worked for a value of
328,372,715 hours;
• KPI n°3: Lost-Time Injury Rate (LTIR) for a value of 0.28;
• KPI n°4: Lost-Time Day Rate (LTDR) for a value of 9.13;
• KPI n°5: Occupational Illness Frequency Rate (OIFR) for a
value of 0.009;
• KPI n°6: SSI #8 – Increase gender diversity in hiring (50%),
front-line management (40%) and leadership teams (30%) for
a respective value of 42 %, 30 % and 31%;
• KPI n°7: SSE #3 – Source electricity from renewables for a
value of 96%;
• KPI n°8: SSE #5 – Improve energy efficiency in our sites for
a value of 16%;
• KPI n°9: Measured energy consumption by source for a value
of 883,140 MWh of which (1) grid electricity for a value of
27,058 MWh, (2) purchased renewable electricity for a value
of 625,289 MWh, (3) self-generated renewable electricity for
a value of 24,907 MWh, (4) district heating for a value of
14,615 MWh, (5) petroleum products for a value of 10,490 MWh,
(6) natural gas for a value of 180,235 MWh, (7) coal for a value of
0 MWh and (8) renewable fuel and heat for a value of 547 MWh;
• KPI n°10: Estimated Total Scopes 1 and 2 GHG emissions
(market-based) for a value of 143,708 TCO2e.
In our opinion, the Sustainability Information is prepared, in all
material respects, in accordance with the reporting framework (KPI
n°7 to 10: « GED 001 Energy and Environment, version updated in
April 2024 », KPI n°1 to 5: « GHSD017 Global Occupational Health
Safety KPI Metric Reporting, version updated in January 2025 »
and KPI n°6: « HR Data Reporting Protocol, version updated in
September 2022 »), available at the Company’s headquarter on
request and applied as explained in “2.4.1 Methodology elements
on the published indicators” section of the URD 2024.
Basis for opinion
We conducted our reasonable assurance engagement in
accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised), Assurance engagements
other than audits or reviews of historical financial information
(“ISAE 3000 (Revised)”), issued by the International Auditing
and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Our responsibilities
under this standard are further described in the Practitioner’s
responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical
requirements of the French Code of Ethics for Statutory Auditors
(Code de Déontologie) as well as the provisions set forth in article
L.821-28 of the French Commercial Code (Code de Commerce)
and the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the
International Ethics Standard Board for Accountants (IESBA Code),
which is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behaviour.
The firm applies International Standard on Quality Management 1,
which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Responsibilities for the Sustainability Information
Management of the Company is responsible for:
• The preparation of the Sustainability Information in accordance
with the reporting framework (KPI n°7 to 10: « GED 001 Energy
and Environment, version updated in April 2024 », KPI n°1 to 5:
« GHSD017 Global Occupational Health Safety KPI Metric
Reporting, version updated in January 2025 » and KPI n°6: « HR
Data Reporting Protocol, version updated in September 2022 »,
applied as explained in “2.4.1 Methodology elements on the
published indicators” section of the URD 2024 (the “Criteria”);
• Designing, implementing and maintaining such internal control
as management determines is necessary to enable the
preparation of the Sustainability Information, in accordance with
the Criteria, that is free from material misstatement, whether due
to fraud or error; and
• The selection and application of appropriate sustainability
reporting methods and making assumptions and estimates that
are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the
Company’s sustainability reporting process.
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S T R A T E G I C R E P O R T
I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Inherent limitations in preparing the Sustainability Information
The absence of a significant body of established practice upon
which to draw to evaluate and measure non-financial information
allows for different, but acceptable, evaluation and measurement
techniques that can affect comparability between entities, and
over time.
Moreover, some information is sensitive to the choice of
methodology and the assumptions and/or estimates used
for its preparation
In addition, greenhouse gas quantification is subject to inherent
uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine
emissions of different gases.
Practitioner’s responsibilities
Our responsibility is to plan and perform the assurance
engagement to obtain reasonable assurance about whether the
Sustainability Information is free from material misstatement,
whether due to fraud or error, and to issue an assurance report that
includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence decisions of users taken
on the basis of the Sustainability Information.
As part of a reasonable assurance engagement in accordance with
ISAE 3000 (Revised) we exercise professional judgement and
maintain professional scepticism throughout the engagement.
We also:
• Determine the suitability in the circumstances of the Company’s
use of the Criteria as the basis for the preparation of the
Sustainability Information.
• Perform risk assessment procedures, including obtaining an
understanding of internal control relevant to the engagement, to
identify and assess the risks of material misstatement, whether
due to fraud or error, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Design and perform procedures responsive to the assessed risks
of material misstatement of the Sustainability Information. The risk
of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
Neuilly-sur-Seine, March 18, 2025
One of the Statutory auditors
PricewaterhouseCoopers Audit
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.4 Indicators
2.4.4.1 Environmental and climate indicators
2.4.4.1.1 Key performance indicators from the Schneider Sustainability Impact and
Schneider Sustainability Essentials
Schneider
Sustainability
#
Programs for 2021-2025
Baseline(1)
2024 progress(2)
2025
Ambition
Impact
(SSI)
1.
Grow Schneider Impact revenues(3)
2019: 70%
0%
74%
80%
2.
Help our customers save and avoid millions
of tonnes of CO2 emissions
2020: 263M
0
679M
800M
3.
Reduce CO2 emissions from top
1,000 suppliers’ operations
2020: 0%
0%
40%
50%
4.
Increase green material content in our products
2020: 7%
0%
38%
50%
5.
Primary and secondary packaging free from
single-use plastic, using recycled cardboard
2020: 13%
0%
78%
100%
Essentials (SSE)
1.
Decarbonize our operations with Zero-CO2 sites
2020: 30
0
154
150
2.
Substitute relevant offers with SF6-Free medium
voltage technologies
2020: 26%
0%
69%
100%
3.
Source electricity from renewables
2020: 80%
0%
96%
90%
4.
Improve CO2 efficiency in transportation
2020: 0%
0%
-0.4%
15%
5.
Improve energy efficiency in our sites
2019: 0%
0%
16%
15%
6.
Grow our product revenues covered with
Green Premium™
2020: 77%
0%
82%
80%
7.
Switch our corporate vehicle fleet to
electric vehicles
2020: 1%
0%
31%
33%
8.
Deploy local biodiversity conservation
and restoration programs in our sites
2020: 0%
0%
85%
100%
9.
Give a second life to waste in
‘Waste-to-Resource’ sites
2020: 120
0
135
200
10.
Avoid primary resource consumption
through ‘take-back at end-of-use’ since 2017
(metric tons)
2020: 157,588
0
359,080
420,000
11.
Deploy a water conservation strategy and
action plan for sites in water-stressed areas
2020: 0%
0%
90%
100%
These programs
contribute to UN SDGs
(1) The baseline year for each indicator is provided together with its baseline performance.
(2) Each year, an independent third party verifier performs a “limited” assurance engagement on all SSI and SSE indicators (except SSI #+1 and SSE #12 in 2024), in
accordance with (revised) ISAE 3000 assurance standard (see Independent verifier’s report on page 336). In addition, SSI #8, SSE #3, SSE #5 and SSE #14 were
subject to a “reasonable” assurance engagement in 2024 (see Independent verifier’s report on page 340). Please refer to page 311 for the methodological
presentation of each indicator.
(3) Per Schneider Electric definition and methodology.
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C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
The indicators below concern all entities where Schneider Electric has operational control, and integrated in the Group for more than
two years. This scope differs from the CSRD scope presented in the section 2.2.1.3 Basis for preparation on page 124.
Within the Group perimeter, given the complexity to obtain robust and meaningful data, in particular for small leased offices, estimated
coverage indicators are provided for each reporting table. All Group industrial and logistics sites, in addition to certain major tertiary sites
are covered. As per the Group’ s Environmental Policy, all industrial and logistics sites with more than 50 people and tertiary sites with more
than 500 people must be ISO 14001 certified within 2 years after their acquisition or creation. A difference can, therefore, be noted with
respect to the scope of financial consolidation.
2.4.4.1.2 Perimeter and Environmental Management Systems (ISO 14001)
Indicators
Units
2024
2023
2022
2021
ISO 14001 certified sites(1)
#
263
234
243
244
Industrial and logistics sites
#
193
196
204
211
Tertiary sites
#
70
38
39
33
% of sites certified ISO 14001(2)
%
88%
87%
86%
87%
(1) ISO 14001 certification is systematic for all large industrial, logistics and tertiary sites within two years of acquisition. A reduction in the number of ISO 14001 certified
sites usually results from sites closing during the year.
(2) The percentage of sites certified ISO 14001 is calculated based on waste generation from certified sites vs total sites, as the majority of sites – in number – are small
leased offices where certification is not relevant.
2.4.4.1.3 Group site consumption, emissions and waste
Materials
GRI
Indicators
Units
2024
2023
2022
2021
301-2
SSI #4 – Green material content in our
products(1)
%
38%
29%
18%
11%
301-2
SSI #5 – Primary and secondary packaging
free from single-use plastic using recycled
cardboard(2)
%
78%
63%
45%
21%
SSE #6 – Product revenues covered by Green
Premium™
%
82%
81%
80%
78%
301-3,
306-4
SSE #10 – Metric tons of avoided primary
resource consumption through ‘take-back at
end-of-use(3)
metric tons
47,851
50,101
57,052
46,488
SSE #15 – Reduce total number of safety
recalls issued to 0 (4)
# recalls
5
23
24
14
Indicator covered by an assurance report in 2024.
(1) SSI #4 coverage is about 25% of purchased materials volume for our products
(2) SSI #5 coverage is about 87% of total packaging purchases
(3) SSE #10 figures provided in the table are annual results. Cumulative performance since the start of the program in 2017 is 359,080 avoided metric tons.
(4) SSE #15, originally “Reduce scrap from safety units recalled”, has been upgraded in 2022 in line with the Quality ambition of the Group
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
Waste
GRI
Indicators
Units
2024
2023
2022
2021
Estimated coverage (% waste generation)
%
88%
87%
86%
87%
306-3
Total waste generated
metric tons
135,510
124,139
131,402
136,816
Total waste generated/Turnover
metric tons/
million €
3.57
3.46
3.84
4.73
306-3,
306-4,
306-5
Non-hazardous waste generated
metric tons
126,266
116,566
123,311
128,267
of which reused or recycled
metric tons
115,541
105,593
111,567
115,550
of which incinerated with energy recovery
metric tons
7,060
6,871
6,719
6,964
306-5
of which landfilled or incinerated without
energy recovery
metric tons
3,665
4,102
5,025
5,753
Non-hazardous waste reduction(1)
metric tons
27,561
21,098
11,941
13,667
306-2
Share of non-hazardous waste recovered or
reduced(2)
%
97.6%
97.0%
96.3%
95.9%
306-3
Hazardous waste generated
metric tons
9,244
7,573
8,091
8,549
306-5
Hazardous waste channeled according to
Schneider Electric expectations(3)
metric tons
9,244
7,573
8,091
8,549
Hazardous waste generated/Turnover
metric tons/
million €
0.24
0.21
0.24
0.30
Hazardous waste intensity reduction against 2017(4)
%
-42%
-50%
-44%
-30%
SSE #9 – Number of ‘Waste-to-Resource’ sites
#
135
137
127
126
2-27, 306-3 # and aggregate quantity of reportable spills
kg
0
0
0
0
306-3
Quantity of spills recovered
kg
NA
NA
NA
NA
2-27, 306-3 Number of significant fines (> EUR 10,000)
related to environmental or ecological issues
#
0
0
0
0
Indicator covered by an assurance report in 2024. NA = Not applicable
(1) Waste reduction measures specific, targeted projects which reduce/avoid waste. Examples of waste reduction projects include creating a closed-loop system for
pallets between the site and the supplier, or reducing packaging waste from incoming shipments. Normal operational decreases of waste due to reduced activity do
not count as waste reduction.
(2) Non-hazardous waste recovered or reduced is calculated as the ratio between waste reused/recycled, incinerated with energy recovery and reduced, divided by the
total non-hazardous waste generated and waste reduced. The Group’s waste recovery percentage without waste reduction is: 97.1%, 96.5%, 95.9%, 95.5% 96.3%,
and 95.2% for 2024, 2023, 2022, 2021, 2020, and 2019, respectively.
(3) ‘Schneider Electric expectations’ for hazardous waste means: 1) Waste meets/exceeds all local legal requirements for handling/treatment, and either 2a) waste is
neutralized of its hazardous nature, or b) waste is handled/treated using the feasibly best available technique which provides the most environmentally beneficial
impact.
(4) 2017 hazardous waste intensity was 0.42 metric tons per million euros of revenues.
Biodiversity
GRI
Indicators
Units
2024
2023
2022
2021
304-1
Number of sites owned, leased or managed in
or adjacent to protected areas and/or key
biodiversity areas (KBA)(1)
#
260
260
260
260
of which industrial sites or distribution centres
#
107
107
107
107
of which office buildings
#
153
153
153
153
Indicator covered by an assurance report in 2024.
(1) Within 1-kilometre radius, 21% of our sites are in proximity of a protected area as defined by the IUCN and 3% of our sites are in proximity of a key biodiversity area
(defined by IBAT as either “Alliance for Zero Extinction (AZE)” or ”Important Bird and Biodiversity Areas (IBAs)).
Atmospheric pollutions
GRI
Indicators
Units
2024
2023
2022
2021
Estimated coverage (% VOC emissions)
%
90%
90%
90%
90%
305-7
VOC emissions (estimates)
kg
294,801
304,975
308,520
342,228
305-7
VOC/Turnover (estimates)
kg/million €
7.7
8.5
9.0
11.8
Indicator covered by an assurance report in 2024.
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I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Water
GRI
Indicators
Units
2024
2023
2022
2021
Estimated coverage (% water withdrawal)
%
85%
84%
83%
86%
303-3
Total water withdrawals (other than for cooling)
m3
1,843,662
1,899,190
1,921,569
2,072,263
of which surface water
m3
18,797
17,699
14,514
19,156
of which groundwater
m3
452,489
472,199
492,308
513,631
of which third party sources
m3
1,342,149
1,377,377
1,388,474
1,507,606
of which other sources(1)
m3
30,227
31,916
26,273
31,870
303-3
Water withdrawn for cooling and restituted w/o
impact(2)
m3
880,927
813,411
622,951
879,602
303-3
Water withdrawal/Turnover(3)
m3/million €
48.3
52.9
56.2
71.7
Water withdrawal intensity reduction vs 2017(3)
%
-55.3%
-51.0%
-48.0%
-33.6%
303-3
Total water withdrawals from areas with water stress(4)
m3
862,855
874,114
842,216
930,603
303-1
SSE #11 – Sites in water-stressed areas with a water
conservation strategy and related action plan(4)
%
90.0%
73.0%
48.0%
8.5%
Indicator covered by an assurance report in 2024.
Due to the impact of rounding on individual elements within this disclosure table, numbers may not exactly sum to the Group total.
(1) Other water sources include sources such as grey water and rainwater
(2) Water withdrawn for cooling and restituted without impact (i.e. returned back to the source with only a very small temperature change) are measured separate from
total water withdrawals and excluded from performance calculations
(3) Excluding water withdrawn for cooling restituted without impact. The 2017 baseline value is 108.0 m3/million €
(4) Schneider Electric’s ISO 14001 sites are designated as water stress sites based on the World Resources Institute’s Aqueduct Water Risk Atlas. Using Baseline Water
Stress criteria, a site is designated as water stressed if it is located in an area classified as ‘high’ or ‘extremely high’ stress.
Energy
GRI
Indicators
Units
2024
2023
2022
2021
Estimated coverage (% energy consumption)(1)
%
100%
95%
95%
95%
ISO 50001 certified sites
#
126
128
132
140
302-1,
302-4
Estimated total energy consumption
MWh
1,216,956
1,124,327
1,201,276
1,325,491
of which measured energy consumption
MWh
883,140
934,805
979,497
1,080,366
of which estimated energy consumption for
sites out of reporting perimeter(2)
MWh
333,817
189,522
221,779
245,125
302-1,
302-4
Estimated total energy consumption/turnover
MWh/million €
31.9
31.3
35.1
45.9
Estimated total energy productivity
€/MWh
31,351
31,932
28,450
21,803
Estimated total improvement in energy
productivity vs 2005(3)
%
152.7%
157.3%
129.3%
75.7%
Estimated total energy consumption from
renewable sources(4)
MWh
903,166
707,033
688,474
670,287
Estimated total percentage of renewable energy
%
74.2%
62.9%
57.3%
50.6%
Estimated total energy consumption from
non-renewable sources
MWh
313,790
417,294
512,802
655,204
Estimated total percentage of non renewable energy
%
25.8%
37.1%
42.7%
49.4%
Measured energy consumption by source
grid electricity
MWh
27,058
82,590
108,263
132,771
purchased renewable electricity(5)
MWh
625,289
610,614
588,851
612,752
self generated renewable electricity
MWh
24,907
23,194
20,719
15,861
district heating
MWh
14,615
14,736
24,519
33,830
petroleum products
MWh
10,490
12,991
6,520
6,967
natural gas
MWh
180,235
190,088
229,552
276,954
coal
MWh
0
0
0
0
renewable fuel and heat
MWh
547
593
1,073
1,231
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
Energy (continued)
GRI
Indicators
Units
2024
2023
2022
2021
Measured renewable electricity generated on
site and sold back to the grid
MWh
2,216
2,960
2,263
2,558
SSE #3 – Measured electricity sourced from
renewables
%
96%
88%
85%
82%
Estimated energy consumption by source(2)
grid electricity
MWh
46,635
92,379
107,019
148,720
purchased renewable electricity(5)
MWh
243,883
72,632
77,831
40,443
self generated renewable electricity
MWh
6,344
0
0
0
district heating
MWh
1,537
2,490
2,829
5,491
petroleum products
MWh
17,856
1,013
855
797
natural gas
MWh
17,562
21,008
33,245
49,674
coal
MWh
0
0
0
0
renewable fuel and heat
MWh
0
0
0
0
Indicator covered by an assurance report in 2024.
Due to the impact of rounding on individual elements within this disclosure table, numbers may not exactly sum to the Group total.
(1) All Schneider Electric sites and all major non-integrated entities are included in this table starting in 2024, resulting in 100% site coverage. In prior years, major
non-integrated entites were excluded from Group results in this table. Fleet energy data is not included in this table.
(2) Sites out of the reporting perimeter and considered as estimated data in this table include smaller Schneider Electric sites (e.g. commercial offices) and for the first
time in 2024, all non-integrated entities such as Luminous, AVEVA, RIB Software, ETAP, ProLeit, EcoAct, and Lauritz Knudsen and to a limited extent other small
non-integrated entities. For the smaller sites, energy consumption by source is estimated by multiplying site surface (m2) with energy intensity ratios (kWh/m2)
measured in larger sites. For sites located in countries with country-level renewable electricity contracts, 100% of the estimated electricity consumption of the site is
counted as renewable, as such supply contracts cover all sites within a country. 2024 includes 210,735 MWh of Energy Attribute Certificates (EACs) applied to sites in
the estimated energy scope.
(3) 2005 estimated energy productivity is 12,408 € per MWh.
(4) Starting 2024, the estimated total percentage of renewable energy includes purchased renewables, onsite renewable power, fuel and heat, and newly includes
renewable district heat. 2024 renewable district heating was 2,196 MWh
(5) Renewable electricity reported here includes renewable electricity purchased through Power Purchasing Agreements (PPA) or green tariffs, and electricity covered
by Energy Attributes Certificates (EAC). The 2024 EAC account for 32.7% of total measured purchased renewable electricity reported.
Greenhouse gas (GHG)
GRI
Indicators
Units
2024
2023
2022
2021
Estimated coverage (% total GHG emissions) (1)
%
100%
99%
99%
99%
305-1,
305-2
Total Scopes 1 and 2 GHG emissions (market-
based)(2)(3)
TCO2e
143,708
202,232
229,177
293,832
305-5
Absolute reduction vs base year (2021)(3)
%
-51.1%
-31.2%
-22.0%
0.0%
305-4
Total Scopes 1 and 2 per euro turnover
TCO2e/
million €
3.8
5.6
6.7
10.2
305-1
Direct (Scope 1) GHG emissions
TCO2e
106,360
112,792
119,447
140,718
of which petroleum products
TCO2e
2,412
3,116
4,414
4,520
of which natural gas
TCO2e
37,060
38,968
47,271
56,776
of which coal
TCO2e
0
0
0
0
of which vehicle fleet
TCO2e
54,398
61,492
55,598
62,683
of which SF6 emissions(3)
TCO2e
4,951
4,054
4,606
5,886
SF6 leakage rate
%
0.08%
0.08%
0.08%
0.10%
Target SF6 leakage rate
%
0.11%
0.11%
0.11%
0.19%
of which estimated Scope 1 GHG emissions
of sites out of energy reporting perimeter(4)
TCO2e
7,539
5,162
7,557
10,853
305-2
Energy indirect (Scope 2) GHG emissions
(market-based) (2)
TCO2e
37,348
89,440
109,730
153,115
of which grid electricity (market-based)(2)
TCO2e
13,892
39,476
49,674
66,692
of which renewable electricity
(market-based)(5)
TCO2e
0
0
703
701
of which district heating
TCO2e
2,040
4,853
8,358
14,714
of which estimated Scope 2 GHG emissions
of sites out of energy reporting perimeter
(market-based)(2)(4)
TCO2e
21,423
42,961
50,995
71,008
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S T R A T E G I C R E P O R T
I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Greenhouse gas (GHG) (continued)
GRI
Indicators
Units
2024
2023
2022
2021
305-3
Other relevant indirect (Scope 3) GHG
emissions(3)
TCO2e
55,649,186
56,777,964
60,788,549
68,737,485
305-5
Absolute variation vs base year (2021)(3)
%
-19.0%
-17.4%
-11.6%
0.0%
305-4
Total Scope 3 per euro turnover(3)
TCO2e/
million €
1,459
1,581
1,779
2,378
305-3
Other relevant indirect (Scope 3 upstream)
GHG emissions
TCO2e
8,017,665
7,766,994
8,613,192
8,237,192
1. Purchased goods and services
TCO2e
6,562,746
6,829,733
7,572,974
7,278,733
2. Capital goods(6)
TCO2e
161,033
55,361
57,986
62,876
3. Fuel- and energy-related activities (not
included in Scope 1 or Scope 2)(6)
TCO2e
100,126
40,652
43,544
53,167
4. Transportation of goods paid by the Group(7)
TCO2e
816,302
563,643
670,840
616,519
5. Waste generated in operations
TCO2e
38,747
34,927
37,415
42,760
6. Business travel(7)
TCO2e
161,046
60,702
56,501
30,778
7. Employee commuting
TCO2e
177,665
181,977
173,932
152,359
305-3
Other relevant indirect (Scope 3 downstream)
GHG emissions(3)
TCO2e
47,631,521
49,010,970
52,175,356
60,500,294
9. Transportation of goods not paid by the
Group(7)
TCO2e
570,959
481,039
427,872
485,877
11. Use of sold products(3)(8)
TCO2e
42,598,039
44,223,749
47,281,888
55,338,592
12. End-of-life treatment of sold products(3)
TCO2e
4,462,523
4,306,182
4,465,596
4,675,824
SSE #1 – Number of Zero-CO2 sites
#
154
101
77
51
Saved GHG emissions thanks to sold products
and services(9)
TCO2e
67,376,192
52,434,385
51,325,544
49,708,425
Avoided GHG emissions thanks to sold
products and services(9)
TCO2e
58,743,750
60,163,742
41,674,416
33,930,803
SSI #2 – Cumulative CO2 saved and avoided
thanks to sold products and services since
2018(9)
TCO2e
678,678,997
552,559,056
439,960,929
346,960,969
Indicator covered by an assurance report in 2024.
Due to the impact of rounding on individual elements within this disclosure table, numbers may not exactly sum to the Group total.
(1) All Schneider Electric sites and all major non-integrated entities are included in this table starting in 2024, resulting in 100% site coverage. In prior years, major
non-integrated entites were excluded from Group results in this table
(2) Scope 2 emissions are quantified with the market-based methodology and the location-based methodology, following GHG Protocol scope 2 guidance, and the results
from both approaches are disclosed. Values calculated with market-based and location-based methodologies should not be added. Market-based electricity
emissions are calculated using subnational factors for the US and Canada, residual electricity emissions factors for European countries, and average country
emission factors for other countries. Location-based scope 2 electricity emissions on energy reporting perimeter are equal to 256,213 TCO2e (audited value), and
430,773 TCO2e on total Group perimeter (audited value). Total Scope 2 (location-based) emissions is 433,505 TCO2e (audited value). Total scope 1 and 2 (location-
based) CO2 emissions (energy, vehicles, and SF6 emissions in TCO2e) on full perimeter are equal to 539,865 TCO2e (audited value).
(3) The historical values of this indicator have been updated to be in line with the latest Global Warming Potential (GWP) value of SF6, as published by the IPCC in its 6th
Assessment Report available in January 2024. Previous GWP value of 23,500 (AR5) has been updated to 24,300 (AR6) for 2023 and historical emissions. This change
impacts scope 1 and scope 3 CO2 equivalent emissions.
(4) The CO2 emissions linked to energy consumption for sites outside the energy reporting perimeter are considered estimates for two reasons: on the one hand, energy
consumption and corresponding CO2 emissions of these sites are estimated (instead of being collected from meters and invoices, energy consumption are based on
site surface and average energy intensity of sites per region from the energy reporting perimeter); on the other hand, the indirect emissions are calculated on the
conversion factors per country and not with supplier-specific data.
(5) Prior to 2023, this category was meant to capture greenhouse gas emissions (CH4 and N2O emissions) generated from renewable electricity produced with biomass.
(6) In 2024 the methodology has changed, leading to significant changes as compared to previous year.
(7) Starting in 2024, the radiative forcing of air freight and air travels has been included in the numbers, in order to reflect more comprehensively the climate impact of
these activities.
(8) These emissions correspond to products sold by Schneider Electric during the year of reporting and cumulated over their lifetime. These emissions are attributable to
electricity consumption of products, either due to internal consumption or due to heat dissipation (Joule effect). The GHG emissions from electricity considered are
forward-looking during the lifetime of products, based on a scenario from the International Energy Agency (IEA) that factors in the future decarbonization of the grids.
(9) Avoided CO2 emissions are calculated for sales of the reporting year and cumulated over the offers’ lifetime. Emissions are calculated as the difference between
emissions with Schneider Electric’s offer and emissions in the reference situation. The methodology distinguishes “saved” and “avoided” emissions: saved CO2
emissions correspond to brownfield sales that enable reduction of global CO2 emissions compared to previous years, while avoided CO2 emissions correspond to
greenfield sales that enable a limitation of the increase of global emission. When new methodologies are developed during the reporting year, CO2 saved and avoided
from those offers is quantified for sales that occurred since 2018 and counted fully in the performance of the reporting year. In addition, methodologies are
continuously improved, leading potentially to some adjustments with retroactive impact. In 2024, there has been no update to methodology. However, out of the 126.1
MTCO2e saved and avoided in 2024, 13.0 MT (10.3%) came from 2021-2023 backdated performance.
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.4.2 Social indicators
2.4.4.2.1 Key performance indicators from the Schneider Sustainability Impact and
Schneider Sustainability Essentials
Schneider
Sustainability
#
Programs for 2021-2025
Baseline(1)
2024 progress(2)
2025
Ambition
Impact
(SSI)
6.
Strategic suppliers who provide decent work
to their employees
2022: 1%
0%
63%
100%
7.
Level of confidence of our employees to report
unethical conduct
2021: 81%
0%
83%
91%
8.
Increase gender diversity(3) in:
hiring (50%),
front-line management (40%),
and leadership teams (30%)
2020 : 41%
2020 : 23%
2020 : 24%
0%
0%
0%
42%
30%
31%
50%
40%
30%
10.
Double hiring opportunities for interns,
apprentices and fresh graduates
2019: 4,939
X1
X1.59
x2.00
Essentials (SSE)
12.
Deploy a ‘Social Excellence’ program through
multiple tiers of suppliers(4)
--
--
In progress
--
13.
Train our employees on Cybersecurity and
Ethics every year
2020: 90%
0%
99%
100%
14.
Decrease the Medical Incident rate to 0.38
or below
2019: 0.79
0.79
0.6
0.38
15.
Reduce total number of safety recalls issued
to 0
2020: 25
25
5
0
16.
Be in the top 25% in external ratings for
Cybersecurity performance
2020: Top 25%
0%
Top 25%
Top 25%
17.
Assess our suppliers under our
‘Vigilance Program’
2020: 374
0
4,052
4,000
18.
Reduce pay gap for both females and males
2020: F: -1.73%
2020: M: 1.00%
0%
-0.84% M
0.66% F
<1%
<1%
19.
Increase subscription in our yearly Worldwide
Employee Share Ownership Plan (WESOP)
2019: 53%
0%
62%
60%
20.
Pay our employees at least a living wage
2019: 99%
0%
100%
100%
21.
Multiply the number of employee-driven
development interactions on the
Open Talent Market
2020: 5,019
1
x2.3
x4
22.
Support the digital upskilling of our employees
2020: 41%
0%
80%
90%
23.
Provide access to meaningful career
development programs for employees
during later stages of their career
2022: 43%
0%
85%
90%
24.
Increase our employee engagement level
2020: 69%
0%
73%
75%
These programs
contribute to
UN SDGs
(1) The baseline year for each indicator is provided together with its baseline performance.
(2) Each year, an independent third party verifier performs a “limited” assurance engagement on all SSI and SSE indicators (except SSI #+1 and SSE #12 in 2024), in
accordance with (revised) ISAE 3000 assurance standard (see Independent verifier’s report on page 336). In addition, SSI #8, SSE #3, SSE #5 and SSE #14 were
subject to a “reasonable” assurance engagement in 2024 (see Independent verifier’s report on page 340). Please refer to page 311 for the methodological
presentation of each indicator.
(3) From 2025 onwards, diversity targets shall not impact local incentives in countries or entities prohibiting the establishment of such targets.
(4) SSE #12 ‘Social Excellence’ program currently under development.
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S T R A T E G I C R E P O R T
I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Indicators below have a Group scope as described in section 2.4.1, page 310.
HR statistics presented below cover about 88% of the 167,495 employees from consolidated companies where HR IT systems have been
deployed. About 16,206 employees from non-integrated entities are exclueded. SSI #8 is calculated on constant scope and also excludes
employees from Lauritz Knudsen and Proleit, as they were acquired during 2020, which is the baseline year for this program. SSI #8
coverage is about 85% of Group employees in 2024.
Total Group workforce, i.e. overall employees and non-employee interim workers, is 183,701 people as of end of the year 2024.
The calculation methodology of the absenteeism rate varies from one country to another, in this domain Schneider Electric communicates at
Group level the number of lost days and the number of hours worked (Safety data). The precisions on the variations of scope are contributed
at the end of the tables below and indicated by footnotes.
2.4.4.2.2 General disclosure
Spot workforce at year-end
GRI
Indicators
Units
2024
2023
2022
2021
Spot workforce at year-end including
supplementary employees*
year-end HC
167,495
153,121
149,812
147,468
Spot workforce at year-end excluding
supplementary employees*(1)
year-end HC
147,127
137,855
134,931
128,384
Open-ended contract
%
90.9%
89.8%
88.8%
87.2%
Fixed-term contract
%
9.1%
10.2%
11.2%
12.8%
Spot supplementary employees* at year-end
year-end HC
20,368
15,266
14,881
19,084
2-7
Share of temporary personnel (fixed-term
contracts and supplementary personnel*)
%
20.1%
19.2%
22.3%
24.0%
Indicator covered by an assurance report in 2024.
*
Supplementary employees are employees under short-term contracts to supplement short-term activities and work peaks.
(1) Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information system
tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
Workforce composition(1)
GRI
Indicators
Units
2024
2023
2022
2021
Coverage (of total employees)
88%
90%
90%
93%
2-7
Organization of working time
Full-time
%
98%
98%
98%
98%
Part-time
%
2%
2%
2%
2%
401-1
Hires(2)
HC
27,250
24,608
28,214
27,189
401-1
Departures(2)
HC
18,341
19,738
22,005
22,877
Layoffs
HC
5,473
5,246
5,970
7,114
Resignations
HC
9,796
10,878
12,757
11,944
Other (retirement, end of contract, etc.)
HC
3,072
3,614
3,278
3,819
401-1
Total employee turnover
%
12.8%
14.6%
16.6%
18.1%
Turnover by gender
Men
%
12%
14%
15%
17%
Women
%
14%
16%
19%
21%
Turnover by generation(3)
Gen Z
%
28%
36%
47%
60%
Millenials
%
12%
14%
17%
19%
Gen X
%
7%
8%
8%
8%
Boomer
%
21%
18%
18%
18%
Silent
%
0%
18%
0%
39%
401-1
Voluntary turnover
%
6.9%
8.0%
9.6%
9.5%
2-7
Breakdown of workforce by region
Asia-Pacific
%
33%
33%
34%
31%
Western Europe
%
26%
27%
27%
27%
North America
%
29%
27%
26%
26%
Rest of the world
%
12%
13%
13%
16%
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2.4 Methodology, external assurance and indicators
Workforce composition (continued)
GRI
Indicators
Units
2024
2023
2022
2021
2-7
Breakdown of workforce by top 10 countries
United States
%
15%
14%
14%
14%
Mexico
%
13%
11%
11%
10%
India
%
11%
11%
11%
8%
China
%
11%
12%
12%
11%
France
%
10%
11%
11%
11%
Germany
%
3%
4%
4%
4%
Spain
%
3%
3%
3%
3%
United Kingdom
%
3%
3%
2%
3%
Italy
%
2%
2%
2%
2%
Philippines
%
2%
2%
2%
2%
2-7
Annual change in workforce in top 10 countries
United States
%
12%
6%
5%
5%
Mexico
%
23%
8%
7%
8%
India
%
10%
5%
46%
8%
China
%
1%
3%
6%
-2%
France
%
2%
-1%
2%
7%
Germany
%
2%
6%
2%
9%
Spain
%
2%
12%
8%
0%
United Kingdom
%
4%
7%
-1%
-3%
Italy
%
4%
7%
0%
4%
Philippines
%
5%
3%
10%
-9%
2-7
Women in our workforce
Overall workforce
%
35%
34%
33%
34%
Board of Directors
%
43%
46%
42%
42%
Executive Committee
%
40%
41%
41%
44%
All management (junior, middle, leadership)
%
28%
34%
33%
33%
Leadership teams
%
31%
29%
28%
26%
Front-line management
%
30%
27%
27%
27%
Middle management
%
26%
25%
24%
23%
Junior management
%
39%
40%
37%
37%
Management positions in revenue-generating
functions
%
20%
19%
21%
16%
Sales
%
24%
23%
22%
21%
STEM
%
24%
22%
21%
19%
2-7
White collar
%
52%
53%
52%
51%
of which men
%
64%
65%
66%
66%
of which women
%
36%
35%
34%
34%
Blue collar
%
48%
47%
48%
49%
of which men
%
66%
67%
67%
66%
of which women
%
34%
33%
33%
34%
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I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Workforce composition (continued)
GRI
Indicators
Units
2024
2023
2022
2021
2-7
Breakdown of workforce by age(3)
< 30 years
%
25%
24%
24%
23%
30-50 years
%
58%
59%
59%
59%
> 50 years
%
17%
17%
17%
18%
2-7
Breakdown of workforce by seniority
< 5 years
%
46%
42%
43%
40%
5/14 years
%
30%
31%
31%
34%
15/24 years
%
15%
18%
17%
16%
25/34 years
%
6%
7%
7%
7%
> 34 years
%
3%
2%
2%
3%
2-7
Breakdown of workforce by function
Marketing
%
4%
4%
4%
4%
Sales
%
12%
13%
13%
13%
Services and projects
%
19%
20%
19%
19%
Support
%
29%
27%
24%
24%
Technical
%
8%
8%
11%
10%
Industrial
%
28%
28%
29%
31%
Indicator covered by an assurance report in 2024.
* Supplementary employees are employees under short term contracts to supplement short term activities and work peaks.
(1) Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information system
tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
(2) Acquisitions/disposals and supplementary employees not taken into account in the calculation.
(3) The breakdown by age or generation excludes the data for US and Canada due to privacy restrictions.
Hires(1)(2)
GRI
Indicators
Units
2024
2023
2022
2021
401-1
Breakdown by type of contract
Permanent contract
%
85%
77%
69%
64%
Fixed-term contract
%
15%
23%
31%
36%
401-1
Breakdown by category
White collar
%
33%
38%
39%
34%
Blue collar
%
67%
62%
61%
66%
401-1
Breakdown by gender
Men
%
58%
59%
59%
59%
Women
%
42%
41%
41%
41%
401-1
Breakdown by age(3)
< 30 years
%
60%
58%
61%
64%
30-50 years
%
37%
40%
37%
34%
> 50 years
%
3%
2%
2%
2%
401-1
Breakdown by region
Asia-Pacific
%
25%
31%
36%
34%
Western Europe
%
12%
17%
16%
13%
North America
%
53%
42%
37%
42%
Rest of the world
%
10%
10%
11%
12%
Indicator covered by an assurance report in 2024.
(1) Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information system
tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
(2) Acquisitions/disposals and supplementary employees not taken into account in the calculation.
(3) The breakdown by age or generation excludes the data for US and Canada due to privacy restrictions.
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2.4 Methodology, external assurance and indicators
Layoffs (1)(2)
GRI
Indicators
Units
2024
2023
2022
2021
401-1
Breakdown by type of contract
Open-ended contract
%
90%
81%
69%
70%
Fixed-term contract
%
10%
19%
31%
30%
401-1
Breakdown by category
White collar
%
31%
26%
21%
22%
Blue collar
%
69%
74%
79%
78%
401-1
Breakdown by region
Asia-Pacific
%
18%
22%
35%
33%
Western Europe
%
10%
8%
10%
9%
North America
%
61%
61%
48%
47%
Rest of the world
%
11%
9%
7%
10%
Breakdown by gender
Men
%
64%
61%
60%
62%
Women
%
36%
39%
40%
38%
Breakdown by generation(3)
Gen Z
%
28%
27%
34%
30%
Millenials
%
47%
47%
44%
44%
Gen X
%
22%
21%
16%
19%
Boomer
%
3%
5%
6%
7%
Silent
%
0%
0%
0%
0%
(1) Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information system
tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
(2) Acquisitions/disposals and supplementary employees not taken into account in the calculation.
(3) The breakdown by age or generation excludes the data for US and Canada due to privacy restrictions.
Resignations(1)(2)
GRI
Indicators
Units
2024
2023
2022
2021
401-1
Breakdown by seniority
< 1 year
%
38%
35%
36%
41%
1/4 years
%
40%
42%
40%
36%
5/14 years
%
17%
18%
19%
19%
15/24 years
%
4%
4%
4%
4%
25/34 years
%
1%
1%
1%
1%
> 34 years
%
0%
0%
0%
0%
(1) Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information system
tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
(2) Acquisitions/disposals and supplementary employees not taken into account in the calculation.
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I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
Departures(1)(2)
GRI
Indicators
Units
2024
2023
2022
2021
401-1
Breakdown by gender
Men
%
62%
62%
62%
62%
Women
%
38%
38%
38%
38%
401-1
Breakdown by age(3)
< 30 years
%
44%
46%
50%
50%
30-50 years
%
43%
41%
39%
38%
> 50 years
%
13%
13%
11%
12%
401-1
Breakdown by region
Asia-Pacific
%
28%
31%
33%
31%
Western Europe
%
16%
16%
15%
15%
North America
%
45%
42%
42%
41%
Rest of the world
%
11%
11%
10%
13%
(1) (Based on data tracked in our global TalentLink tool, excluding supplementary employees, recent acquisitions, entities not integrated to the Group’s information
system tools and interns (147,127 employees, i.e. around 88% of employees excluding supplementary employees).
(2) Acquisitions/disposals and supplementary employees not taken into account in the calculation.
(3) The breakdown by age or generation excludes the data for US and Canada due to privacy restrictions.
Average supplementary employees*
GRI
Indicators
Units
2024
2023
2022
2021
2-7
Breakdown by category
White collar
%
8%
11%
10%
8%
Blue collar
%
92%
89%
90%
92%
2-7
Breakdown by region
Asia-Pacific
%
62%
62%
54%
67%
Western Europe
%
17%
19%
24%
16%
North America
%
9%
12%
10%
6%
Rest of the world
%
12%
7%
12%
11%
*
Supplementary employees are employees under short-term contracts to supplement short-term activities and work peaks.
2.4.4.2.3 Dialog and social relations(1)
GRI
Indicators
Units
2024
2023
2022
2021
Coverage(2)
%
97%
95%
94%
92%
2-30
Employees represented by
Unions
%
59%
79%
60%
80%
Works Council
%
38%
53%
55%
63%
403-4
Health and Safety Committee
%
59%
80%
76%
81%
2-30
Number of collective agreements
#
212
205
202
150
2-30
Employees covered by collective bargaining
agreements
%
78%
77%
70%
72%
(1) in 2024, more data were collected at entity level, allowing for more granular results, including from entities with small headcounts
(2) Compared to employees recorded in global TalentLink tool.
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
2.4.4.2.4 Health and safety of employees and subcontractors
GRI
Indicator
Units
2024
2023
2022
2021
403-8
Number of ISO 45001 sites
#
193
172
211
180
Percentage of operational facilities that are
ISO 45001 certified
%
85%
83%
87%
77%
403-9
Number of medical incidents(1)
#
197
154
171
186
of which Schneider Electric employees
#
163
119
143
152
of which temporary workers
#
34
35
28
34
403-9
Number of lost-time accidents(1)
#
91
83
95
96
of which Schneider Electric employees
#
77
63
80
76
of which temporary workers
#
14
20
15
20
403-9
Number of fatal accidents
#
0
0
0
2
of which Schneider Electric employees
#
0
0
0
2
of which temporary workers
#
0
0
0
0
403-9
SSE #14 Medical Incident Rate(2)
per million
hours worked
0.60
0.51
0.58
0.65
of which Schneider Electric employees
per million
hours worked
0.58
0.46
0.57
0.63
of which temporary workers
per million
hours worked
0.68
0.78
0.64
0.73
403-9
Lost-Time Injury Rate (LTIR)(2)
per million
hours worked
0.28
0.28
0.32
0.33
of which Schneider Electric employees
per million
hours worked
0.28
0.25
0.32
0.32
of which temporary workers
per million
hours worked
0.29
0.44
0.34
0.43
403-9
Lost-Time Day Rate (LTDR)(2)
per million
hours worked
9.13
7.78
14.23
15.58
of which Schneider Electric employees
per million
hours worked
9.56
7.80
15.22
16.47
of which temporary workers
per million
hours worked
6.66
7.66
8.54
11.00
403-9
Number of lost days
#
2,999
2,345
4,195
4,477
of which Schneider Electric employees
#
2,677
2,001
3,822
3,963
of which temporary workers
#
322
344
373
514
403-9
Number of hours worked
#
328,372,715
301,436,421
294,742,174
287,369,013
of which Schneider Electric employees
#
279,996,409
256,505,806
251,075,834
240,649,594
of which temporary workers
#
48,376,306
44,930,615
43,666,340
46,719,419
403-10
Occupational Illness Frequency Rate (OIFR)(2)
per million
hours worked
0.009
0.010
0.003
0.017
of which Schneider Electric employees
per million
hours worked
0.007
0.012
0.004
0.021
of which temporary workers
per million
hours worked
0.021
0.000
0.000
0.000
Indicator covered by an assurance report in 2024.
(1) Includes business travel, excludes home/workplace travel.
(2) LTIR = Number of incidents with lost days x 1,000,000/number of hours worked. International standard indicator comparable to the accident frequency rate.
LTDR = Number of lost days x 1,000,000/number of hours worked. International standard indicator comparable to the accident severity rate (the latter, however, is
calculated per thousand hours worked). MIR = Number of accidents requiring medical treatment x 1,000,000/number of hours worked.
Occupational Illness Frequency Rate (OIFR) is based on 1 million hours worked (the number of Occupational Illnesses X 1,000,000 Hours/Total Hours Worked).
Note that the Medical Incident Rate (MIR) consists of both medical incidents + Occupational Illnesses and is based on 1 million hours worked.
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S T R A T E G I C R E P O R T
I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
2.4.4.2.5 Talent development and training
GRI
Indicator
Units
2024
2023
2022
2021
Coverage
%
98%
95%
92%
91%
404-1
Number of training hours
#
3,246,478
3,126,358
2,988,795
2,881,627
404-1
Average hours of training per person
#
22.5
24.1
24.1
24.5
of which white collar
#
23.8
25.4
25.3
25.1
of which blue collar
#
21.1
22.5
22.4
24.0
of which men
#
23.0
24.5
24.7
24.9
of which women
#
21.6
23.2
22.9
23.7
404-1
Breakdown of hours by category
White collar
%
55%
57%
57%
53%
Blue collar
%
45%
43%
43%
47%
404-2
Employees taking one day training
(7 hours or more)
%
78%
81%
81%
83%
2-24
Percentage of employees trained on the Trust
Charter, Schneider’s Code of Conduct
99%
99%
98%
96%
2-24
Percentage of the eligible workforce who
received training on anti-corruption practices
%
99%
98%
97%
97%
2-24
SSE #13 – Employees trained every year on
Cybersecurity and Ethics
%
99%
97%
95%
96%
2-24, 404-2 Breakdown of hours by training type
Data & AI / Analytics
%
3%
0%
UP
UP
Digital / IT
%
8%
9%
6%
6%
Functional
%
21%
23%
22%
25%
Sustainability(1)
%
18%
18%
17%
17%
Management and Leadership
%
6%
7%
8%
6%
Mandatory / Compliance
%
5%
5%
8%
9%
Offer Excellence
%
6%
6%
7%
6%
Human Skills(2)
%
6%
6%
7%
7%
Products, Solutions and Services
%
13%
13%
14%
12%
Supply Chain
%
7%
9%
9%
12%
Well-being
%
2%
1%
2%
1%
Other
%
5%
4%
–
–
Total Learning & Development spend(3)
million €
105.7
91.1
75.6
56.8
Learning & Development cost per employee
€/employee
718.2
660.8
560.8
425.8
404-3
Employees having had a performance review(4)
%
99%
97%
98%
98%
Breakdown by category
White collar
%
75%
75%
76%
76%
Blue collar
%
25%
25%
24%
26%
Breakdown by gender
Men
%
68%
69%
70%
71%
Women
%
32%
31%
30%
29%
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Chapter 2 – Sustainable development
2.4 Methodology, external assurance and indicators
GRI
Indicator
Units
2024
2023
2022
2021
Breakdown of promotions by gender(5)
Men
%
65%
67%
67%
UP
Women
%
35%
33%
33%
UP
Breakdown of promotions by generation(6)
%
Gen Z
%
12%
11%
17%
UP
Millenials
%
63%
62%
61%
UP
Gen X
%
23%
24%
20%
UP
Boomer
%
2%
3%
2%
UP
Indicator covered by an assurance report in 2024. UP = Unpublished.
Due to the impact of rounding on individual elements within this disclosure table, numbers may not exactly sum to the Group total.
(1) Includes Sustainability, Environment and Health and Safety trainings.
(2) Prior to 2023, this was reported under “Personal Development” categories.
(3) Includes Learning and development teams, travel and expenses as well as vendors costs – Sources: Schneider Electric TalentLink Employee data and Procurement
tracking system – Excludes training sold to customers
(4) The data relates to the eligible workforce for Performance interview on 12/31/2024 (TalentLink).
(5) Based on a change in grade level.
(6) The breakdown by age or generation excludes the data for US and Canada due to privacy restrictions.
2.4.4.3 Societal indicators
Indicators are published on the basis of declarative information submitted by Foundation delegates. It covers about 90% of Schneider
Electric Group employees and highlights the importance of company and employee participation in the Foundation’s approach to
involvement towards local communities. With EUR 37.0 million in 2024, the amount of budget for the Foundation’s actions includes the
Foundation’s intervention budget, the amount of the donations from entities, employees and partners, and the amount of donations in kind.
2.4.4.3.1 Key performance indicators from the Schneider Sustainability Impact and
Schneider Sustainability Essentials
Schneider
Sustainability
#
Programs for 2021-2025
Baseline(1)
2024 progress(2)
2025
Ambition
Impact
(SSI)
9.
Provide access to green electricity to
50M people
2020: 30M
0
53.4M
50M
11.
Train people in energy management
2020: 281,737
0
824,404
1M
Essentials (SSE)
25.
Increase the number of volunteering days
since 2017
2020: 18,469
0
75,461
50,000
These programs
contribute to UN SDGs
(1) The baseline year for each indicator is provided together with its baseline performance.
(2) Each year, an independent third party verifier performs a “limited” assurance engagement on all SSI and SSE indicators (except SSI #+1 and SSE #12 in 2024), in
accordance with (revised) ISAE 3000 assurance standard (see Independent verifier’s report on page 336). In addition, SSI #8, SSE #3, SSE #5 and SSE #14 were
subject to a “reasonable” assurance engagement in 2024 (see Independent verifier’s report on page 340). Please refer to page 311 for the methodological
presentation of each indicator.
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S T R A T E G I C R E P O R T
I R
C H 1
C H 2 – S U S T A I N A B L E
D E V E L O P M E N T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
2.4.4.3.2 Breakdown of the Foundation’s financial commitments
Indicator
Units
2024
2023
2022
Foundation's intervention budget
€
4,000,000
4,000,000
4,000,000
Breakdown by program
Training and entrepreneurship
%
84%
83%
81%
Raising awareness about sustainable development
%
10%
5%
12%
Employees’ volunteering/skills-based sponsorship
%
1%
1%
2%
Emergency
%
2%
7%
3%
Other
%
3%
4%
2%
Breakdown by region
Africa & Middle East
%
28%
16%
15%
America
%
10%
38%
6%
Asia & Pacific
%
13%
19%
31%
Europe
%
39%
22%
35%
Cross countries
%
10%
5%
13%
2.4.4.3.3 Breakdown of contributions from employees and Schneider Electric entities to the Foundation’s
actions
Indicator
Units
2024
2023
2022
Total financial contribution
€
13,646,039
10,490,937
12,461,007
From employees
€
1,298,374
1,227,005
1,520,324
From the Schneider Electric entities and partners
€
12,347,665
9,263,932
10,940,683
Total in-kind contribution (products or services)
€
19,380,796
10,800,121
7,267,507
2.4.4.3.4 Breakdown of total contributions (Employees, Schneider Electric entities and Schneider Electric
Foundation) to the Foundation’s actions
Indicator
Units
2024
2023
2022
Breakdown by region
Africa & Middle East
%
8%
10%
5%
America
%
30%
39%
35%
Asia & Pacific
%
16%
17%
25%
Europe
%
45%
33%
31%
Cross countries
%
1%
1%
4%
2.4.4.3.5 Total budget for the Foundation’s actions
Indicator
Units
2024
2023
2022
Foundation budget, financial contributions and donations in kind
€
37,026,835
25,291,058
23,728,514
To access all Schneider Electric ESG data, please download the disclosure dashboard Schneider Electric Sustainability Disclosure
Dashboard from the Sustainability Reports page on www.se.com
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Chapter 3 – How we manage risk at Schneider Electric
3.1 Risk management scope
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3.2 Organization and management
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3.3 Risk management mechanisms
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3.4 Key risks and opportunities
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3.5 Insurance
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How we manage risk
at Schneider Electric
3
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Dear Stakeholders,
In a rapidly changing global landscape, characterized by
increasing regulations and heightened expectations from
stakeholders, robust risk management has never been more
important. As we navigate a complex array of risks shaped by
technological innovations, societal shifts, and geopolitical
dynamics, it is imperative for organizations to not only anticipate
and mitigate potential threats but also to respond with agility
and resilience.
At Schneider Electric, we are dedicated to continually
enhancing our Enterprise Risk Management (ERM) framework.
Our commitment involves a holistic approach to risk management,
focusing on the protection of our value, reputation, and assets.
We actively identify, evaluate and mitigate significant risks while
being vigilant to the evolving risk landscape. Our efforts are
directed toward implementing proactive measures and developing
effective crisis response strategies to ensure we remain resilient in
the face of challenges.
Central to our risk management strategy are our internal
control procedures, which are meticulously designed to uphold
compliance with laws and regulations, align with internal policies,
and ensure the reliability of our financial reporting. We emphasize
accountability and effectiveness, reinforcing our commitment to
maintaining a strong governance structure across all three lines
of defense.
Above all, our continuous journey aims to foster trust with our
customers, partners, and employees. We believe that by acting
with integrity, promoting transparency, and demonstrating
resilience, we can navigate uncertainties and emerge
stronger together.
Thank you for your support,
Hervé Coureil
Chief Governance Officer & Secretary General
An introduction by
Chief Governance Officer
& Secretary General,
Hervé Coureil
Chapter 3 – How we manage risk at Schneider Electric
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3.1 Risk management scope
The Enterprise Risk Management (ERM) framework is designed
to cover the Group, defined as the Schneider Electric SE parent
company and the subsidiaries over which it exercises
exclusive control.
Acquired companies are integrated progressively into the
Group internal control and risk management systems.
3.2 Organization and management
3.2.1 Group values
Resilience as a top value
Schneider Electric has placed significant importance on resilience
within the values and principles which guide and inspire its actions
and, in particular, its business practice. Indeed, resilience is one of
the fundamental elements of sustainable growth and belongs
directly to the Group’s Sustainability value. All Group entities, along
the three lines of defense described hereafter, are encouraged to:
• Develop a culture promoting resilience for the Group;
• Raise resilience awareness and best practices, within their
scope of work; and
• Implement initiatives aimed at increasing the Group’s resilience,
by decreasing the risk exposure and/or increasing its level
of preparedness.
Hybrid risk management model
Schneider Electric uses a hybrid risk management model. It means
that while there is a Group Risk Management function and experts
in charge of setting risk management mechanisms, establishing
policies, and other activities, ownership of the risks belongs to the
Business Units, Operating Divisions, or Global Functions who
are responsible for deploying the central framework to manage
their risks.
These are organized in three lines of defense:
• 1st line of defense: Business and Risk Owners
Operating Divisions and Business Units take ownership of how
the risks specific to their local market or function are managed
on the ground, following the procedures set by the second line
of defense.
• 2nd line of defense: Group Risk Management, Internal Control,
Risk Overseers
Set risk management mechanisms, advise and monitor the first
line of defense, helps them build action plans to improve
identification, mitigation, and control of risks.
• 3rd line of defense: Internal Audit
Independent body, not dedicated to a specific risk area or
region. Assesses if the first line of defense is managing risks
properly and if the second line of defense is setting mechanisms
and supporting the first line adequately.
The section hereafter (3.2.2) goes over the three lines of defense
and gives more detail about the hybrid risk management model
and the governing bodies.
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The Group’s 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.
Senior Management
Senior Management is responsible for designing and leading the
overall Enterprise Risk Management framework, with support from
all key participants, in particular the Group Internal Audit and
Internal Control departments.
It also monitors the Group’s performance during business reviews
with the Operating Divisions and Global Functions. These reviews
cover business trends, action plans, current results, and forecasts
for the quarters ahead.
Similar reviews are carried out at different levels of the Group prior
to Senior Management’s review.
Audit & Risks Committee
The Audit & Risks Committee is responsible for overseeing the
Group’s internal controls and risk management systems.
The Committee is presented with the conclusions and key actions
from a selected number of audit missions throughout the year and
works with management and external auditors to ensure that risks
are identified and addressed in a timely and effective manner.
The Head of Internal Audit has direct access to the Chairperson of
the Audit & Risks Committee and meets with her on a regular basis
throughout the year.
Board of Directors
Senior Management
Operating Divisions
and business units
(Risk Owners)
Audit & Risks Committee
Accountable to stakeholders for organizational oversight. The Board is informed about the efficiency of the internal control and risk management systems.
Responsible for designing and leading the overall internal control system including the oversight,
identification and assessment, and mitigation of risk at Group level as well as Business Unit level
and across key Group functional areas.
Follows-up on the efficiency of internal control
and risk management systems and reports
to the board thereon.
1st line of defense
3rd line of defense
2nd line of defense
Take ownership of how the
risks are controlled on the
ground, following the risk
management procedures
set by the 2nd line
of defense.
Organize control of
operations, ensuring that
appropriate strategies are
deployed to achieve
objectives, and tracks
business performance.
Deploys the
Enterprise Risk
Management
framework, driving
risk assessments
across various
Group entities, and
consolidate results
in comprehensive
reports.
Monitors
effectiveness of
controls in daily
operations and
timely remediation
of deficiencies
through a
structured
evaluation and test
program.
Decision-making
and risk
management at
corporate level.
Issues and
distributes policies,
target procedures
and instructions to
units and
individuals
assigned to handle
specific duties.
Define and
implement Trust
Standards to
ensure the
integration process
is addressing risks
and compliance
matters.
Set risk management mechanisms, advise and monitor the 1st line
of defense, helps them build action plans to improve response,
control and monitoring of risks.
Independently assesses if
the 1st line of defense is
managing risks properly
and if the 2nd line of
defense is supporting the
1st line in the right way.
Advices on the adequacy
and effectiveness of
governance and risk
management.
Chapter 3 – How we manage risk at Schneider Electric
Group Risk
Management
Internal Control
Post Merger
Operations
Global Functions
and Risk
Overseers
Internal Audit
3.2.2 Internal control and risk management
roles and responsibilities
3.2 Organization and management
Figure 1: The three lines model
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1st line of defense: Business and risk
owners
Among other responsibilities, Operating Divisions and Business
Units have a duty to preserve good faith and trust. As business and
risk owners, they must:
• Embed risk management into first line processes;
• Execute risk strategy in line with risk appetite and standards;
• Complete risk assessments and provide supporting data;
• Identify and control risks relating to their own environment, in
compliance with the rules and procedures implemented and
communicated by the Group functional department; and
• Design and implement remediation actions.
More specifically, Operating Division and Business Unit
management supplement and adapt the Enterprise Risk
Management framework drafted by Group management, by
drawing up detailed policies and internal control procedures which
comply with the relevant laws, regulations, and customer practices
in the country they operate, to exercise control more effectively
over risks specific to their local market and culture.
2nd line of defense: Group Risk
Management, Internal Control, Post Merger
Operations, Risk Overseers
Group Risk Management
In the current context of an acceleration towards a more complex
and fragmented world, the Group has engaged in a restructuring
of its Enterprise Risk Management framework, with the help of
experts. It started in 2021, with most of the deployment having
taken place between 2022 and 2024 and continuing in 2025.
The objective is to strengthen the overall risk management at
Schneider Electric, with a more robust Enterprise Risk Management
team to implement and deploy advanced mechanisms, support the
first and second lines of defense, and consolidate and report to
Senior Management and the Audit & Risks Committee. It will ensure
that the maturity level and effectiveness of the governance and
organization, management systems, processes and controls,
and communication and training will all increase.
Continuing this journey, the Group expects to reach optimized
maturity level in the way it develops and maintains a Group risk
appetite framework. 2022 was a year of deployment with
standardized risk reviews engaged for most of the Group’s risk
categories and geographical zones. It resulted in an increased risk
management maturity, and a consolidation of the risk exposure at
the corporate level. The deployment continued in 2023, with risk
reviews carried out in a more robust and systematic way, with
subsidiaries included. Recognizing the importance of equipping
key stakeholders with the necessary skills and knowledge, in 2024
the Group focused on further empowering teams to contribute to
the optimization of our risk management practices through several
communication efforts and continuous engagement. Looking
ahead, the Group remains committed to advancing its risk
management practices. Building upon the foundation laid in
previous years, efforts will continue to refine the risk management
framework, leveraging the insights gained.
The Enterprise Risk Management framework is deployed by the
Group Risk Management department, which reports to Senior
Management and sits within the Governance function. The Group
Risk Management department is responsible for:
• The creation, deployment, and maintenance of the Enterprise
Risk Management framework;
• The planning and execution of risk reviews across various
Group entities; and
• The consolidation, in comprehensive reports, of the risks
identified and assessed, the Group’s level of mitigation, and the
roadmaps in place to reduce the risk exposure and increase
preparedness. This framework relies on a network of Risk
Overseers (in charge of supervising a specific risk category)
and risk owners (in charge of managing risks efficiently with the
support of all assets provided). The Group Risk Management
team engages with these stakeholders and supports them to
increase their risk management maturity by driving several
types of assessments and by evolving standardized
methodologies.
The Group Risk Management department strives to not only
manage event triggered risks, but to maximize value through more
informed and calculated risk taking. With this mandate, it studies
strategic issues and long-term strategy and continuously monitors
emerging trends, risks, and opportunities, sometimes with the
support of risk intelligence companies.
Internal Control
In close collaboration with Risk Overseers and the Group Risk
Management team, the Internal Control function uses a risk-based
approach to define the key controls to be embedded in the
processes and to monitor the effectiveness of the controls.
The Internal Control department reports to the Group Chief
Accounting Officer. It manages and develops a network of around
40 local internal controllers covering all Group entities, with a
central team leading and coordinating the Group Internal Control
activities. The main objectives of the Internal Control department
are to:
• Define and update the internal control framework in
collaboration with the experts in their area of activity. This
framework is summarized in the digital “Group Internal Controls
Principles” reference – in line with the recommendations of the
COSO and French Financial Market Authority (Autorité des
Marchés Financiers (AMF)) reference frameworks;
• Ensure internal control is anchored in the managerial practices
for a better control environment and support employees in
applying the internal control framework;
• Drive self-assessment campaign focusing on the main
risks identified;
• Monitor the adequacy and effectiveness of internal controls
and support timely remediation of deficiencies in a
sustainable manner;
• Partner with operations to increase standardization of key
controls across the Group for effective and efficient
operations; and
• Support design and implementation of anti-corruption and
bribery controls.
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Post Merger Operations (PM Ops)
Schneider Electric is comprised of close to 900 legal entities. To
simplify operating its entities and promote collaboration, efficiency,
and facilitate decision-making, Schneider Electric uses governance
models with specific minimum requirements as the framework:
• Core model entities are managed with different accountability
mechanisms (territory, joint, vertical) but they share a common
territory approach to risk, performance management and their
IT backbone.
• Standalone model entities have the critical mass that allows
them to operate without the support of the rest of Schneider
Electric. However, they still need to certify their compliance with
our trust requirements.
• Minority model entities, for companies in which Schneider
Electric has a minority participation, but anyway require some
clear governance and regular reviews.
The goal is to ensure that each legal entity uses either the core
or the standalone or the minority governance model. Both core
and standalone models have the same basic elements, such as
the Group’s Trust Standards or the same end-to-end
planning approach.
The PM Ops team is responsible to ensure value creation with
all the acquisitions made by creating an integration practice
framework. The key objectives of the team are:
• Support Business in the definition and execution of the
integration plan (including deployment of governance models
minimum requirements);
• Maintenance of Trust Standards framework;
• Coordination of its realization for 3 years post-closing;
• Report on performance achieved vs initial business plan;
• Coordination post-closing clauses execution.
Risk Overseers
The various Group functional departments and Risk Overseers
assist the Enterprise Risk Management team with the identification
and evaluation of risks. Each department defines and rolls out
risk management systems in its activity sector and ensures the
consistency of actions undertaken in the Business Units and
Operating Divisions. Risk Overseers and Global Functions assist
all Group entities by facilitating the sharing of risk management
and internal control best practice.
Risk Overseers are global leaders and experts overseeing risks
within their scope.
Depending on the risk category, Risk Overseers must:
• Identify and manage the adoption of regulatory and
legal standards;
• Initiate first risk identification as a base for risk-specific
programs design;
• Own risk-specific policies and ensure proper deployment,
specifically ensuring they have adequate representation in
the Trust Charter, the Group’s Code of Conduct;
• Define risk-specific processes and controls;
• Engage in the annual risk assessments run by the Group Risk
Management team;
• Perform risk maturity self-assessments on a regular basis; and
• Define risk thresholds and review them regularly.
Global Finance department
The Global Finance department is actively involved in organizing
control and ensuring compliance with financial procedures.
Within the department, the Reporting and Consolidation unit plays
a key role in the internal control system by:
• Drafting and updating instructions designed to ensure that
statutory and management accounting practices are consistent
throughout the Group and compliant with applicable regulations;
• Organizing period-end closing procedures; and
• Analyzing performance and tracking the achievement of targets
assigned to the Operating Divisions and Business Units.
The Reporting and Consolidation unit is responsible for:
• The proper application of Group accounting principles
and policies;
• The integrity of the consolidation system database;
• The quality of accounting and financial processes and data;
• Training for finance staff, by developing and leading specific
seminars on the function; and
• Drafting, updating, and distributing the necessary documents
for producing quality information.
The Reporting and Consolidation unit drafts and updates:
• A glossary of terms used by the Reporting and Consolidation
unit, including a definition of each term;
• The chart of accounts for reporting;
• A Group statutory and management accounting standards
manual, which includes details of debit/credit pairings;
• A Group reporting procedures manual and a system
users’ guide;
• A manual describing the procedures to be followed to integrate
newly acquired businesses in the Group reporting process;
• An inter-company reconciliation procedures manual; and
• Account closing schedules and instructions.
The Reporting and Consolidation unit monitors the reliability of data
from subsidiaries and conducts monthly reviews of the various
Business Units’ primary operations and performance.
Within the Global Finance department, the Tax team oversees tax
affairs to provide comprehensive management of these risks.
Chapter 3 – How we manage risk at Schneider Electric
3.2 Organization and management
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The Financing and Treasury department is responsible for:
• Centralized management of cash and long-term
Group financing;
• Centralized management of currency risk and non-ferrous
metals risk;
• Monitoring of Group trade accounts receivable risk and the
definition of the credit policy to be implemented;
• The distribution of rules for financial risk management and the
security of payments:
−define guidelines and contribute to the definition of Key
Internal Control indicators relating to treasury and credit
management;
−review the related risks of complex projects as a subject
matter expert; and
−select Group tools for credit, trade, and cash management.
• The annual financial review meetings with the Group companies
to assess the financial structures, financial risk management, as
well as capital allocation.
Procedures for managing financial risk are described in “Key risks
and opportunities” on page 371.
Other Global Functions
In addition to specific processes or bodies, such as the Group
Acquisitions Committee for making and implementing strategic
decisions within the Global Finance department (see above),
Schneider Electric centralizes certain matters through dedicated
Global Functions, thus combining decision making and risk
management at the corporate level.
A technology community, namely the Chief Technology Officers
(CTO) community, grouping all Divisional and Business Unit Chief
Technology Officers as well as key Corporate Technology functions
involved in Offer Creation & Research, meets on a regular basis
to ensure cross-divisional co-ordination in setting the strategic
direction for innovation and driving end-to-end architectures, and
defining next generation platforms and systems. Additionally, this
community partners closely with the senior business leaders.
This has been done to ensure a simple structure so that technology
can be close to business and to maintain consistency across all
Divisions of Schneider Electric.
The Human Resources department is responsible for deploying
and ensuring the application of procedures and compliance with
HR regulations concerning employee development, promoting
diversity, and well-being. The department is also responsible for
establishing guidelines on rewards and compensation, hiring, on
and off boarding, and learning, amongst other human resources-
related duties.
The Procurement department within the Supply Chain function
is responsible for establishing guidelines concerning the
Procurement department’s structuring and procedures,
relationships between buyers and vendors, and procedures
governing product quality, level of service, and compliance with
environmental and safety standards.
Global Functions also issue, adapt, and distribute policies, target
procedures, and instructions to Business Units and individuals
assigned to handle their specific duties. Global Functions have
correspondents who work with the Internal Control department to
establish and update the Key Internal Controls deployed across
the Group.
3rd line of defense: Internal Audit
In accordance with professional standards governing this activity,
Internal Audit provides independence and objective assurance and
consulting services designed to add value and improve the
organization’s efficiency and internal control. These services
can only provide reasonable assurance – and not an absolute
guarantee – against all risks.
The Internal Audit department reports to Senior Management.
It had an average headcount of 58 internal auditors in 2024. The
scope of Internal Audit encompasses, but is not limited to, objective
examination of evidence for the purpose of providing independent
assessments on the adequacy and effectiveness of the
organization’s governance, risk management, and internal controls.
This includes:
• Evaluating the risk exposure assessments relating to
achievement of the organization’s strategic objectives;
• Evaluating the reliability and integrity of information and
the means used to identify, measure, classify, and report
such information;
• Evaluating the systems established to ensure compliance with
those policies, plans, procedures, laws, and regulations which
could have a significant impact on the organization;
• Evaluating the means of safeguarding assets and, as
appropriate, verifying the existence of such assets;
• Evaluating the effectiveness and efficiency with which
resources are employed;
• Evaluating operations or programs to ascertain whether
results are consistent with established objectives and goals
and whether the operations or programs are being carried out
as planned;
• Evaluating significant merging/consolidating functions and new
or changing services, processes, operations, and control
processes coincident with their development, implementation,
and/or expansion;
• Monitoring and evaluating the effectiveness of the
governance processes and performing consulting and
advisory services around governance, risk management and
control, as appropriate;
• Evaluating specific operations at the request of the Audit
Committee or Senior Management, as appropriate; and
• Assisting, upon request, in the investigation of significant
suspected fraudulent activities within the organization and
notifying Senior Management and the Audit Committee of
the results.
An annual internal audit plan is drawn up based on a combination
of a risk-based and audit universe coverage-based approach. The
risk-based dimension is embedding risk and control concerns
identified by Senior Management, taking into account the results of
the Group Enterprise Risk Management system, external sources,
regulatory requirements, the outcome of past audits, and other
indicators such as the evolution of a set of financial metrics, and the
Corruption Perception Index. The audit plan is also flexible and
agile, with room for adjustments during the year to include ad-hoc
risks and Management requests.
After each internal audit, a report is issued setting out the auditors’
findings and recommendations for the Business Unit, Global
Function, or Operational Entity audited. Additionally, an executive
summary is also shared with Senior Management and the Audit
Committee. The management of audited entities or audited
domains is requested to define for each recommendation an action
plan aiming at implementing corrective actions. Measures are
taken to monitor implementation of the recommendations and
specific follow-up audits are conducted if necessary.
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3.3 Risk management mechanisms
3.3.1 One unique risk taxonomy is established to have
a common risk language
One of the core assets of the Group risk management practice is a unique risk taxonomy, used by the different domains within the
organization (Sales Regions, Business Units, Global Functions). It is key to ensure all Group entities speak the same risk language and
collaborate efficiently on decreasing the risk exposure. This document is updated once a year based on the relevance and characteristics
of identified risks in a business context. The taxonomy contains several risk classification levels, described in the illustration below.
Each risk is mapped to the pieces of the risk flywheel (see section 3.3.3, page 368) to ensure there are no gaps in the Group monitoring
and mitigation of the risk universe.
Chapter 3 – How we manage risk at Schneider Electric
Figure 2: Risk taxonomy structure
Risk Level
Description
Objective
Responsible
Example
Risk nature
Differentiation between three
risk natures: event triggered
risks, management practice
risks, and trend driven risks.
Making
strategic
decisions
Senior
Management
Event triggered risk
Risk category
All risk categories included
in the taxonomy are mapped
to a Risk Overseer who is
responsible for all assets and
mechanisms around the risk.
Taking
accountability
Risk Overseers
Third-party
screening and
sanctions
compliance
Risk type
More specific risks under
a risk category. Risk
identification and assessment
are carried at a risk type level.
Taking
responsibility
Risk Owner
Export Control
Risk vector
The ways a risk type
can materialize.
Managing
operational
risks
Domain/
function in
charge of
the risk
Supplies from
countries under
sanction
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3.3.2 Different mechanisms to identify,
assess, and mitigate risks
The Group recognizes that each risk nature is unique, and therefore requires a unique approach in the way risks within each nature are
identified, assessed, monitored, and mitigated. The figure below offers a few definitions and examples for each risk nature and shows the
parameters that allow to differentiate them: expected reward for risk, and controllability.
Figure 3: Three risk natures and their unique approaches
Expected reward for risk
(Value for the organization to take on risk)
Controllability
(Ability of the
organization to reduce
the uncertainties
creating risks)
Trend driven risk
Risk resulting from organizational
strategic or operational choices
intended to generate value
OR
Risk resulting from long-term business,
market, political, and economic disruptions
(e.g., Sustainability as a business,
economic cycles)
Event triggered risk
Risk originating from uncontrollable
and unavoidable external factors
(e.g., Cyber attacks,
workplace disruptions, frauds)
Management
practice risk
Risk resulting from day-to-day
operations, behaviors, and decisions
from constituents
(e.g., P&L management,
rewards & benefits, IT systems)
Rewarded risk
Unrewarded risk
For the trend-driven risks, the objective
is to reduce the business impact cost-
effectively and prepare to turn a disrupted
environment into opportunities. We identify,
assess, and monitor the risks through
frequent organization leaders’ and external
stakeholders’ interviews. This is
complemented with specific strategy
cadences.
For the event triggered risks, the
objective is to reduce the risk exposure
and increase the level of preparedness.
Examples of the assets used to achieve
this goal include: crisis management and
business continuity planning, strong
policies and procedures adoption, and
continuous risk and incidents monitoring.
For management practice risks,
the objective is to avoid or eliminate
occurrences cost-effectively with a risk
culture and compliance model embedded
in Operating Divisions, strong policies and
procedures adoption, and an effective set
of internal controls.
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3.3.3 Each Risk Overseer
is in charge of moving the
risk flywheel for their
respective domain
Risk taxonomy
The Group established a unique risk taxonomy to have a common
language with all stakeholders. All risk categories included in the
risk taxonomy are mapped to a Risk Overseer who is responsible
for all assets and processes around the risk flywheel (see figure
below). The risk taxonomy is reviewed once per year, with inputs
from the three lines of defense.
Trust Charter
The Trust Charter is the Group’s Code of Conduct. Each section is
mapped to the risk taxonomy and has the goal, among others, to
bring a level of awareness to employees that will contribute to
decreasing the Group risk exposure. See more details about the
Trust Charter in Chapter 2, section 2.2.1.
Policies
A policy is an official statement and process description produced
and supported by the leadership team and states where the
organization stands on important topics or issues. An organization’s
policies provide a framework to operate effectively and efficiently
and are important for all stakeholders, enabling and reinforcing
trust. Each Risk Overseer is responsible for ensuring needed
policies are written and published, and that they are implemented,
communicated, and their implementation is being monitored.
Mandatory PMI(1) tasks
The Enterprise Risk Management framework applies not only to the
Group’s core and legacy activities, but also to recently acquired
companies as part of the post-acquisition integration process.
Trust Standards are defined to ensure the integration process
is addressing risks and compliance matters, meeting legal
obligations, creating a more standardized back-end, and
providing clarity regarding integration requirements across the
portfolio of companies.
Key Controls
The Group uses a set of internal controls that is reviewed and
updated annually, with the subject matter experts (among others).
One of the goals is to assess the effectiveness of the mitigation put
in place to address a risk. For the controls that are risk specific,
the outcome of the yearly self-assessment campaign is twofold:
provide a high-level view of the situation to the top management
and provide action plans to the risk owners to improve their
mitigation, if relevant.
(1) PMI = Post Merger Integration
To be noted, from 2025, the Group will focus on reducing reliance
on self-assessments and increase usage of automated control
points, aiming for a more proactive approach.
Key risk metrics
Risk metrics are defined to measure the Group risk exposure for
each risk category and type. They are defined by the Risk
Overseers and reviewed on a regular basis. Defining risk
thresholds helps to foster a risk centric culture and take business
decisions based on risk appetite.
Risk reviews and yearly risk assessments
The Group’s entities perform frequent risk assessments.
There are three types of assessments:
• Zone or country risk reviews, where the leadership team and
risk owners review the top risks affecting their territory and legal
entities, as well as the mitigation in place.
• Function or risk category reviews, where the leadership team
and Risk Overseers review the risks affecting their domain of
expertise, as well as the mitigation they put in place.
• Leadership risk assessment, also called risk matrix, where the
leadership team is interviewed about the full Group risk
universe, to gain an understanding of the perception of the risk
exposure and level of mitigation.
Additionally, the Internal Audit and Internal Control departments
perform consolidated reviews and audits aiming, in particular, to
assess the internal control framework and risk management system
effectiveness.
Figure 4: Risk flywheel
Risk
Taxonomy
Trust
Charter
Mandatory
PMI Tasks
Key Internal
Controls
Key Risk
Metrics
Yearly Risk
Review
Risk Maturity
Assessment
Policies
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Risk maturity assessments
In a spirit of continuous improvement, Risk Overseers perform risk
maturity self-assessments on a regular basis. It helps drive
constant improvements to the ways in which the risk is managed
within the Group. Among other things, it ensures the Group takes
the right steps towards an optimized risk maturity level including:
• Governance and organization with dynamic resource allocation;
• Management systems are aligned and optimized across all
three lines of defense;
• Processes and controls rely on digital and advanced analytics
to optimize effectiveness and efficiency; and
• Communication and training are adapted to specific needs,
with a measured impact.
3.3.4 Risk identification
and management
General risks at the Group level
The Group Risk Management department conducts interviews to
update the list of general risks at Group level each year. In 2024,
around 45 of the Group’s top leaders were interviewed, gaining an
exhaustive perspective on the Group’s top risks. Furthermore, the
scope was expanded to include interviews with R&D and Strategy
leaders, focusing on specific topics with the intent to derive risk
insights that would support the organization’s strategic planning.
The risks identified through these interviews are ranked by a risk
score (comprising impact and likelihood of occurrence) and level
of mitigation.
In complement of the risks identified through interviews, the Group
Risk Management function also consolidates all the risks identified
and assessed through the category risk reviews and zone risk
reviews. A consensus is then reached on the Group’s major risks
for which control, monitoring, and mitigation will be prioritized.
Risk factors related to the Group’s business, as well as procedures
for managing and reducing those risks, are described in “Key risks
and opportunities” in section 3.4 on page 371.
The results of the yearly risk assessments mentioned in section
3.3.3 (risk matrix, risk reviews) and the analysis of changes from
one year to the next contribute to the development of an internal
audit plan for the following year. Around two-thirds of the risk
categories identified in the Group’s risk matrix are audited by
the Internal Audit department over a period of five to six years to
assess action plans for managing and reducing these risks.
Local risks at the Business Unit or
Operating Division level
Local risks related to the Company’s business are managed
first and foremost by the Business Units in conjunction with the
Operating Divisions, based on Group guidelines (particularly
via the Key Internal Controls). Each subsidiary is responsible for
implementing procedures that provide an adequate level of
internal control.
The Operating Divisions implement cross-functional action plans
for key risks related to the Company’s business identified as being
recurrent in the Business Units or as having a material impact at the
Group level, as appropriate. The internal control system is adjusted
to account for these risks.
Specific risks related to Projects
The Projects Risk Management stakeholders define and implement
principles and tools designed to manage contractual (such as
limitation of liabilities), technical (such as technical discrepancy
versus customer specifications), and financial risks (such as factors
that may impact margin at solution execution phase).
The network of Project Risk Managers assesses the risks and
mitigations related to major projects in conjunction with the subject
matter experts and Tender Managers during the preparation of
offers. Project Risk Managers then provide a comprehensive,
360-degree view on project risk and mitigations to support the
opportunity approval process.
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Management of risks by the Legal
department
The Legal department oversees the legal affairs and manages the
risks relating to legal matters.
The Financial Risk Insurance team contributes to the internal
control system by defining and deploying a Group-wide insurance
strategy, as defined in “Insurance”, section 3.5 on page 395. The
insurance strategy includes the identification and quantification of
the main insurable risks, the determination of levels of retention,
and the cost benefit analysis of the transfer options. The Risk and
Insurance department also defines, proposes, and implements
action plans to prevent these risks and protect assets.
Management of risks by the Global
Security department
The Group’s Global Security department defines corporate
governance regarding loss prevention in the area of willful acts
against property and people.
The Global Security Group Committee was created in 2017, uniting
the Zone Security Leaders. Some of these leaders report directly to
the Global Security department and some to local management
with functional reporting to Global Security. In close co-operation
with the Compliance department and the Risk and Insurance
department, Global Security is involved in assessing the nature of
risk to our people, as well as defining adequate prevention and
protection measures.
Global Security provides support to local teams for any security
issues (site audit, expatriates or local employee security, security
on assignments, etc.). The team also:
• Publishes internally, a table of “Country Risks” for use in security
procedures that are mandatory for people traveling, expatriates,
and local employees;
• Provides daily co-ordination with the Group’s worldwide partner
in the field of medical and security assistance (International
SOS & Control Risks – start of contract in January 2011);
• Organize, as needed, psychological support in some
crisis context.
It brings its methodology to develop emergency plans (crisis
management plans, etc.) and co-ordinates the corporate crisis
team (SEECC – Schneider Electric Emergency Coordination Center,
created in 2009) each time that it is activated. Global Security also
participates in crisis management, in managing the corporate crisis
cell, and in supporting local entities (to limit the consequences of
the occurrence of certain risks such as civil war, weather events,
pandemics, attacks on people, terrorism, etc.). In addition, it
regularly organizes Security Audits (R&D centers, head offices,
sensitive plants, etc.).
Global Security supports internal investigators as well as
contributing to the Group’s methodology and procedures to
conduct investigations properly and in accordance with the law.
Management of cyber and product
security and associated risks across
Schneider Electric
The Cybersecurity and Product Security departments inside the
Governance function define the Company’s cyber and product
security strategies and approaches. The departments are
accountable for protecting Schneider Electric’s business
operations; securing the digital assets and offers for Schneider
Electric and subsidiaries; managing the Cyber Risk Register;
driving cybersecurity awareness across the Company; owning the
creation, maintenance, and enforcement mechanisms of cyber and
product security policies; ensuring the execution of cyber and
product security initiatives across Schneider Digital functions and
entities; and managing the Cybersecurity Incident Prevention,
Detection, and Response process.
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3.4 Key risks and opportunities
Principal risks
The Group risk inventory is organized in three categories and includes 22 key risks identified.
The key risks selected and presented below are the risks considered by the Group as specific to its business and identified as having
the potential to affect its activity, its image, its financial situation, its results, or the achievement of its objectives.
However, the Group may be exposed to other non-specific risks, or risks of which it may not be aware, or risks of which it may be
underestimating the potential consequences, or other risks that may not have been considered by the Group as being likely to have a
material adverse impact on the Group, its business, financial condition, reputation, or outlook. In each category, risks are assessed in terms
of potential impact for the Group according to three levels (red, orange, and green), with red being the most likely to affect the Group. The
assessment is the result of the process performed as part of the overall risk management mechanism described in “Risk identification and
management”, section 3.3.4 on page 369. The impact considered for the assessment is the potential net impact which corresponds to the
potential gross impact (financial/ human/ legal/ reputation), after having taken into consideration the current mitigation measures, as well as
the probability of occurrence of the risk. The assessment by Schneider Electric of this level of materiality may be changed at any time, in
particular should new facts, whether external or specific to the Group, come to light.
The identification and mitigation of the Group’s key risks can reveal opportunities for growth, enabling strategic decision making and
flexibility to move ahead with speed.
Categories and Risks
Potential
net impact Page
1
Event triggered risks
1.1
Cybersecurity on Schneider Electric infrastructure and its digital ecosystem (including connected products used
as a gateway to attack Group’s customers and partners)
372
1.2
Export controls
374
1.3
Product, project, system quality, and offer reliability
374
1.4
Competition laws
376
1.5
Corruption linked to B2B and project business
376
1.6
Human rights and safety issues through the value chain
377
1.7
Counterparty risk
379
1.8
Currency exchange risk
380
1.9
Health & Safety
380
2
Trend driven risks
2.1
Technology evolutions (Generative AI)
381
2.2
Operational disruption due to global political and economical disruptions
382
2.3
New competitive landscape and business models in energy
383
2.4
Supply chain resilience
384
2.5
Group offer evolution and innovation
385
2.6
Attracting and developing talent with a focus on critical skills
386
2.7
Failure to achieve our long-term sustainability commitments and comply with regulatory requirements
387
2.8
Business disruption due to environment-related risks
388
3
Management practice risks
3.1
Inappropriate Data Management
390
3.2
IT systems management
391
3.3
M&A and integration
392
3.4
Projects acceptance and outcomes
392
3.5
Procurement and Supplier relations
393
Key to symbols
High impact
Medium impact
Low impact
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1. Event triggered risks
1.1 Cybersecurity on Schneider Electric infrastructure and its
digital ecosystem (including connected products used as a gateway
to attack Group’s customers and partners)
Risk description
Schneider Electric, like other organizations with a similar global
footprint and presence, is exposed to the risk of cyber-attacks. As
an industrial and technology company, the Group has activities
spread over dozens of R&D sites, and more than 200 production and
logistic units. With the use of Internet of Things (IoT), artificial
intelligence (AI), and other technologies supporting business
activities, the overall attack surface on IT and OT is large.
The security profile of the Company has evolved with more
connectivity and openness in the digital landscape and
digitalization of products. This is expanding the attack surface and
increasing the exposure to cybersecurity risk, where connected
products and digital offers (e.g., remotely managed services like
“Advisors”) at Schneider Electric or customers’ sites could be used
as a gateway for malicious cyberattacks.
The move to a service-oriented business model with software and
augmented data naturally increases risks, such as data breaches
and intellectual property (IP) theft.
As part of a bigger ecosystem with companies acquired (that are
bringing their own level of cybersecurity), thousands of unique
suppliers (with heterogeneous maturity in cybersecurity), and
customers, notably Critical Infrastructure clients, the Group faces
an increasing pressure on cybersecurity, product security, and
data protection, on top of scrutiny from national authorities.
Risk monitoring and management
Schneider Electric analyzes risks across its extended digital and
operational landscapes, as seen in the figure below, in order to
determine how to mitigate the corresponding risks.
Schneider Electric major Cyber Risks
1 Damage to Customer Assets
2 Business Disruption
3 Compliance (customer payment, personal data…)
4 Intellectual Property Theft
People
Physical and digital capabilities
Sites and areas
Network & Infrastructure
Enterprise IT
Populations
Enterprise OT
Front Ends
Ecosystem
2
IT partners &
outsourcers
1
Customer
Staging
1
Customers
2
Cloud & Data
Centers
4
R&D
1
Digital Services
Platform
2
Active Directory
1
Remote Customer
Support
1
Field Services
Rep. & Project
teams
2
ERP & Finance
3
HR, Compliance
teams
3
Web &
E-Commerce
2
Endpoints
& BYOD
4
VIPs
2
Partner Portal
2
Partners
3
Data Hub & HR
2
Global Supply
Chain
2
Suppliers
2
External Access / Identity / Permission
2
External Access / Identity / Permission
Apps, Analytics
& Services
Edge Control
Connected products
1
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1.1 Risk of cybersecurity on Schneider Electric infrastructure and its
digital ecosystem (including connected products used as a gateway
to attack Group’s customers and partners) continued
(1) Consult Schneider’s Cybersecurity, Product Security, and Data Protection Posture Paper on the Cybersecurity page on www.se.com
(2) Discover Schneider’s Supplier Security Principles on our Products documentation page on www.se.com
To reach the highest level of trustworthiness, the company
continuously enhances its security posture through core pillars(1)
and notably supply chain security.
To mitigate the risks from design to maintenance and build trust
along its supply chain, Schneider Electric leverages practices
prescribed in standards such as ISA/IEC 62443 and ISO/IEC
27001. The Company also pushes for responsible interactions
between actors within the supply chain.
• Supplier Security: Schneider Electric mandates that its
suppliers meet high standards in cybersecurity and privacy,
as per the Supplier Security Principles(2). The Company requires
them to extend these guidelines to their own suppliers and
service providers. These security expectations are included
in the onboarding process and Schneider Electric assesses
suppliers’ cybersecurity maturity to verify compliance with
the company’s requirements before engagement.
• Secure practices for products and software with:
−Secure Lifecycle Management. Schneider Electric
recognizes the need to have cybersecurity measures
fit-for-purpose throughout the entire lifecycle of the product,
from development to retirement. This discipline includes
end-to-end security across all software and system
development lifecycles, certified to the ISA/IEC 62443-4-1
Secure Development Lifecycle standard, to which Schneider
Electric has been contributing for over a decade.
−Penetration tests, final security reviews and digital
certification. The company enhances the security validation
of its technology leveraging its CREST-accredited
penetration testing and by engaging external partners.
All applications, products, or systems undergo a formal
security review, with EcoStruxure™ cloud offers undergoing
an additional digital certification process. This brings a
consistent and disciplined approach to embedding
security into the Company’s products and maintaining
external certifications.
−Industrial security. One cyber leader per site monitors alerts,
vulnerabilities, and supports incident response. On top of
this governance, hygiene is assured globally, in plants and
distributions centers (including OT asset inventory, IT/OT
firewalls and Secure Remote Access, endpoint protection on
all PCs, and real-time monitoring). From 2022 onwards, every
new production line is ISA/IEC 62443-3-3 and ISA/IEC
62443-2-4 Security Level 2 compliant.
−Product vulnerabilities management. Schneider Electric’s
vulnerability management process, based on ISO/IEC 29147
and ISO/IEC 30111, tracks and fixes vulnerabilities with the
assistance of its Corporate Product Cyber Emergency
Response Team (CPCERT). The Company’s teams
continuously detect, mitigate, and re-mediate vulnerabilities
for products in the market as they are discovered. Schneider
Electric aims to work collaboratively with Researchers,
Country Cyber Emergency Response Teams (CCERTs), and
asset end-users through the Cybersecurity Support Portal to
ensure that accurate vulnerability mitigation and remediation
information is responsibly disclosed. In cases of critical
vulnerabilities, the incident management protocol can be
activated to expedite resolution.
−IP and Source Code protection. Schneider Electric protects
its portfolio of IP, preventing accidental loss, source code
exfiltration, and tampering through legal frameworks such as
patents, licenses, and escrow agreements, administrative
controls including non-disclosures and specific addendas,
and security measures including access control and code
integrity regarding third-party and open-source code.
−Customer environment security. To meet customer
expectations, Field Service Representatives (FSRs) must
follow consistent and sound security measures and be
certified with a “Cyber Badge”. This certification
demonstrates they have undergone training on secure
operation principles consistent with industry-leading
cybersecurity standards such as NIST, ISA/IEC 62443-2-4,
and ISO/IEC 27000-series and possess up-to-date
equipment and software to carry out their work on a
customer site.
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1. Event triggered risks continued
1.2 Export controls
Risk description
International, foreign, and national export control laws and regulations
govern the transfer of goods, services, and technologies within a
country or between countries and/or their nationals. Elements that
may trigger restrictions and licensing requirements may include,
but are not limited to, countries, parties, product, and end-uses.
Schneider Electric being a multinational corporation (MNC) with
international operations spanning across more than 100 different
countries worldwide, must constantly ensure full compliance to
such laws and regulations by implementing a robust corporate
export control compliance program. Non-compliance may result in
a significant impact on the Group’s businesses, results, reputation,
and financial position.
Albeit that Schneider Electric’s product portfolio only has a limited
product range that may have dual-use goods features as well as
non-dual-use goods (e.g., breakers) that may be used in sensitive
applications; restriction or licensing requirements may apply to
these products, especially if associated with politically sensitive
countries and destinations.
Risk monitoring and management
Schneider Electric has comprehensive policies and processes
to ensure compliance with applicable export control laws and
regulations (Schneider Electric Export Control program) and to
mitigate the above described risks. The Global Export Control
Center of Excellence, as part of the Global Legal and Risk
Management function, oversees the monitoring and enforcement
of the Schneider Electric Export Control program.
The Schneider Electric Export Control program may include, but
is not limited to: embargo and restricted country, denied party,
dual-use goods, and sensitive end-user screenings; incorporation
of export control provision in the main sales and procurement
contractual template; and conducting of regular awareness and
online and classroom training sessions for all relevant Schneider
Electric employees.
In 2025, the Global Export Control Center of Excellence team
continues to evolve into a data-driven program with quantitative
performance improvement objectives, enabling alignment to
Schneider Electric’s export control strategy.
The Schneider Electric Export Control program will continue its
enhancement and updates to ensure compliance with applicable
export control laws and regulations.
1.3 Product, project, system quality, and offer reliability
Risk description
Schneider Electric has more than 155,000 references produced in
160 factories, spread across 38 countries around the world.
Ensuring product quality and safety remains a paramount concern.
Any malfunctions or failures in products or services could
potentially lead to the Company incurring liabilities for both tangible
and intangible damages, as well as personal injuries. Moreover,
such failures can also result in additional costs associated with
product recalls, necessitate new development expenditures, and
consume valuable technical and economic resources. Therefore,
Schneider maintains that it is crucial to prioritize and address these
aspects diligently.
The Company applies multiple quality and safety controls governed
by national and supranational regulations and standards. New or
more stringent standards such as the new revision of EN 60669-2-1
– “Switches for household and similar fixed electrical installations”,
and the New Battery Regulation 2023/1542, require significant
efforts, and possible additional capital investments or costs for
specific measures, to ensure continued compliance of products.
The above-mentioned costs could have a significant impact on the
profitability and cash equivalent of the Group. The business
reputation of Schneider Electric could also be negatively impacted.
Looking ahead, Schneider Electric anticipates further challenges
due to increasingly stringent Quality Assurance Standards and
sustainability requirements. Changes in product design, such as
phasing out SF6 gas, packaging modifications, and regionalization
of supplies, are being proactively addressed in the Quality
Management framework. The Company is enhancing its reliability
program to extend product lifetimes, creating greater value for
customers and the environment.
Successfully navigating these challenges will offer competitive
advantages and reinforce Schneider Electric’s market positioning
as a leader in sustainable and high-quality solutions.
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1.3 Product, project, system quality, and offer reliability continued
Risk monitoring and management
The Group launched a specific program called “Quality Reinvention”
to continue to strengthen quality for design, manufacturing, supplier,
and field tools and processes, and embed quality into the DNA of our
Company culture. This is extended to the value chain and leverages
process digitization across all entities that have an impact on quality.
This program includes:
• A brand-new proactive Design Quality program called “Design
for Safety and Reliability” (DfSR) with the new mandatory Quality
Fundamentals for Design domain, to increase safety, robustness,
and reliability of new offers; Customer Satisfaction and Quality
(CS&Q) function puts a strong focus on stopping any launches
that do not comply to quality standards. DfSR Governance has
been strengthened by integrating DfSR requirements into our
agile new offer development process. Moreover, a new full time
job function named “DfSR Practitioner” was created with an
intensive certification program to ensure our new offers will be
supported by the certified DfSR Practitioners to ensure DfSR
plan on new offers will be executed right first time, exceeding
safety, compliance, and robustness goals. In addition, roles and
responsibilities were better defined and the number of
resources focused on design quality has greatly increased.
• Reinforced Quality in industrialization by adding Quality
Fundamentals, based on reputable and regulated industry
standards, such as Advanced Product Quality Planning for
prototypes, pre-series, and launch. Roles and responsibilities
were redefined, the competency level criteria were created, and
resources were allocated to industrialization quality to continue
to expand and exceed Schneider Electric market demands.
Furthermore, we streamlined the adoption of digital tools to
ensure efficiency and effectiveness of our Quality Fundamentals
integration within our platform. Therefore, we reduced silos
across the organization by developing a robust governance
model for new and legacy offers. The highest applicable
standard positions Schneider Electric for even more proactive
identification, prioritization, and mitigation of product and process
risks. This “zero-defect” and data-driven program aims to ensure
products achieve 100% first time right and on-time flawless
launches. The resulting safety, robustness, reliability, quality and
cost optimization strive to exceed customers’ expectations.
• Unified all manufacturing quality initiatives, fundamentals, and
principles into the Schneider Performance System which focuses
and aligns the entire supply chain in the pursuit of built-in-quality.
Risks in manufacturing and distribution are systematically
captured in a living Potential Failure Mode and Effects process
including a Company-wide reduction program which achieved
dramatic risk reduction through error proofing and leveraging
Schneider’s smart factory solutions to ensure quality.
• Significantly strengthened supplier quality processes by
benchmarking various industries and adopting rigorous industry
standards (i.e., APQP and IATF). CS&Q function strives to
secure an ever more robust supplier, parts, and supplies
qualification process, and improved performance management
with added controls for both prevention and detection.
Schneider Electric’s supplier partners have received
communications regarding the Company’s transformation
journey to support the improvements with the desired speed.
• Enhanced the efficiency of service and project execution by
incorporating risk management and mitigation strategies
throughout the entire process, from offer definition to
maintenance. Integrated Quality Fundamentals for Project and
Service into daily activities to strengthen processes and
establish standardization for proactive identification,
prioritization, and mitigation of risks. By implementing this
approach, the Group seeks to improve safety, robustness,
quality, and cost optimization, surpassing customers’
expectations while ensuring their safety. Additionally, this will
help establish consistent standards across the Company.
To safeguard the culture of quality, three main changes have been
introduced: 1) Quality became part of Schneider Electric’s Code of
Conduct, the Trust Charter, to ensure that everyone understands
that a quality deviation could become a compliance issue; 2)
Quality was added to the Schneider Electric Essentials program
reflecting values that anchor the Company’s culture; and 3) a
Quality Academy has been created to promote learning about
quality and non-quality for all employees and to set a new
standard of technical know-how of the Quality function. 2023 and
2024 were the years of defining the fundamentals, and structuring
the knowledge and the organization. Now, new change processes
are in place, and execution is underway, and these are proving to
be highly effective. In 2025, Schneider will verify that these are
rolled out through the entire Company and executed with
rigorous controls.
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1. Event triggered risks continued
1.4 Competition laws
Risk description
Schneider Electric has a strong brand and is present in many
markets and at many levels of the supply chain worldwide.
Competition laws on both national and supranational levels affect all
aspects of Schneider Electric’s business strategies and day-to-day
operations. This includes agreements with partners as well as
unilateral market activities and mergers and acquisitions. Any
violation of competition law can cause severe consequences for
Schneider Electric, and the individuals involved in such activities,
including substantial fines and a serious loss of reputation.
In order to ensure compliance with applicable competition laws
and regulations, Schneider Electric has implemented a risk based
Competition Law Compliance Program that identifies, assesses
and addresses competition law risks throughout the business. This
three step risk approach is a continuous process. This means that
the Competition Law Compliance Program will be developed and
updated in response to a number of factors, such as Schneider
Electric’s market presence and regulatory developments.
Schneider Electric acknowledges the decision adopted by the
French Competition Authority on October 29, 2024 to sanction
several companies concerning the electrical distribution activities
in France, including Schneider Electric for a €207 million penalty.
This decision relates to the previously disclosed investigation
initiated in September 2018.
Schneider Electric firmly disagrees with the finding of the French
Competition Authority and rejects any allegation that its distribution
practices are not compliant with competition rules.
Consequently, Schneider appealed the French Competition Authority
on December 19, 2024.
Schneider Electric’s commercial policy is designed to comply with all
regulations. Schneider Electric has always cooperated with the
authorities and intends to continue to do so.
Risk monitoring and management
To raise awareness about applicable competition laws and manage
areas of risk, Schneider Electric’s Competition Law Compliance
Program is based on policies, guidelines and procedures,
e-learnings and in person trainings, internal controls and audits
and an internal reporting and whistleblowing mechanisms.
Both the Group Competition Law Policy and the Competition Law
Guidelines have been translated into over 40 languages and are
accessible to all employees via Schneider Electric’s internal
policy platform.
The whistleblowing system of Trust Line for employees and external
stakeholders such as suppliers is managed to identify any
inappropriate practice or behavior with competitors or business
partners that may be reported.
Furthermore, internal controls and internal audit missions continue
to be reinforced on compliance risks, including in respect of
competition and antitrust risks.
1.5 Corruption linked to B2B and project business
Risk description
The exposure of the Group to corruption risk has been increasing
for several years, due to the expansion of the Group’s activities in
new economies, especially in Asia and Africa, through organic
growth, and mergers and acquisitions. In recent years, global
anti-corruption regulations have been strengthened. Many
countries now have stricter controls and impose sanctions for
misconduct to combat corruption effectively.
The business model of the Group relies on a large ecosystem of
partners, including more than 50,000 suppliers throughout the
world representing a procurement volume in excess of €18.5 billion,
and also, resellers and distributors. This ecosystem may represent
a risk for the Group, being accountable for activities performed on
its behalf, and in regards to potential conflicts of interest or
unethical solicitations.
In addition, the Group is participating in complex projects involving
a large range of partners in sectors at risk, such as oil and gas, and
with end-users from the public sector in countries at risk.
Over the past years, the increase of law enforcement by public
authorities, higher press coverage of fines imposed on companies,
and new regulations requiring a strong compliance program have
significantly changed the potential impact of corruption risks.
Risk monitoring and management
Schneider Electric’s Ethics & Compliance program is led by the
Ethics & Compliance department, under the authority of the Chief
Compliance Officer, to ensure its efficiency through a dedicated
Compliance Program team in close collaboration with the Anti-
Corruption Controls and the Fraud Examination teams.
First, Senior Management sets Schneider Electric’s zero-tolerance
for corruption and promotes a culture of integrity throughout the
Group and its operations.
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1.5 Corruption linked to B2B and project business continued
In addition, middle management walks the talk by complying with
rules, spreading the right message in their teams, and supporting
the reporting of misconducts.
Second, a Group-wide Ethics & Compliance risk assessment
was carried out in 2024, creating risk maps for corruption matters
at both regional and Group level. Action plans will be implemented
in 2025, including the update of the Anti-Corruption Policy, which
will notably ensure Schneider Electric’s Compliance with the
United Nations Convention Against Corruption. Separate from
the risk assessment carried out in 2024, Schneider Electric
established specific risk maps for newly acquired entities
currently being integrated.
Third, the identified risks are managed by means of effective
measures and procedures:
• Policies – As stated in our Trust Charter, Schneider Electric’s
Code of Conduct, and Anti-Corruption Policy, Schneider Electric
is committed to comply with all applicable laws and regulations,
and applies a zero-tolerance policy towards corruption. Two
operational policies complete the set: Gifts & Hospitality Policy
and Conflict of Interest Policy.
• Training and awareness – 98.9% of employees exposed to
corruption risks have completed the annual mandatory
Anti-corruption e-learning. The content is updated yearly.
Schneider Electric also ensures ongoing communication to
keep employees informed about updates to the Anti-Corruption
program and highlight high-risk areas.
• Third parties’ integrity – Schneider Electric manages the
integrity of its stakeholders through different evaluation
processes: Business Agents Policy for assessing intermediaries,
screening and continuous monitoring process when forming
relationships with customers and suppliers, Sponsorship Policy
for assessing sponsorship projects, and Philanthropy Policy for
evaluating donation opportunities. The Group also have specific
rules in place to govern marketing practices. Additionally,
compliance-related aspects are thoroughly assessed during
mergers and acquisitions, following the specific M&A
Compliance framework.
• Specific accounting controls – Schneider Electric has
developed accounting control procedures to ensure that books,
records, and accounts are not used to hide fraud. Since 2021,
work was initiated to strengthen specific anti-corruption controls
for a defined set of sensitive-judged accounts and transactions.
• Whistleblowing – A global whistleblowing system, available to
employees and external stakeholders, is also managed to
combat this risk. In 2024, 1,922 employee and 347 external
stakeholder alerts have been received and managed through
follow-up inquiries.
• Corrective actions – Deficiencies associated with the
implementation of procedures are analyzed to identify their
causes and correct them.
• Monitoring and audit – Second-level controls and internal audit
missions were reinforced on compliance risks with several
audits performed.
1.6 Human rights and safety issues through the value chain
Risk description
The exposure of the Group to human rights and health and safety
risks has been increasing for several years, due to the expansion of
the Group’s activities in countries with lesser regulatory framework
regarding human rights. Some specific topics are emerging quite
rapidly, for example, as the context (global warming, famine, war,
geopolitics, etc.) is pushing people to cross borders and to work
elsewhere, migrant workers protection is becoming a key topic
for companies.
Schneider Electric’s procurement volume represents more than
€18.5 billion with more than 50,000 suppliers. As part of the Duty
of Vigilance Program in the supply chain, Schneider Electric has
performed a risk analysis through its network of suppliers and
identified potential risks on several topics including human rights
and health and safety.
Schneider Electric serves customers in several markets and
sectors, some of which face increasing controversies. The delivery
of solutions to customer projects that could have a negative impact
on Human Rights could damage the image of the Company.
The occurrence of these risks with third parties may result in the
following impacts on Schneider Electric:
Reputation
Schneider Electric’s image may be negatively impacted by third
parties who:
• Do not respect human rights or safety rules for their workers;
• Are conducting business in a non-compliant or illegal manner;
• Do not respect communities’ rights while operating on
customer projects.
Disruption of supply chain
It may occur due to:
• Short-term termination of relations with a supplier; and/or
• Events resulting from a lack of safety or insufficient protective
measures (e.g., fire prevention) that may affect the supply
of components.
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1.6 Human rights and safety issues through the value chain continued
Commercial
Schneider Electric may face product ban in case of suspicion
of forced labor in its global supply chain (US, EU law), or loss of
customer due to weak due diligence.
Legal
Over the past years, laws regarding human rights protection, such
as modern slavery matters in Australia, the European Union’s new
framework on restrictive measures against serious human rights
violations and abuses, or the German Supply Chain Act, have
increased. Higher coverage of fines imposed on companies, and
new regulations requiring a strong compliance program have
significantly changed the impact of human rights and health and
safety violation risks.
Schneider Electric expects that the exposure will continue to grow
with the application in the coming years of the European Union’s
Corporate Sustainability Due Diligence Directive, as well as the
Forced Labour Regulation.
2024 specific events
At the end of 2024, more than 30 cases related to the duty of
vigilance (formal notices, summons to courts, etc.) were reported.
The reasons for these cases are the inadequacy of the vigilance
plan in identifying and preventing certain risks and the absence
of publication of a vigilance plan.
Two major texts have been added to the European Union’s legal
framework on Human Rights issues in 2024:
• The Corporate Sustainability Due Diligence Directive (CS3D),
will apply from 2027 to companies based in Europe exceeding
the thresholds. It will introduce more legal clarity but also stricter
compliance requirements and sanctions.
• The Forced Labour Regulation prohibits economic operators
from making products made with forced labor available on the
EU market (including by distance sales), as well as their export.
It is expected to be applicable to companies by the end of 2027.
Risk monitoring and management
In 2023, a Vice-President for Human Rights was nominated in the
Corporate Citizenship department, reporting to the Chief Corporate
Citizenship Officer. His role is to oversee the Group’s human rights
due diligence, and design appropriate measures to prevent,
mitigate, or remediate human rights impacts in the Group’s value
chain. The topic is also governed by A Duty of Vigilance
Committee, set up in 2017 and chaired by the Executive Vice-
President for Global Supply Chain. This committee has the
oversight of the human rights issues in the value chain.
As Human Rights risks are present at different places of the value
chain, the Human Rights team partners with different departments
to monitor risks and implement actions:
• Transversal: support from the Enterprise Risk Management team
for the risk monitoring, and the Ethics and Compliance
department with the whistleblowing system available for
employees and for external stakeholders.
Upstream supply chain: Support from the Sustainable Procurement
Department. To mitigate Human Rights risks in its supply chain, the
Group has created a Supplier Code of Conduct that sets the
expectations of the Group for its suppliers.
As part of the Group’s five-year objective for 2021 – 2025, strategic
suppliers are requested to submit themselves to an ISO 26000
evaluation. Consistent with a continuous improvement effort, these
suppliers have achieved on a +1.6 points increase both in 2022
and 2023, and +2.5 points increase in 2024, ending the year with
64.4 points as result.
Schneider Electric has also built a supplier vigilance plan in which
risky suppliers are identified using criteria that take into account the
geographical location of the supplier, the technologies, and the
processes used. An audit plan is then built to perform either on-site
supplier audits or remote self-assessments. When non-
conformances are identified, corrective actions are deployed. The
suppliers are then re-audited to verify that the actions have
re-mediated the non-conformances. In 2024, in the scope of 2021
– 2025 Schneider Sustainability Essentials (SSE) objective #17
“4,000 suppliers assessed under our ‘Vigilance Program’”, the
Group conducted 240 on-site audits and 564 remote self-
assessments. At the end of 2024, 98% of non-conformances from
2023 have been closed, and 40% of 2024 non-conformances.
The Group has also defined, in 2022, a specific program with the
objective to ensure that 100% of Schneider Electric’s strategic
suppliers provide decent work to their employees, in the scope of
Schneider Sustainability Impact (SSI) indicator #6. By end of 2024,
63% strategic suppliers achieved the compliant status.
In addition to the Vigilance and Decent Work Programs, Schneider
Electric is now developing a program to strive towards more social
excellence in its supply chain, experimenting other means to go
further and expand its coverage beyond tier 1 suppliers.
• Internal: The Human Rights team is supported by the Human
Resources the Ethics and Compliance departments as well
as internal audit team to ensure risks are under control in
its operations.
• Downstream supply chain: a new process to early identify
and mitigate the ESG risks linked to customers’ projects has
been added in 2023, overseen by the Solution Risk
Management team.
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1.7 Counterparty risk
Risk description
The Group has a particularly wide international presence (more
than 100 countries), with revenue almost equally spread across the
four regions (Asia Pacific, Western Europe, North America, Rest of
the World). Refer to Note 3 in “Notes to the consolidated financial
statements”, section 5 of Chapter 5, page 525.
The Group is therefore facing multiple counterparty risks, as
any economic downturn could lead to local liquidity issues with
consequences in terms of cash collection and delay of payments
from the customers, affecting adversely the Group’s cash
conversion rate.
The Group is also exposed to counterparty risks coming from
financial operation with financial institutions. It includes activities
such as deposits and asset management and transactions implying
flows in future value dates.
As of December 31, 2024, and considering the total scope for the
Group, 14% of trade and other operating receivables were overdue
(EUR 1,337 million), out of which EUR 462 million were overdue by
more than three months, representing 35% of total overdues or
4.7% of trade and other operating receivables (refer to Note 16 in
“Notes to the consolidated financial statements”, section 5 of
Chapter 5, page 536).
Risk monitoring and management
Financial transactions are entered into with carefully selected
counterparties and adapted terms and conditions are included in
contracts with customers. Banking counterparties are chosen
according to the customary criteria, including the credit rating
issued by an independent rating agency. Group policy consists of
diversifying counterparty risks and ensuring we act within the legal
and compliance framework set up by the Group.
In addition, the Group takes out substantial credit insurance and
uses other types of guarantees (letters of credit and bank
guarantees) to limit the risk of losses on trade accounts receivable.
As of December 31, 2024, the amount of the provision for
impairment of trade and other operating receivables was EUR 364
million (as described in Note 16 in “Notes to the consolidated
financial statements”, section 5 of Chapter 5, page 536).
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1.8 Currency exchange risk
Description of risk of fluctuation of
exchange rates
The Group’s international operations and the particularly wide
international presence expose it to the risk of fluctuation of
exchange rates.
Fluctuations in exchange rates between the reporting currencies of
the Group entities and the currencies of transactions can have an
impact on the Group’s results and distort year-on-year performance
comparisons. The same applies to the fluctuations between euro
and the reporting currencies, in a more significant proportion.
The main exposure of the Group in terms of currency exchange
risks is related to the US dollar, Chinese yuan, and currencies
linked to the US dollar.
In 2024, revenue in foreign currencies amounted to EUR 31.1 billion,
including around EUR 13.3 billion in US dollars and EUR 4.4 billion
in Chinese yuan.
The Group estimates that in the current structure of its operations,
a 10% appreciation of the euro compared to the US dollar would
have a translation effect of around EUR (255) million on
adjusted EBITA.
The result of exchange gains and losses of 2024 amounted to EUR
3 million, excluding hyperinflation impact (as described in Note 7
in “Notes to the consolidated financial statements”, section 5 of
Chapter 5, page 527).
Monitoring and management of the risk of
fluctuations in exchange rates
The Group manages its exposure to transactional currency risk to
reduce the sensitivity of earnings to changes in exchange rates.
Receivables and payables of the Group’s subsidiaries
denominated in currency other than their functional currency are
hedged primarily by means of rebalancing assets and liabilities
per currency (natural hedge).
More than 20 currencies are involved, with the US dollar, the
Chinese yuan, Mexican peso, the Singapore dollar, the British
sterling, and the Swedish Krona representing the most significant
sources of those risks.
Depending on market conditions, risks in the main currencies may
be hedged based on cash flow forecasting using contracts that
expire in 12 months or less. The Group is also carefully monitoring
the exchange rate evolutions in countries with high inflation
situation and where it has a presence.
The financial instruments used to hedge exposure to fluctuations
in exchange rates are described in Note 23 in “Notes to the
consolidated financial statements”, section 5 of Chapter 5,
page 547.
Description of risk of deliverability of
currencies
The Group has a particularly wide international presence
(more than 100 countries), which consists in purchasing and
selling, intragroup and outside group, goods and services in
various currencies.
The Group is therefore facing the risk that the currencies
of purchasing and selling are the subject of interdictions or
restrictions linked to geopolitical contexts, access to foreign
currencies, currency control, or other reasons. The Group
estimates that in the current structure of its operations, such
limitations and interdictions might arise from some countries
with emerging economies.
Monitoring and management of the risk
of deliverability in currencies
The Group policy consists in the diversification enabled by the
widespread geographical presence and follow up of such risk to
reduce it, when needed, through repatriation of cash exposed.
1.9 Health & Safety
Risk description
At Schneider Electric, maintaining a safe and healthy work
environment is a core value. Health and safety risks can arise
from various factors, including workplace hazards, equipment
malfunctions, and exposure to harmful substances.
Key areas of concern for Schneider include electrical and machine
risks, falls from heights, handling and transportation of materials,
and fleet driving safety. Natural disasters, such as earthquakes,
hurricanes, wildfires, and floods are recognized as increasing risks
and present threats to safety and operations.
Additionally, usage of batteries and chemical substances is closely
monitored to avoid any safety risks.
These risks, if not managed, can threaten the well-being of
employees, affect operational efficiency and Company reputation.
Therefore, implementing robust safety measures and ensuring
compliance with relevant regulations is essential for mitigating
these risks and safeguarding the organization’s workforce.
Risk monitoring and management
As a core value for Schneider Electric, Safety is a fundamental
principle that is never compromised, with a commitment to working
safely at all levels of the organization, at any time, everywhere.
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The ‘S.A.F.E. First’ principle serves as a reminder to pause and
assess safety before starting any task, focusing on Self, Activity,
Facility, and Environmental checks. Effective rules are implemented
through the Group’s “Safety Golden Rules” for the Top 5 Hazards
– machine, electrical, road, powered industrial trucks, and falls –
fostering a culture of safety and awareness.
Schneider is developing a Program to de-escalate the risks and the
effectiveness of the control measures is monitored with key risk
indicators, capitalizing on the new digital tool EcoOnline.
The new digital tool functionality EcoOnline Chemical Module
allows to manage risk related to substances usage.
With the increased risks related to natural disasters, emergency
preparedness becomes more important. Therefore, Schneider is
developing response plans and is carrying regular drills to prepare
employees for potential incidents.
By prioritizing these concrete measures, Schneider Electric is
committed to safeguarding its employees and maintaining a safe
working environment for everyone.
For more information on the full Health & Safety Program, including
Policies and Directives please refer to section 2.2.3.
2. Trend driven risks
2.1 Technology evolutions (Generative AI)
Risk description
In recent years, technology evolutions, particularly the fast
advancement of AI and Generative AI (GenAI) is an emerging risk
for Schneider Electric, potentially posing significant impact both
on offer compared to customer expectations and on internal
processes and tools. Lack of integration of AI technologies into
Schneider Electric’s internal and external offerings can put the
Group at a disadvantage in the market, hindering its ability to
stay competitive.
As AI systems become more sophisticated, there is a need
to ensure that they are designed and deployed responsibly,
respecting privacy, fairness, transparency, and accountability.
Failure to address these risks could result in reputational damage,
financial liability, regulatory and compliance challenges, and
legal consequences for Schneider Electric at any point.
AI technologies are likely to have a significant impact on talent and
workforce, causing a shift in job roles and skills, and therefore
necessitating investment in upskilling and reskilling, and potentially
new talent. Schneider Electric needs to proactively plan for and
transform its workforce and ensure that employees are equipped with
the necessary skills to work alongside AI systems in the long run.
Conversely, leveraging AI and machine learning to enhance
employees’ productivity as well as enhance products, services,
and customer experiences can help Schneider Electric gain
business advantages.
Risk monitoring and management
Schneider Electric is striving for mastery on highest impact
technology by adopting technology advancements (AI).
Implementing AI responsibly means operationalizing a systematic
approach to assess risks for all AI / GenAI solutions, services, and
products, and conducting impact and maintenance assessments
on an ongoing basis.
To address opportunities in AI, Schneider Electric launched the AI
Hub well before GenAI accelerated and scaled the advancements
in this space. GenAI is now fully part of the Company’s AI @ Scale
program, and several GenAI applications are now in production for
the internal function and external customers.
In 2024, Schneider invested in a stronger AI Risk and Responsible
AI team and associated processes across AI Hub, Legal, Finance,
Data, and Cyber in order to better control and manage risks. This
approach aims to detect the associated risks when building AI
systems at the very beginning of development in order to integrate
measures to mitigate, minimize, transfer, and monitor risks
throughout the lifecycle of the product. Schneider strengthens its
processes by having a Responsible AI Committee to verify the
delivery of a trustworthy AI system in alignment with its principles:
Sustainability, Fairness, Accuracy and Robustness, Data Privacy,
Transparency. This strategy aims to support the Group as it
prepares for compliance with emerging AI regulations.
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2.2 Operational disruption due to global political and economic disruptions
Risk description
One of the key risks the Company faces is the challenge of
adjusting to “Operational disruption due to global political and
economic disruptions.” This risk is multi-faceted, encompassing
several critical areas.
Geopolitical tensions and trade regionalization: The global
landscape continues to be shaped by significant geopolitical
tensions and the increasing regionalization of trade. The
polarization among major economies, particularly the United
States, China, Russia, Europe, and India, is creating a fragmented
regulatory environment. This shift towards regional trade blocs is
impacting Schneider Electric’s operational efficiency, as the Group
must navigate diverse and sometimes conflicting regulations on
digitization, circularity, carbon emissions, and supply chain
management. These regional disparities necessitate substantial
operational adjustments, potentially leading to increased costs and
reduced profitability.
Economic outlook and monetary tightening: The global economic
outlook remains uncertain, influenced by ongoing monetary
tightening and a persistent energy crisis. These factors are
dampening economic activities worldwide, posing challenges to
the Group’s operations. Schneider Electric is closely monitoring
these developments and adapting its strategies to mitigate their
impact on the business.
Technological decoupling: The technological decoupling between
major economies, notably the United States and China, continues
to evolve. This decoupling is characterized by increased
regulations and restrictions on technology transfer and
collaboration. Schneider Electric is proactively adjusting its
technology policies and supply chain strategies to navigate this
complex environment, ensuring compliance and maintaining its
competitive edge. As such, trade wars and sanctions compliance
could disrupt Schneider Electric’s operations and global supply
chain. The above-mentioned combination of both nationally
orientated tariff and non-tariff burden could increase the cost to
market and potentially adversely impact Group profitability. It also
increases quality risks as the Group could be forced to work with
new suppliers.
Social and political instability: Heightened social and political
risks are emerging as significant concerns due to economic
uncertainties and geopolitical conflicts. These risks include
potential disruptions to companies’ operations, employee security
in affected regions, and compliance with national security
regulations. Schneider Electric is committed to safeguarding its
employees and ensuring compliance with all relevant regulations,
while also addressing the broader implications of these instabilities
on our business.
Risk monitoring and management
To mitigate the risk on supply chain efficiencies, tariff impacts, and
sanctions compliance, Schneider Electric has implemented a
multi-hub organization. The Group has R&D and supply chain
activities, suppliers, and commercial networks in the main
international hubs, which are North America, Europe, India, and
China. In this multi-local context, Schneider Electric can rebalance
its activities across geographies. A strong focus is given to
duplicating active R&D, factories, and suppliers in different hubs
through a global orchestration, in order to be resilient and flexible
when needed.
This setup has proved pertinent as the Group has demonstrated a
solid resilience over the past years’ crises, from the COVID-19
pandemic in 2020 to the armed conflict in Ukraine in 2022, and the
increased decoupling between the United States and China over
the last years.
Schneider Electric uses prospective scenarios planning, focusing
on geopolitics and trade. While the pace of external changes
continues at a historically unprecedented scale regionally, global
teams are working across stakeholders from Business Units,
Regional Operations, and transversal Functions (i.e., Finance,
Supply Chain, Legal, Marketing, R&D, HR).
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2.3 New competitive landscape and business models in energy
Risk description
The energy industry is undergoing major transformations and
disruptions driven by the following main trends:
• A net-zero world: Pressure on climate change and sustainability
call for a change in business practices;
• Resource scarcity and resource security: Increased demand for
energy efficiency solutions with necessary acceleration for
agility, resilience, transformation, circular and shared economy,
and the creation of new business models;
• An All Digital world: Increasing influence of digital giants and
software players;
• A value chain disruption when it comes to marketplace: more
products are being purchased via online marketplaces. While
this is currently primarily transactional home electrification
products (such as smart thermostats) it will inevitably expand to
more expensive and complex products (such as EVSE, storage,
and smart panels);
• An All Electric world: Oil majors urged to reduce their impacts
on carbon emissions; and
• Shift towards decentralized energy production: Fueled by the
advancements in technology that have made renewable energy
systems more accessible and cost-effective, the growing
Prosumer market has witnessed significant developments
in the past years.
In this context, Schneider Electric’s competition landscape is
evolving, and the Group can now see:
• On one hand, some digital giants, software players, or large
companies such as energy majors positioning themselves –
directly or indirectly – as providers of energy efficiency, which
may compete with the digital services Value Propositions
currently developed by the Group; and
• On the other hand, more local experts adopted by local markets
eager to interact with agnostic solutions and interconnect
seamlessly with other players.
The described environment constitutes both a risk and an
opportunity to the Group. Schneider Electric is at the forefront of
the move to electrification and decarbonization, meeting the
changing needs of the market. With its unique position and
expertise, Schneider can facilitate the transition to decentralized
energy production and support Prosumers in maximizing energy
efficiency and optimizing grid interactions. As such, shifting market
expectations and competitive landscape can impact the Group
performance significantly.
Risk monitoring and management
To anticipate these changes in the competitive landscape, the
Group is communicating more widely its values and positioning on
climate change and sustainability.
Schneider Electric provides a full portfolio of solutions for
customers (hardware and software) – as EcoStruxure™ solutions –
and energy and automation digital solutions for efficiency and
sustainability. This includes the recent launch of the Schneider
Home Offer which builds on the Group’s significant residential
buildings market share and access to offer electric vehicle (EV)
charging, battery and solar inverter hardware working as a system
that includes a smart electrical panel for Prosumers.
Additionally, the Group is keen to integrate the best experts or local
players in an open architecture with agnostic solutions, to offer a
flexible and scalable solution and ensure the best value for users.
Over the past two years, Schneider Electric has assembled a
unique portfolio of software companies that are leading the
Prosumer transformation journey. These companies are core to the
Prosumer business strategy which delivers value to residential,
commercial, and industrial, as well as utility customers. These
companies are accelerating via the strong established access and
global presence of the Group, while also contributing to the rest of
Schneider Electric’s businesses as new go-to-markets, enriching
offerings in the eMobility space for commercial and industrial
customers, as well as new and enhanced value propositions for
consumers and the residential segment.
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2.4 Supply chain resilience
Risk description
The Group is exposed to supply chain dependency and business
continuity risk.
Since the onset of the COVID-19 pandemic, constrained labor
availability, global shortages of raw materials, and unreliable
transportation have challenged suppliers and put pressure on
global and regional supply chains across industries.
Schneider Electric has over 200 industrial and logistics sites
globally and is exposed to the physical effects of climate change in
the form of more frequent and severe acute weather events. This
can result in damage to assets, disruption to business operations,
and human consequences. Extreme weather events do not only
threaten Schneider Electric’s assets and properties but also the
overall supply chain. Shortages or logistic bottlenecks in the
upstream and downstream supply chain can translate directly into
revenue losses, increased costs, and increased working capital
requirements. Delays in production and delivery can impact
customer experience.
Risk monitoring and management
The Group’s supply chain strategy team is responding to the global
supply chain crisis to ensure supply chain flexibility and resilience
is continually improved.
The Group is working closely with its suppliers and research and
development teams to qualify alternate components to support
increased demand and improve continuity of supply. Components
have been mapped according to risk and business impact. As of
end 2024, component mapping is reaching 76% of global revenue.
According to internal processes, all medium and high business
risks components are having a containment plan. As of Q4 2024,
95% of electronic ranges related risks and 71% of
electromechanical ranges related risk stand mitigated with a mix of
strategic safety stocks and multi-source actions. 91% of critical raw
materials have an effective risk mitigation plan, out of which 50% is
already fully effective. The resilience multi-year plan targeting
building a redundant manufacturing network, and named Power of
Two has been significantly increased to cover all critical
businesses, 74% is fully operational and most will be live in 2025.
As of end 2024, 75% of distribution centers are covered by a
logistic back-up powered by flow orchestration through 7 digitized
control towers in case of disruption.
Rare earth material supply risk related to potential scarcity in the
market has been fully assessed and is taken as a data entry in the
design roadmap. On top, strategic partnership with key suppliers
have been reinforced through long-term agreements and C-Level
connection, with a particular focus on electronic semiconductor
players. A procurement and planning hub was established in
Singapore to manage a direct supply of critical material sources
and manage strategic stocks, demand, and supply. As of 2024 this
supply chain hub deployment focused on active electronics has
been completed, while for copper cathode ramp up will be done
in 2025.
Energy supply risks in Europe have been assessed and business
continuity plans have been anticipated on critical factories and
suppliers, while we accelerate the move towards net-zero carbon
sites and suppliers.
China dependency is continuously reducing through our plans to
produce and source 90% of what we sell in the same region. While
Taiwan dependency remains high on electronics rank 3 supplies,
China–Taiwan tensions triggered more focus and acceleration on
reducing dependency although this will be a multi-year roadmap
embedded into source resilience containment plans.
Leveraging its network of 160 factories and 75 distribution centers
globally, and network of seven control towers (in each region), the
Group is able to monitor global transport reliability, labor
availability, and overall market dynamics in real time, adjusting
lead times as necessary, while enacting mitigating actions to
ensure lead times are as short as possible. Sites prevention
plans including cybersecurity practices are fully deployed and
monitored centrally.
Teams are empowered to proactively communicate with customers
to continue to support them and their operations.
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2.5 Group offer evolution and innovation
Risk description
In a context of evolution of software and digital services offer, one
of the key risks the Company faces is the challenge of “Group offer
evolution & innovation.” This risk is multi-faceted, encompassing
several critical areas.
On the offer and portfolio evolution, the Group’s focus on the data
center sector presents significant opportunities alongside potential
risks, particularly due to reliance on a few key players, which could
pose challenges in the event of a downturn.
When it comes to innovation, while aiming to meet immediate
commitments, it is crucial for the Group to find the right balance
with long-term innovation priorities, as an overemphasis on
short-term margins may limit adaptability and the development
of new solutions.
Additionally, difficulties in integrating acquired companies could
slow the evolution of the Group’s software offerings and hinder the
exploration of new business models.
The innovation process may also face efficiency challenges due to
slow decision-making and organizational complexity, leading to
missed opportunities and concerns about resource allocation.
Finally, a lack of prioritization and focus on specific offers can lead
to product proliferation, resulting in delays and impacting timely
product launches.
Risk monitoring and management
Schneider Electric is continuously performing strategic efforts and
analysis across its multiple Divisions to better understand the
near-term and long-term end-users’ needs. Additionally, the
transversal communication and collaboration have been
dramatically improved. The Group has been focusing on how
it leverages existing efforts and platforms to create common
approaches and prevent overlaps in offers and solutions. It will
focus on this path of continuous improvement, always striving to
have a more focused set of offers with less overlap in functionality
and clearer value propositions that are therefore easier to
differentiate, understand, and sell.
The Group has also launched several initiatives including, but not
limited to:
• Creation of a new organization dedicated to the growth of digital
services with a clear ambition to leverage a robust strategy, a
structured offer portfolio, and a segment market approach. One
of the key activities is the launch of an assessment of shared
services provided by AVEVA to other software companies;
• Proposing an agnostic solution within a large software portfolio
and integrating open standards;
• Balancing short-term and long-term goals by setting clear
priorities for immediate commitments and innovation initiatives;
• Developing a robust integration strategy for acquired
companies to ensure smooth transitions and alignment with the
Group’s software offerings;
• Streamlining decision-making processes to enhance efficiency
and reduce organizational complexity; and
• Focusing on strategic prioritization to avoid product proliferation
and ensure timely product launches.
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2. Trend driven risks continued
2.6 Attracting and developing talent with a focus on critical skills
Risk description
The growth of the Group’s businesses in markets around the world,
the digital transformation, and the rapidly evolving context of the
“next normal” requires an increased focus on talent. Shaping the
workforce of the future depends on the Group’s ability to attract,
hire, onboard, develop, and retain the best talent. Critical skills,
especially in the areas of technologies, software, services,
sustainability, supply chain, quality, and electronics must be
prioritized. Workforce diversity, equity, and inclusion – especially
gender, generation, and nationality/ethnicity – also need to be a
priority to ensure equal opportunities for everyone, everywhere.
Competition for attracting and recruiting talent in a tight labor
market is intense, and the challenge is amplified for critical digital
and technical skill sets in key markets. Accelerating skill
development (upskilling and reskilling) of employees and the
development of leaders who can lead transformation and build
human connections in a digital world is also necessary to reduce
the risk of skill gaps and bring greater organizational agility.
Beyond core programs and initiatives, there is a big focus on
the overall sense of purpose, culture, and way of working
for employees.
Simultaneously, by implementing the appropriate policies and
programs, the Group can foster a culture of innovation and
expertise, enhance its reputation as an employer of choice and
a leader in nurturing essential skills within its workforce, and
ultimately gain a competitive edge in the market.
Risk monitoring and management
The Group has a number of initiatives and programs in place to
mitigate these risks, anchored in the Group’s People Strategy, at
the heart of which is the Employee Value Proposition, Core Values,
and Leadership Expectations. Schneider’s approach focuses
on the end-to-end talent pipeline from hiring to rewarding to
developing for all employees as well as critical talent segments
from a workforce size, quality, diversity, and velocity perspective.
This systematic approach allows for data-driven monitoring of key
gaps and risks. Supporting initiatives and programs include:
• Annual performance and development goal setting and reviews,
as well as talent reviews – culminating in year-end reviews of
pipeline, succession, diversity, and skills by each entity with the
CEO and Chief Human Resources Officer. On an ongoing basis,
a global pool of high-potential and expert talents at all levels in
the organization, is reviewed and managed in context of
development and succession. Overall health of the talent
attraction and development strategy, leadership pipeline, as
well as succession of key people and positions is reviewed
monthly with the Executive Committee.
• There is an enterprise focus on accelerating the early-career
pipeline by twofold including internships, trainees,
apprenticeships, and fresh graduates. Countries (top 10) all
have next generation campus partnerships and recruitment
programs. Additionally, the Schneider Global Student
Experience and the Schneider Go Green annual competition
each year attract thousands of university talents who become
part of the Schneider talent community on an ongoing basis.
Additional programmatic initiatives to attract, develop, and engage
our key talents include:
• Investing in a new talent acquisition and candidate relationship
management platform to manage prospective talents and the
hiring processes, providing a seamless digital experience and
enabling the Group to compete in the market for top talent.
To date, 49 countries are using the system with most of the
remaining countries joining by 2025;
• A 50/40/30 ambition towards gender: 50% of women in
hiring, 40% in frontline management, and 30% in leadership
(Vice-President and above);
• Policies for family leave, pay equity, and flexible “new ways of
working”, supplemented with a strong program of activities to
accelerate the diversity, equity, and inclusion agenda and focus
on employee well-being, especially mental health;
• Competitive reward and benefits practices to meet local market
needs and attract and retain key talents. This includes
Schneider’s Worldwide Employee Share Ownership Plan
(WESOP) allowing ~80% of all employees to share collectively in
the Company’s success while building a stable and sustainable
share owner group in the long-run;
• An operating model with ~30 hubs enabling customer
proximity, innovation, speed, collaboration, and diversity of
talent opportunities;
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2.6 Attracting and developing talent with a focus on critical skills continued
• Career development focus for all employees, leveraging a
digital ecosystem powered by AI, Open Talent Market, for
internal mobility and anchored within an annual performance
and development review and regular meaningful
career conversations;
• A revamped “Electrifier” (formerly called Edison) expert
program evolved around four business streams and articulated
around three levels of expertise: Electrifier, Senior Electrifier,
and Fellow Electrifier, designed with the objective of bolstering
the core of our business, while pioneering advancements on
Electricity 4.0, Industry 4.0, and sustainability solutions;
• Targeted career development programs supporting employees
at all stages of their career: from fresh graduates to senior
talent, ensuring a strong pipeline of talent for the future and
harnessing the power of all generations. The senior talent
program recognizes the contributions of this segment while
empowering senior talent to design their next career stage
through new contractual opportunities, upskilling, knowledge
sharing, mentoring, and coaching among other options;
• Upskilling for today and tomorrow with a strong focus on digital
skills, technical skills, commercial excellence, and functional
expertise, led by global learning academies of experts;
• A collective focus for leaders to disrupt, coach, and collaborate
in order to transform culture and build great teams; includes
clear criteria for leadership impact and selection/promotion
based on skills, experiences, and behaviors; and
• Continuous listening strategy to seek feedback from employees
throughout their employment lifecycle.
2.7 Failure to achieve our long-term sustainability commitments and comply
with regulatory requirements
Risk description
Schneider Electric has set ambitious sustainability commitments
translated into concrete targets in the Schneider Sustainability
Impacts (SSI) and Schneider Sustainability Essentials (SSE)
programs and the Group Net-Zero commitment. At the same time,
the Group is facing stronger pressure on environmental, social and
governance (ESG) performance and transparency from regulators,
investors, and customers.
Business expectations regarding sustainability are evolving fast,
requiring rapid and significant transformation of our value
proposition and sustainability practice across our operations and
geographies. As regulations tackling ESG develop, the Group
could see market disruptions in geographies where it operates as
well as where its supply chain is located.
Failure to lead sustainability best practices could end in an inability
to meet customer and regulatory requirements, resulting in a loss of
competitiveness, distrust on the part of stakeholders, and a loss of
attractiveness to investors, customers, or new talents.
As an Impact Company with sustainability at its core, falling short
on its sustainability commitments, and especially on its Net-Zero
commitment, or conveying misleading environmental claims on its
sustainability progress and products would expose the Group to
greenwashing accusations with potential brand reputational impacts.
Conversely, achieving ambitious sustainability commitments would
give Schneider Electric higher credibility and attractiveness to its
stakeholders. Thanks to the SSI’s disruptive and virtuous process
of continuous improvement, the Group is mitigating its risks, and
innovation and transformation are ensuring business opportunities
as the need for digital solutions is growing.
Risk monitoring and management
Schneider Electric’s sustainability commitments are designed to
involve all stakeholders. Internally, a clear governance is in place
from Board to operational levels to monitor performance, ensure
compliance, and progress.
SSI performance is embedded in managers’ and leaders’ short-
term incentives, and sustainability performance linked to attribution
of Performance Shares for leaders. Suppliers’ progress in
decarbonization, resource management, and decent work
practices are also included in the Group’s targets.
Finally, Schneider is committed to communicating its sustainability
commitments performance frequently and transparently to its
investors, along with its quarterly financial results.
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2. Trend driven risks continued
2.8 Business disruption due to environment-related risks
Risk description
The risk of business discontinuity can arise from multiple vectors
influenced by climate change trends.
Physical climate risks have the potential to cause:
• Losses and damages to Schneider Electric operations and
enabling infrastructures. Schneider Electric as a global
company operating in more than 100 countries is exposed to
the physical effects of climate change in the form of more
frequent and severe acute weather events, as well as impacts
from chronic environmental changes like average temperature
increase or sea level rise. This could result in damage to assets,
disruption to business operations, and human and
environmental consequences.
• Business disruption due to logistics bottlenecks. Physical
climate risk may threaten business continuity not only on
Schneider’s premises, but for all players in the value chain (from
raw material extraction and transformation to transportation
hubs and distribution centers) requiring a systemic approach
towards climate adaptation.
• Cost increase, risks of scarcity, and insecurity of raw
materials supply. Global mega-trends of electrification and
decarbonization, are increasing drastically the demand for
specific raw materials, adding volatility on the markets of
materials used to manufacture electrical equipment.
Risk monitoring and management
At present, the impact of climate-related hazards is not material to
the Group’s financial statements. Indeed, the magnitude of impact,
whether on its operations or supply chain, is considered “medium
to low”, and likelihood “as likely as not”, however the Group is
proactively monitoring this risk.
Schneider Electric acknowledges the acute and chronic risks
associated with the physical impacts of climate change and has
adopted a proactive and science-based climate risk management
approach, including the use of scenario analysis.
The Group has developed a scenario-based analysis of climate
physical and transition risks, applying climate-related risk
scenarios entailing different emission pathways between 1.5°C and
>4°C temperature rise by 2100, to a digital-twin of the Company.
Five emissions pathways have been considered, based on:
SSP5-8.5, SSP3-7.0, SSP2- 4.5, SSP1-2.6, and SSP1-1.9 by 2025,
2030, and 2050.
Losses and damages to Schneider Electric operations and
enabling infrastructures:
Under a Current Policy pathway (based on SSP3-7.0) and without
any risk mitigation considered, out of 521 sites assessed, 269 will
have a high likelihood of being exposed to natural hazards by
2050. Schneider Electric quantified its earning value at risk over the
next 5 years, 10 years and by mid of the century, under high
emission pathways and with and without considering the climate
adaptation and resilience measures taken.
On a longer time scale, the impact from chronic physical risks
covers the reduction of employees’ productivity, the increase of air
conditioning loads in buildings, and overheating in data centers, in
addition to other indirect impacts. Currently, the most disruptive
threats faced are drought and water stress. In the future there is
likely to be an increase in exposure of our sites to heatwave,
drought, and water stress.
The company integrates physical risk assessment and adaptation
solutions across strategies and investments to enhance climate
resilience and continuously improve supply chain flexibility and
agility, while committing to continuously reduce its environmental
impacts. Climate physical risks management and adaptation are
part of Schneider Electric’s Enterprise Risk Management framework
and its Global Supply Chain strategies, which include an increased
focus on adaptation and resilience to continuously improve supply
chain flexibility and agility.
The company’s Schneider Performance System monitors the
adoption of these strategies, including climate adaptation and
supply chain resilience actions, ensuring a holistic approach to risk
management across key industrial sites.
The Group’s Property Damage and Business Interruption program,
aligned with ISO 22301 standard, maps substantive risks on the
business and ensures crisis management, from the initial phase
following an incident all the way to the recovery of critical activities,
leading to preventive investment to secure assets and mitigate
material climate risks.
Climate-related physical risks are part of the on-site assessments
made by independent global risk experts (GRC), defining
current potential financial impacts as well as the cost of response.
All industrial and logistics sites worldwide are evaluated every
three years. Risk profiles of each site are thereby updated, and
recommendations are made to mitigate and adapt to identified
risks. The Group deploys protection measures to mitigate or avoid
the risks.
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2.8 Business disruption due to environment-related risks continued
The Group’s Supply Chain uses a resiliency index that includes
natural and climate-related hazards to assess and mitigate
business interruption risks. To mitigate and adapt to these risks, the
Group launched the “Power of Two in Manufacturing”, a project to
bolster greater supply chain resiliency. Schneider Electric has
adopted a global design and qualifies alternate factories for the
same products and suppliers for all critical parts and components.
By doing so, the Group can dual-source critical components from
partners in different geographies to help ensure availability
regardless of business disruptions that may occur, such as
climate-related disasters, mitigating the risk of business disruption.
Read more about “Power of Two in Manufacturing” page 384.
The aim of Schneider Electric’s supply chain resilience strategy
is to secure a full end-to-end resilience approach on:
• Upstream with dedicated resources to map risk and address
high business impact risks and secure sourcing, avoid risky
geographies, and adapt sourcing strategy over different
time horizons.
• Manufacturing with global design and at least 2 sites to supply
and site risk prevention.
• Logistics network and partners with dynamic control towers
monitoring traffic and events in real time.
Business disruption due to logistics bottlenecks:
• With suppliers, climate physical risks, are embedded into the
Supplier Risk Assessment. This deep risk assessment
combined with business impact enables the Group to design a
sourcing strategy avoiding risky geography, building strategic
stocks and developing double sourcing strategy.
• Leveraging external data providers, the Group monitors events
across 10,000 logistics nodes (such as ports and critical
supplier locations) on both upstream and downstream networks,
to shorten reaction time when events occur and thereby
minimize business impact. An alerts system is in place,
scanning media, in order to be informed earlier, anticipate and
activate actions faster avoiding disruptions.
Cost increase, risks of scarcity and insecurity of raw
materials supply:
• The Group’s Supply Chain Strategy team is responding to the
global supply chain crisis to ensure supply chain flexibility and
resilience is continually improved. The Group approaches the
access to resources at different time horizons, to ensure supply
resilience both now and in the future. The Group is:
−Building short-term resilience in securing supply and
protecting operations against price volatility with real time
alerts to notify and activate action plans;
−De-risking its portfolio with technological solutions and
circular business models; and
−Shaping the future with long-term material resilience and
sustainability with disruptive actions.
• To address uncertainty in long-term resource disruption,
Schneider has added resource parameters in product
EcoDesign and defined substitution strategies for critical
resources. R&D actions are in place, focusing on materials with
main strategic functions, accompanied by communication
channels to escalate and alert.
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3. Management practice risks
3.1 Inappropriate Data Management
Risk description
The last decades have seen a sharp increase in globalization
trends coupled with an acceleration of digital transformation. The
importance of the data economy as an enabler for wealth and
progress has been acknowledged by many governments, citizens,
and enterprises, hence adequate data management becomes
essential. However, inappropriate data management poses
tangible risks.
Firstly, it can lead to breaches in data security and privacy,
potentially exposing sensitive company and customer information
to unauthorized parties. This could result in reputational damage,
legal consequences, and financial losses. Poor data management
can hinder the Company’s ability to comply with various data
protection requirements or emerging data regulations, leading to
regulatory penalties and compliance issues. The number of such
regulations is increasing, with the aim of restricting certain data
flows but also providing customers the ability to share certain types
of data. Topics around data sovereignty, localization, and residency
remain active.
Secondly, inadequate data management can impede effective
decision-making. Without proper organization, storage, and access
to data, organizations struggle to retrieve accurate information in a
timely manner, leading to inefficiencies and errors. This can impact
various aspects of the Schneider Electric’s functions, from product
development and supply chain management to customer service
and financial planning. It can also result in the production and
storage of redundant data, generating unnecessary costs
and emissions.
Finally, inappropriate data management may hinder innovation and
digital transformation initiatives within Schneider Electric. Data is a
valuable asset that can be leveraged for insights, product
development, and process optimization. If data is not managed
effectively, it can impede the Schneider Electric’s ability to harness
the full potential of data-driven technologies such as IoT, AI, and
advanced analytics. This aspect is also amplified by the fluid and
varied global regulatory landscape and the lack of technology
players that can meet all global requirements.
Adequate management of the risks outlined above, presents
potential opportunities the Group is looking to pursue, as
outlined below:
• Given the global nature of Schneider Electric’s operations,
ensuring proper data management is crucial to maintaining trust
with customers and stakeholders;
• Ensuring that data is managed appropriately is essential for
maintaining operational excellence and driving business
performance; and
• By implementing robust data management practices, Schneider
Electric can better position itself to drive innovation, improve
operational efficiency, and deliver superior value to its
customers and partners.
Risk monitoring and management
Schneider Electric has established an “early warning system” that
monitors emerging digital policies bearing a potential impact to
Schneider Electric; each regulation (policy) is qualified with a
flashcard highlighting its type (e.g., data, digital, electronic),
characteristics (e.g., jurisdiction, scope, type of controls), and
high-level impact.
All the policies are followed in their approval trajectory and close
to the enforcement date the necessary subject matter experts are
called upon to start translating requirements into internal policies,
procedures, and an updated set of controls. These are to be
implemented and operated in the relevant geographies
and functions.
To support this system, Schneider Electric leverages a network of
Data Offices in each jurisdiction, practice, or function, that governs
the full range of data-related activities ensuring data excellence,
security, and scalability. These functions are equipped with
specialist resources focusing on the adherence of Schneider Data
Golden Rules and include a focus on data risk and security. To
monitor performance and impact, maturity assessments are
performed regularly.
Specific to the data residency laws, attention is dedicated to the
analysis of the internal and external data flows that are crossing the
borders of the in-scope countries in terms of their content, purpose,
and security measures (commonly known as Transfer Impact
Analysis). This can influence the decision-making process with
regards to whether to localize data processing or storage facilities.
Frequently, a data flow description is expected by regulators as
part of a formal approval process to export data, along with an
obligation to monitor the changes that could potentially affect the
flows and their integrity (e.g., data breach). Schneider has
capitalized on the experience built in responding to substantial
regulations such as General Data Protection Regulation (GDPR)
in the European Union, and has successfully leveraged set
capabilities, like process registry, in recent instances of data
residency such as Personal Information Protection Law (PIPL)
in China.
Finally, and specifically to digital assets, independent assurance
checks are performed to identify compliance to data privacy and
protection regulations. This is in line with privacy requirements and
includes, in certain high-risk cases, the execution of a Data Privacy
Impact assessment.
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3.2 IT systems management
Risk description
The Group operates either directly or through service providers,
a wide range of highly complex information systems, including
servers, networks, data repositories, applications (to include
Software as a Service (SaaS)), and databases with three targeted
landing zones (on premise, third parties’ co-location, and in the
cloud), that are essential for the efficiency of its sales and
manufacturing processes, as well as platforms to enable digital
offers such as EcoStruxure™. The Group is deploying various
solutions aimed at enhancing commercial experience, employee
experience, and supply chain efficiency, as well as enabling digital
commercial offers.
Significant failure in fulfillment by a service provider or a major
network outage, or hardware, and/or system failure could adversely
affect the quality of service offered by Schneider Electric. In
addition, the provision of safe and secure foundational information
systems is critical to the ongoing expansion of digital offers and
customer interactions. As the Group moves towards more digital
offers, services, and software, the variety of legacy systems makes
it harder and more complex to evolve and scale.
Despite the Group’s policy of establishing governance structures
and contingency plans, there can be no assurance that information
systems projects will not be subject to technical problems,
execution delays, or a third-party outage. While it is difficult to
accurately quantify the impact of any such problems, data loss,
or delays, they could have an adverse effect on inventory levels,
service quality, and, consequently, on the Group’s financial results.
Risk monitoring and management
The Group regularly examines alternative solutions to protect
against those risks, performs regular compliance checks on
service provider and service level agreements, performs system
monitoring, and has developed contingency plans and incident
response capabilities to mitigate the effects of any information
system failure.
The Group undergoes constant evolution and planning pertaining
to its information systems, which encompasses, but is not limited to:
• Enterprise Resource Planning transformation and the evolution
of the Group’s financial systems to prepare for digital offers;
• Elimination of legacy IT applications and associated hardware to
simplify the landscape and mitigate risks linked to
obsolescence; and
• Build and operate regional colocation (third parties) for high
availability in an effort to ensure the sustainability of the IT
landscape with ongoing focus on business continuity and
disaster recovery planning for hardware and software.
All new applications are subject to certification testing, attempting
to remove system vulnerabilities. These systems are housed either
in data centers (either managed by the Group internally or by
service providers), in co-locations, or are cloud-based applications.
The Group continued to reduce legacy IT applications through a
dedicated Technical Debt Reduction program.
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3. Management practice risks continued
3.3 M&A and integration
Risk description
Mergers and acquisitions (M&A) provide opportunities to enhance
Schneider Electric’s business portfolio, strengthen its positions in
existing businesses, acquire new technologies or expertise, enter
new markets, and exit businesses that are no longer core.
Successful M&A can drive increased revenue, profitability,
cash flow, and shareholder value.
M&A and integration also present risks for Schneider Electric.
In transaction execution, such risks include, but are not limited to,
suboptimal acquisition strategies or flawed selection of acquisition
targets, overestimating an acquisition’s future performance or
potential, overestimating revenue or cost synergies with Schneider
Electric, value erosion of acquired businesses post acquisition,
overpaying for an acquisition or selling a business for less than
its value, as well as not identifying or underestimating future risks,
losses, or liabilities, and missing or not adequately assessing other
important issues in acquisition due diligence.
With regards to integration, key risks include, inter alia, business
expectations not being met, higher than expected integration cost,
longer than planned integration processes, loss of key people,
challenges in integrating different cultures, and difficulties in
implementing Schneider Electric’s standards in areas such as
legal, regulatory, data, cybersecurity, and sustainability. If not
managed, these risks could lead to negative consequences for
the Group, including but not limited to, financial losses or penalties,
legal liabilities, and reputational damage.
Risk monitoring and management
Schneider Electric has a detailed strategy process, part of which
includes identification and prioritization of acquisition targets as
well as identification of businesses to be divested.
During transaction due diligence, Schneider Electric works to
identify and assess M&A and integration risks and uses various
means of risk mitigation, including reflection in transaction price,
contractual protections, post-closing remedial actions, and detailed
integration and separation plans. Where risks are not identified, not
adequately assessed, or where risk mitigation measures fall short,
consequences can include financial loss, legal costs and penalties,
regulatory action, and business and reputational damage for
Schneider Electric.
During the due diligence phase, Schneider Electric develops
detailed integration plans, which are implemented after
transaction closing.
These include the deployment of the Group’s Trust Standards:
minimum requirements in terms of policies, standards, procedures,
processes, or guidelines, in areas such as Human Resources,
Legal, Ethics & Compliance, Cybersecurity, that all Schneider
Electric entities must meet. The Group aims for all acquired entities
to comply with these Trust Standards requirements within a period
of three years from closing. The Trust Standards deployment plan
is part of the overall integration plan of each acquisition.
3.4 Projects acceptance and outcomes
Risk description
As a global organization, Schneider Electric must prioritize the
careful evaluation of projects in which it becomes involved,
particularly in light of rapidly evolving regulations worldwide.
The Group’s commitment to its customers, but also to other
stakeholders including its shareholders, business and financial
partners, and communities, imposes close attention to the projects
undertaken and the partners it engages with.
With projects implemented across diverse regions, implying the
development, delivery, installation, and servicing of complex
technical solutions and often involving critical subcontractors
or other industrial / business partners, it is crucial for Schneider
Electric to conduct thorough due diligence, ensuring that
undertaken projects not only apprehend all contractual, financial,
and operational risks
that could have negative impact on profitability and cash, but also
align with regulatory expectations and uphold ethical practices,
particularly concerning preservation of the environment, protection
of fundamental human and social rights, high standards of health
and safety, and generally irreproachable business ethics
and integrity.
In today’s dynamic business environment, the necessity of
conducting due diligence extends beyond suppliers to encompass
customers as well. Therefore, the Group must pay increased
attention, that the technologies and products provided to its
customers are used for projects that are not likely to result in
controversial or irresponsible operation. The Group is taking steps
to ensure that its offerings are not employed for projects having
a negative ESG footprint or by customers whose practices do
not align with ESG values, including respect for human rights,
environmental stewardship, and strict ethical business practices.
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Acceptance of projects without properly identifying, characterizing,
and mitigating the associated risks, or leveraging opportunities,
can lead to other negative consequences, such us failing to meet
intended objectives or expected outcomes, ultimately resulting
in wasted resources and missed strategic goals.
To mitigate these risks, it is essential to conduct comprehensive
evaluations before project approval. Failing to do so can not
only result in financial losses but also damaged Schneider
Electric’s reputation.
Risk monitoring and management
Schneider Electric employs a robust due diligence process
focused on (i) identifying, reviewing, and mitigating all possible
risks likely to jeopardize projects’ profitability and/or expose the
concerned Group companies to unreasonable liability, and (ii)
understanding environmental, social, and governance (ESG)
factors that could negatively impact Schneider Electric’s reputation.
This includes the comprehensive analysis of the overall projects’
characteristics, including the evaluation of potential customers,
supply chain, and partners.
Before engaging with new key accounts or initiating projects,
Schneider conducts comprehensive assessments to evaluate
compliance with business standards (such as those described in
the Schneider Electric Solution Business Policy) and adherence to
ESG principles. This process involves a detailed analysis of
customers, and projects’ proposals to identify potential compliance
risks and assess their impact.
By implementing these rigorous review mechanisms, the Group
not only protects the organization from reputational damage, but
also fosters a culture of accountability and responsibility in all
business dealings.
This proactive approach requires a strong relationship with
customers and partners, and aims at reinforcing trust while
ensuring that projects are not likely to be detrimental to the
communities and the environment in which they are operated,
and even contribute to preserve and bring them benefit. It
reinforces Schneider Electric’s dedication to propose innovative
solutions and projects driven by practices that are sustainable
and environmentally friendly, socially beneficial and responsible,
and ethical.
3.5 Procurement and Supplier relations
Risk description
The Procurement Function manages the sourcing and overall
relationship with suppliers in order to obtain the expected delivery
of needs and value creation and reach best-in-industry standards.
The procurement process faces risks that could impact the ability
to meet future growth and demand. Major risks include: inability to
secure key raw material supply chains such as copper suppliers,
current suppliers unable to meet Schneider Electric’s demand,
growth, technology evolution, etc., suppliers’ lack of regulation
conformity, all of which can lead to shortages and hinder
production capabilities.
Addressing these risks is crucial to ensuring a resilient
procurement strategy that supports ongoing growth and
customer satisfaction.
In 2024 the Group saw continued normalization of supply and
demand market situation on the one hand, continued inflationary
pressures from suppliers on the other hand, and at times
unpredictable impact of geopolitical events driving spot impact,
typically creating a new pricing equilibrium. Adding foreign
exchange risks the uncertainties in the world can negatively affect
the group’s profitability. The group has been managing these risks
via a variety of mechanisms: financial hedging contracts, long-term
supply agreements, strategic buffers stock, geographical
diversification and sometimes geographical concentration of
supply, among other actions. Raw Material Inflation (RMI) has
slowed down but linked to geopolitical uncertainty can flare up
any moment.
Risk monitoring and management
Schneider Electric is actively implementing a comprehensive
strategy to mitigate risks associated with procurement, pricing,
and delivery, centered around the introduction of the Procurement
Excellence System (PES). This system aims to enhance the
performance of the Procurement function by redesigning,
formalizing, and adopting best-in-class procurement processes.
A key component of this strategy is supplier market analysis, which
provides a refined understanding of external market trends. This
insight enables Schneider Electric to strategically identify and
address potential risks while aligning with the company’s category
strategy. By optimizing product costs through design and process
evolution, the organization can mitigate risks and improve product
quality simultaneously.
Additionally, the Procurement Performance Management
framework plays a crucial role in continuously forecasting,
measuring, and identifying gaps between actual performance and
objectives. This proactive approach allows for timely corrective
actions to be launched and communicated effectively.
A thorough needs analysis is conducted to collect and understand
current and future requirements, taking into account global
business levers and industrial implications. This information serves
as critical input for defining actionable category strategies that
align with Schneider Electric’s goals.
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3. Management practice risks continued
3.5 Procurement and Supplier relations continued
To address the risk of securing key raw material supply chains,
the company is diversifying its supplier base and establishing
strong partnerships with multiple vendors. This approach not
only enhances supply chain resilience but also ensures a more
consistent flow of essential materials needed to meet future growth
and demand.
To further strengthen supplier relationships, Schneider Electric
employs a robust supplier qualification process and actively
manages interactions with suppliers. This Supplier Relationship
Management approach fosters collaboration, driving mutual value
and innovation.
By integrating these strategies, Schneider Electric is
well-positioned to enhance its procurement processes,
ensuring resilience and adaptability in the face of evolving
market challenges.
To anticipate negative impact on profitability, the Group has
reinforced its comprehensive global Pricing program with robust
compliance, commercial policy, pricing, and quotation tools.
Chapter 3 – How we manage risk at Schneider Electric
3.4 Key risks and opportunities
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I R
C H 1
C H 2
C H 3 – R I S K M A N A G E M E N T
A T S C H N E I D E R E L E C T R I C
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9
3.5 Insurance
Schneider Electric transfers high severity, low
frequency risks to leading insurance companies.
The Risk and Insurance department reviews the
current pricing and coverage conditions of the
external insurance market in implementing the
most efficient insurance program.
These policies are arranged on a global basis for all Group
subsidiaries over which Schneider Electric has operational control.
These policies are in all countries where the Group operates and
are compliant with local regulations. All insurance companies
used by Schneider Electric must meet certain credit and
security requirements.
All insurance policies have aggregate limits determined based
upon loss scenarios and available capacities on the market.
However, there is the risk that an extreme claim could exceed the
amount of insurance purchased.
The insurance policies that are purchased cover varying exposures
including, but not limited to:
• General liability risks arising from events where the Group is
liable for damages to a third party as a result of the activities of
its people or its products;
• Property damage and business interruption resulting from an
insured risk such as fire, flood, or earthquake at a Group site or,
to a lesser extent, a customer or supplier location;
• Risks associated with the transportation of assets by land, sea,
or air;
• Damage to equipment being installed at customer locations or
construction sites;
• Risks arising from data breaches and attacks on IT systems;
• Local compulsory policies for employee safety and automobiles;
• Liabilities of Executive Directors and Corporate Officers;
• Environmental risks; and
• Emergency assistance and repatriation for employees traveling.
Insurable risk mitigations
The Group identifies and measures the impact of the main
insurable risks with a view to reducing or eliminating their impact:
• In order to minimize the risks of damage and protect our
production capacity, protection standards (including for the
sites managed by third parties) are defined, and main
industrial sites are audited by an independent loss prevention
company with a process to action any recommendations from
these audits.
• Business continuity plans are implemented, reviewed, and
tested, in particular for the Group’s main sites and critical
suppliers. These plans are developed to identify internal
alternative manufacturing and storage solutions to reduce the
disruption to the business.
• Crisis management tools are implemented in conjunction with
the Group’s Global Security department. These are tested on
a systematic basis. Regular exercises are performed to identify
areas for improvement.
• Hazard and vulnerability studies are carried out to protect our
people and our equipment.
• For transportation risks, the lessons learned from losses are
communicated across the Group to improve the risk
management of shipments and the Insurance department
liaise closely with Logistic and Planning teams to minimize
incident impact.
• Employee safety and a safe work environment are priority
topics at all site management meetings. Safety training for new
employees combined with regular reviews ensure continuous
learning and improvement in the recognition and elimination
of hazards.
Self-insurance
As part of the overall insurance strategy the Group self-insures
certain risks through two captive insurance and reinsurance
companies located in Europe and North America.
Examples of the policies re-insured by the Group, include
property damage and business interruption, general liability,
and transportation.
The total amount retained for these risks is capped at €20 million
(except for USA and Canada).
The cost of the self-insured risks is not considered material at the
Group level.
The Group assumes a deductible at a site/entity level – though this
is not regarded as self-insurance.
Cost of insurance programs
The cost (including tax) of the Group’s main global insurance
programs, excluding premiums paid to captives, totaled around
€30 million in 2024.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Corporate Governance Report
4
4.1 Governance Report
398
4.1.1
Composition of the Board of Directors
400
4.1.2
Activities and operating procedures of the Board of Directors
423
4.1.3
Activities and operating procedures of the committees
431
4.1.4
Reports of the Chairman of the Board of Directors and
of the Vice-Chairman & Lead Independent Director
438
4.1.5
Internal regulations of the Board of Directors
440
4.1.6
Regulated agreements and commitments
449
4.1.7
Stakeholder Committee
450
4.1.8
Senior management
451
4.2 Compensation Report
452
4.2.1
Overview
452
4.2.2
Report on the compensation granted or paid during
the 2024 fiscal year (say on pay ex-post)
454
4.2.3
Compensation policy for the 2025 fiscal year
(say on pay ex-ante)
480
4.2.4
Compensation of Group Senior Management
(excluding Corporate Officers)
495
4.2.5
Long-term incentive plans
496
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Chapter 4 – Corporate governance report
4.1 Governance Report
Chapter 4 – Corporate governance report
4.1 Governance Report
Dear Shareholders,
2024 was a solid year for Schneider Electric with strong financial,
including record revenues, and extra-financial results. Based on
these results, the Board of Directors proposes a dividend of €3.90
per share, representing the 15th consecutive year of dividend
progression. The Board is also proud of the 2024 Schneider
Sustainability Impact score, which exceeded expectations.
This year has also been marked by a change in Governance with
the decision of the Board of Directors, on November 1, 2024, to
remove Mr. Peter Herweck from office as Chief Executive Officer
and to appoint Mr. Olivier Blum as Chief Executive Officer to
accelerate the execution of the Group’s strategy and engage into
the next phase of its development. The Governance, Nominations &
Sustainability Committee worked on this succession where several
high-quality external and internal candidates were considered. The
Board determined that Olivier Blum’s skills and personality made
him the perfect candidate to lead the Company, notably his
extensive knowledge of Schneider Electric, recognised exceptional
leadership, and strong track record in setting a vision, defining a
strategy and executing the required transformations.
During the year, the Board continued to work on its composition,
and invites you to support the ratification of the co-optation of
a new Independent Director at the Shareholders Meeting.
Mrs. Clotilde Delbos, a French citizen based in Paris, is the former
Chief Financial Officer, Interim Chief Executive Officer, and Deputy
Chief Executive Officer of Renault. She is currently Director of
Alstom, AXA, and Sanofi, and she brings to the Board her expertise
in finance and industry, as well as her experience in
transformations. Also submitted to your votes are the renewals
of the terms of office of Mr. Jean-Pascal Tricoire and Mrs. Anna
Ohlsson-Leijon, both of whom bring relevant and complementary
skills to the Board. The Board also recommends supporting the
appointment of Mrs. Laura Ding as a Director representing
the employee shareholders in replacement of Mrs. Xiaoyun Ma,
whose term of office expires at the close of the 2025
Shareholders’ Meeting.
Throughout 2024, the Chairman of the Board of Directors and myself
had the opportunity to engage with many of Schneider Electric’s
shareholders, as well as investor representative bodies, and discuss
our Group’s compensation policy and practices in engagements.
Several changes were implemented in the 2024 compensation policy
such as: (i) the introduction of a stricter retention rule for unvested
share awards that would be pro-rated for time in case of retirement
or change of assignment within the Group for the CEO, and (ii) the
introduction of new sustainability performance conditions in the LTIP
linked to the reduction of CO2 emissions to align executive
remuneration with the Group’s climate transition commitments.
For 2025, the Board wishes to maintain the overall balance and
stability of the remuneration policy, ensuring a strong link between
pay and performance, a fair alignment with employees and
shareholders, and a focus on long-term value creation. Some
adjustments were however deemed necessary and the Board
proposes to implement the following changes in the 2025
compensation policy: (i) an increase of the annual variable
compensation opportunity on-target and at maximum to take into
account the rapidly evolving environment and the need to
accelerate the execution of the Group’s strategy (together with the
level of LTIP grant decided for 2025, this represents a limited
increase of the on-target global remuneration opportunity of +11%,
reflecting a consistent positioning in the benchmarks used
compared to the size of the Group and its evolution, and Mr. Olivier
Blum’s experience and his increased responsibilities within the
Group); (ii) the maximum LTIP award remains stable but is now
expressed as a percentage of the fixed compensation only (300%
of the fixed compensation) in order to avoid the automatic effect of
the change in the remuneration on-target; (iii) a reinforcement of the
pay-for-performance principle by ending the existing offsetting
mechanism between EPS and TSR criteria in the LTIP, and
incentivize instead the overperformance of the EPS criteria, leading
to a total maximum vesting of 115%; (iv) replacement of the CAC 40
by the Stoxx Europe 50 for the TSR criterion of the LTIP that
compares Schneider Electric to the index performance, hence
using a European index for broader, more global comparison
beyond France; and (v) a reinforcement of the alignment with
shareholders’ experience by increasing to 100% the number of
shares to be held during 1 year after the end of the vesting period.
The Board is attentive to shareholders feedback and, with these
proposed changes, ensures that Schneider Electric’s remuneration
practices remain stringent and in line with investors’ expectations,
while also incentivizing its executives to the utmost performance.
The Board counts on your support on all related items submitted to
your vote.
Further to this letter, I invite you to read the governance report and
notice of meeting which provide more details on the resolutions. We
look forward to a successful AGM and sincerely hope that many of
you will take part in the Company’s future by voting, attending, and
expressing your views during the Q&A session.
Thank you for your support and your trust,
Fred Kindle
Vice-Chairman & Lead Independent Director
Vice-Chairman & Lead
Independent Director’s
introduction
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
C O R P O R A T E G O V E R N A N C E R E P O R T
Governance structure
Schneider Electric is being governed through a model considered
by the Board of Directors to be best suited to the Company’s
culture and specificities, with the ambition to constantly improve its
effectiveness. The structure responsible for the General
Management of Schneider Electric has always been selected in the
best interest of the Company and its stakeholders, with the objective
that the corporate governance model will support the optimization of
the Group’s financial and sustainability performance, create the most
favorable conditions for the Company’s long-term development,
respect the rights of shareholders, and maintain the necessary
balance of powers between the different governance bodies.
In accordance with the wishes of Mr. Jean-Pascal Tricoire to step
down as Chief Executive Officer, alongside the intention of the
Board of Directors to separate the functions of Chairman and Chief
Executive Officer, the Board decided on February 15, 2023, to
implement a new governance structure that splits the office of
Chairman from that of the Chief Executive Officer. This new
governance structure became effective on May 4, 2023, further to
the decision of the Board of Directors to separate the functions of
Chairman of the Board and Chief Executive Officer and to appoint
Mr. Jean-Pascal Tricoire as Chairman of the Board.
On November 1, 2024, the Board of Directors decided to remove
from office Mr. Peter Herweck as Chief Executive Officer, due to
divergences in the execution of the Company roadmap at a time of
significant opportunities, and to appoint Mr. Olivier Blum in
replacement with immediate effect to accelerate the execution of its
strategy and engage into the next phase of its development.
A description of responsibitities of the different corporate bodies of
the Company is provided in section 4.1.2.1 of this Chapter.
Reference to the AFEP-MEDEF Code
The Company refers to the AFEP-MEDEF Corporate Governance
Code, the latest version of which was updated on December 20,
2022. The Company complies with all the recommendations
contained in the AFEP-MEDEF Corporate Governance Code which
may be consulted online at http://www.medef.com/.
In accordance with the provisions of Article L. 225-37, paragraph 6
of the French Commercial Code, this Chapter constitutes the
specific section of the Management Report on corporate
governance and reports on the following, in particular:
•
The Board’s composition and application of the principle of
balanced gender representation on the Board;
•
The ways in which the Board’s work is prepared and organized;
•
The remuneration policy for Directors and Corporate Officers;
•
Information relating to the remuneration and benefits of any kind
for Directors and Corporate Officers during the previous
financial year pursuant to Article L. 22-10-9 of the French
Commercial Code; and
•
Limitations placed by the Board of Directors on the powers of
the Chief Executive Officer.
The other information of the Corporate Governance Report required
by Articles L. 225-37 et seq. and L. 22-10-8 et seq. of the French
Commercial Code is published in Chapters mentioned in the
cross-reference table referring to said report as stated in Chapter 9
of this Universal Registration Document.
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Chapter 4 – Corporate governance report
4.1 Governance Report
4.1.1 Composition of the Board of Directors
4.1.1.1 Board members
As of March 26, 2025, the Board of Directors consisted of 17 Directors. Mrs. Clotilde Delbos was co-opted as a Director, in replacement of
Mrs. Cécile Cabanis, resigning, by the Board of Directors on November 1, 2024. The ratification of her co-optation will be proposed to the
Annual Shareholders’ Meeting to be held on May 7, 2025.
Board committees
Jean-Pascal
Tricoire
Chairman of the
Board of Directors
C
Fred Kindle
Vice-Chairman &
Lead Independent Director
Léo Apotheker
Director
Nive Bhagat
Independent Director
Giulia Chierchia
Independent Director
Clotilde Delbos
Independent Director
Rita Félix
Employee Director
Philippe Knoche
Independent Director
Linda Knoll
Independent Director
C
Jill Lee
Independent Director
C
Xiaoyun Ma
Employee Shareholders Director
Anna Ohlsson-Leijon
Independent Director
Abhay Parasnis
Independent Director
C
Anders Runevad
Independent Director
Gregory Spierkel
Independent Director
C
Lip-Bu Tan
Independent Director
Bruno Turchet
Employee Director
Governance,
Nominations &
Sustainability
Committee
Jean-Pascal Tricoire C
Léo Apotheker
Fred Kindle
Linda Knoll
Anders Runevad
Gregory Spierkel
Audit & Risks
Committee
Jill Lee C
Clotilde Delbos
Philippe Knoche
Anna Ohlsson-Leijon
Investment
Committee
Gregory Spierkel C
Léo Apotheker
Giulia Chierchia
Jill Lee
Xiaoyun Ma
Anders Runevad
Lip-Bu Tan
Jean-Pascal Tricoire
Bruno Turchet
Digital
Committee
Abhay Parasnis C
Léo Apotheker
Nive Bhagat
Xiaoyun Ma
Gregory Spierkel
Lip-Bu Tan
Jean-Pascal Tricoire
Human Capital &
Remunerations
Committee
Linda Knoll C
Nive Bhagat
Rita Félix
Fred Kindle
Anna Ohlsson-Leijon
Board expertise
Public company management (14)
Corporate finance (13)
Accounting, audit & risk (5)
International markets (15)
Industry knowledge (9)
Employee perspective & knowledge
of the Group (4)
Digital & software (7)
Environment/Climate (4)
Social (8)
Governance, law, ethics & compliance (6)
Board members key
Audit & Risks Committee
Governance, Nominations & Sustainability
Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Germany
2
An independent and balanced governance structure
The Board of Directors of Schneider Electric SE is independent and seeks to ensure a gender balance and broad diversity in terms of skills,
experience, nationality, and age. The Board of Directors constantly reviews its composition and search for complementary profiles in line
with the skill set highlighted by its skill matrix and the challenges of the Company. The current governance structure which separates the
offices of Chairman of the Board of Directors and Chief Executive Officer has been in force since 2023. As part of this governance structure,
the term of office of Chairman of the Board of Directors is exercised by Mr. Jean-Pascal Tricoire, and that of Chief Executive Officer by
Mr. Olivier Blum who was appointed by the Board of Directors on November 1, 2024.
Board committees
Governance,
Nominations &
Sustainability
Committee
11
meetings***
100%
attendance
67%
independence*
Audit & Risks
Committee
7
meetings***
100%
attendance
100%
independence*
Investment
Committee
4
meetings
97%
attendance
71%
independence*
Digital
Committee
5
meetings***
89%
attendance
67%
independence*
Human Capital &
Remunerations
Committee
5
meetings***
92%
attendance
100%
independence*
14+3
Directors
58 years
Average age
86%
Independent Directors*
5 years
Average length of office
43%
Female*
1
Director representing
employee shareholders
11
Non-French nationalities
2
Directors representing
employees
*
Excluding the Directors representing employees in accordance with
Article L. 225-27-1 of the French Commercial Code and the Director
representing employee shareholders in accordance with Articles L. 225-23
and L. 22-10-5 of the French Commercial Code (for the gender ratio), and
Article 10.3 of the AFEP-MEDEF Corporate Governance Code (for the
independence rate) unlike the rate disclosed section 2.2.1.1.2 of Chapter 2
of this Universal Registration Document.
**
Including two meetings without the Chairman attending.
Directors’ nationality
Board tenure
4
6
< or equal to 1 year
> 1 year - < or equal to 5 years
6
1
> 5 years - < or equal to 12 years
> 12 years
Board of Directors
97%
Attendance rate
in 2024
6
Executive sessions
in 2024**
8
Meetings in 2024
5h
55min
Average duration of
meetings
*** Including joint meetings with other committees.
Belgium
1
United Kingdom
1
United States
3
Switzerland
1
Portugal
1
Singapore
1
China
1
Sweden
2
Canada
1
France
5
Italy
1
Board of Directors
Jean-Pascal Tricoire
Chairman of the Board of Directors
Fred Kindle
Vice-Chairman & Lead Independent Director
+
Olivier Blum
Chief Executive Officer
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Chapter 4 – Corporate governance report
4.1 Governance Report
Overview of the composition of the Board of Directors as of the date
of this Universal Registration Document
Personal information
Position within the Board
Attendance rate in
2024
Participation in Board committees
Age Gender
Natio-
nality
Number of
directorships
in listed
companies*
Number of
Schneider
Electric
shares held
Indepen-
dence
First
appoint-
ment**
Term
end
Seniority
on the
Board**
Board
Committee
Audit
& Risks
Committee
Governance,
Nominations
& Sustain-
ability
Committee
Human
Capital
& Remu-
nerations
Committee
Investment
Committee
Digital
Committee
Jean-Pascal Tricoire, Chairman of the Board of Directors
61
M
2
848,369
2013 AGM 2025
11
100%
100%
C
Fred Kindle, Vice-Chairman & Lead Independent Director
66
M
1
40,000
2016 AGM 2028
8
100%
100%
Léo Apotheker, Non-independent Director
71
M
2
3,093
2008 AGM 2025
16
100%
100%
Nive Bhagat, Independent Director
53
F
1
1,000
2022 AGM 2026
2
88%
80%
Giulia Chierchia, Independent Director
46
F
1
1,000
2023 AGM 2027
1
100%
100%
Clotilde Delbos, Independent Director
57
F
4
0
2024 AGM 2028
< 1
100%
100%
Rita Félix, Employee Director
42
F
1
190
2020 AGM 2028
4
100%
80%
Philippe Knoche, Independent Director
56
M
1
1,000
2024 AGM 2028
< 1
88%
100%
Linda Knoll, Independent Director
64
F
3
1,000
2014 AGM 2026
10
88%
100%
C
Jill Lee, Independent Director
61
F
1
1,000
2020 AGM 2028
4
100%
100%
C
Xiaoyun Ma, Director representing the employee shareholders
61
F
1
40,679
2017 AGM 2025
7
100%
78%
Anna Ohlsson-Leijon, Independent Director
56
F
2
1,000
2021 AGM 2025
3
100%
100%
Abhay Parasnis, Independent Director
50
M
2
1,000
2023 AGM 2027
1
100%
80%
C
Anders Runevad, Independent Director
65
M
3
1,000
2018 AGM 2026
6
100%
100%
Gregory Spierkel, Independent Director
68
M
2
1,000
2015 AGM 2027
9
100%
93%
C
Lip-Bu Tan, Independent Director
65
M
3
8,700
2019 AGM 2027
5
88%
100%
Bruno Turchet, Employee Director
51
M
1
480
2021 AGM 2025
3
100%
100%
*
Including Schneider Electric SE directorship.
** As a Director or member of the Supervisory Board (if any, the period of presence at the Board as an Observer is not taken into account).
Changes in the composition of the Board of Directors in 2024 and until the date of this
Universal Registration Document
Name
Gender
Nationality
Date of appointment
Term end
Directors whose term of office was renewed at the
2024 AGM*
Fred Kindle
Cécile Cabanis
Jill Lee
M
F
F
April 2016
April 2016
April 2020
AGM 2028
AGM 2028
AGM 2028
Directors who joined the Board of Directors in 2024
Philippe Knoche
Clotilde Delbos
M
F
May 2024
November 2024
AGM 2028
AGM 2028
Observers who joined the Board of Directors in 2024
None
Directors who left the Board of Directors in 2024
Cécile Cabanis
F
April 2016
October 2024
*
Annual Shareholders’ Meeting.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.1.2 Biographies of the Chief Executive Officer and Board members
List of directorships and other functions of the Chief Executive Officer and members of the Board of
Directors as of the date of this Universal Registration Document
Jean-Pascal
Tricoire
Chairman of the Board of Directors
of Schneider Electric SE
Age: 61 years
Nationality: French
Business address: Schneider Electric,
11th Floor, 683 King’s Road, Quarry Bay,
Hong Kong
848,369(1) Schneider Electric SE
shares
Board committees
C
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Jean-Pascal Tricoire is currently Chairman of the Board of Directors
of Schneider Electric SE after having been for 18 years successively
Chairman of the Management Board and Chairman & CEO. Prior to that,
he spent his early career with Alcatel, Schlumberger, and Saint-Gobain
and joined Schneider Electric (Merlin Gerin) in 1986. From 1988 to 2001,
he occupied operational functions within Schneider Electric abroad, in
Italy, China, South Africa, and the US. From January 2002 to the end of
2003, he joined the Executive Committee as Executive Vice-President
of Schneider Electric’s International Division. In October 2003, he was
appointed Deputy CEO before becoming Chairman of the Management
Board of Schneider Electric on May 3, 2006. On April 25, 2013, following
the change in mode of governance of the Company, he was appointed
Chairman & CEO. On May 4, 2023, he transitioned to Chairman of the
Board. Jean-Pascal Tricoire is a graduate of ESEO Angers and obtained
an MBA from EM Lyon and attended Management trainings at Harvard
and INSEAD.
Term of office
First appointed: 2013
Current term started: 2021
Term ends: 2025
Current external directorships
Other directorships at listed companies:
Director of Qualcomm, Inc. (USA).
Other directorships:
Member of the Board of Trustees of Northeastern University (USA).
Other internal directorships:
Director of Delixi Electric Ltd (China); Chairman of the Board of Directors
of Schneider Electric Asia Pacific Ltd (Hong Kong).
Previous directorships
Previous directorships held in the past five years:
Director of the Board of the United Nations Global Compact (USA);
Director of Schneider Electric USA, Inc. (USA); Chairman of the Board of
Directors of Schneider Electric Industries SAS (France); Chairman of the
Board of Directors of Schneider Electric Holdings Inc. (USA).
Skills
Olivier
Blum
Chief Executive Officer
of Schneider Electric SE
Age: 54 years
Nationality: French
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
65,443(1) Schneider Electric SE shares
Experience and qualifications
Olivier Blum is the Chief Executive Officer of Schneider Electric SE since
November 2024. Olivier Blum began his career at Schneider Electric in
1993 in France. He currently resides in Dubai, and lived and worked in
Asia for over two decades where he has held leadership positions as the
Regional Head of Strategy for China and the Regional Managing Director
for India, before taking on the global role of Executive Vice-President
for the Home & Distribution Division based in Hong Kong. Olivier Blum
joined the Executive Committee of Schneider Electric in 2014 as Chief
Human Resources Officer leading Schneider’s People Strategy. In 2020, he
became Chief Strategy & Sustainability Officer, leading the development
of Corporate Strategy, Mergers & Acquisitions, Sustainability, and Quality.
From April 2022 to October 2024, Olivier Blum was Executive Vice-President
of Schneider Electric’s Energy Management business, responsible for the
entire Energy Management portfolio of world-leading technologies, software,
and services. Olivier Blum was appointed as Chief Executive Officer of
Schneider Electric SE by the Board of Directors on November 1, 2024.
Olivier Blum graduated from Grenoble Business School (GEM), France.
Term of office
First appointed: November 2024
Current external directorships
Other directorships at listed companies:
Director of Keppel Ltd. (Singapore).
Other directorships:
None.
Other internal directorships:
President and Director of Schneider Electric Industries SAS (France);
Director of Schneider Electric Asia Pacific Ltd. (Hong Kong); Director of
Samos Acquisition Company Ltd. (United Kingdom).
Previous directorships
Previous directorships held in the past five years:
Director of AVEVA Group plc. (United Kingdom); Member of the
Supervisory Board of Delta Dore Finance (France); Chairman of the
Board of Directors of Luminous Power Technologies Private Ltd. (India).
Board committees
Audit & Risks Committee
Governance, Nominations & Sustainability Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
(1) Held directly or through the FCPE.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
Skills
Public company management
Corporate finance
Accounting, audit & risk
International markets
Industry knowledge
Employee perspective
& knowledge of the Group
Digital & software
Environment/Climate
Social
Governance, law,
ethics & compliance
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Chapter 4 – Corporate governance report
4.1 Governance Report
Fred
Kindle*
Vice-Chairman & Lead Independent
Director of Schneider Electric SE
Age: 65 years
Nationality: Swiss
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
40,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Fred Kindle, who currently is the Vice-Chairman & Lead Independent
Director of Schneider Electric SE, is the former CEO of ABB. He began
his career in the Marketing Department of Hilti AG in Liechtenstein
from 1984 to 1986. From 1988 to 1992, he worked as a consultant at
McKinsey & Company in New York and Zurich. He then joined Sulzer AG
in Switzerland where he held various management positions. In 1999, he
was appointed CEO of Sulzer Industries and in 2001, he became CEO
of Sulzer AG. After joining ABB Ltd in 2004, Fred Kindle was appointed
CEO of the ABB Group, a position which he held until 2008. He then
became a partner at Clayton, Dubilier & Rice LLC, a private equity fund
based in London and New York. He is now an independent consultant
and a company Director. Board member of Schneider Electric SE since
2016, he was appointed Vice-Chairman & Lead Independent Director
in April 2020. Fred Kindle graduated from the Swiss Federal Institute
of Technology (ETH) in Zurich and holds an MBA from Northwestern
University, Evanston, USA.
Term of office
First appointed: 2016
Current term started: 2024
Term ends: 2028
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
Non-executive Diector of Seed-X AG (Liechtenstein).
Previous directorships
Previous directorships held in the past five years:
Chairman of the Board of Directors of VZ Holding AG (Switzerland);
Director of Stadler Rail AG (Switzerland); Director of Exova Plc. (United
Kingdom); Partner of Clayton Dubilier & Rice Llc. (USA); Chairman of
the Board of Directors of Exova Group Plc. (United Kingdom); Chairman
of the Board of Directors of BCA Marketplace Plc. (United Kingdom);
Director of Rexel SA (France); Member of the Development committee of
the Royal Academy of Engineering (London); Vice-Chairman of Zurich
Insurance Group Ltd (Switzerland); Chief Executive Officer of Kinon
AG (Switzerland).
Skills
Léo
Apotheker
Company Director
Age: 71 years
Nationality: French/German
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
3,093 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Léo Apotheker, former CEO of SAP and Hewlett-Packard, began his
career in 1978 in Management Control. He then held management and
executive responsibilities in several firms specializing in information
systems including SAP France & Belgium, where he was Chairman
and CEO between 1988 and 1991. Léo Apotheker was founding
Chairman and CEO of ECsoft. In 1995, he returned to SAP and, after
various appointments within SAP as Regional Director, he was appointed
in 2002 as a member of the Executive Committee and President of
Customer Solutions & Operations, then in 2007 as Deputy CEO of SAP
AG, and in 2008 CEO of SAP AG. In 2010, he became President &
CEO of Hewlett-Packard, a position he held until the fall of 2011. Board
member of Schneider Electric SE since 2008, Léo Apotheker served as
Vice-Chairman & Lead Independent Director from 2014 to April 2020.
Léo Apotheker graduated with a degree in International Relations and
Economics from the Hebrew University in Jerusalem.
Term of office
First appointed: 2008
Current term started: 2023
Term ends: 2025
Current external directorships
Other directorships at listed companies:
Director of NICE-Systems Ltd (Israel).
Other directorships:
Chairman of BSI Software AG (Switzerland); Chairman of Syncron
International AB (Sweden); Chairman of Harvest (France); Chairman of
Eudonet (France).
Previous directorships
Previous directorships held in the past five years:
Director of MercuryGate (USA); Chairman and Co-CEO of Burgundy
Technology Acquisition Corporation (USA); Chairman of the Board
of Directors of Unit 4 NV (Netherlands); Director of Taulia (USA);
Chairman of the Supervisory Board of Signavio GmbH (Germany);
Director and Chairman of the Board of KMD A.S. (Denmark); Member
of the Supervisory Board of Steria (France); Chairman of Appway
(Switzerland).
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Nive
Bhagat*
Chief Financial Officer of Capgemini
Age: 53 years
Nationality: British
Business address: Capgemini,
40 Holborn Viaduct, London, EC1N 2PB,
United Kingdom
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
88%
Committee
meetings
80%
Experience and qualifications
Nivedita Krishnamurthy Bhagat, also known as Nive Bhagat, is currently
Chief Financial Officer of Capgemini Group. Nive began her career in
articling with PricewaterhouseCoopers before joining KPMG’s Corporate
Finance team. She later joined Infosys Technologies where she held
several leadership positions including Head of Enterprise Solutions
EMEA and head of its Proximity Development Centre in London. In 2010,
Nive joined Capgemini and held senior executive positions including
Head of Markets of its Application Business in the UK and European
Head of the Cloud Infrastructure Services business before spending
almost five years as CEO of Capgemini’s global Cloud, Cyber and
Infrastructure business. Nive was appointed as Chief Financial Officer
of the Capgemini Group and member of the Group Executive Board on
January 1, 2024. She has a Bachelor’s Degree in Economics and is a
Chartered Accountant from the Institute of Chartered Accountants of
India.
Term of office
First appointed: 2022
Term ends: 2026
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
Director of Capgemini Outsourcing Services GmbH (Germany),
Capgemini Solutions Canada Inc. (Canada), Capgemini Sverige AB
(Sweden), Capgemini America, Inc. (USA), CGS Holdings Limited
(United Kingdom), Capgemini UK Plc. (United Kingdom), and Capgemini
Semiconnext Platform B.V (Netherlands).
Previous directorships
Previous directorships held in the past five years:
Director of Capgemini UK plc. (United Kingdom), CGS Holdings Ltd
(United Kingdom) and Capgemini Solutions Canada Inc. (Canada); Non-
executive Director of Mitie Plc. (United Kingdom); Member of Audit &
Nomination Committees of Mitie Plc. (United Kingdom).
Skills
Giulia
Chierchia*
Executive Vice-President Strategy,
Sustainability and Ventures of BP
Age: 46 years
Nationality: Italian/Belgian
Business address: BP, 1 St James’s
Square, London, SW1Y 4PD, United
Kingdom
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Giulia Chierchia is currently Executive Vice-President Strategy,
Sustainability and Ventures at BP. She began her career in 2001
working for UniCredit Bank as an analyst in the corporate banking
division, followed by a two-and-a-half-year period with Value Partners
as an associate consultant, leading projects in telecommunications
and education. In 2006, she joined McKinsey & Company and was
appointed Partner in 2013 and Senior Partner in 2019 leading the global
downstream oil and gas practice and advising clients regarding their
decarbonization strategy and how to pivot their existing portfolio. In April
2020, she was appointed as Executive Vice-President Strategy and
Sustainability of BP, a British oil and gas industry company, in charge,
in particular, of strategy and sustainability, ethics and compliance,
capital allocation, investment governance for the company, delivery
of its net-zero carbon aims, ESG transformation, external stakeholder
engagement, and group energy transition policy. In March 2022, she
became Executive Vice-President Strategy, Sustainability and Ventures
and was given the additional responsibility for BP’s ventures arm. Giulia
Chierchia holds a Bachelor’s degree in Economics and Corporate
Law from Bocconi University (Italy) and a Master’s Degree in Business
Administration from INSEAD Business School (France).
Term of office
First appointed: 2023
Term ends: 2027
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
Director of BP Technology Ventures Limited (United Kingdom).
Previous directorships
Previous directorships held in the past five years:
None
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
Board committees
Audit & Risks Committee
Governance, Nominations & Sustainability Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
Skills
Public company management
Corporate finance
Accounting, audit & risk
International markets
Industry knowledge
Employee perspective
& knowledge of the Group
Digital & software
Environment/Climate
Social
Governance, law,
ethics & compliance
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Chapter 4 – Corporate governance report
4.1 Governance Report
Clotilde
Delbos*
Company Director
Age: 57 years
Nationality: French
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
0 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Clotilde Delbos, currently company director, is the former Chief Financial
Officer of Renault group. She began her career in California then in Paris
at PriceWaterhouseCoopers before joining the Pechiney Group in 1992
where she held various positions in France and in Belgium in Internal
Audit, Treasury and Mergers & Acquisitions. After the acquisition of
Pechiney by the Québec group Alcan, Clotilde Delbos became Chief
Financial Officer of the Engineered Products division in 2005, until its
sale in 2011 to the Apollo Global Management investment fund and the
Strategic Investment Fund. In the new company, Constellium, her last
two positions were Chief Financial Officer and Chief Risk Officer. Clotilde
Delbos joined Renault group in 2012 as Group Director of Performance
and Control. In May 2014, she was appointed Director of Alliance,
Performance and Control. In April 2016, Clotilde Delbos was appointed
Chief Financial Officer of Renault group and Chairwoman of the Board of
Directors of RCI Banque and in 2019 was also assigned responsibility for
the Internal Control Department. In October of the same year, she was
appointed Acting Chief Executive Officer of Renault SA, and then Deputy
Chief Executive Officer in July 2020 while remaining Chief Financial
Officer of Renault group. In 2021, she became Chief Executive Officer
of the Mobilize brand of the Renault group, a position she held until
2023. Clotilde Delbos graduated from EM Lyon with a specialization in
accounting.
Term of office
Co-optation as a Director: November 2024
Ratification of appointment as a Director: May 2025
Term ends: 2028
Current external directorships
Other directorships at listed companies:
Director of Alstom (France); Director of AXA (France); Director of Sanofi
(France).
Other directorships:
Chairwoman of Hactif Advisory (France); Co-Manager of Hactif
Patrimoine (France).
Previous directorships
Previous directorships held in the past five years:
Member of the Management Board of Alliance Rostec Auto B.V.
(Netherlands); Member of the Supervisory Board of Alliance Ventures
B.V. (Netherlands); Chairwoman and Chief Executive Officer of Renault
Nissan B.V. (Netherlands); Acting Chief Executive Officer of Renault
(France); Chairwoman of Mobilize Invest (now Caremakers Invest)
(France); Director of Renault Espana (Spain); Chief Executive Officer of
Mobilize (France); Chairwoman and Director of Banque RCI SA (France);
Chairwoman of Renault Venture Capital (now Mobilize Ventures) (France);
Chairwoman of Renault Mobility as an Industry (France).
Skills
Rita
Félix
Customer Experience and Satisfaction
Director for Home & Distribution
Age: 42 years
Nationality: Portuguese
Business address: Schneider Electric,
Av. do Forte 3, Ed. Suécia IV, Piso 3,
2794-038 Carnaxide, Portugal
190(1) Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
80%
Experience and qualifications
Rita Félix has been an Employee Director designated by the European
Work Council since 2020 and renewed in June 2024 for a four-year
term. She began her career in consulting at Deloitte, where she worked
from 2006 to 2008. After that she joined the Marketing Department of
COSEC (a credit insurance company owned by Allianz Trade). Rita Félix
came to Schneider Electric Portugal in 2012 as Business Excellence
Manager. In 2017, she was appointed Project Management Officer
(PMO) for Global Marketing, International Operations at Schneider
Electric Group. She has worked as PMO, Inside Sales Director, and
more recently as Market and Competitive Intelligence leader. On
December 2023, she has been appointed as Customer Experience
and Satisfaction Director for global Home & Distribution division. Since
July 2020, she was designated Employee Director. Rita Félix graduated
from ISCTE – IUL (University Institute of Lisbon) including six months in
the Vrije Universiteit (Amsterdam). She also holds a Master’s Degree in
Marketing Management (2012). Additionally, she has attended the High-
Performance Boards program (IMD Business School, 2020), the Strategy
in the Age of Digital Disruption program (INSEAD, 2021), the Digital
Transformation Foundations program (IMD Business School, 2022),
and more recently the Leading Sustainable Business Transformations
program (IMD Business School, 2023).
Term of office
First appointed: 2020
Current term started: 2024
Term ends: 2028
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
None.
Previous directorships
Previous directorships held in the past five years:
None.
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
(1) Held directly or through the FCPE. Note: bold indicates the names of companies whose securities are listed on a regulated market.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Philippe
Knoche*
Senior Executive Vice President
Operations and Performance of Thales
Age: 56 years
Nationality: French/German
Business address: Thales, Campus
Meudon, 4, rue de la Verrerie, 92190
Meudon
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
88%
Committee
meetings
100%
Experience and qualifications
Philippe Knoche is currently Senior Executive Vice President Operations
and Performance of Thales and the former Chief Executive Officer of
Orano. He began his career in 1995 in Brussels as a case handler on
anti-dumping for the European Commission. In 2000, he joined Areva
group as Director of Strategy, and became Director of the Processing
Business Unit in 2004. In 2006, he took charge of the project to build the
EPR generation 3 nuclear reactor in Finland. In 2010, Philippe Knoche
was appointed Director of the Reactors and Services Business Group
and member of Areva’s Executive Board, before being named Executive
Vice-President for Nuclear Operations in 2011. In 2015, Philippe Knoche
was appointed Chief Executive Officer of Areva which he completely
transformed and restructured, leading to the creation in 2017 of Orano
of which he had been the Chief Executive Officer before joining Thales
in October 2023 as Senior Executive Vice President Operations and
Performance. Philippe Knoche is a graduate of Ecole polytechnique and
Ecole des mines.
Term of office
First appointed: 2024
Term ends: 2028
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
None
Previous directorships
Previous directorships held in the past five years:
Chief Executive Officer of Orano (France); Chairman of the Board of
the World Nuclear Association (WNA, expired on 05/15/2022); Board
member of Thales (France).
Skills
Linda
Knoll*
Company Director
Age: 64 years
Nationality: American
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
1,000 Schneider Electric SE shares
Board committees
C
Attendance rate at:
Board
meetings
88%
Committee
meetings
100%
Experience and qualifications
Linda Knoll, currently Company Director, is the former Chief Human
Resources Officer of Fiat Chrysler Automobiles. After a career in
the Land Systems Division of General Dynamics, Linda Knoll joined
CNH Industrial in 1994. She held various operating positions there,
culminating in her appointment to multiple senior management
positions. In 1999, she became Vice-President and General Manager
of the company’s Global Crop Production business unit. From 2003 to
2005, she was Vice-President for North America Agricultural Industrial
Operations. She then served as Executive Vice-President for Worldwide
Agricultural Manufacturing until 2007, managing 20 plants in ten
countries, before being appointed Executive Vice-President Agricultural
Product Development, and President Parts and Service (ad interim). She
served as Chief Human Resources Officer in CNH Industrial (from 2007
to 2019) and Fiat Chrysler Automobiles (from 2011 to March 2021). Linda
Knoll holds a Bachelor of Science Degree in Business Administration
from Central Michigan University.
Term of office
First appointed: 2014
Current term started: 2022
Term ends: 2026
Current external directorships
Other directorships at listed companies:
Director of Astec Industries, Inc. (USA); Director of Iveco Group N.V.
(Netherlands).
Other directorships:
None.
Previous directorships
Previous directorships held in the past five years:
Director of Comau S.p.A. (Italy); Chief Human Resources Officer and
member of the Group Executive Council of Fiat Chrysler Automobiles
N.V. (the Netherlands).
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
Board committees
Audit & Risks Committee
Governance, Nominations & Sustainability Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
Skills
Public company management
Corporate finance
Accounting, audit & risk
International markets
Industry knowledge
Employee perspective
& knowledge of the Group
Digital & software
Environment/Climate
Social
Governance, law,
ethics & compliance
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Chapter 4 – Corporate governance report
4.1 Governance Report
Jill
Lee*
Company Director
Age: 61 years
Nationality: Singaporean
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
1,000 Schneider Electric SE shares
Board committees
C
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Jill Lee is a non-executive director of PSA International and 65 Equity
Partners. She is also a non-executive director of JTC Corporation, a
statutory board under Singapore’s Ministry of Trade and Industry that
champions sustainable industrial development. Jill Lee was the Group
Chief Financial Officer and a member of the Executive Committee of
Sulzer Ltd from 2018 to 2022. Beginning her career in Singapore in
1986 with AT&T, Tyco Electronics, and Siemens, Jill Lee went on to build
an international career where she spent several years heading Asia
regional CFO functions in China, followed by strategic global positions
in Germany and Switzerland. Her career in Siemens spanned 20 years
until 2010, where she had been the Country CFO in Singapore, North-
East Asia CFO in China, as well as Chief Diversity Officer for Siemens
Group in Germany. Later, Jill Lee was Senior Vice-President, Finance,
Strategy and Investments for Neptune Orient Lines in Singapore (2010
to 2011). From 2012 to 2018, Jill Lee held leadership positions in ABB,
including North Asia CFO in China, as well as Head of Next Level
Program Management responsible for global transformation programs
at ABB Group in Switzerland. Jill Lee was previously a non-executive
director and Chair of the audit committees of Sulzer Ltd (2011 to 2018),
Signify N.V. (2017 to 2020), and medmix Ltd (2021 to 2022). Jill Lee holds
a Bachelor’s Degree in Business Administration from National University
of Singapore and an MBA from Nanyang Technological University in
Singapore.
Term of office
First appointed: 2020
Current term started: 2024
Term ends: 2028
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
Non-executive Director of 65 Equity Partners Pte Ltd (Singapore);
Non-executive Director of PSA International Pte Ltd (Singapore);
Non-executive director of JTC Corporation (a governmental agency in
Singapore); Board Member of National University of Singapore - Institute
of Systems Science (Singapore).
Previous directorships
Previous directorships held in the past five years:
Non-executive Director of Dyson Holdings Pte Ltd (Singapore); Advisory
Board Member of Nanyang Business School (Singapore); Non-executive
Director of medmix Ltd (Switzerland); Member of the Supervisory Board
of Signify N.V. (Netherlands); Non-executive Director of Sulzer Ltd
(Switzerland).
Skills
Xiaoyun
Ma
Chief Financial Officer for Schneider
Electric’s China & East Asia Operations
Age: 61 years
Nationality: Chinese
Business address: Schneider Electric,
8F, Schneider Electric Building, No. 6,
East WangJing Rd. Chaoyang District
Beijing 100102, China
40,679(1) Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
78%
Experience and qualifications
Xiaoyun Ma, currently Employee Shareholders Director, is the Chief
Financial Officer for Schneider Electric’s China & East Asia Operations,
in charge of China & East Asia daily finance operations, organization,
simplification, and internal digital transformation. Graduated from top
Chinese universities and holding a Chinese Public Accountant Certificate,
she started her career as a finance professional at an audit firm (PwC).
She joined Schneider Electric in 1997 as the Controller of Schneider
(Beijing) Medium Voltage Co., Ltd in Beijing, China. Since then, she has
worked in many different controller and Chief Financial Officer positions,
covering manufacturing, supply chain, and front office, in the China and
Asia Pacific zone, while getting an MBA from New York City University
in 2004.
Term of office
First appointed: 2017
Current term started: 2021
Term ends: 2025
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
Vice-Chairwoman of the Board of Directors of Sunten Electric Equipment
Co., Ltd (China).
Current internal directorships or functions
Vice-Chairwoman of the Board of Directors of Beijing BipBop Efficiency and
Automation Application Technology Center (China); Director of Full Excel
(Hong Kong) Limited, Schneider Electric (China) Co., Ltd, Schneider Shanghai
Power Distribution Electrical Apparatus Co., Ltd, Schneider Shanghai Low
Voltage Terminal Apparatus Co., Ltd, Schneider Shanghai Industrial Control
Co., Ltd, Schneider Busway (Guangzhou) Ltd, Schneider (Beijing) Low Voltage
Co., Ltd (formerly known as Schneider (Beijing) Medium and Low Voltage Co.,
Ltd), Schneider Merlin Gerin Low Voltage (Tianjin) Co., Ltd, Schneider Wingoal
(Tianjin), Electric Equipment Co., Ltd, Schneider (Shaanxi) Baoguang Electrical
Apparatus Co., Ltd, and Schneider Switchgear (Suzhou) Co., Ltd; Supervisor of
Zircon Investment (Shanghai) Co. Ltd (China).
Previous directorships
Previous directorships held in the past five years:
Chairwoman of the Board of Schneider Electric IT (China) Co., Ltd.;
Vice-Chairwoman of the Board of Directors of Jingxin Hongde (Beijing)
Technology Co., Ltd (formerly known as Citic Schneider Smart Building
Technology (Beijing) Co., Ltd); Director of Schneider Great Wall
Engineering (Beijing) Co., Ltd, Tianjin Merlin Gerin Co., Ltd, Schneider
(Beijing) Medium Voltage Co., Ltd, Shanghai Schneider Electric Power
Automation Co., Ltd, Tianjin Wingoal Electric Equipment Co., Ltd,
Schneider South China Smart Technology (Guangdong) Co., Ltd, Clipsal
Manufacturing (Huizhou) Co., Ltd, Schneider Shanghai Apparatus Parts
Manufacturing Co., Ltd, Shanghai ASCO Electric Technology Co., Ltd
(formerly known as Schneider Automation Solutions (Shanghai) Co., Ltd)
and Schneider Smart Technology Co., Ltd; Executive Director of Beijing
Leader Harvest Energy Efficiency Investment Co., Ltd (China).
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
(1) Held directly or through the FCPE. Note: bold indicates the names of companies whose securities are listed on a regulated market.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Anna
Ohlsson-Leijon*
Executive Vice-President of AB
Electrolux and CEO of Business Area
Europe & APACMEA
Age: 56 years
Nationality: Swedish
Business address: AB Electrolux, St
Göransgatan 143, 105 45 Stockholm,
Sweden
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Anna Ohlsson-Leijon is currently Executive Vice-President of AB
Electrolux, and CEO of Business Area Europe & APACMEA. Anna
Ohlsson-Leijon began her career in 1993 at PricewaterhouseCoopers
where she held various positions advising high-tech, industrial, and media
companies. In 2000, she joined Kimoda, an e-commerce platform, as
Chief Financial Officer, before joining in 2001 AB Electrolux (Sweden) as
Director of Project Management. Anna Ohlsson-Leijon then held various
senior positions in corporate functions including Director Internal Audit &
Global Program Manager Sarbanes-Oxley Act from 2003 to 2005, Head
of Management Assurance & Special Assignments until 2008, Group
Treasurer until 2011, Head of Corporate Control & Services until 2013,
and Chief Financial Officer Major Appliance EMEA thereafter. She was
then promoted to Chief Financial Officer of AB Electrolux in 2016 before
taking the position as Chief Executive Officer Europe and Executive Vice-
President of AB Electrolux in 2018. In 2022 she was promoted to Chief
Commercial Officer for the Group, and in 2024 she took on the role as
CEO of a new Business Area combined for Europe and Asia Pacific Middle
East, and Africa. Anna Ohlsson-Leijon holds a Bachelor of Sciences
Degree in Business Administration and Economics from Linköping
University (Sweden).
Term of office
First appointed: 2021
Term ends: 2025
Current external directorships
Other directorships at listed companies:
Director of Atlas Copco AB (Sweden).
Other directorships:
None.
Previous directorships
Previous directorships held in the past five years:
None.
Skills
Abhay
Parasnis*
Founder & CEO of Typeface AI
Age: 50 years
Nationality: American
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
1,000 Schneider Electric SE shares
Board committees
C
Attendance rate at:
Board
meetings
100%
Committee
meetings
80%
Experience and qualifications
Abhay Parasnis is founder & CEO of Typeface AI, a generative artificial
intelligence company. Previously, he was Vice-President, Chief
Technology Officer & Chief Product Officer of Adobe Inc. He started
his career at IBM in 1996 as a software researcher before joining i2
Technologies, Inc. in 1997 where he served as Chief Architect until 2002.
From 2002 to 2011, Abhay Parasnis held various leadership positions at
Microsoft Corporation, driving strategic platform initiatives and consumer
technologies. In 2012, he joined Oracle Corporation, a cloud technology
company, successively as Senior Vice-President and as Strategic
Advisor of Oracle Public Cloud Initiative. In 2013, he was appointed as
President & Chief Operating Officer of Kony, Inc., an enterprise mobility
leader, before joining Adobe, Inc., a software company that provides
digital marketing and media solutions, in 2015 where he held various
leadership roles, including Executive Vice-President & Chief Technology
Officer, Executive Vice-President Chief Technology Officer & Chief
Strategy Officer, and finally, Executive Vice-President Chief Technology
Officer & Chief Product Officer, a position from which he stepped down
in February 2022. Abhay Parasnis is also a Director of Dropbox, Inc.’s
Board of Directors. Abhay Parasnis holds a Bachelor of Science in
Electronics and Telecommunications from the College of Engineering
Pune and an advanced diploma from the National Institute of Information
Technology.
Term of office
First appointed: 2023
Term ends: 2027
Current external directorships
Other directorships at listed companies:
Director of Dropbox, Inc. (USA).
Other directorships:
None.
Previous directorships
Previous directorships held in the past five years:
None.
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
Board committees
Audit & Risks Committee
Governance, Nominations & Sustainability Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
Skills
Public company management
Corporate finance
Accounting, audit & risk
International markets
Industry knowledge
Employee perspective
& knowledge of the Group
Digital & software
Environment/Climate
Social
Governance, law,
ethics & compliance
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4.1 Governance Report
Anders
Runevad*
Company Director
Age: 65 years
Nationality: Swedish
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Anders Runevad, currently Company Director, is the former CEO of
Vestas Wind Systems A/S. He started his career at Ericsson in 1984
as a Design Engineer before holding various management positions
in Sweden, Singapore, Brazil, the UK, and the US. In 1998, he was
appointed President of Ericsson Singapore. From 2000 to 2004, he
served as Vice-President Sales and Marketing of Ericsson Mobile
Communications AB. In 2004, he was appointed President of Ericsson
Brazil. From 2007 until 2010, he served as Executive Vice-President
and member of the Board at Sony Ericsson Mobile Communications
AB. He then became President of Western & Central Europe at
Telefonaktiebolaget LM Ericsson (public company) in 2010. In 2013,
he left Ericsson to join Vestas Wind Systems A/S as Chief Executive
Officer and Group President, a position from which he stepped down in
2019. Anders Runevad holds a Master of Science Degree in Electrical
Engineering from the University of Lund (Sweden), where he also studied
business and economy.
Term of office
First appointed: 2018
Current term started: 2022
Term ends: 2026
Current external directorships
Other directorships at listed companies:
Chairman of the Board of Vestas Wind Systems A/S (Denmark);
Chairman of the Board of Peab AB (Sweden).
Other directorships:
Director of Copenhagen Infrastructure Partners (CIP) (Denmark);
Chairman of the Board PGA National Sweden (Sweden).
Previous directorships
Previous directorships held in the past five years:
Director of Nilfisk Holding A/S (Denmark); President & CEO of Vestas
Wind Systems A/S (Denmark); Member of the General Council of the
Confederation of Danish Industry; Member of the Industrial Policy
Committee of the Confederation of Danish Industry Director of NKT A/S
(Denmark) (2018).
Skills
Gregory
Spierkel*
Company Director
Age: 68 years
Nationality: Canadian
Business address: Schneider Electric,
35, rue Joseph Monier, 92500 Rueil-
Malmaison, France
1,000 Schneider Electric SE shares
Board committees
C
Attendance rate at:
Board
meetings
100%
Committee
meetings
93%
Experience and qualifications
Gregory Spierkel, now Company Director, is the former CEO of Ingram
Micro Inc. He began his career working for Bell Canada in sales and
product development, followed by a period with Nortel Inc. in market
research. For four years, he served as Managing Director of Mitel
Telecom with responsibilities over Europe and Asia. He then spent five
years at Mitel Corp. where he served as President of North America
and President of Global Sales and Marketing. In August 1997, he joined
Ingram Micro as Senior Vice-President Asia-Pacific. In June 1999, he
was appointed as Executive Vice-President and President of Ingram
Micro Europe. He was promoted to President of the Ingram Micro Inc.
Group in 2004, before assuming the role of CEO of Ingram Micro Inc.
from 2005 to 2012. Gregory Spierkel holds a Bachelor’s Degree in
Commerce from Carleton University (Ottawa) and a Master’s Degree in
Business Administration from Georgetown University. He also attended
the Advanced Manufacturing program at INSEAD.
Term of office
First appointed: 2015
Current term started: 2023
Term ends: 2027
Current external directorships
Other directorships at listed companies:
Director of PACCAR Inc. (USA).
Other directorships:
Member of McLaren Advisory Group (McLaren Technology Group)
(United Kingdom).
Previous directorships
Previous directorships held in the past five years:
Director of MGM Resorts International (USA).
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
Board committees
Audit & Risks Committee
Governance, Nominations & Sustainability Committee
Human Capital & Remunerations Committee
Investment Committee
Digital Committee
C Committee Chair
Skills
Public company management
Corporate finance
Accounting, audit & risk
International markets
Industry knowledge
Employee perspective
& knowledge of the Group
Digital & software
Environment/Climate
Social
Governance, law,
ethics & compliance
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Lip-Bu
Tan*
Chief Executive Officer of Intel
Corporation
Age: 65 years
Nationality: American
Business address: One California
Street, Suite 1750, San Francisco, CA
94111, United States
1,000 Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
88%
Committee
meetings
100%
Experience and qualifications
Lip-Bu Tan is currently Chief Executive Officer of Intel Corporation.
Previoulsy, he was the Executive Chairman of Cadence Design Systems,
Inc. from which he retired as Chief Executive Officer in 2021. Lip-Bu Tan
held management positions at EDS Nuclear and ECHO Energy before
becoming Vice-President of Chappell & Co. He also serves as Chairman
of Walden International, a venture capital firm he founded in 1987, and as
Founding Managing Partner of Celesta Capital and Walden Catalyst Ventures,
a venture capital firm focused on investing in core technology companies.
After joining the Board of Cadence Design Systems, Inc. in 2004, Lip-Bu Tan
was appointed as CEO in 2009, a position that he held until December 2021.
At that time, he transitioned to his role of Executive Chairman of Cadence
Design Systems, Inc. from which he retired in 2023. In March 2025, he
became Chief Executive Officer and Director of Intel Corporation. Lip-Bu
Tan holds a Master of Science Degree in Nuclear Engineering from the
Massachusetts Institute of Technology, an MBA from the San Francisco
University, and a Bachelor of Science Degree from the Nanyang University
of Singapore.
Term of office
First appointed: 2019
Current term started: 2023
Term ends: 2027
Current external directorships
Other directorships at listed companies:
Director of Intel Corporation (USA); Chairman of the Board of Credo
Technology Group Holding Ltd (Cayman Islands).
Other directorships:
Director of Datachat, Inc. (USA), Exostella, Inc. (USA), Galileo
Technologies, Inc. (USA), Greenstone Biosciences (USA), Osdyne,
Inc. (USA), 3DGS Inc. (USA), Agita Labs (USA), DustPhotonics (Israel),
Artera (USA), LightBits Labs (Israel), Movandi Corporation (USA),
Prosimo, Inc. (USA), Proteantecs (Israel), Rivos, Inc. (USA), Speedata.
io (Israel), Vayyar Imaging (Israel), SambaNova Systems, Inc. (USA),
and The Electronic System Design Alliance (ESD Alliance); Member
of the board of trustees and the School of Engineering Dean’s Council
at Carnegie Mellon University (CMU); Advisory Board member of the
College of Engineering, and Compute, Data Science & Social Division
at University of California, Berkeley (USA); Member of UCSF Executive
Health Council (USA); Global Advisory board Member of METI Japan;
Member of the board of Global Semiconductor Alliance (GSA); Member
of The Business Council and Committee 100.
Previous directorships
Previous directorships held in the past five years:
Director of RF Pixels, Inc. (USA), Intel Corporation (USA); Chairman
of Cadence Design Systems, Inc. (USA); Director of Advanced
Micro-Fabrication Equipment Inc (Shanghai) and Softbank Group
Corp. (Japan); CEO of Cadence Design Systems (USA); Director of
Hewlett Packard Enterprise (USA); Board member of Habana Labs Ltd
(Israel), Tagore Technology, Inc. (USA), WekaIO, LTD (Israel), Aquantia
Corporation (USA), CNEX Labs, Inc. (USA), Fungible, Inc. (USA),
Innovium, Inc. (USA), Komprise (USA), NuVia, Inc. (USA), Oryx Vision
(Israel), Rosetal System Information Ltd (Israel), HiDeep, Inc. (South
Korea), and Silicon Mitus, Inc. (South Korea).
Skills
Bruno
Turchet
Vice-President Global Supply Chain
Strategy Deployment
Age: 51 years
Nationality: French
Business address: Schneider Electric,
160, avenue des Martyrs, 38000
Grenoble, France
480(1) Schneider Electric SE shares
Board committees
Attendance rate at:
Board
meetings
100%
Committee
meetings
100%
Experience and qualifications
Bruno Turchet, currently Employee Director, began his career in 1999
as Electromechanical Engineer for Assystem Technologies (French
consulting and engineering company) and held the role of Key Account
Manager for the industry market (2001 to 2005). He joined Schneider
Electric in 2005 and has worked in different operations. He started as
Project Technical Leader for Low Voltage Equipment in France for two
years, before expatriation to Schneider Electric China as Low & Medium
Voltage Equipment R&D Manager for three years. Back in France in
2011, he led the Productivity Department of one of the main divisions of
the Group and deployed there the sustainability program. From 2016 to
2021, he was New Products Industrialization Director of Final Distribution
Line of Business, and then became Vice-President Industrialization for
Home & Distribution Europe Division until 2024. Since July 2024, Bruno
Turchet is Vice-President Global Supply Chain Strategy Deployment. In
April 2021, he was appointed Employee Director. Bruno Turchet holds a
Master of Science Degree in Engineering & Quality from the University
of Besançon (France). He also attended the High Performance Boards
program at IMD Business School of Lausanne (Switzerland) in October
2021.
Term of office
First appointed: 2021
Term ends: 2025
Current external directorships
Other directorships at listed companies:
None.
Other directorships:
None.
Previous directorships
Previous directorships held in the past five years:
None.
Skills
*
An independent Director within the meaning of the AFEP-MEDEF Corporate Governance Code.
(1) Held directly or through the FCPE.
Note: bold indicates the names of companies whose securities are listed on a regulated market.
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Chapter 4 – Corporate governance report
4.1 Governance Report
List of directorships and other functions that expired during the 2024 fiscal year
Peter
Herweck
Former Chief Executive Officer
of Schneider Electric SE
until November 1, 2024
Age: 58 years
Nationality: German
Experience and qualifications
Peter Herweck was the Chief Executive Officer of Schneider Electric
SE from May 4, 2023 until November 1, 2024. Peter Herweck first joined
Schneider Electric in 2016 when he was appointed to the Executive
Committee to lead the Industrial Automation business. In 2018, he
undertook the merger of Schneider’s Industrial Software business with
AVEVA of which he became the Chief Executive Officer in May 2021. Peter
Herweck started his career in 1991 as a Software Development Engineer
with Mitsubishi in Japan, before joining Siemens in 1993 where he held
various executive positions before becoming Chief Strategy Officer. Peter
Herweck’s background includes extensive global responsibilities of senior
management in the US, Japan, China, and several European countries.
Peter Herweck holds an MBA from Wake Forest University School of
Business, USA, and Electrical Engineering degrees from Metz University,
France, and Saarland University, Germany. He is also a Harvard Business
School Advanced Management alumnus, USA.
Term of office
First appointed: May 4, 2023
Term ended: November 1, 2024
Current external directorships and functions
Other directorships and functions at listed companies:
Director of Teradyne, Inc. (USA).
Other directorships and functions:
None.
Previous directorships and functions
Previous directorships and functions held in the past five years:
Chief Executive Officer of Schneider Electric SE (France); Chairman
of Schneider Electric Industries SAS (France); President of Schneider
Electric Software & Digital Hub AG (Switzerland); Chairman of AVEVA
Group plc (United Kingdom); CEO of AVEVA Group plc (United
Kingdom).
Cécile
Cabanis
Independent Director
of Schneider Electric SE
until October 29, 2024
Age: 53 years
Nationality: French
Experience and qualifications
Cécile Cabanis has been Deputy Chief Financial Officer of LVMH
Group since June 7, 2024. Cécile Cabanis was Deputy CEO at Tikehau
Capital in charge of ESG, Human Capital, Communication and Brand
from September 1, 2021 until March 31, 2024. She was previously Chief
Financial Officer of Danone, also in charge of Strategy, IS/IT, data
transformation, procurement, sustainability, and inclusive diversity. She
was a member of the Executive Committee and a member of the board
of directors. She graduated as an engineer in Agronomy from Institut
National Agronomique Paris-Grignon. She started her career at L’Oréal in
South Africa in 1995. She joined Orange in 2000 as a Director in Mergers
& Acquisitions. She joined Danone in 2004 and has served in a range of
key positions in Finance including head of corporate development.
Term of office
First appointed: 2016
Term ended: October 29, 2024
Current external directorships and functions
Other directorships and functions at listed companies:
Vice-Chairwoman of the Supervisory Board and Chairwoman of the
Audit Committee of Unibail-Rodamco-Westfield SE (France).
Other directorships and functions:
Chairwoman of the Supervisory Board of Mediawan (France); Member of
the college of the French Antitrust Authority (France).
Previous directorships and functions
Previous directorships and functions held in the past five years:
Member of the Supervisory Board of Société Editrice du Monde (France);
Deputy Chief Executive Officer of Tikehau Capital (France); Director
of Schneider Electric SE (France); Vice-Chairwoman of the Board
of Directors of Danone SA (France); Director of Michel et Augustin
SAS (France); Chairwoman and member of the Board of Directors of
Livelihoods Fund (SICAV, Luxembourg); Chairwoman and Director
of 2MXOrganic (France); Director of Central Danone (Morocco),
Fromagerie des Doukkala (Morocco), Danone Djurdura (Algeria),
Produits Laitiers Frais Iberia (Spain), Danone SA (Spain), Compagnie
Gervais Danone (France), Dan Trade (Russia), Danone Limited (United
Kingdom), Danone Industria LLC (Russia), JSC Danone Russia (Russia),
and Danonewave (Public Benefit Corporation – USA); Member of the
Supervisory Board of Danone Sp.z.o.o (Poland), and Toeca International
Company B.V. (the Netherlands); Chief Executive Officer of Danone CIS
Holdings B.V.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.1.3 Changes to the Board composition
submitted to the Annual Shareholders’
Meeting
Mr. Léo Apotheker, member of the Board of Directors for sixteen
years and former Vice-Chairman & Lead Independent Director, has
decided not to seek the renewal of his term of office which expires at
the closing of the 2025 Shareholders’ Meeting. The Board of Directors
expressed its gratitude to Mr. Léo Apotheker’s dedication to the
Board of Directors’ work and to his long-term commitment.
As part of the Board’s continuous review of its composition, the Board
of Directors asked the Governance, Nominations & Sustainability
Committee to make a recommendation on the renewal of Mr. Jean-
Pascal Tricoire and Mrs. Anna Ohlsson-Leijon, as well as search for
a complementary candidate in line with the skill set highlighted by
its Board skills matrix and the challenges of the Company.
In that respect, the Committee has analyzed Mr. Jean-Pascal
Tricoire’s and Mrs. Anna Ohlsson-Leijon’s situation with regards to
their contribution and performance, their time commitment and
availability to fulfill their duties, as well as the value added by each
of them to the work of the Board.
• Mr. Jean-Pascal Tricoire, Chairman of the Board of Directors,
brings to the Board the benefit of his experience as former
Chairman & Chief Executive Officer of Schneider Electric SE as
well as his skills in corporate finance and digital, and his
knowledge of international markets, Schneider’s industry, and
sustainability matters. He holds only one other position in a
listed company (Director of Qualcomm, Inc.), and his
attendance rate at the meetings of the Board and the
committees in which he participates in 2024 is 100%. In line with
the time commitment policy dedicated to the Group, the Board
concluded he has the necessary availability to fulfil his role. The
Committee recommended to the Board that Mr. Jean-Pascal
Tricoire continues to participate in the work of the Board as
Chairman, which leads the Board to propose to the
shareholders the renewal of his mandate for a four-year term.
The Board also asked him to continue to fulfill his additional
missions so that Schneider Electric can benefit from his
experience.
• Mrs. Anna Ohlsson-Leijon brings to the Board of Directors her
experience as Executive Vice-President of AB Electrolux and
CEO of Business Area Europe & APACMEA. The Board is
benefiting from her skills in corporate finance, accounting, risks,
and audit, and her knowledge of international markets and
ethics and compliance matters. She holds only one other
position in a listed company (Director of Atlas Copco AB), and
her attendance rate at the meetings of the Board and the
committees in which she participates in 2024 is 100%. Upon the
recommendation of the Governance, Nominations &
Sustainability Committee, the Board proposes to the
shareholders the renewal of her mandate for a four-year term.
The Governance, Nominations & Sustainability Committee also
identified the skills that would be useful to diversify and strengthen
the Board composition and hired an external recruitment firm
(Heidrick & Struggles) to search for suitable candidates, identified
as being a female candidate in order to strengthen the Board
gender ratio, Chief Financial Officer or recently retired Chief
Financial Officer, with a technology or industry background and
international exposure. Among these candidates, the Governance,
Nominations & Sustainability Committee preselected a short list
and the members of the Committee interviewed them. Following
these interviews, the Committee recommended one candidate to
the Board of Directors, Mrs. Clotilde Delbos, who was co-opted as
a Director on November 1, 2024 by the Board in replacement of
Mrs. Cécile Cabanis, resigning further to her joining LVMH as
Deputy Chief Financial Officer, for the remaining term of office of
her predecessor, and whose co-optation is submitted to the
ratification by the shareholders to the 2025 Annual Shareholders’
Meeting.
Mrs. Clotilde Delbos, a French citizen based in Paris, is the former
Chief Financial Officer, Interim Chief Executive Officer, and Deputy
Chief Executive Officer of Renault. She is currently Director of
Alstom, AXA, and Sanofi, and she brings to the Board her expertise
in finance and industry, as well as her experience in
transformations. Her attendance rate at the meetings of the Board
and the Committee in which she participates in 2024 is 100%. She
qualifies as an independent Director with regard to all the criteria
set by Article 10.5 of the AFEP-MEDEF Corporate Governance
Code, and joined the Audit & Risks Committee.
Mrs. Xiaoyun Ma was appointed Director to represent employee
shareholders pursuant to Article 11-3 of the Articles of Association
and her term of office expires at the close of the 2025 Annual
Shareholders’ Meeting. As a consequence, her successor must be
appointed according to the procedure provided in this Article
which stipulates that when employee shareholders hold more than
3% of the capital at the close of a given financial year, their
representative must be elected by the Annual Shareholders’
Meeting from the candidates appointed by the supervisory boards
of the corporate mutual funds (FCPEs) invested in company shares
or by the employee shareholders when their shares are held
directly, and not via FCPEs. The candidates designated by this
procedure are:
• Mr. François Durif, and Mr. Gérard Le Gouefflec on the proposal
of the FCPE Schneider Actionnariat (French FCPE);
• Mrs. Xiaohong (Laura) Ding, and Mr. Venkat Garimella on the
proposal of the FCPE Schneider Actionnariat Mondial
(International FCPE);
• Mr. Alban de Beaulaincourt, and Mrs. Amandine Petitdemange
for the employee shareholders holding their shares directly.
Their biographies are provided in section 8.1 of Chapter 8 of this
Universal Registration Document.
The Board of Directors, upon the report from the Governance,
Nominations & Sustainability Committee, decided to support
resolution n°15 providing for the appointment of Mrs. Laura Ding as
a member of the Board of Directors representing employee
shareholders. Her detailed knowledge of the Industrial Automation
business, AVEVA business, digital transformation as well as her
insight on the China market were considered by the Board as most
relevant to complete the existing skills set of the Board.
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4.1 Governance Report
If all proposals submitted to the Annual Shareholders’ Meeting are approved by the shareholders, the Board of Directors would comprise:
16
Directors
12 (92%)
Independent Directors*
46%
Women Directors*
3
Employee Directors
57
Average age of Directors
Board members nationality
Europe (7)
France (3)
North America (4)
Asia (2)
Board expertise
Public company management (13)
Corporate finance (12)
Accounting, audit & risk (5)
International markets (15)
Industry knowledge (10)
Employee perspective &
knowledge of the Group (5)
Digital & software (7)
Environment/Climate (4)
Social (7)
Governance, law, ethics &
compliance (5)
4.1.1.4 Skills and diversity
General diversity policy within the Board of
Directors
The Board of Directors pays due attention to its composition and
that of its committees. It relies on the works of the Governance,
Nominations & Sustainability Committee which reviews regularly
and proposes as often as required, the relevant changes to the
composition of the Board of Directors and its committees
depending on the Group’s strategy.
In that respect, in conformity with its internal regulations, the Board
of Directors ensures through its proposals and its decisions that:
• Its composition reflects the international nature of the Group’s
activities and of its shareholders by having a significant number
of members of non-French nationality;
• It protects the independence of the Board through the
competence, availability, and courage of its members;
• It ensures open and unrestricted speech;
• It pursues its objective of diversifying the Board of Directors in
compliance with the legal principle of attaining balanced gender
representation on the Board;
• It appoints persons with the expertise required for developing
and implementing the Group strategy while considering the
objectives of diversity based on criteria such as age,
professional skills, nationality, and background;
• Employee shareholders and employees shall continue to be
represented on the Board in compliance with the provisions set
forth in Articles 11.3 and 11.4 of the Articles of Association; and
• It preserves the continuity of the Board by changing some of its
members at regular intervals, if necessary, by anticipating the
expiry of members’ terms of office.
Employee representation within the Board of
Directors
The Board of Directors includes three employee Directors: two
employee representatives, namely Mrs. Rita Félix and Mr. Bruno
Turchet, and one employee shareholders representative,
Mrs. Xiaoyun Ma.
Pursuant to Article L. 225-27-1 of the French Commercial Code, the
number of directors representing employees is at least equal to two
in companies whose number of directors is greater than eight. In
accordance with the procedure provided in Article 11.4 of the
Articles of Association, and in line with the prescription of Article
L. 225-27-1 of the French Commercial Code, the French employee
representative, Mr. Bruno Turchet, is designated by the trade union
which obtained the highest number of votes at the most recent
elections which is as of today, Force Ouvrière, and the second
Director representing employees, Mrs. Rita Félix, is appointed by
the European Works Council, employee representative body of the
Company set up in pursuance of Article L. 2352-16 of the French
Labor Code, thereby ensuring a higher representativity of the
Group employees within the Board.
The Director representing the employee shareholders is appointed
according to the procedure provided in Article 11-3 of the Articles
of Association which stipulates that when employee shareholders
hold more than 3% of the capital at the close of a given financial
year, their representative is elected by the Annual Shareholders’
Meeting from the candidates appointed by the supervisory boards
of the FCPEs invested in company shares or by the employee
shareholders when their shares are held directly.
*
Excluding the Director representing the employee shareholders and the Directors representing the employees.
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C H 8
C H 9
Gender diversity within the Board
As prescribed by Article L. 225-18-1 and L. 22-10-3 of the French
Commercial Code, the proportion of Directors of each gender must
be at least 40%, it being specified that the Directors representing
the employees and the Director representing the employee
shareholders are not counted to assess said proportion of 40%
(Articles L. 225-27 and L. 225-23 of the French Commercial Code).
The gender diversity ratio of the Board of Directors, should the
ratification of the co-optation of Mrs. Clotilde Delbos be confirmed
at the 2025 Annual Shareholders’ Meeting, will reach 43% women
(excluding the Employee Directors and the Employee Shareholders
Director).
Gender diversity policy within the management of
the Company
Schneider Electric is deeply committed towards diversity in general
and gender diversity in particular. Schneider Electric focuses on
taking proactive measures to encourage a balanced representation
of men and women at the leadership level: the proportion of women
at the Executive Committee level was 40% in 2024 (vs. 41% in
2023). For the leadership pool, comprising of the top leaders
(Vice-Presidents and above, excluding direct reports to the CEO,
around 1,101 employees), the female representation is 31% (+2pts
vs. 2023).
At its meeting on December 17, 2024, the Board of Directors
reviewed Senior Management’s ambitions regarding the balanced
representation of men and women at the leadership level and noted
that the objectives(1) are set to:
• At least 40% women at the Executive Committee; and
• At least 30% women among the leadership (Vice-President and
above; around 1,101 employees).
To achieve these objectives and further improve gender diversity,
the Group aims at attracting female talents by offering a leadership
training program and dedicated mentoring, an equal treatment
policy, and a tailored family leave policy.
Skills within the Board of Directors
The Board of Directors frequently assesses the skills to include in
its skills matrix in order to meet the Company’s strategic needs, and
a review of some peer comparisons. It reviews its composition and
expertise to identify skills, relevant to Schneider Electric’s current
and future activities, that could be strengthened in the future or
would deserve a stronger disclosure/narrative.
Schneider Electric’s Board, assessed against these skills, appears
strong and balanced, and globally well positioned. The Board
comprises individuals from diverse and complementary
professional and cultural backgrounds, true to the Group’s history
and values. This enables it to perform its duties collectively and
constructively.
The experience and expertise brought to the Board by each
Director at the date of this Universal Registration Document can be
summarized as follows:
Jean-Pascal
Tricoire
Fred Kindle
Léo
Apotheker
Nive
Bhagat
Giulia
Chierchia
Clotilde Delbos
Rita Félix
Philippe
Knoche
Linda Knoll
Jill Lee
Xiaoyun Ma
Anna
Ohlsson-Leijon
Abhay
Parasnis
Anders
Runevad
Gregory
Spierkel
Lip-Bu Tan
Bruno
Turchet
Total
Benchmarked Skills
Public company management
14
Corporate finance
13
Accounting, audit & risk
5
International markets
15
Industry knowledge
9
Employee perspective &
knowledge of the Group
4
Digital & software
7
Environment/Climate
4
Social
8
Governance, law,
ethics & compliance
6
(1) Those objectives shall not apply to countries or entities prohibiting the establishment of such objectives.
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Skills
Definition
Core Skills
Public company management
Directors with experience in executive leadership positions of public companies. These positions
include industry CEOs as well as other top executive positions (e.g., CEO of private companies,
CFO, COO) and top management roles (regional or divisional leadership).
Corporate finance
Directors who have gained experience in banking, investments, restructuring, or M&A. Also, those
high-level executives with responsibilities for financial management (e.g., CEO, CFO).
Accounting, audit & risk
Directors from an auditing, or finance role (e.g., financial reporting responsibilities). Also, expertise
in risk management gained from subject matter expertise or responsibility for corporate risk
management.
International markets
Directors who have spent a large portion of their career in, or have been directly responsible for,
foreign markets.
Industry knowledge
Directors who have gained experience in energy, electricity and automation sectors.
Employee perspective &
knowledge of the Group
Directors who are also employees of the Group and have gained a deep and inside knowledge of
the Group.
Digital & software
Directors who have gained technical or managerial experience directly in information technology,
cybersecurity, digitization, software, data, artificial intelligence, and innovative technologies in
relevant industries.
Environment/Climate
Directors who have made significant contributions to either sustainability in business, climate
change, or have notoriety for promoting sustainable business in the wider economy. This skill does
include technical expertise such as experience in innovative green technologies.
Social
Directors who have gained experience and knowledge in social matters, and notably Human
Resources/Human Capital Management.
This also include former CEO of public companies who have gained for a long period of time
expertise from responsibility, management, and supervision of social matters at the highest level.
Governance, law, ethics &
compliance
Directors with advanced and relevant legal qualification or experience in a corporate legal, or
corporate governance setting, direct career exposure to relevant regulators, or governmental
organizations.
Also includes Directors who have a proven track record contributing to ethical business practices
and governance.
Skills
Acquisition of skills
Jean-Pascal Tricoire
Public company management
• Former CEO of Schneider Electric SE
Corporate finance
• Former CEO of Schneider Electric SE
International markets
• American, European, and Asian markets
Industry knowledge
• Large portion of the career spent in Schneider Electric
Employee perspective &
knowledge of the Group
• Large portion of the career spent in Schneider Electric
• Former Schneider Electric Group employee
Digital & software
• Build-up most of the software and digital business of Schneider Electric when CEO
Environment/Climate
• Significant contribution made to sustainability through his business activities
• Well known for his promotion of sustainable activities
• Member of the board of directors of the United Nations Global Compact, and President of Global
Compact France for six years
• Chairman of the Governance, Nominations & Sustainability Committee of Schneider Electric SE
Social
• Former CEO of Schneider Electric SE
Governance, law, ethics &
compliance
• Chairman of the Board of Directors of Schneider Electric SE
• Chairman of the Governance, Nominations & Sustainability Committee of Schneider Electric SE
Fred Kindle
Public company management
• Former CEO of ABB and of Sulzer AG
Corporate finance
• Former CEO of ABB and of Sulzer AG
International markets
• European market
Industry knowledge
• Former CEO of ABB
Social
• Former CEO of ABB and of Sulzer AG
Governance, law, ethics &
compliance
• Vice-Chairman & Lead Independent Director of Schneider Electric SE
• Former Chairman of the former Governance & Remunerations Committee of Schneider Electric SE
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Skills
Acquisition of skills
Léo Apotheker
Public company management
• Former CEO of SAP & Hewlett-Packard
Corporate finance
• Former CEO of SAP & Hewlett-Packard
International markets
• European and American markets
Digital & software
• Former CEO of SAP & Hewlett-Packard
Social
• Former CEO of SAP & Hewlett-Packard
Governance, law, ethics &
compliance
• Former Vice-Chairman & Lead Independent Director of Schneider Electric SE
• Former Chairman of the former Governance & Remunerations Committee of Schneider Electric SE
Nive Bhagat
Public company management
• CFO of Capgemini
Corporate finance
• CFO of Capgemini
Accounting, audit & risk
• CFO of Capgemini
• Worked at PricewaterhouseCoopers before joining KPMG’s Corporate Finance team
• Holds a Bachelor’s degree in Economics and is a Chartered Accountant from the Institute of
Chartered Accountants of India
International markets
• European and Asian market
Digital & software
• CFO of Capgemini
• Former CEO of Capgemini’s global Cloud, Cyber and Infrastructure business
Giulia Chierchia
Public company management
• Executive Vice-President Strategy, Sustainability and Ventures at BP
Corporate finance
• Worked as an analyst in the corporate banking division of UniCredit Bank
• Worked for McKinsey & Company from 2006 to 2020
• Currently responsible for BP’s ventures arm
International markets
• European market
Industry knowledge
• Led the global downstream oil and gas practice as a Senior Partner of McKinsey & Company
• Works for BP Group since 2020
Environment/Climate
• Currently Executive Vice-President Strategy, Sustainability and Ventures at BP
• Was Senior Partner of McKinsey & Company leading the global downstream oil and gas practice
and advising clients regarding their decarbonization
Governance, law, ethics &
compliance
• Currently Executive Vice-President Strategy, Sustainability and Ventures at BP in charge, in
particular, of ethics and compliance, capital allocation, investment governance for the company
Clotilde Delbos
Public company management
• Former Acting Chief Executive Officer and former Deputy Chief Executive Officer of Renault SA
• Former Chief Financial Officer of Renault group
Corporate finance
• Former Chief Financial Officer of Renault group
• Former Chairwoman of the Board of Directors of RCI Bank & Services
Accounting, audit & risk
• Held various positions in Internal Audit, Treasury and Mergers & Acquisitions at Pechiney group
• Former Chief Risk Officer at Constellium
• Former Chief Financial Officer of Renault group
International markets
• European market
Environment/Climate
• Former Chief Executive Officer of the Mobilize brand of the Renault group, an company dedicated
to new forms of mobility providing the means to make the shift towards carbon neutrality, by
offering solutions for both emission free transport and a less carbon-intensive electricity mix
• Long experience within the Pechiney group (from 1992 to 2005), and then in the automotive
industry within the Renault group (from 2012 to 2023)
Governance, law, ethics &
compliance
• Worked at Price Waterhouse
• Former Chief Risk Officer at Constellium
• Former Group Director of Performance and Control of Renault Group
• Former Chief Financial Officer of Renault group (with responsibility of the Internal Control
Department) and Chairwoman of the Board of Directors of RCI Banque in April 2016
• Former Acting Chief Executive Officer of Renault SA
Rita
Félix
Employee perspective &
knowledge of the Group
• Schneider Electric Group employee
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Skills
Acquisition of skills
Philippe Knoche
Public company management
• Former CEO of Areva and Orano
Corporate finance
• Former CEO of Areva and Orano
International markets
• European market
Industry knowledge
• Large portion of the career spent in Areva and Orano
Digital & software
• Former CEO of Areva and Orano
Social
• Former CEO of Areva and Orano
Linda Knoll
Public company management
• Former Chief Human Resources Officer of Fiat Chrysler Automobiles
International markets
• American market
Social
• Former Chief Human Resources Officer in CNH Industrial (from 2007 to 2019) and Fiat Chrysler
Automobiles (from 2011 to March 2021)
Jill Lee
Public company management
• Former Chief Financial Officer of Sulzer Ltd
Corporate finance
• Former Chief Financial Officer of Sulzer Ltd
Accounting, audit & risk
• Former Chief Financial Officer of Sulzer Ltd
• Has been Country CFO in Singapore, North-East Asia CFO in China at Siemens
• Has been North-Asia CFO in China for ABB
• Chaired the audit committees of Sulzer Ltd (from 2011 to 2018), Signify N.V. (from 2017 to 2020),
and medmix Ltd (2021 et 2022)
International markets
• European and Asian markets
Industry knowledge
• Large portion of the career spent at Siemens and ABB
Xiaoyun Ma
Corporate finance
• Chief Financial Officer for Schneider Electric’s China & East Asia Operations
Accounting, audit & risk
• Chief Financial Officer for Schneider Electric’s China & East Asia Operations
• Holds a Chinese Public Accountant Certificate
• Worked at PricewaterhouseCoopers
• Joined Schneider Electric in 1997 as the Controller of Schneider (Beijing) Medium Voltage Co., Ltd
International markets
• Asian market
Industry knowledge
• Large portion of the career spent at Schneider Electric
Employee perspective &
knowledge of the Group
• Schneider Electric Group employee
Anna Ohlsson-Leijon
Public company management
• Executive Vice-President of AB Electrolux and CEO of Business Area Europe & APACMEA
Corporate finance
• Executive Vice-President of AB Electrolux and CEO of Business Area Europe & APACMEA
• Former Chief Financial Officer of AB Electrolux
Accounting, audit & risk
• Held various senior positions in corporate functions AB Electrolux including Director Internal Audit
& Global Program Manager Sarbanes-Oxley Act, Group Treasurer, Head of Corporate Control &
Services and Chief Financial Officer Major Appliance EMEA
International markets
• European market
Governance, law, ethics &
compliance
• Worked at PricewaterhouseCoopers
• Held various senior positions in corporate functions at AB Electrolux including Director Internal
Audit & Global Program Manager Sarbanes – Oxley Act (from 2003 to 2005), Head of
Management Assurance & Special Assignments until 2008
Abhay Parasnis
Public company management
• Founder & CEO of Typeface AI
• Has been Executive Vice-President & Chief Technology Officer of Adobe, Inc.
International markets
• American and Asian markets
Digital & software
• Founder & CEO of Typeface AI, a generative AI company
• Worked at Adobe, Inc., a software company that provides digital marketing and media solutions
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Skills
Acquisition of skills
Anders Runevad
Public company management
• Former CEO of Vestas Wind Systems A/S
Corporate finance
• Former CEO of Vestas Wind Systems A/S
International markets
• European and Asian markets
Industry knowledge
• Former CEO of Vestas Wind Systems A/S
Environment/Climate
• Current Chairman and former CEO of Vestas Wind Systems A/S, Danish wind turbine design,
manufacture and installation company, a position he held from 2013 to 2019
Social
• Former CEO of Vestas Wind Systems A/S
Gregory Spierkel
Public company management
• Former CEO of Ingram Micro Inc.
Corporate finance
• Former CEO of Ingram Micro Inc.
International markets
• European and American markets
Digital & software
• Former CEO of Ingram Micro Inc.
Social
• Former CEO of Ingram Micro Inc.
Lip-Bu Tan
Public company management
• Former Executive Chairman of Cadence Design Systems, Inc.
Corporate finance
• Former Executive Chairman of Cadence Design Systems, Inc.
International markets
• American market
Industry knowledge
• Former Executive Chairman of Cadence Design Systems, Inc.
Digital & software
• Former Executive Chairman of Cadence Design Systems, Inc.
Social
• Former Executive Chairman of Cadence Design Systems, Inc.
Bruno Turchet
Industry knowledge
• Joined Schneider Electric in 2005 and worked in different operation (Project Technical Leader for
Low Voltage Equipment, Low & Medium Voltage Equipment R&D Manager, New Products
Industrialization Director of Final Distribution Line of Business, Vice-President Industrialization for
Home & Distribution Europe Division)
• Currently Vice-President Global Supply Chain Strategy Deployment
Employee perspective &
knowledge of the Group
• Schneider Electric Group employee
4.1.1.5 Independence and conflict of interests
Independent Directors
Each year, as provided under the AFEP-MEDEF Corporate Governance Code, the Board of Directors, on the report of the Governance,
Nominations & Sustainability Committee, dedicates one of the points on its agenda to the qualification of its members as independent with
regard to the criteria for independence set out in Article 10.5 of this Code as presented in the table below:
Criterion 1: Employee or Corporate Officer within the previous five years
Not to be and not to have been within the previous five years:
• an employee or executive Corporate Officer of the Company;
• an employee, executive Corporate Officer, or Director of a company consolidated with the Company;
• an employee, executive Corporate Officer, or Director of the Company’s parent company or a company consolidated with this
parent company.
Criterion 2: Cross-directorships
Not to be an executive Corporate Officer of a company in which the Company holds a directorship, directly or indirectly, or in which an
employee appointed as such or an executive Corporate Officer of the Company (currently in office or having held such office within
the last five years) holds a directorship.
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Criterion 3: Significant business relationships
Not to be a customer, supplier, commercial banker, investment banker, or consultant:
• that is significant to the Company or its group; or
• for which the Company or its group represents a significant portion of its activity.
The assessment of the significance or otherwise of the relationship with the Company or its group must be debated by the Board and
the quantitative and qualitative criteria that led to this evaluation (continuity, economic dependence, exclusivity, etc.) must be explicitly
stated in the annual report.
Criterion 4: Family ties
Not to be related by close family ties to a Corporate Officer.
Criterion 5: Auditor
Not to have been an auditor of the Company within the previous five years.
Criterion 6: Period of office exceeding 12 years
Not to have been a Director of the Company for more than 12 years. Loss of the status of independent Director occurs on the date of
the 12th anniversary.
Criterion 7: Status of non-executive Corporate Officer
A non-executive Corporate Officer cannot be considered independent if he or she receives variable compensation in cash or in the
form of securities or any compensation linked to the performance of the Company or Group.
Criterion 8: Status of the major shareholder
Directors representing major shareholders of the Company or its parent company may be considered independent, provided these
shareholders do not take part in the control of the Company. Nevertheless, beyond a 10% threshold in capital or voting rights, the
Board, upon a report from the Governance, Nominations & Sustainability Committee, should systematically review the qualification as
independent in light of the Company’s shareholding structure and the existence of a potential conflict of interest.
Upon recommendation from the Governance, Nominations &
Sustainability Committee, the Board of Directors, during its meeting
of February 19, 2025, reviewed the independence of each Board
member in regard of the criteria reminded above.
• With regard specifically to independence in terms of business
relations, the Board of Directors noted that, due to:
(i) The absence of business relations between the Directors
and Schneider Electric;
(ii) The nature of Schneider Electric activities and those of the
companies in which members of the Board of Directors are
employed or serve as Directors; and
(iii) The amounts, either unitary or global, of operations
performed or that may be performed between Schneider
Electric and these companies that are agreed at arm’s length
and that are by no means likely to be referred to the Board
of Directors;
the existing business relations between Schneider Electric and
these companies in which the members of the Board of Directors
are employed or serve as officers are not likely to prejudice their
independence, indeed, when such operations exist, they are
agreed at arm’s length and their amounts, representing less
than 0.2% of the consolidated turnover of each group, are
without a doubt insignificant for each party, in particular with
regard to respective size of the groups concerned.
Among seventeen Directors, twelve are independent according
to the definition prescribed by the AFEP-MEDEF Corporate
Governance Code: Mrs. Nive Bhagat, Mrs. Giulia Chierchia,
Mrs. Clotilde Delbos, Mr. Fred Kindle, Mr. Philippe Knoche,
Mrs. Linda Knoll, Mrs. Jill Lee, Mrs. Anna Ohlsson-Leijon,
Mr. Abhay Parasnis, Mr. Anders Runevad, Mr. Gregory Spierkel,
and Mr. Lip-Bu Tan.
• Mr. Jean-Pascal Tricoire, as former Chief Executive Officer,
Mrs. Xiaoyun Ma, as Employee Shareholder Director, Mrs. Rita
Félix and Mr. Bruno Turchet as Employee Directors, and Mr. Léo
Apotheker, who has served on the Board for over 12 years, are
not considered to be independent Directors under the AFEP-
MEDEF Corporate Governance Code.
• The AFEP-MEDEF Corporate Governance Code recommends
that, in non-controlled companies, the Board comprises at least
50% independent Directors (Directors representing employee
shareholders and employees are not computed in calculating
this percentage). The proportion of independent Directors of the
Company, excluding Mrs. Xiaoyun Ma, Mrs. Rita Félix, and
Mr. Bruno Turchet, is therefore 86%. The proportion would rise
92% should the renewal of Mr. Jean-Pascal Tricoire and
Mrs. Anna Ohlsson-Leijon, and the ratification the co-optation of
Mrs. Clotilde Delbos, who qualifies as an independent Director
with regard to all the criteria set by Article 10.5 of the AFEP-
MEDEF Corporate Governance Code, be voted by the Annual
Shareholders’ Meeting as per, respectively, the 12th, 13th, and
14th resolutions.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
The following table shows the status of each Director with regard to the criteria for independence set out in Article 10.5 of the AFEP-MEDEF
Corporate Governance Code.
Criteria(1)
Jean-Pascal
Tricoire(2)
Léo Apotheker
Nive Bhagat
Giulia Chierchia
Clotilde Delbos
Rita Félix(3)
Philippe Knoche
Fred Kindle
Linda Knoll
Jill Lee
Xiaoyun Ma(4)
Anna
Ohlsson- Leijon
Abhay
Parasnis
Anders
Runevad
Gregory
Spierkel
Lip-Bu Tan
Bruno Turchet(5)
Criterion 1:
Employee or Corporate Officer within
the past five years
Criterion 2:
Cross-directorships
Criterion 3:
Significant business relationships
Criterion 4:
Family ties
Criterion 5:
Auditor
Criterion 6:
Period of office exceeding 12 years
Criterion 7:
Status of non-executive Corporate Officer
Criterion 8:
Status of the major shareholder
Conclusion
(1) In this table,
means that a criterion for independence is satisfied and signifies that a criterion for independence is not satisfied.
(2) Mr. Jean-Pascal Tricoire is the former Chairman & Chief Executive Officer of Schneider Electric SE, the former Chairman of the Board of Directors of Schneider Electric
Industries SAS, the former Director of Schneider Electric USA Inc., Director of Delixi Electric Ltd, and Chairman of the Board of Directors of Schneider Electric Asia
Pacific Ltd.
(3) Mrs. Rita Félix has an employment contract with Schneider Electric Portugal Lda.
(4) Mrs. Xiaoyun Ma has an employment contract with Schneider Electric (China) Co., Ltd.
(5) Mr. Bruno Turchet has an employment contract with Schneider Electric Industries SAS.
Declarations concerning the situation of the
members of the administrative, supervisory,
or management bodies
Service contracts
None of the Directors nor the Chief Executive Officer has a service
contract with the Company or any of its subsidiaries providing for
benefits under such contract.
Absence of conviction or incrimination
To the best of the Company’s knowledge, in the last five years,
none of the Directors nor the Chief Executive Officer have been:
• The subject of any convictions in relation to fraudulent offenses
or of any official public incrimination and/or sanctions by
statutory regulatory authorities;
• Disqualified by a court from acting as a member of the
administrative, management, or supervisory bodies of an issuer
or from acting in the management or conduct of the affairs of an
issuer; or
• Involved, as a member of an administrative, management, or
supervisory body or a partner, in a bankruptcy, receivership,
or liquidation.
Family ties
To the best of the Company’s knowledge, none of the Directors and/
or the Chief Executive Officer of the Company are related through
family ties.
Conflicts of interest
To the best of the Company’s knowledge, there are no
arrangements or understandings with major shareholders,
customers, suppliers, or others pursuant to which a Director or the
Chief Executive Officer has been selected as a member of an
administrative, management, or supervisory body or a member of
Senior Management of the Company.
To the best of the Company’s knowledge, there are no conflicts
of interest between the duties of any Directors and the Chief
Executive Officer with respect to the Company in their capacity
as members of those bodies or their private interests and/or
other duties.
To the best of the Company’s knowledge, the Directors and the
Chief Executive Officer have no restrictions on the disposal of their
Company shares aside from those stipulated in Performance Share
plans (see section 4.2.5 of Chapter 4 of this Universal Registration
Document) for the former Chairman & Chief Executive Officer, who
became the Chairman of the Board of Directors, and for the current
Chief Executive Officer, and a minimum shareholding requirement
for Directors.
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4.1.1.6 Directors’ and Chief Executive
Officer’s holding in the Company’s share
capital
Article 11 of the Company’s Article of Association provides that
Directors are each required to hold at least 250 Schneider Electric
shares during their term of office. Moreover, in accordance with
Article 6 of the Board Internal Regulations, each Board member
shall hold 1,000 Schneider Electric shares.
The Board of Directors has set a retention target of shares
representing five years of base salary for the Chief Executive Officer.
Calculation of the number of shares held is based on Schneider
Electric SE shares and the equivalent in shares of the corporate
mutual fund units invested in Schneider Electric shares held by the
beneficiary. He is required to retain at least 50% of the Performance
Shares granted to him until this number of shares is reached.
The shareholding target described above is largely met by
Mr. Olivier Blum who owns 65,443 Schneider Electric shares.
To the Company’s knowledge, the Chief Executive Officer’s and Directors’ shareholdings in the Company’s registered capital as of
December 31, 2024, are as follows:
Chief Executive Officer
Schneider Electric shares
Olivier Blum
65,443
Board member
Jean-Pascal Tricoire
848,369
Fred Kindle
40,000
Léo Apotheker
3,093
Nive Bhagat
1,000
Giulia Chierchia
1,000
Clotilde Delbos
0
Rita Félix
190
Philippe Knoche
495
Linda Knoll
1,000
Jill Lee
1,000
Xiaoyun Ma
40,679
Anna Ohlsson-Leijon
1,000
Abhay Parasnis
1,000
Anders Runevad
1,000
Gregory Spierkel
1,000
Lip-Bu Tan
8,700
Bruno Turchet
480
TOTAL
1,015,449
The Chief Executive Officer and the members of the Board of Directors directly held 0.18% of the share capital as of December 31, 2024.
The table below shows the transactions in Schneider Electric securities carried out during fiscal year 2024 and notified to the Autorité des
Marchés Financiers (AMF) in accordance with Article 19 of Regulation nº 594/2014 of April 16, 2014, on Market Abuse and Article L. 621-18-
2 of the French Monetary and Financial Code:
First name and last name
Transaction date
Transaction type
Description of the financial instrument
Number of
securities/
instruments
Unit price
Amount of the
transaction
Peter Herweck
25/03/2024
Acquisition
LTIP – Plan 39
13,259
–
–
Jean-Pascal Tricoire
25/03/2024
Acquisition
LTIP – Plans 38 & 39
30,876
–
–
Xiaoyun Ma
25/03/2024
Acquisition
LTIP – Plan 39
3,860
–
–
Lip-Bu Tan
23/05/2024
Acquisition
Ordinary shares
7,700
US$254.64
US$1,960,754.18
Xiaoyun Ma
27/05/2024
Disposal
Ordinary shares
500
€237.79
€118,892.55
Giulia Chierchia
27/06/2024
Acquisition
Ordinary shares
750
€226.90
€170,175.00
Peter Herweck
01/08/2024
Disposal
Ordinary shares
3,300
€221.86
€732,892.55
Nive Bhagat
06/08/2024
Acquisition
Ordinary shares
800
€201.35
€161,080.00
Philippe Knoche
12/09/2024
Acquisition
Ordinary shares
495
€224.10
€110,929.50
Xiaoyun Ma
17/09/2024
Disposal
Ordinary shares
500
€230.00
€115,000.00
Xiaoyun Ma
19/09/2024
Disposal
Ordinary shares
750
€235.00
€176,250.00
Xiaoyun Ma
27/09/2024
Disposal
Ordinary shares
500
€240.53
€120,263.65
Xiaoyun Ma
04/12/2024
Disposal
Ordinary shares
500
€250.00
€125,000.00
See details regarding Performance Shares granted to the Chairman of Board, when he was also Chief Executive Officer, and the Chief
Executive Officer in section 4.2.5 of Chapter 4 of this Universal Registration Document.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.2 Activities and operating procedures
of the Board of Directors
4.1.2.1 Roles and duties of the corporate
bodies
4.1.2.1.1 Roles and duties of the Board of Directors
The Board of Directors shall determine the business strategy of the
Company and monitors its implementation, in accordance with its
corporate interest and while considering its social and
environmental aspects. Subject to the powers expressly conferred
to annual general shareholders’ meetings and within the limit of the
corporate purpose, it shall deal with all matters regarding the
smooth running of the Company and settle issues concerning the
Company. At any time in the year, the Board carries out the controls
and verifications it deems appropriate.
In accordance with its provisions, the Board of Directors’
responsibility include additional missions beyond the exercise its
legal or statutory duties.
Mission of the Board of Directors
Statutory missions of
the Board of Directors
• To determine the method of exercising General management of the Company;
• To appoint Executive Corporate Officers, remove them from office, and to set their remuneration and the benefits
granted to them;
• To co-opt Directors whenever necessary;
• To distribute Directors’ remuneration allocated at the annual general shareholders’ meeting amongst members of
the Board of Directors;
• To convene general shareholders meetings;
• To approve statutory and consolidated financial statements;
• To ensure that the Company has reported in accordance with EU sustainability reporting framework;
• To decide on the dates for the payment of dividends and any possible down-payments on dividends;
• To draw up management reports and reports for annual general shareholders’ meetings;
• To draw up management planning documents and the corresponding reports;
• To draw up the corporate governance report as provided for in Article L. 225-37 of the French Commercial Code;
• To decide on the use of the delegations of authority granted at annual general shareholders’ meetings, more
particularly for increasing Company capital, redeeming the Company’s own shares, carrying out employee
shareholding operations, and canceling shares;
• To grant options or restricted/performance shares within the limits of authorizations given at annual general
shareholders’ meetings;
• To authorize the issue of bonds;
• To authorize the issue of sureties, endorsements, and guarantees;
• To authorize regulated agreements (agreements covered by Article L. 225-38 and following of the French
Commercial Code);
• To implement a process to regularly assess that the rules used to qualify a related party transaction as regulated
agreement or not, are relevant and effective.
Additional missions of
the Board of Directors
• To give prior authorization for:
(i) all disposals or acquisitions of holdings or assets by the Company or by a Group company for a sum of
more than EUR 250 million;
(ii) significant changes to the scope and portfolio of activities outside of the strategy shared with the Board of
Directors;
(iii) establishment of significant strategic alliances;
(iv) any settlement for a sum of more than EUR 125 million;
(v) any off-balance sheet commitment in excess of EUR 125 million other than those relating to a guarantee
given to an entity of the Group;
(vi) major and very significant changes to the Group internal organization;
• To be informed by its Chairperson or by its committees of any significant event concerning the Company’s
efficient operation;
• To be informed about market developments, competitive environment, and the most important challenges the
Company has to face, including in the area of social and environmental responsibility;
• To establish the multi-annual strategic approach on social and environmental responsibility and review the
results reached on a yearly basis (including on climate);
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Chapter 4 – Corporate governance report
4.1 Governance Report
Additional missions of
the Board of Directors
(continued)
• To review, in relation to the strategy it has defined, the opportunities and risks, such as financial, legal,
operational, social, and environmental risks, as well as the measures taken accordingly and to that end receive
all information necessary to fulfill its remit, especially from the Chief Executive Officer;
• To seek assurance that the cyber risk management program is adequate and reduces the risk of attacks and,
when necessary, will respond and recover from any attack that may happen;
• To ensure that a process to prevent and detect bribery and influence peddling is in place;
• To exercise control over management and oversee the quality of information provided to shareholders and to
the markets, in particular via the financial statements or on the occasion of major corporate transactions;
• To review every year its composition, its organization, and its mode of operation;
• To set up an Audit & Risks Committee on the terms specified by law and any other committees (i) which do not
have decision-making powers but have the task of providing all useful information for the discussions and
decisions which it is called upon to make, and (ii) which composition and rules with regard to their modus
operandi is determined by the Board;
• To be consulted prior to acceptance by the Chief Executive Officer or Deputy Chief Executive Officers, if any,
of any corporate appointment in a listed company outside the Group;
• To appoint a Vice-Chairperson if the Board is compelled or wishes to do so;
• To appoint up to three Board Observers if the Board wishes to do so; and
• To determine targets in terms of gender balance within the executive bodies and ensure that the Executive
Corporate Officers implement a policy of non-discrimination and diversity, notably with regard to the balanced
gender representation on the executive bodies.
4.1.2.1.2 Roles and duties of the
Chairman of the Board
The Board of Directors shall elect a Chairperson amongst its
members which shall be appointed for a period that can be no longer
than his/her term of office as a Director. The Board shall deliberate
once a year on the opportunity for the Chairperson to pursue his/
her functions. The Chairperson is eligible for re-election. He/she
may be removed from office by the Board of Directors at any time.
On May 4, 2023, the Board of Directors appointed Mr. Jean-Pascal
Tricoire as Chairman of the Board.
In addition to his statutory missions, the Chairman of the Board is
entrusted with additional powers and missions for which he shall
organize his activities so as to ensure his availability and put his
experience at the Company’s service.
Missions of the Chairman of the Board of Directors
Statutory missions of
the Chairman of the
Board of Directors
• To organize and direct the work of the Board;
• To convene the Board meetings, determine the agenda, and preside over the meetings;
• To request any document or information necessary to help the Board of Directors for the preparation of its
meetings and verify the quality of the information provided;
• To oversee the proper functioning of the Company’s bodies and makes sure, in particular, that (i) the Directors are
able to carry out their assignments, (ii) the Board of Directors is well organized, in a manner conducive to
constructive discussion and decision-making, and (iii) the Board of Directors devotes an appropriate amount of
time to issues relating to the future of the Company and particularly its strategy;
• To preside over general shareholders’ meetings and report on the Board’s work to the annual general
shareholders’ meeting.
Additional missions
entrusted to the
Chairman of the Board
• To be kept regularly informed by the Chief Executive Officer of significant events and situations relating to the
business of the Group (including the Company’s strategy, major acquisition or divestment projects, significant
financial transactions, risks, major community projects, and the appointment of the most senior executives of
the Group) and to be consulted by him on these matters;
• To assist and advise the Chief Executive Officer on strategic, technological, leadership, and human capital
matters;
• To support, in coordination with the Chief Executive Officer, the representation of the Company in high-level
relations with selected stakeholders (customers and institutions);
• To represent the Company with selected Asian Partners and Asian government bodies in coordination with the
Chief Executive Officer;
• To be involved in some dialogue with shareholders in cooperation with the initiatives taken in this respect by
the Chief Executive Officer;
• To promote the Company’s values and culture in particular in relation to Environmental, Social and
Governance;
• To meet with the Company’s leaders and managers;
• To hear the statutory auditors and the heads of the control functions in order to ensure that the Board and its
committees are in a position to carry out of their duties;
• To convene the members of the Board without Executive Directors being present, in particular to allow debates
on the performance and compensation of the Executive Management and succession planning;
• To participate to the recruitment process for new directors and the development of the succession plan; and
• To work with the Board on the preparation and implementation of succession plan(s) for the Corporate
Officer(s).
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C H 4 – C O R P O R A T E
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C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
The Chairperson of the Board strives to develop and maintain a
trustful and regular relationship between the Board and the
General Management in order to guarantee continuous, ongoing
implementation by the General Management of the strategies
defined by the Board. In all his/her assignments other than those
conferred by law, the Chairperson of the Board of Directors acts in
close conjunction with the Chief Executive Officer, who has sole
responsibility for the general and operational management of the
Company.
The Chairperson of the Board of Directors is the only person
authorized to speak on behalf of the Board, with the exception of
any specific assignment entrusted to the Vice-Chairperson & Lead
Independent Director pursuant to the dialogue with shareholders.
4.1.2.1.3 Roles and duties of the Vice-Chairman of
the Board
The Board of Directors may appoint a Vice-Chairperson. If the roles
of Chairperson and Chief Executive Officer are combined or if the
Chairperson is not considered as independent according to the
AFEP-MEDEF Corporate Governance Code, the appointment of a
Vice-Chairperson is compulsory. The Vice-Chairperson shall be
appointed for a period that may not be any longer than his/her term
of office as a Director. The Vice-Chairperson is eligible for
re-election. The Vice-Chairperson may be removed from office by
the Board of Directors at any time.
Mr. Jean-Pascal Tricoire was appointed as Chairman of the Board
on May 4, 2023, and as he was not considered as independent with
regard to the criteria set by Article 10.5 of the AFEP-MEDEF
Corporate Governance Code, Mr. Fred Kindle pursued his mission
as Vice-Chairman & Lead Independent Director.
The Vice-Chairperson shall preside over Board meetings in the
absence of the Chairperson. The Vice-Chairperson shall be called
upon to replace the Chairperson of the Board of Directors in the
event of any temporary inability of the latter to fulfill his/her functions
or in the event of death. In the event of the Chairperson’s inability to
fulfill his/her functions, he will be replaced by the Vice-Chairperson
as long as his inability may last and, in the case of death, until the
election of a new Chairperson.
The Vice-Chairperson may also take on the role of Lead Independent
Director. The Vice-Chairperson & Lead Independent Director must
be an independent member of the Board, as defined in accordance
with the criteria published by the Company. In this respect, the
powers and missions of the Vice-Chairperson are as follows.
Mission of the Vice-Chairman & Lead Independent Director
• To be kept informed of major events in Group life through regular contacts and meetings with the Chairperson and the Chief Executive
Officer;
• To be consulted by the Chairperson on the agenda and the sequence of events for every Board meeting as well as on the schedule for
Board meetings;
• To request that the Chairperson of the Board of Directors include additional items on the agenda of any meeting of the Board of
Directors;
• To request that the Chairperson of the Board of Directors call a meeting of the Board of Directors to discuss a given agenda;
• To convene – whenever he/she deems appropriate – an executive session with non-executive members of the Board of Directors and
without the Chairperson attending, over which he/she will preside. It is the Vice-Chairperson’s responsibility to appreciate for each topic
discussed whether the employee Directors should leave the meeting until the topic is closed. In addition, the Vice-Chairperson may
convene an executive session between two Board meetings;
• To promptly report to the Chairperson on the conclusions of executive sessions held without the Chairperson attending;
• To draw the attention of the Chairperson and of the Board of Directors to any possible conflicts of interest that he/she may have identified
or which may be reported to him/her;
• To meet if he so wishes the Group’s leading managers and visit Company sites in order to complement his/her knowledge;
• To carry out annual assessments of the Board of Directors and, in this context, assess the actual contribution of every member of the
Board to the Board’s activities;
• To report on his/her actions at annual general shareholders’ meetings; and
• To engage with shareholders on governance matters and inform the Board of their concerns.
4.1.2.1.4 Roles and duties of the
Chief Executive Officer
According to the French law, the Chief Executive Officer has the
broadest powers to act in all circumstances in the name of the
Company. The Chief Executive Officer represents the Company in
its relationship with third parties. He exercises his powers within the
limitations of the corporate purpose, and subject to any powers
expressly attributed by law to the Annual Shareholders’ Meeting
and Board of Directors.
Mr. Olivier Blum has been appointed as Chief Executive Officer of
Schneider Electric by the Board of Directors on November 1st,
2024.
Limitation of powers of the Chief Executive Officer
The Chief Executive Officer will be requested to obtain the Board’s prior approval for:
• all disposals or acquisitions of holdings or assets by the Company or by a Group company for a sum of more than EUR 250 million;
• significant changes to the scope and portfolio of activities outside of the strategy shared with the Board of Directors;
• establishment of significant strategic alliances;
• any settlement for a sum of more than EUR 125 million;
• any off-balance sheet commitment in excess of EUR 125 million other than those relating to a guarantee given to an entity of the Group;
and
• major and very significant changes to the Group’s internal organization.
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Chapter 4 – Corporate governance report
4.1 Governance Report
4.1.2.2 Board of Directors activities in 2024
The Board held eight meetings in 2024 (vs. seven in 2023). The
meetings lasted five hours and fifty five minutes on average with an
average participation rate of Directors of 97% (vs. 94% in 2023).
Thirteen Directors have an attendance rate of 100% and none have
an attendance rate less than 88% as shown in the table
summarizing the Directors’ individual attendance at Board
meetings. All absences were legitimate and excused.
The Board of Directors devoted most of its activities to the
Company’s business, strategy, and corporate governance as
detailed below:
Business and financial results
• Review and approval of the 2023 financial statements based on the Audit & Risks Committee’s report and the report by the statutory
auditors, who were present at the meeting;
• Review and approval of the financial statements for the first half of 2024;
• Review of the first and third quarterly results and reports prepared by Senior Management;
• Review of the Group’s 2024 guidance set in February and of the new guidance issued in July 2024;
• Proposal to the Annual Shareholders’ Meeting that the dividend be set at EUR 3.50 per share;
• Update, at each meeting, on the business situation;
• Review of the Audit & Risks Committee’s report on the works of the Group’s internal audit and internal control teams;
• Review of the 2024 risk matrix, the framework design, and the deployment status of the Enterprise Risk Management framework;
• Review of the Group Trust Standards and their implantation;
• Review of the Group “Ethics & Compliance System”;
• Liquidity review;
• Authorization of the Chief Executive Officer to issue bonds convertible into new shares and/or exchangeable for existing shares
(OCEANEs); and
• Authorization of the Chief Executive Officer to issue of sureties, endorsements, and guarantees.
Strategy
• Thorough review of the Group strategy, as every year, as part of a three-day meeting named “Strategy session”, held physically in
France from November 5 to 7, 2024, specifically dedicated to the topic;
• Review, during this Strategy session, on an in-depth strategy analysis of Energy Management, Industrial Automation, New Energy
Landscape/Prosumer, Agnostic Software strategy, Supply Chain, and India;
• Authorization or review of external growth and divestment operations (such as ETAP, Bentley Systems, Planon, Motivair, and StarCharge);
• Review of the portfolio;
• Updates on Cybersecurity and Artificial Intelligence; and
• Information about moves and changes concerning competitors of Schneider Electric.
Corporate governance & sustainability
• Decision to dismiss the Chief Executive Officer, Mr. Peter Herweck, and to appoint Mr. Olivier Blum in replacement;
• Mr. Peter Herweck’s termination terms and conditions, and Mr. Olivier Blum’s compensation until the 2025 AGM;
• Thorough review, as every year, of the succession planning of the Corporate Officers and top management;
• Deliberation on the composition of its membership and that of its committees and the principle of balanced gender representation;
• Review of the mission assigned to each Committee;
• Deliberation on its self assessment;
• Deliberation on and review of the principles and criteria relating to the compensation of the Corporate Officers and approval of the
compensation and benefits of all types that may be or have been granted;
• Update on the meetings with major shareholders conducted by the Vice-Chairman & Lead Independent Director on governance topics;
• Update on the salary review of members of the Executive Committee;
• Review of the Group’s Diversity & Inclusion program;
• Decision on the implementation of the 2024 Long-term incentive plan;
• Recorded the calculation of the level of achievement of performance conditions applicable to Performance Share plans nº 38, 39, 39bis,
39ter, 40, 41, 41bis, 41ter, 42, 42bis, 43, 42ter, and 42quater;
• Decision of capital increases reserved for employees;
• Reviewed the CSR strategy, results, and targets of the Schneider Sustainability Impact 2021 - 2025;
• Review of the preparation of the Company to be ready to implement the Corporate Sustainability Reporting Directive (CSRD) for its 2024
Universal Registration Document;
• Approval of the corporate governance report as provided for in Article L. 225-37 of the French Commercial Code;
• Approval of the Management Report as provided for in Article L. 225-100 of the French Commercial Code;
• Review of the regulated agreements and commitments; and
• Review of the assessment process relating to the qualification of the related party agreements as “current” or “regulated”.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Annual Shareholders’ Meeting
The Board approved the agenda and draft resolutions of the 2024 Annual Shareholders’ Meeting, and its report to the shareholders at the
meeting. It was informed of the positions expressed by the shareholders met during the preparation of the Annual Shareholders’ Meeting
and took note of the proxy-advisors’ reports. It approved the responses to the written questions.
The 2024 Annual Shareholders’ Meeting met physically. It approved all resolutions supported by management, including those relating to
the composition of the Board of Directors, the compensation of the Corporate Officers, and the renewal of financial authorizations.
In application of the provisions of Article 1.3.3 of the internal
regulations, the Vice-Chairman & Lead Independent Director
convenes executive sessions of the Board of Directors (with
non-executive members of the Board of Directors and without the
Chairperson attending) when he deems appropriate at the end of
Board meetings. In 2024, the Board of Directors held six “executive
sessions”, vs. five in 2023, including two without the Chairman of
the Board of Directors attending.
In addition, when the Board debated and determined the
compensation of the Corporate Officers, the interested parties were
not present, as prescribed by Article 11.2 of the internal regulations,
unless solicited to provide information on specific issues.
4.1.2.3 Succession planning
Board members
The Board of Directors shall have at least three and up to 18
members, all of whom must be natural persons elected by the
shareholders at the Shareholders’ Meeting. However, in case of
death or resignation of a member, the Board may co-opt a new
member. This appointment is then subject to ratification at the next
Annual Shareholders’ Meeting.
Directors are appointed for four-year terms (renewable). However,
from the age of 70, Directors are re-elected or appointed for a
period of two years. No more than one-third of the Directors may be
70 years old or over.
Mrs. Xiaoyun Ma represents the employee shareholders in
accordance with the provisions of Articles L. 225-23 and L. 22-10-5
of the French Commercial Code. She was elected at the Annual
Shareholders’ Meeting upon the recommendation of the
supervisory boards of the FCPEs.
Mrs. Rita Félix and Mr. Bruno Turchet represent the employees in
accordance with the provisions of Article L. 225-27-1 of the French
Commercial Code. They were appointed respectively by the
European Works Council and by the most representative trade
union organization in France in pursuance of Article 11.4 of the
Articles of Association.
Director selection process
The independent Director selection process is led by the
Governance, Nominations & Sustainability Committee. When one or
more directorships become vacant, or more broadly when the
Board of Directors wishes to expand or modify its composition, the
Governance, Nominations & Sustainability Committee documents
and ranks the selection criteria for potential candidates, taking into
account the desired balance and diversity in the Board’s
composition. The Committee takes into account the diversity policy
and the objectives defined by the Board of Directors in terms of skill
set.
Based on these criteria, the Committee steers the search for and
selection of new Directors, where appropriate with the assistance
of an external consultant, and conducts the necessary verifications.
The members of the Governance, Nominations & Sustainability
Committee then interview the candidates and issue a
recommendation to the Board of Directors.
In preparation of the 2025 Annual Shareholders’ Meeting, the
Governance, Nominations & Sustainability Committee focused on
furthering the international diversification of the Board of Directors
and maintaining the number of women Directors, as well as adding
a French speaker, connected to French environment with strong
business and board experience, and international exposure.
A specific selection process exists for Directors representing
employees and Directors representing employee shareholders, in
accordance with prevailing regulations.
Succession planning for Corporate Officers
Succession plans at Schneider Electric correspond to a systematic,
structured process for identifying and preparing employees with
potential to fill key organizational positions, should the position
become vacant. This process applies to all key positions including
the Chairman of the Board of Directors and the Chief Executive
Officer positions. Succession plans aim at ensuring a continued
effective performance of the organization by providing for the
availability of experienced and capable employees who are
prepared to assume these roles as they become available.
Succession plans are necessary processes to reduce risk of
vacant positions or skill gap transitions, create a pipeline of future
leaders, ensure full business continuity, and improve employee
motivation and engagement.
The mission of the Governance, Nominations & Sustainability
Committee includes preparing for the future of the Company’s
executive bodies, in particular through the establishment of a
succession plan for executive officers. The plan, which is reviewed
at meetings of the Governance, Nominations & Sustainability
Committee, addresses various scenarios:
• Unplanned vacancy due to prohibition, resignation, or death;
and
• Planned vacancy due to retirement or expiration of term of
office.
Through its work and discussions, the Committee seeks to devise a
succession plan that is adaptable to situations arising in the short,
medium, or long term. The Governance, Nominations &
Sustainability Committee:
• Provides the Board with progress reports, in particular at
executive sessions;
• Works closely with the Chief Executive Officer to (i) ensure the
plan is consistent with the Company’s own practices and market
practices, (ii) ensure high-potential internal prospects receive
appropriate support and training, and (iii) check there is
adequate monitoring of key posts likely to fall vacant; and
• Meets with key executives.
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Chapter 4 – Corporate governance report
4.1 Governance Report
Succession plan implemented in 2024
On November 1, 2024, the Board of Directors decided to remove
from office Mr. Peter Herweck as Chief Executive Officer and to
appoint Mr. Olivier Blum as Chief Executive Officer with immediate
effect to accelerate the execution of the Group strategy and
engage into the next phase of its development.
This decision which has been carefully discussed by the Board of
Directors on several occasions was due to divergence of views
between the Board of Directors and Mr. Peter Herweck in the
execution of the Company strategic roadmap at a time of significant
opportunities. The Board considered that the strategy of the
Company was not executed in a decisive and collaborative manner.
The Board would like nevertheless to thank Peter Herweck for his
role at the helm of Schneider Electric and his dedication to the
Group that he led for 18 months.
The Governance, Nominations & Sustainability Committee, under
the guidance of the Board of Directors, has conducted a
comprehensive process to propose a successor for the role of
Chief Executive Officer. The work of the Governance, Nominations
& Sustainability Committee intensified from July to November,
driven by the ambition to preserve Schneider Electric’s
fundamental values, the Group and its shareholders’ interests, as
well as the continuity of the strategy.
The Governance, Nominations & Sustainability Committee
Committee met 11 times in 2024 out of which 6 sessions were
dedicated to the Chief Executive Officer’s succession. Building on
the 2023 succession process, the Governance, Nominations &
Sustainability Committee conducted a comprehensive process
following an in-depth succession plan process:
• Identification of the required skills and qualities most suited to
the Group’s future challenges;
• Assessment of Executive Committee members and selection of
top potential candidates of both genders, based on careers and
achievements in their managerial responsibilities;
• Identification and assessment of potential external candidates
with the help of an external recruitment firm;
• Resolution to favor internal candidates and further examine their
suitability for the role;
• Further internal and external evaluation, individual interviews of
the top candidate with each member the
Governance,Nominations & Sustainability Committee and all
Board Members who whished to do so;
• Final selection of the new Chief Executive Officer.
The Committee led each of these steps which were then presented
to the whole Board for discussion and validation.
When identifying the key skills required to take over the Chief
Executive Officer function, the Board considered the following, on
top of global managerial skills in complex environments and global
knowledge of the industry Schneider Electric operates in:
• Understanding of technology, in particular digital and software;
• Engagement on sustainability and climate change;
• Commitment to keep building Schneider’s advantage in terms of
globality (multi-hub differentiated model) and unique company
culture;
• Ability to imagine, initiate, and drive radical transformations to
accelerate the implementation of the strategy;
• Resilience and courage to face complex situations.
Pursuant to this process, the Board decided to appoint Mr. Olivier
Blum as Chief Executive Officer considering that his skills and
personality made him the perfect candidate to lead the Company,
notably his extensive knowledge of Schneider Electric, recognised
exceptional leadership, and strong track record in setting a vision,
defining a strategy and executing the required transformations in a
collaborative manner.
Mr. Olivier Blum, a French citizen (54 years old), was leading the
fast growing and world-class Energy Management business of
Schneider Electric, in all end markets, including Datacenters. He
has been a member of the Executive Committee since 2014. Before
his present role as technology and business leader of the largest
business of Schneider Electric, he held a wide array of positions
inside the Company. This includes corporate roles as Group Chief
Strategy & Sustainability Officer, and previously Chief Human
Resources Officer as well as diverse operational roles including 5
years as Country President of Greater India (now the Group’s third
largest market by revenue), and 5 years as strategy and business
leader in China. Mr. Olivier Blum started his career in sales and
marketing, and held transformation program roles in France.
Mr. Olivier Blum has also been an AVEVA board director for the
past 5 years and has experienced the most important
transformations of Schneider Electric’s Software business.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.2.4 Self-assessment of the Board of Directors
Pursuant to its internal regulations, Schneider Electric SE’s Board of Directors annually reviews its composition, organization, and
operations, as well as those of its committees. This yearly assessment is carried out through a written questionnaire sent to Board members
or interviews with Board members. The evaluation is conducted under the leadership of the Vice-Chairman & Lead Independent Director by
the Secretary of the Board of Directors. In addition, as per the AFEP-MEDEF Corporate Governance Code, the Board of Directors shall
undertake at least once every three years, a formal self-assessment, which may be conducted with the assistance of an external consultant.
Internal self-assessment conducted in the third quarter of 2024
An internal assessment of the activities of the Board of Directors was conducted in the third quarter of 2024 by the Vice-Chairman & Lead
Independent Director, who guaranteed the confidentiality of opinions expressed, based on a questionnaire answered anonymously by
Board members.
The report was presented and discussed in detail at the Governance, Nominations & Sustainability Committee meeting on September 29,
2024, and a summary report was presented to the Board of Directors on September 30, 2024. The Chairman and the Vice-Chairman & Lead
Independent Director provided individual feedback on the assessments of the effective contribution of each Director.
Themes
(i) Membership and dynamics of the Board; (ii) Mission, organization, and operation of the Board; (iii) Works of the committees; (iv)
On-boarding program of the new members; (v) Deep dive on the Strategy session; (vi) 2025 top Board priorities; and (viii) Individual
assessment of each Director and of the Chief Executive Officer.
Key findings
Board functioning
• Involvement and contribution of Board members is perceived as very high;
• Excellent leadership and contribution of the Chairman described as best in class, fostering open discusions, transparent, inclusive,
engaged, charismatic, strategic thinking;
• Perfect balance between the Chairman and the Vice-Chairman & Lead Independent Director, described as strong, independent,
structured, focused, upright, and transparent;
• Board members are satisfied with the agendas, which are well designed and balanced between business, financial and governance
topics;
• Social and environmental dimensions are systematically taken into account into all discussions with the Board;
• All committees operate properly, and their work is satisfactory and useful to the Board decision-making process; and
• Overall, the on-boarding program is considered as very valuable by the new Board members.
Board and Management relationships
• Quality of relations between the Board and the management is seen as transparent, trustful and supportive (everyone feel free to
express his opinion);
• Notwithstanding the strong commitment Mr. Peter Herweck brought to the role, questions raised on the Chief Executive Officer’s
leadership; and
• High quality of the Strategy session, which is very useful, well organized, and tailored to discuss the key strategic topics for Schneider
Electric.
Recommendations
• Review of the Chief Executive Office leadership is necessary;
• Large majority of Board members considers that the span of skills brought to the Board is adequate but could be reinforced with candidates
with Chief Executive Officer experience;
• Information provided in advance of Board meetings could be more selective and synthetic;
• Set calendar two years in advance for planning purposes; and
• Allocation of committee assignments between members is adequate but there might be a periodic rotation of assignments.
4.1.2.5 Information and training of the Board of Directors and its members
Information given to Directors
To ensure that the Board of Directors is well informed at all times, Schneider Electric SE applies the following rules: members of the Board
have access, via a secure dedicated platform, in principle, ten days before every Board meeting, to the agenda for the meeting and to the
draft minutes of the last meeting and, four to five days before, to the Board’s file.
Executive Committee members are invited, depending on the subject, to present the major issues within their areas of responsibility.
Statutory auditors attend the portion of the Board’s meetings at which the full year and half year financial statements are reviewed.
In addition, each year a Board meeting called “Strategy session” is held in the form of a seminar and invites key executives of the Group to
contribute to Board discussions. These seminars also enable Directors to constantly refine their understanding of the challenges facing the
Group through themed-based presentations and site visits.
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Furthermore, the Board organizes a range of specific training
sessions throughout the year to help Directors increase their
knowledge of the Group (through presentations of its ecosystem,
challenges, climate strategy, businesses, and some of its regions)
and its competitive environment, as well as recent market
disruption trends and technological developments.
Between each meeting of the Board of Directors, aside from
meetings that they may have with the Chief Executive Officer,
Directors receive information through relevant financial analysts’
reports and other documents. Board members also have the
opportunity to meet informally with key members of Senior
Management.
Board of Director dinners are organized in order to offer more
opportunities to interact with investors, customers, experts, etc.
These dinners are meant to provide Board members with external
views on the Group, to increase their understanding of the changes
in its business environment, and to gain more insight on the needs
and motivations of all stakeholders. In 2024, four dinners were
organized.
On-boarding program of new Directors
A complete on-boarding program is provided to any new Director
in order to help him/her to get a deep understanding of the
business, the challenges, and priorities of Schneider Electric as
well as its governance and values. As such, new Directors are
offered a training and information program on the Group’s strategy
and businesses, designed around a common core which
comprises of:
• A set of documents including, in particular, the last Universal
Registration Document and integrated report, the Company’s
Articles of Association, the internal regulations of the Board of
Directors, the AFEP-MEDEF Corporate Governance Code, the
insider trading policy (see below), the minutes of the Board’s
and committees’ meetings for the period starting from the
appointment back to the full year before, and the Directors’ and
officers’ liability master policy;
• A summary relating to the Group organization;
• Working meetings with the Chief Financial Officer and Executive
Vice-Presidents of Strategy, Energy Management, Industrial
Automation, and other Executive Vice-Presidents as the case
may be;
• A work session with the secretary of the committee(s) he/she will
join;
• Concerning governance and values: a work session with the
Vice-Chairman & Lead Independent Director, the Chief
Governance Officer, and the Board Secretary, as well as with
the persons in charge of compliance, ethics, and sustainable
development;
• To know more about Schneider Electric’s shareholding structure
and shareholders’ expectations, an interview with the Senior
Vice-President Investors Relations;
• Training on the use of the secure dedicated platform on which
all the Board’s files are stored and kept;
• The designation of a mentor for any new Director to facilitate his/
her integration; and
• As the case may be, visits to sites which are particularly
illustrative of Schneider Electric’s activities.
In addition, the Directors representing employees, Mrs. Rita Félix
and Mr. Bruno Turchet, benefit from a training program compliant
with legal requirements and approved by the Board of Directors. In
pursuance of new French regulations coming from law nº 2019-486
of May 22, 2019, relating to companies’ growth and transformation,
known as PACTE law, the Director representing the employee
shareholders, Mrs. Xiaoyun Ma, was offered a tailored training
session to address her needs.
Insider trading policy
Schneider Electric has adopted an insider trading policy for
members of the Board of Directors and Group employees,
designed to prevent insider trading. Under these provisions, both
Directors and relevant employees are barred from trading in the
Company shares and shares in companies for which they have
inside information that has not yet been made public. In addition,
they may not trade in Schneider Electric SE shares during the
31 days preceding the day following publication of the annual and
interim financial statements, nor during the 16 days preceding the
day following publication of a quarterly update, nor may they
engage in any type of speculative trading involving Schneider
Electric SE shares (including margin trading, purchasing, and
selling shares in a period of less than four months). In addition, in
accordance with the AFEP-MEDEF Corporate Governance Code,
Corporate Officers also undertake not to enter into hedges of
shares resulting from exercise of options and of Performance
Shares they are required to hold (see section 4.1.1.6 of Chapter 4 of
this Universal Registration Document). These restrictions
supplement the prohibition against hedging unvested stock options
and Performance Shares during their vesting period.
The insider trading policy was revised when the European “Market
Abuse Regulation” nº 2014/596 of April 16, 2014, entered into force,
and was subsequently updated in December 2018, and last
amended in April 2024. The regulation obliges companies to draw
up insider lists, and market operators to put in place mechanisms
aimed at preventing and detecting suspicious transactions,
enabling them to report to the Autorité des Marchés Financiers
those that seem to them to constitute insider dealing.
The insider trading policy provides for rules for establishing,
updating, and keeping in the prescribed electronic format a list of
insiders whenever necessary, lists of persons subject to black-out
periods, and possible confidentiality and abstention lists identifying
the persons, whether from Schneider Electric or external to the
Group, who have access to a piece of sensitive information that
does not yet qualify as inside information according to the legal
definition. Schneider Electric has deployed a digital tool to manage
these lists which automates their processing and ensures better
traceability.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.3 Activities and operating procedures of the
committees
In its internal regulations, the Board defined the functions, missions, and resources of its five study committees: the Audit & Risks
Committee, the Governance, Nominations & Sustainability Committee, the Human Capital & Remunerations Committee, the Investment
Committee, and the Digital Committee.
Committee members are appointed by the Board of Directors on the proposal of the Governance, Nominations & Sustainability Committee.
Committees may open their meetings to the other Board members.
The Vice-Chairman & Lead Independent Director may attend any meetings of committees of which he is not a member. The committees
may commission research from external consultants after having consulted with the Chairman of the Board of Directors. They may invite
anybody they wish to meetings, as necessary. Secretaries of the Board committees organize and prepare the work of the committees. They
draft the minutes for the meetings of the committees which, after their approval, are sent to all members of the Board of Directors. The
secretaries of the committees are members of Group management teams and specialists in the subject matters of each committee.
4.1.3.1 Audit & Risks Committee
The members, operating procedures, and responsibilities of the Audit & Risks Committee are compliant with the recommendations
included in the Audit & Risks Committee final report as updated by the AMF in July 2010.
7
4
100%
100%
meetings in 2024*
members
of independent Directors
average attendance rate
Composition as of December 31, 2024
The internal regulations and
procedures of the Board of
Directors stipulate that the Audit &
Risks Committee must have at
least three members.
Two-thirds of the members must
be independent and at least one
must have in-depth knowledge of
accounting standards combined
with hands-on experience in
applying current accounting
standards and producing
financial statements.
• Jill Lee
Chairwoman
Independent
• Clotilde Delbos
Member
Independent
• Philippe Knoche
Member
Independent
• Anna Ohlsson-Leijon
Member
Independent
As demonstrated by their career records, summarized in section 4.1.1.2 of this Universal
Registration Document, Mrs. Jill Lee, Clotilde Delbos and Anna Oglsson-Leijon have recognized
expertise in finance, economics, and accounting. In addition to their in-depth financial and
accounting knowledge, Mrs. Jill Lee also brings an in-depth knowledge of Schneider Electric’s
activities and of the Asian markets, Mrs. Clotilde Delbos her expertise in finance and industry, as
well as her experience in transformations, Mr. Philippe Knoche his expertise in energy and
technology as well as his experience in transformations both at a strategic and operational level,
and Mrs. Anna Ohlsson-Leijon her professional experience and skills based on a wide-ranging
finance and business background.
Changes in the composition in 2024
• Chairpersonship: no change.
• Membership: Mr. Philippe Knoche was appointed as a member of the Committee with effect on May 23, 2024 in replacement of
Mr. Gregory Spierkel. Mrs. Clotilde Delbos was appointed as a member of the Committee with effect on November 1, 2024 in
replacement of Mrs. Cécile Cabanis.
Individual attendance rate in 2024
• Jill Lee 100%
• Clotilde Delbos 100%
• Philippe Knoche 100%
• Anna Ohlsson-Leijon 100%
Operating procedures
• The Committee meets at the initiative of its Chairperson or at the
request from the Chairperson of the Board of Directors or the
Chief Executive Officer.
• At least five meetings are held during the year.
• The Head of Internal Audit is the secretary of the Audit & Risks
Committee.
• The Committee may invite any person it wishes to hear to its
meetings.
• The Chief Executive Officer will not attend the meeting of the
Committee.
• The statutory auditors attend meetings at which financial
statements are reviewed and, depending on the agenda, all
or some of the other meetings.
• It may also require the Chief Executive Officer to provide any
documents it deems to be useful.
• It may also commission studies from external consultants.
• The Committee presents its findings and recommendations
to the Board. The Chairperson of the Audit & Risks
Committee keeps the Chairperson of the Board of Directors
and the Vice-Chairman & Lead Independent Director
promptly informed of any difficulties encountered.
*
Including the joint meetings with the Digital Committee relating to cybersecurity risk review and with the Governance, Nominations & Sustainability Committee relating
to the review of sustainability risks.
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Responsibilities
The Audit & Risks Committee is responsible for preparing the work of the Board of Directors by making recommendations on financial
reporting, sustainability reporting, accounting, internal control, internal audit, compliance, and risk management issues. Accordingly,
its missions are as follows:
Items
Details of missions
Preparation for the annual
and interim financial
statements to be
approved by the Board
• To check the appropriateness and consistency of the accounting methods used for drawing up
consolidated and corporate accounts, as well as to check that significant operations at Group level
have been dealt with appropriately and that rules relating to the scope of consolidation have been
complied with;
• To examine off-balance sheet risks (including those of a social and environmental nature) and
commitments as well as the cash situation;
• To examine the process for drawing up financial information; and
• To review the Universal Registration Document as well as the reports on the interim financial
statements and other main financial documents.
Sustainability reporting in
accordance with the new
CSRD regulation
• To monitor issues relating to the preparation and control of the sustainability information;
• To monitor the process of preparation of the sustainability information;
• To monitor the process used to determine what information to disclose in accordance with the
sustainability reporting standards;
• To make recommendations to ensure the integrity of the sustainability reporting; and
• To report to the Board on the results of the sustainability information certification mission as well as
how this mission contributed to the integrity of sustainability information.
Issues related to the
statutory auditors and
sustainability auditors
• To make recommendations concerning the appointment or reappointment of the statutory auditors
and sustainability auditors;
• To handle follow-up on legal control of consolidated and statutory accounts made by statutory
auditors, notably by examining the external audit plan and results of controls made by statutory
auditors;
• To handle follow-up on legal control of sustainability information made by sustainability auditors,
notably by examining the external audit plan and results of controls made by sustainability auditors;
and
• To verify the statutory and sustainability auditors’ independence, in particular, by reviewing fees paid
by the Group to their firm and network and by giving prior approval for assignments that are not
strictly included in the scope of the statutory audit.
Following-up on the
efficiency of internal
control, risk management
systems, and compliance
program
• To monitor the effectiveness of the internal control and risk management systems, as well as, where
applicable, internal audit, with regard to the procedures relating to the preparation and processing of
the financial statements and sustainability information and therefore, more particularly:
(i) to examine the organization and resources used for internal audit, as well as its annual work
program (the Committee shall receive summaries of reports produced on audits on a quarterly
basis and the Chairperson of the Committee shall receive these reports in full);
(ii) to review Enterprise Risk Management reports including operational risk-mapping and to make
sure that measures exist for preventing or minimizing risks;
(iii) to examine how to optimize risk coverage on the basis of reports requested from internal audit or
risk management functions;
(iv) to examine Group internal control measures and look into the results of entities’ self-assessments
with respect to internal control; to ensure that a relevant process exists for identifying and
processing incidents and anomalies;
(v) to ascertain the existence of Group compliance policies notably concerning competition,
anti-bribery, ethics and data protection, and the measures implemented to ensure that these
policies are circulated and applied; and
(vi) to assess cyber risks and the Group’s cybersecurity posture (jointly with the Digital Committee).
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Activity in 2024
The Audit & Risks Committee reported on its work at the Board’s meetings of February 14, July 30, November 7, and December 17, 2024.
Items
Details of missions
Financial statement and
financial disclosures
• Review of the annual and interim financial statements and of the reports on the financial statements;
• Review of goodwill, the Group’s tax position, provisions and pension obligations, or similar obligations;
• Review of investor relations’ documents concerning the annual and interim financial statements;
• Review of the Group’s scope of consolidation; and
• Review of pension commitments.
Sustainability reporting
• Update on the EU Corporate Sustainability Reporting Directive and Gap assessment;
• Review of the process of preparation of the sustainability information.
Internal audit, internal
control, risk management,
and compliance
• Review of the risk mapping;
• Review of the 2025 audit and control missions plan;
• Review of the main internal audits performed in 2023 and in H1 2024;
• Review of risks covered by insurance;
• Status report on the Enterprise Risk Management system;
• Update on Group Trust Standards and their implementation;
• Update on the Group Ethics & Compliance system;
• Cybersecurity risk review (jointly with the Digital Committee);
• Review of the Management Report; and
• Review of the main litigations.
Statutory auditors
• Review of the fees paid to the statutory auditors and to their networks; and
• Review of the 2024 external audit program.
Corporate governance
• Recommended dividend for 2024; and
• Review of the financial authorizations and proposition for their renewal by the Annual Shareholders’
Meeting of May 23, 2024.
4.1.3.2 Governance, Nominations & Sustainability Committee
11
6
67%
100%
meetings in 2024*
members
of independent Directors
average attendance rate
Composition as of December 31, 2024
The Board of Directors’ internal
regulations and procedures
provide that the Governance,
Nominations & Sustainability
Committee must have at least
three members.
• Jean-Pascal Tricoire
Chairman
Non-independent
• Léo Apotheker
Member
Non-independent
• Fred Kindle
Member
Independent
• Linda Knoll
Member
Independent
• Anders Runevad
Member
Independent
• Gregory Spierkel
Member
Independent
Changes in the composition in 2024
• Chairpersonship: No change.
• Membership: No change.
Individual attendance rate in 2024
• Jean-Pascal Tricoire 100%
• Léo Apotheker 100%
• Fred Kindle 100%
• Linda Knoll 100%
• Anders Runevad 100%
• Gregory Spierkel 100%
Operating procedures
• The Committee meets at the initiative of its Chairperson or at
the request of the Chairperson of the Board of Directors or the
Chief Executive Officer.
• The agenda is drawn up by the Chairperson, after
consultation with the Chairperson of the Board of Directors.
• The Committee shall meet at least three times a year.
• The Committee may hear any person it wishes.
• The Secretary of the Board of Directors is the secretary of the
Committee.
*
Including the joint meetings with the Human Capital & Remunerations Committee relating to the 2025 Long-term incentive plan and with the Audit & Risks Committee
relating to the review of sustainability risks.
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Responsibilities
Items
Details of missions
Appointments and
succession plans
• To formulate proposals to the Board of Directors in view of any appointment made to the Board of
Directors: Directors or Observers, Chairperson of the Board of Directors, Vice-Chairperson & Lead
Independent Director, Chairpersons and members of committees;
• To formulate proposals to the Board of Directors in view of any appointment of Executive Corporate
Officers: Chief Executive Officer and/or Deputy Chief Executive Officer;
• To ensure the implementation of a procedure for the preparation of succession plans for the Directors
and Corporate Officers in the event of an unforeseen vacancy;
• To examine succession plans for key Group executives; and
• To be informed of any nomination of members of the Executive Committee and of the main Group
executives.
Missions aiming at
reassuring both
shareholders and the
market that the Board of
Directors carries out its
duties with all necessary
independence and
objectivity
• To ensure that the AFEP-MEDEF Corporate Governance Code to which the Company refers is
applied;
• To discuss governance issues related to the functioning and organization of the Board and its
committees;
• To propose on the conditions in which the regular evaluation of the Board is carried out;
• To discuss the qualification of Directors as independent, which is reviewed by the Board every year
prior to publication of the annual report;
• To conduct a review of the committees that are in charge of preparing the Board’s work;
• To review the implementation of the assessment process relating to the qualification of the related-
party agreements as “current” or “regulated”;
• To prepare the decisions by the Board with regard to the update of its internal regulations; and
• To prepare the draft corporate governance report of the Board of Directors.
Sustainability and
corporate governance
• To ensure that the long-term commitments in terms of sustainability undertaken by the Company are
implemented;
• To review the Group Sustainability strategy including the Climate strategy and follow up on the
progress made on a regular basis;
• To review the sustainability risks jointly with the Audit & Risks Committee; and
• To work with the Stakeholder Committee and set its workplan each year.
Activity in 2024 of the Governance, Nominations & Sustainability Committee
The Governance, Nominations & Sustainability Committee reported on its work at the Board’s meetings of February 14, May 23,
July 30, September 30, November 7, and December 17, 2024.
Items
Details of missions
Proposals to the
Board of Directors
• Removal from office as Chief Executive Officer of Mr. Peter Herweck;
• Appointment of Mr. Olivier Blum as Chief Executive Officer;
• Composition of the Board of Directors and its committees;
• Review of the 2025 Long-Term Incentive resolution (jointly with the Human Capital & Remunerations
Committee); and
• Training program for the Directors representing the employees for 2024.
Reports to the
Board of Directors
• Review of the succession plan for the Executive Committee members;
• Sustainability strategy including Climate;
• Review of the progress made on the Schneider Sustainaibility Impact (SSI), and
• Diversity & Inclusion program progress.
Self-assessment of
the Board of Directors
• Review of the report and findings of the internal self-assessment of the Board of Directors.
Shareholder engagement
• Reporting on the Chairman of the Board’s and Vice-Chairman & Lead Independent Director’s
meetings with governance analysts within the main shareholders: 36 face-to-face or phone meetings
were held, covering 42% of the share capital. These meetings reflect the importance given by the
Company to dialogue and the direct commitment of Directors towards shareholders (see “Report of
the Chairman of the Board of Directors”, section 4.1.4.1 of Chapter 4 of this Universal Registration
Document).
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.3.3 Human Capital & Remunerations Committee
5
5
100%
92%
meetings in 2024*
members
of independent Directors**
average attendance rate
Composition as of December 31, 2024
The Board of Directors’ internal
regulations and procedures
provide that the Human Capital &
Remunerations Committee must
have at least three members.
• Linda Knoll
Chairwoman
Independent
• Nive Bhagat
Member
Independent
• Rita Félix
Member
Employee Director
• Fred Kindle
Member
Independent
• Anna Ohlsson-Leijon
Member
Independent
Changes in the composition in 2024
• Chairmanship: No change.
• Membership: No change.
Individual attendance rate in 2024
• Linda Knoll 100%
• Nive Bhagat 80%
• Rita Félix 80%
• Fred Kindle 100%
• Anna Ohlsson-Leijon 100%
Operating procedures
• The Committee meets at the initiative of its Chairperson or at
the request from the Chairperson of the Board of Directors or
the Chief Executive Officer.
• The agenda is drawn up by the Chairperson, after
consultation with the Chairperson of the Board of Directors.
• The Committee shall meet at least three times a year.
• The Committee may hear any person it wishes.
• The Chief Human Resources Officer is the secretary of the
Committee.
Responsibilities
Items
Details of missions
Employee shareholding
schemes and share
allocation plans
• To prepare the Board of Directors’ deliberations on employee shareholding; and
• To formulate proposals to the Board of Directors on setting up the long-term incentive plans such as
grant of stock options or performance/restricted shares.
Compensation of
Corporate Officers
and Directors
• To formulate proposals to the Board of Directors on the compensation policy of the Chairperson of
the Board of Directors and/or Executive Corporate Officers (Chief Executive Officer, and/or Deputy
Chief Executive Officer, if any), ensuring in particular its alignment with the corporate interest. The
Committee shall prepare annual assessments of the persons concerned and make recommendations
to the Board of Directors concerning the determination of the components of the compensation due
to Executive Corporate Officers in accordance with the compensation policy;
• To review the compensation of the members of the Executive Committee; and
• To propose an amount of the remuneration package for Directors to be submitted to the annual
general shareholders’ meeting and the method of distribution.
Human resources
• To review the social impact of major reorganization projects and major human resource policies; and
• To review risk management in relation to human resources.
Activity in 2024 of the Human Capital & Remunerations Committee
The Human Capital & Remunerations Committee reported on its work at the Board’s meetings of February 14, November 7, and
December 17, 2024.
Items
Details of missions
Proposals to the
Board of Directors
• 2024 Long-term incentive plan, and implementation of specific Performance Share plans to support
the recruitment and the retention policy;
• Compensation of Corporate Officers (amount and structure of 2024 compensation, 2024 objectives,
and level of achievement of 2023 objectives), and allocation to them of Performance Shares as part of
the Long-term incentive plan;
• Review of the 2025 Long-Term Incentive resolution (jointly with the Governance, Nominations &
Sustainability Committee);
• 2025 Worldwide Employee Share Ownership Plan (WESOP);
• Directors’ compensation;
• Mr. Peter Herweck’s termination terms and conditions, and Mr. Olivier Blum’s compensation until the 2025 AGM;
• Pay equity ratio.
Reports to the
Board of Directors
• Special US talent deep dive.
*
Including the joint meeting with the Governance, Nominations & Sustainability relating to the 2025 Long-term incentive plan.
** Employee Directors excluded as prescribed by the AFEP-MEDEF Corporate Governance Code.
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4.1.3.4 Investment Committee
4
9
71%
97%
meetings in 2024
members
of independent Directors*
average attendance rate
Composition as of December 31, 2024
The Board of Directors’ internal
regulations and procedures
provide that the Investment
Committee must have at least
three members.
• Gregory Spierkel
Chairman
Independent
• Léo Apotheker
Member
Non-independent
• Giulia Chierchia
Member
Independent
• Jill Lee
Member
Independent
• Xiaoyun Ma
Member
Employee Director
• Anders Runevad
Member
Independent
• Lip-Bu Tan
Member
Independent
• Jean-Pascal Tricoire
Member
Non-independent
• Bruno Turchet
Member
Employee Director
Changes in the composition in 2024
• Chairmanship: Mr. Gregory Spierkel was appointed as Chairperson of the Committee with effect on May 23, 2024, in replacement
of Mr. Léo Apotheker who remains a member of the Committee.
• Membership: Mr. Gregory Spierkel was appointed as member of the Committee with effect on May 23, 2024.
Individual attendance rate in 2024
• Léo Apotheker 100%
• Giulia Chierchia 100%
• Jill Lee 100%
• Xiaoyun Ma 75%
• Anders Runevad 100%
• Gregory Spierkel 100%
• Lip-Bu Tan 100%
• Jean-Pascal Tricoire 100%
• Bruno Turchet 100%
Operating procedures
• The Committee meets at the initiative of its Chairperson
or at the request from the Chairperson of the Board of
Directors or the Chief Executive Officer.
• The agenda is drawn up by the Chairperson, after
consultation with the Chairperson of the Board of Directors.
• The Committee shall meet three times a year.
• In order to carry out its assignments, the Committee may hear any
person it wishes.
• The Chief Executive Officer will be regularly invited to the meetings
of the Committee.
• The Senior Vice-President Mergers & Acquisitions is the secretary
of the Committee.
Responsibilities
Items
Details of missions
Preparation
of the Board
of Directors’
deliberations
on investment
policy
• To elaborate recommendations for the Board on major capital deployment decisions;
• To advise the management team on capital deployment strategies;
• To launch, at the Board’s request, or suggest research projects leading to material investments for the
Company, typically for capital deployment decisions of EUR 250 million or above;
• To investigate matters of smaller scale, if the strategic significance warrants it or the Board, or Chairperson
of the Board specifically requires it;
• To provide recommendations on major merger, alliances, and acquisition projects;
• To pay special attention to reconfiguration or consolidation scenarios happening in the sectors the Company
is operating in or likely to operate in;
• To examine portfolio optimizations and divestment projects of financial or strategic significance;
• To support management in the elaboration of investment policies linked to the long-term positioning of
Schneider Electric, such as innovation and R&D strategies or any major organic growth investments; and
• To present to the Board, social and environmental aspects of the strategic projects submitted to it such as M&A projects.
Activity in 2024
The Investment Committee reported on its work at the Board’s meetings of February 14, May 23, and July 30, 2024, and during the
Strategy session.
Items
Details of missions
Proposals to the Board
of Directors
• Follow-up of investment projects and opportunities (such as ETAP, Bentley Systems, Planon, Motivair,
and StarCharge); and
• Portfolio review.
*
Employee Directors excluded as prescribed by the AFEP-MEDEF Corporate Governance Code.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.3.5 Digital Committee
5
7
67%
89%
meetings in 2024*
members
of independent Directors**
average attendance rate
Composition as of December 31, 2024
The Board of Directors’ internal
regulations and procedures
provide that the Digital Committee
must have at least three
members.
• Abhay Parasnis
Chairman since May 23, 2024
Independent
• Léo Apotheker
Member
Non-independent
• Nive Bhagat
Member
Independent
• Xiaoyun Ma
Member
Employee Director
• Gregory Spierkel
Member
Independent
• Lip-Bu Tan
Member
Independent
• Jean-Pascal Tricoire
Member
Non-independent
Changes in the composition in 2024
• Chairmanship: Mr. Abhay Parasnis was appointed as Chairperson of the Committee with effect on May 23, 2024, in replacement of
Mr. Gregory Spierkel who remains a member of the Committee.
• Membership: No change.
Individual attendance rate in 2024
• Abhay Parasnis 80%
• Léo Apotheker 100%
• Nive Bhagat 80%
• Xiaoyun Ma 80%
• Gregory Spierkel 80%
• Lip-Bu Tan 100%
• Jean-Pascal Tricoire 100%
Operating procedures
• The Committee meets at the initiative of its Chairperson or at
the request from the Chairperson of the Board of Directors or
the Chief Executive Officer.
• The agenda is drawn up by the Chairperson, after
consultation with the Chairperson of the Board of Directors.
• The Committee shall meet at least three times a year.
• In order to carry out its assignments, the Committee may
hear any person it wishes.
• The Chief Executive Officer will be regularly invited to the
meetings of the Committee.
• The Chief Digital Officer is the secretary of the Committee.
Responsibilities
Items
Details of missions
To assist the Board in
digital matters in order to
guide, support, and
control the Group in its
digitization efforts
To prepare the Board of
Directors’ deliberations on
digital matters
• To review, appraise, and follow-up projects and, generally, advise, inter alia on seven areas:
−Development and growth of the EcoStruxure™ digital business, including (i) enhancing core
businesses with Connectivity & Analytics, (ii) building new digital offers and business models,
and (iii) establishing its contribution to and consistency with the overall strategy;
−Assessment of the contribution of potential M&A operations to the Group’s Digital strategy;
−Monitoring and analysis of the digital landscape (competitors and disrupters, threats, and opportunities);
−Improvement and transformation of the Group’s Digital Customers & Partners Experience;
−Improvement of Schneider Electric’s operational efficiency through the effective use of information
technology and digital automation capabilities;
−Checking that the Company is equipped with the right pool of talents for digital transformation;
and
−Assessment of cyber risks and enhancement of the Group’s cybersecurity posture (jointly with the
Audit & Risks Committee).
Activity in 2024
The Digital Committee reported on its work at the Board’s meetings of February 14, July 30, November 7, and December 17, 2024.
Items
Details of missions
Proposals and reports to
the Board of Directors
• Artificial Intelligence;
• Updates on cybersecurity;
• Product Lifecycle Management and Digital Engineering;
• Digital talent;
• EcoStruxure platform;
• Joint review with the Audit & Risks Committee of the cybersecurity risks; and
• General updates on Schneider Digital.
*
Including the joint meeting with the Audit & Risks Committee relating to cybersecurity risk review.
** Employee Directors excluded as prescribed by the AFEP-MEDEF Corporate Governance Code.
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Chapter 4 – Corporate governance report
4.1 Governance Report
4.1.4 Reports of the
Chairman of the Board of
Directors and of the
Vice-Chairman & Lead
Independent Director
4.1.4.1 Report of the Chairman of the Board
of Directors
Mr. Jean-Pascal Tricoire hereby reports on the work he carried out
in 2024 as part of his responsibilities as Chairman of the Board of
Directors. He was appointed as Chairman on May 4, 2023 by the
Board of Directors further to its decision to separate the functions of
the Chairman of the Board of Directors and Chief Executive Officer.
The Chairman of the Board is appointed by the Board of Directors
amongst its members in pursuance of Article 12 of the Articles of
Association for a period that can be no longer than his term of
office of as a Director.
Information of the Chairman of the Board of
Directors
To be able to carry out his duties, the Chairman of the Board of
Directors must have excellent knowledge of the Group and be
particularly well informed about its business performance. As such,
the Chairman is kept informed by the Chief Executive Officer of
significant events and situations relating to the business of the
Group (including the Company’s strategy, major acquisition or
divestment projects, significant financial transactions, risks, major
community projects and the appointment of the most senior
executives of the Group). To that end, he meets the Chief Executive
Officer on a weekly basis.
In addition, the Chairman of the Board of the Directors interacts
regularly with the Vice-Chairman & Lead Independent Director and
other members of the Board of Directors and meets individually
with each of the other Directors to obtain their feedback on the
current situation of the Company, their possible concerns, and their
wishes.
He is continuously kept informed of the evolution of the competitive
environment, technological breakthroughs, and business
opportunities. Additionally, he is the Chairman of the Governance,
Nominations & Sustainability and a member of the Investment and
the Digital Committees.
Representation of Schneider Electric
The Chairperson of the Board of Directors is the only person
authorized to speak on behalf of the Board, with the exception of
any specific assignment entrusted to the Vice-Chairperson & Lead
Independent Director pursuant to the dialogue with shareholders.
In accordance with the additional missions entrusted to the Chairman
by the Board of Directors, the Chairman participated in the following
events in 2024.
As part of his mission to represent the Company in high-level relations
with selected customers and institutions, in coordination with the Chief
Executive Officer, the Chairman of the Board of Directors attended, in
particular, the World Economic Forum Annual Meeting, Davos, in
January 2024, the Fortune Innovation Forum in March 2024, the World
Economic Forum Special Meeting, Saudia Arabia, in April 2024, the
South Africa C-Level & Partner in August 2024, and the AVEVA World,
Paris, in October 2024.
The Chairman of the Board also represents the Company towards
selected Asian Partners and government bodies, in coordination with
the Chief Executive Officer, and, in this context, took part in a number of
Advisory Boards for Beijing in January 2024, Hong Kong in June 2024,
Shanghai in September 2024, and Singapore in October 2024; and
attended the Asia Business Council in March and October 2024.
Promoting values and culture in particular in relation to Environmental,
Social and Governance, the Chairman of the Board of Directors
attended the Climate Week in September 2024.
In the context of university engagements, the Chairman of the Board of
Directors presented keynotes at the Northeastern Center of Emerging
Markets, USA, in October 2024, the Peking University in China, in
November 2024, and the Hong Kong University of Science and
Technology (HKUST), Hong Kong, in November 2024.
Participation in the preparation of the meetings of
the Board
The Chairman of the Board of Directors prepared each of the Board
of Directors meetings. As a result, he has participated in all the
“pre-Board” meetings. Each meeting of the Board of Directors is
preceded by one or two pre-Board meetings, in which the Chief
Executive Officer, the Chairman of the Board, the Vice-Chairman &
Lead Independent Director, the Chief Financial Officer, the Chief
Governance Officer, and the Secretary of the Board of Directors
review the topics and issues addressed by the committees, and
establish the agenda set by the Chairman of the Board of Directors
and the content of the meeting file prepared.
Interaction with shareholders
The Chairman of the Board of Directors is one of the designated
contacts for the shareholders on matters pertaining to corporate
governance. He carried out a shareholder engagement campaign
in April and May 2024 before the Annual Shareholders’ Meeting to
present to those who so wished, the resolutions submitted for the
shareholders’ approval. The other campaign, called “off-season
engagement” is meant to freely exchange views on topical themes
of corporate governance that do not necessarily materialize in
resolutions submitted for the shareholders’ approval, and has been
carried out in November and December 2024. On this occasion,
the Chairman of the Board of Directors discussed with investors’
representatives the growing importance of governance, social and
environmental topics at the Board of Directors and their reflection in
the Corporate Officers’ compensation. Overall, these two
campaigns comprised 36 face-to-face or phone meetings with
governance analysts of major shareholders from a wide range of
corporate governance cultures and covered 42% of the share
capital. The conclusions of these discussions have been reported
in detail to the Governance, Nominations & Sustainability
Committee and contribute to its on-going thought process on
governance matters. A report thereon was subsequently made to
the Board.
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C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.4.2 Report of the Vice-Chairman & Lead
Independent Director
Mr. Fred Kindle hereby reports on the work he carried out in 2024
as part of his responsibilities as Vice-Chairman & Lead
Independent Director. He was appointed as Vice-Chairman on
April 23, 2020, in replacement of Mr. Léo Apotheker.
The Vice-Chairman & Lead Independent Director is appointed by
the Board of Directors in pursuance of Article 12 of the Articles of
Association, which provide for the appointment of a Vice-Chairman
with the function of a Lead Independent Director if the roles of
Chairman & CEO are combined. In compliance with Article 12 of
the Articles of Association, the duties of the Vice-Chairman & Lead
Independent Director are defined by the internal regulations of the
Board of Directors which provide for the compulsory appointment
of a Vice-Chairperson should the Chairperson be not considered
as independent according to the AFEP-MEDEF Corporate
Governance Code. Those internal regulations can be found in
section 4.1.5 of Chapter 4 of this Universal Registration Document.
Information of the Vice-Chairman
& Lead Independent Director
To be able to carry out his duties, the Vice-Chairman & Lead
Independent Director must have excellent knowledge of the Group
and be particularly well informed about its business performance.
As such, the Vice-Chairman & Lead Independent Director is
apprised of current events and the performance of the Group
through regular exchanges with the Chief Executive Officer and the
Chairman of the Board of Directors.
In addition, the Vice-Chairman & Lead Independent Director
interacts regularly with the other members of the Board of
Directors.
He is continuously kept informed of the evolution of the competitive
environment, technological breakthroughs, and business
opportunities. Additionally, he is a member of the Governance,
Nominations & Sustainability and of the Human Capital &
Remunerations Committees.
Participation in the preparation of the meetings of
the Board
The Vice-Chairman & Lead Independent Director participated in
the preparation for meetings of the Board of Directors. As a result,
he has participated in all the “pre-Board” meetings. Each meeting
of the Board of Directors is preceded by one or two pre-Board
meetings, in which the Chief Executive Officer, the Chairman of the
Board, the Vice-Chairman & Lead Independent Director, the Chief
Financial Officer, the Chief Governance Officer, and the Secretary
of the Board of Directors review the topics and issues addressed
by the committees, and establish the agenda set by the Chairman
of the Board of Directors and the content of the meeting file.
Executive sessions
The Vice-Chairman & Lead Independent Director convenes,
whenever he deems it appropriate, and chairs the executive
sessions (i.e., the meetings where non-executive Board members
meet and well as - sometimes - meetings without the Chairperson
attending). The employee Directors are invited to attend all
executive sessions.
The Board of Directors held six executive sessions in 2024,
including two meetings without the Chairman of the Board
attending, during which its members expressed their views and
observations on, among others, the Group’s strategic options and
the succession planning of the Corporate Officer. The Vice-
Chairman & Lead Independent Director reported the conclusions of
the executive sessions held without the Chairperson attending to
the Chairman of the Board.
Interaction with shareholders
The Vice-Chairman & Lead Independent Director participated in
the shareholder engagement campaigns in 2024 being available
for shareholders who whished so to exchange with him, in addition
to the meetings conducted by the Chairman.
Other duties
The Vice-Chairman & Lead Independent Director conducted the
annual deliberation of the Board on its composition, organization,
and operations as well as those of its committees.
In 2024, this self-assessment was carried out internally. The
conclusions of this assessment, which highlighted the quest for
continuous improvement, are presented in section 4.1.2.4 of
Chapter 4 of this Universal Registration Document.
The Vice-Chairman & Lead Independent Director ensures that
there was no conflict of interest within the Board of Directors, which
he would have been responsible for bringing to the attention of the
Chairman.
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Chapter 4 – Corporate governance report
4.1 Governance Report
4.1.5 Internal regulations of the Board of Directors
The Board internal regulations describe the rights and obligations of Board members, the composition, role, and operating procedures of
the Board of Directors and its committees, and the roles and powers of the Chairman and the Chief Executive Officer. They have been
drawn up in application of Article 13.7 of the Company’s Articles of Association and are prepared in accordance with the French
Commercial Code and the AFEP-MEDEF Corporate Governance Code which Schneider Electric refers to. The present internal regulations
shall be binding on all members of the Board of Directors who shall be deemed to adhere to them on assuming office and shall comply with
them in full. These internal regulations were adopted by the Board of Directors on April 25, 2013 and last amended on February 19, 2025
with immediate effect.
1.
Method of exercising General management – Chairpersonship and Vice-Chairpersonship of the
Board of Directors
1.1. Method of exercising General management
1.1.1. General management of the Company is under the responsibility of either the Chairperson of the Board of Directors, who will then
go by the title of Chairman/Chairwoman and Chief Executive Officer, or of another natural person appointed by the Board of
Directors going by the title of Chief Executive Officer.
1.1.2. The Board of Directors decides between these two methods of exercising General management at the time when the Chairperson
of the Board of Directors or the Chief Executive Officer is appointed or when renewing their terms of office. If the Board of
Directors has decided to combine the functions of Chairman/Chairwoman and Chief Executive Officer, it will deliberate on this
choice every year.
1.1.3. In order to maintain continuity in the Company’s operation if the Chairperson serving as Chief Executive Officer leaves his/her role
or is prevented from doing so, the Deputy Chief Executive Officer(s), if any, shall take the interim responsibility for General
management functions in the Company, unless otherwise decided by the Board, until such time as a new Chief Executive Officer
is appointed. The Vice-Chairperson shall temporarily take the Chair of the Board of Directors.
1.2. Chairperson of the Board of Directors
1.2.1. The Board of Directors shall elect a Chairperson amongst its members (“Chairman/Chairwoman”). The Chairperson shall be
appointed for a period that can be no longer than his/her term of office as a Director. The Board shall deliberate once a year on
the opportunity for the Chairperson to pursue his/her functions. The Chairperson is eligible for re-election. He/she may be
removed from office by the Board of Directors at any time.
1.2.2. The statutory missions of the Chairperson of the Board of Directors are:
-
to organize and direct the work of the Board;
-
to convene the Board meetings, determine the agenda and preside over the meetings;
-
to request any document or information necessary to help the Board of Directors for the preparation of its meetings and verify
the quality of the information provided;
-
to oversee the proper functioning of the Company’s bodies and makes sure, in particular, that (i) the Directors are able to carry
out their assignments, (ii) the Board of Directors is well organized, in a manner conducive to constructive discussion and
decision-making and (iii) the Board of Directors devotes an appropriate amount of time to issues relating to the future of the
Company and particularly its strategy;
-
to preside over general shareholders meetings and report on the Board work to the annual general shareholders’ meeting.
1.2.3. The Chairperson of the Board is entrusted with the following additional powers and missions for which he/she shall organize his/
her activities so as to ensure his/her availability and put his/her experience at the Company’s service:
-
to be kept regularly informed by the Chief Executive Officer of significant events and situations relating to the business of the Group
(including the Company’s strategy, major acquisition or divestment projects, significant financial transactions, risks, major
community projects and the appointment of the most senior executives of the Group) and to be consulted by him on these matters;
-
to assist and advise the Chief Executive Officer on strategic, technological, leadership and human capital matters;
-
to support, in coordination with the Chief Executive Officer, the representation of the Company in high-level relations with
selected stakeholders (customers and institutions);
-
to represent the Company with selected Asian Partners and Asian government bodies in coordination with the Chief Executive
Officer;
-
to be involved in dialogue with shareholders in cooperation with the initiatives taken in this respect by the Chief Executive Officer;
-
to promote the Company’s values and culture in particular in relation to Environmental, Social and Governance;
-
to meet with the Company’s leaders and managers;
-
to hear the statutory auditors and the heads of the control functions in order to ensure that the Board and its committees are in
a position to carry out of their duties;
-
to convene the members of the Board without Executive Directors being present, in particular to allow debates on the
performance and compensation of the Executive Management and succession planning;
-
to participate to the recruitment process for new directors and the development of the succession plan;
-
to work with the Board on the preparation and implementation of succession plan(s) for the corporate officer(s).
The Chairperson of the Board strives to develop and maintain a trustful and regular relationship between the Board and the
General Management, in order to guarantee continuous, ongoing implementation by the General Management of the strategies
defined by the Board. In all his/her assignments other than those conferred by law, the Chairperson of the Board of Directors acts
in close conjunction with the Chief Executive Officer, who has sole responsibility for the general and operational management of
the Company.
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C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
1.2.4. The Chairperson of the Board of Directors is the only person authorized to speak on behalf of the Board, with the exception of any
specific assignment entrusted to the Vice-Chairperson & Lead Independent Director pursuant to the dialogue with shareholders.
1.3. Vice-Chairperson of the Board of Directors – Lead Independent Director
1.3.1. The Board of Directors may appoint a Vice-Chairperson. If the roles of Chairperson and Chief Executive Officer are combined or
if the Chairperson is not considered as independent according to the AFEP-MEDEF Corporate Governance Code, the
appointment of a Vice-Chairperson is compulsory. The Vice- Chairperson shall be appointed for a period that may not be any
longer than his/her term of office as a Director. The Vice-Chairperson is eligible for re-election. The Vice-Chairperson may be
removed from office by the Board of Directors at any time.
1.3.2. The Vice-Chairperson shall preside over Board meetings in the absence of the Chairperson.
The Vice-Chairperson shall be called upon to replace the Chairperson of the Board of Directors in the event of any temporary
inability of the latter to fulfill his/her functions or in the event of death. In the event of the Chairperson’s inability to fulfill his/her
functions, he/she will be replaced by the Vice-Chairperson as long as his/her inability may last and, in the case of death, until the
election of a new Chairperson.
1.3.3. The Vice-Chairperson also takes on the role of Lead Independent Director. In this respect, the powers and missions of the
Vice-Chairperson are:
-
to be kept informed of major events in Group life through regular contacts and meetings with the Chairperson and the Chief
Executive Officer;
-
to be consulted by the Chairperson on the agenda and the sequence of events for every Board meeting as well as on the
schedule for Board meetings;
-
to request that the Chairperson of the Board of Directors include additional items on the agenda of any meeting of the Board of
Directors;
-
to request that the Chairperson of the Board of Directors call a meeting of the Board of Directors to discuss a given agenda;
-
to convene – whenever he/she deems appropriate – an executive session with non-executive members of the Board of
Directors and without the Chairperson attending, over which he/she will preside. It is the Vice-Chairperson’s responsibility to
appreciate for each topic discussed whether the employee Directors should leave the meeting until the topic is closed. In
addition, the Vice-Chairperson may convene an executive session between two Board meetings;
-
to promptly report to the Chairperson on the conclusions of executive sessions held without the Chairperson attending;
-
to draw the attention of the Chairperson and of the Board of Directors to any possible conflicts of interest that he/she may have
identified or which may be reported to him/her;
-
to meet if he so wishes the Group’s leading managers and visit Company sites in order to complement his/her knowledge;
-
to carry out annual assessments of the Board of Directors and, in this context, assess the actual contribution of every member
of the Board to the Board’s activities;
-
to report on his/her actions at annual general shareholders’ meetings;
-
to engage with shareholders on governance matters and inform the Board of their concerns.
1.3.4. The Vice-Chairperson & Lead Independent Director must be an independent member of the Board, as defined in accordance
with the criteria published by the Company.
1.4.
The Chief Executive Officer shall own a minimum number of shares representing five years of base salary. Calculation of the
number of shares held is based on Schneider Electric SE shares and the equivalent in shares of the corporate mutual fund units
invested in Schneider Electric shares held by him. He is required to retain at least 50% of the Performance Shares granted to him
until this number of shares is reached.
2.
Roles and powers of the Board of Directors
2.1.
The Board of Directors shall determine the business strategy of the Company and monitors its implementation, in accordance
with its corporate interest and while considering its social and environmental aspects. Subject to the powers expressly conferred
to annual general shareholders’ meetings and within the limit of the corporate purpose, it shall deal with all matters regarding the
smooth running of the Company and settles issues concerning the Company. At any time in the year, the Board carries out the
controls and verifications it deems appropriate.
2.2.
In accordance with legal or statutory provisions, it is the Board of Directors’ responsibility:
-
to determine the method of exercising General management of the Company;
-
to appoint Executive Corporate Officers, remove them from office and to set their remuneration and the benefits granted to
them;
-
to co-opt Directors whenever necessary;
-
to distribute Directors’ remuneration allocated at the annual general shareholders’ meeting amongst members of the Board of
Directors.
-
to convene general shareholders meetings;
-
to approve statutory and consolidated financial statements;
-
to ensure that the Company has reported in accordance with EU sustainability reporting framework;
-
to decide on the dates for the payment of dividends and any possible down-payments on dividends;
-
to draw up management reports and reports for annual general shareholders’ meetings;
-
to draw up management planning documents and the corresponding reports;
-
to draw up the corporate governance report as provided for in Article L. 225-37 of the French Commercial Code;
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4.1 Governance Report
-
to decide on the use of the delegations of authority granted at annual general shareholders’ meetings, more particularly for increasing
Company capital, redeeming the Company’s own shares, carrying out employee shareholding operations and canceling shares;
-
to grant options or restricted/performance shares within the limits of authorizations given at annual general shareholders’
meetings;
-
to authorize the issue of bonds;
-
to authorize the issue of sureties, endorsements and guarantees;
-
to authorize regulated agreements (agreements covered by Article L. 225-38 and following of the Commercial Code);
-
to implement a process to regularly assess that the rules used to qualify a related party transaction as regulated agreement or
not, are relevant and effective;
2.3.
To enable the Board to exercise its duties as defined in 2.1. and beyond its specific powers summarized in 2.2., the Board of
Directors’ remits include:
-
to give prior authorization for:
(i)
all disposals or acquisitions of holdings or assets by the Company or by a Group company for a sum of more than 250
million euros;
(ii) significant changes to the scope and portfolio of activities outside of the strategy shared with the Board of Directors;
(iii) establishment of significant strategic alliances;
(iv) any settlement for a sum of more than 125 million euros;
(v) any off-balance sheet commitment in excess of 125 million euros other than those relating to a guarantee given to an
entity of the Group;
(vi) major and very significant changes to the Group internal organization;
-
to be informed by its Chairperson or by its committees of any significant event concerning the Company’s efficient operation;
-
to be informed about market developments, competitive environment and the most important challenges the Company has to
face, including in the area of social and environmental responsibility;
-
to establish the multi-annual strategic approach on social and environmental responsibility and review the results reached on
a yearly basis (including on climate);
-
to review, in relation to the strategy it has defined, the opportunities and risks, such as financial, legal, operational, social and
environmental risks, as well as the measures taken accordingly and to that end receive all information necessary to fulfill its
remit, especially from the Chief Executive Officer;
-
to seek assurance that the cyber risk management program is adequate and reduces the risk of attacks and, when necessary,
will respond and recover from any attack that may happen;
-
to ensure that a process to prevent and detect bribery and influence peddling is in place;
-
to exercise control over management and oversee the quality of information provided to shareholders and to the markets, in
particular via the financial statements or on the occasion of major corporate transactions;
-
to review every year its composition, its organization and its mode of operation;
-
to set up an Audit & Risks Committee on the terms specified by law and any other committees (i) which do not have decision-
making powers but have the task of providing all useful information for the discussions and decisions which the Board is called
upon to make, (ii) which composition and rules with regard to their modus operandi is determined by the Board;
-
to be consulted prior to acceptance by the Chief Executive Officer or Deputy Chief Executive Officer(s), if any, of any
corporate appointment in a listed company outside the Group;
-
to appoint a Vice-Chairperson if the Board is compelled or wishes to do so;
-
to appoint up to three Board Observers if the Board wishes to do so;
-
to determine targets in terms of gender balance within the executive bodies and ensure that the Executive Corporate Officers
implement a policy of non-discrimination and diversity, notably with regard to the balanced gender representation on the
executive bodies.
2.4.
The activities of the Board of Directors and its committees shall be described in the corporate governance report.
3.
Membership of the Board of Directors
In the proposals it makes and the decisions it takes, the Board of Directors shall ensure that:
-
it reflects the international nature of the Group’s activities and of its shareholders by having a significant number of members of
non-French nationals;
-
it protects the independence of the Board through the competence, availability and courage of its members;
-
it pursues its objective of diversifying the Board of Directors in compliance with the legal principle of attaining balanced
gender representation on the Board;
-
it appoints persons with the expertise required for developing and implementing the Group strategy while considering the
objectives of diversity based on criteria such as age, professional skills and experiences;
-
employee shareholders and employees shall continue to be represented on the Board in compliance with the provisions set
forth in Articles 11.3 and 11.4 of the Articles of Association;
-
it preserves the continuity of the Board by changing some of its members at regular intervals, if necessary by anticipating the
expiry of members’ terms of office.
4.
Meetings of the Board of Directors
4.1.
The Board of Directors shall meet whenever the interests of the Company so require and at least six times a year, including one
meeting for examining strategy in detail.
Notices to attend shall be issued by all means, including verbally. They shall be sent via the Secretary of the Board.
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C H 1
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C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.2.
Board meetings shall be convened by the Chairperson or by the Vice-Chairperson in accordance with Article 1.3.3.
Moreover, if no Board meeting takes place for over two months, the Chairperson shall convene a meeting of the Board at a date
no later than fifteen days after at least one-third of the members of the Board have made a justified request for this purpose. If the
request goes unheeded, the person or persons requesting the meeting may convene a meeting himself/herself or themselves,
stating the agenda of the proposed meeting.
Similarly, the Chief Executive Officer, if he/she is not Chairperson of the Board of Directors may also address a request to the
Chairperson to convene a meeting on any given agenda.
The person responsible for convening the meeting shall set its agenda. The agenda may be modified or completed at the time of
the meeting.
Board meetings shall be held at the Company’s registered offices or at any other place specified in the notice of the meeting,
whether in France or abroad.
4.3.
Any member of the Board may appoint another member to represent him/her at a Board meeting by means of a proxy form.
During the same meeting, each member of the Board may only use one proxy form that he/she has received further to the
foregoing paragraph.
Members of the Board may attend Board meetings by telecommunication links, which allow them to be identified and which
guarantee their effective participation. In such a case, they are counted among the members present to the meeting and taken
into account for the purpose of determining the quorum or the majority.
Deliberations of the Board of Directors shall only be valid if at least half of the Directors are present. However, in application of
Article 15 of the Articles of Association, the Board of Directors may only deliberate validly on the methods for exercising General
management if two-thirds of the Directors are present or represented.
Decisions shall be taken on a majority vote by the Directors present or represented. In the event of equality of votes, the
Chairperson of the meeting shall have the casting vote.
In accordance with Article 14.3 of the Articles of Association, with the exception of (i) the approval of the statutory and
consolidated annual financial statements, and (ii) the appointment or dismissal of the Chairperson of the Board of Directors, or the
Chief Executive Officer, the decisions of the Board of Directors may be taken by written consultation, including by electronic
means, under the terms and conditions provided by said Article.
4.4.
The Secretary of the Board shall attend Board meetings.
The Board of Directors shall hear operational managers concerned by major issues submitted to examination by the Board.
The Board of Directors may authorize persons who are not members of the Board to attend Board meetings including by
videoconference or by telecommunication links.
4.5.
An attendance register shall be kept at the registered office.
The proceedings of the Board of Directors shall be recorded in minutes.
The Secretary of the Board shall be authorized to certify copies or excerpts from the minutes of the Board’s proceedings.
5.
Information of the Board of Directors
Members of the Board of Directors shall be provided with all the information necessary to enable them to carry out their duties
and this within time limits that enable them to familiarize themselves with this information in a meaningful way. They may procure
any documents they require for this purpose prior to meetings.
Any request for information made by members of the Board on specific subjects shall be addressed to the Chairperson of the
Board or to the Chief Executive Officer, who will reply thereto as promptly as possible.
In order to provide members of the Board of Directors with complete information, visits to sites and customers shall be organized
for them. Members of the Board of Directors shall have the right to meet the main Company executives. They shall inform the
Chairperson (or, if appropriate, the Chief Executive Officer) thereof.
The Chairperson and/or Vice Chairperson shall meet each member of the Board individually once a year.
6.
Status of members of the Board of Directors
6.1.
Members of the Board of Directors shall represent all the shareholders and shall act in the interests of the Company in all
circumstances.
6.2.
Members of the Board of Directors shall attend Board meetings and meetings of the committees of which they are members.
Any member, who has not attended at least half of the meetings held during the year, unless there are exceptional reasons, shall
be deemed to wish to terminate his/her term of office and shall be invited to resign from the Board of Directors or the committee
concerned, as appropriate.
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6.3.
Members of the Board of Directors shall be bound by a general confidentiality obligation with respect to the deliberations of the
Board and the committees and with respect to information which is not in the public domain, which they receive further to performing
their duties.
By exception, any natural person linked to a Board member being a legal entity (Permanent Representative) or a shareholder
(either employee of such legal entity or executive) is allowed to communicate some of non public information to such legal entity
as well as any advisor of such legal entity. It is being specified that:
-
Such communication is authorized only if (i) it is strictly necessary to accomplish the Board member’s mission, (ii) it is made in
the interest of the Company (with no conflict interest existing between the Company and the legal entity), (iii) it is limited in its
content as well as its recipients and (iv) it respects the applicable rules and regulations, in particular in matters of market
abuses;
-
Such legal entity shall take all necessary measures to ensure that the strict confidentiality of such information is maintained;
-
The Lead Independent Director can, upon request, obtain from the legal entity the list of the information communicated, and of
all the recipients of such information.
6.4.
Directors may not exercise more than four other terms of office in listed companies outside the Group.
6.5.
Members of the Board of Directors shall have a duty to inform the Board of Directors of any office they may hold or no longer hold
in other companies.
6.6.
Members of the Board of Directors have a permanent duty to ensure that their personal situation shall not give rise to a conflict of
interest with the Company. In this respect, they shall disclose:
-
the existence of any conflict of interest, even a potential one, upon assuming their duties and then each year in response to a
request made by the Company at the time of preparation of its Universal Registration Document;
-
any event – open occurrence during the course of the year – which would render the statement above mentioned totally or
partially inaccurate.
Any member of the Board of Directors having a conflict of interest, even a potential one, has a duty to notify it to the Vice-Chairperson
& Lead Independent Director who shall in turn inform the Board of Directors. The Board of Directors shall rule upon the conflict of
interest and may request to the member(s) of the Board of Directors concerned to correct his/her situation. The member of the Board
of Directors having a conflict of interest, even a potential one, shall not take part in the discussions or to the vote of the corresponding
decision and shall leave the meeting of the Board of Directors while the decision is being debated and voted.
6.7.
Within eighteen months of their appointment, members of the Board of Directors, to the exclusion of the Directors representing
employees, shall own at least 1,000 Schneider Electric SE to be held during their term of office. To fulfill this obligation, putting
aside the 250 shares which must be held to comply with Article 11.1 of the Articles of Association, shares held via a company
mutual fund essentially invested in the Company shares can be taken into account. The Schneider Electric SE shares that they
hold shall either be in purely registered (nominatif pur) or in managed registered (administré) form.
6.8.
Members of the Board of Directors shall inform the French Financial Market Authority (Autorité des Marchés Financiers) within
three business days from the completion of the operation, by e-mail at the following address: https://onde.amf-france.org/
RemiseInformationEmetteur/Client/PTRemiseInformationEmetteur.aspx, as well as the Secretary of the Board, of any acquisition,
sale, subscription or exchange concerning shares issued by Schneider Electric SE or any operation on financial instruments
linked thereto, conducted on their own account or on their behalf.
6.9.
Members of the Board of Directors shall provide the Secretary of the Board with the list of the persons closely associated with
them as defined by the European Regulation nº596/2014 (“Market Abuse Regulation”), whom they shall notify of their individual
duties to inform the French Financial Market Authority and Schneider Electric SE (to the attention of the Secretary of the Board),
similar to those applicable to themselves pursuant to paragraph 6.8. above.
6.10. Members of the Board of Directors undertake to abide by the compliance code governing stock-market ethics, of which they have
received a copy, with respect to their personal financial transactions.
Members of the Board of Directors shall refrain from carrying out any transaction involving Company’s listed shares during the 31
days before the day following publication of annual or half-yearly accounts, and during the 16-day period before the day following
publication of quarterly information. The same principle applies when they hold insider information, i.e. precise information
concerning the Company, which has not been made public and which, if it were made public, could have a marked impact on
share price or on any financial instrument related to them.
6.11. Members of the Board of Directors are invited to attend the annual general shareholders’ meetings.
6.12. Members of the Board of Directors shall be remunerated by the payment of an annual amount determined by the Board of
Directors. The Board of Directors may grant exceptional remuneration for assignments or offices conferred upon Directors.
6.13. Traveling expenses, notably including hotel and restaurant expenses, incurred by the members of the Board of Directors in
relation to the performance of their duties, shall be borne by the Company on presentation of supporting documents.
6.14. Members of the Board of Directors shall complete the on-boarding program offered to them at the beginning of their first term.
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7.
Observers
The Board of Directors may appoint a maximum of three Observers.
The Observers shall attend Board meetings in a consultative capacity.
They shall receive the same information as the other members of the Board. They may be appointed as members of committees,
except for the Audit & Risks Committee.
They shall act in the interest of the Company under all circumstances.
They shall be bound by the same general confidentiality obligation as the members of the Board of Directors and shall be subject
to the same limitations regarding transactions involving the Company’s shares. Their remuneration shall be determined by the
Board of Directors.
8.
Committees of the Board of Directors
8.1.
The committees created by the Board of Directors shall be as follows:
-
Audit & Risks Committee;
-
Governance, Nominations & Sustainability Committee;
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Human Capital & Remunerations Committee;
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Investment Committee;
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Digital Committee.
8.2.
The role of these committees shall be to research and prepare certain matters to be considered by the Board of Directors. They
shall make proposals, give recommendations and issue opinions, as appropriate, in their area of competence.
Created by virtue of Article 13 of the Articles of Association, they shall only have a consultative role and shall act under the
authority of the Board of Directors.
8.3.
The Chairpersons and members of the committees shall be appointed by the Board of Directors. They shall be appointed in a
personal capacity and may not be represented.
The terms of office of committee members shall coincide with their terms of office as members of the Board of Directors. The
terms of office of committee members may be renewed.
As a matter of good governance, committee Chairpersons should be rotated and not exceed four years for a given committee.
The Board of Directors shall deliberate annually on the Chairpersonship of the concerned committee whenever such four-year
limit is reached or exceeded.
8.4.
Committees shall meet on the initiative of their Chairperson or on request from the Chairperson of the Board of Directors or the
Chief Executive Officer.
8.5.
The Chairperson and the Chief Executive Officer shall be kept informed of committee meetings. They shall be in regular contact
with committee chairpersons.
8.6.
Committee meetings shall be held at the Company’s registered office or any other place decided upon by the Chairperson of the
committee with an agenda prepared by the latter. If necessary, they may be held by audio or video conference.
Members of the Board of Directors may attend meetings of committees of which they are not a member. Only the members of the
committee shall take part in the committee’s recommendations.
A secretary will prepare the minutes of the meetings.
A report on each committee’s activities shall be given by the committee’s chairperson or one of its members at the next Board
meeting. Minutes of committee meetings shall be provided to the members of the Board of Directors.
After referring the matter to the Chairperson of the Board, every committee may request studies from external consultants. Every
committee may invite any person of its choice to its meetings, as and when required.
8.7.
Other than the permanent specialist committees that it has created, the Board of Directors may also decide to set up any ad hoc
committees for specific operations or assignments.
9.
The Audit & Risks Committee
9.1. Membership and operation of the Audit & Risks Committee
The Committee shall be comprised of at least three members, two-thirds of whom must be independent members of the Board of
Directors. At least one of the members must possess special skills concerning matters of finance and accountancy and be
independent with regard to specified, published criteria.
The head of Internal Audit shall act as Secretary to the Audit & Risks Committee.
The Committee shall meet at least five times a year. The Chairperson of the Committee shall draw up agendas for meetings.
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The meetings shall be attended by members of the finance department and of the Company’s Internal Audit department and, with
respect to meetings devoted to examining financial statements, by the statutory auditors. The Committee may invite any person it
wishes to hear at its meetings. It may also require the Chief Executive Officer to provide any documents it deems to be useful.
Outside the presence of Company representatives, the Committee shall regularly hear the statutory auditors and the head of the
Internal Audit.
9.2. Duties of the Audit & Risks Committee
The Audit & Risks Committee monitors questions on drawing up and controlling accounting, financial and sustainability
information. It prepares the Board of Directors’ decisions in these domains. It issues recommendations to the Board for the
purpose of ensuring the integrity of the financial and sustainability information and gives advices. For this purpose, the Audit &
Risks Committee’s missions include:
-
to prepare for annual and half-yearly financial statements to be approved by the Board and therefore, more particularly:
(i)
checks the appropriateness and consistency of the accounting methods used for drawing up consolidated and statutory
financial statements, as well as checking that significant operations on Group level have been dealt with appropriately
and that rules relating to the consolidation perimeter have been complied with;
(ii) examines off-balance-sheet risks, including those of a social and environmental nature, and commitments as well as the
cash situation;
(iii) examines the process for drawing up financial information;
-
to examine the draft annual report, which bears the status of Universal Registration Document and contains the information on
internal control, the draft half-yearly report and, where applicable, any remarks made by the French Financial Market Authority
(AMF) concerning these reports, as well as the other key financial information documents;
-
to monitor issues relating to the preparation and control of the sustainability information;
-
to monitor the process of preparation of the sustainability information;
-
to monitor the process used to determine what information to disclose in accordance with the sustainability reporting
standards;
-
to make recommendations to ensure the integrity of the sustainability reporting;
-
to report to the Board on the results of the sustainability information certification mission as well as how this mission
contributed to the integrity of sustainability information;
-
to make recommendations concerning the appointment or reappointment of the statutory auditors and sustainability auditors;
-
to handle follow-up on legal control of consolidated and statutory accounts made by statutory auditors, notably by examining
the external audit plan and results of controls made by statutory auditors;
-
to handle follow-up on legal control of sustainability information made by sustainability auditors, notably by examining the
external audit plan and results of controls made by sustainability auditors;
-
to verify the statutory and sustainability auditors’ independence, in particular, by reviewing fees paid by the Group to their firm
and network and by giving prior approval for assignments that are not strictly included in the scope of the statutory audit;
-
to monitor the effectiveness of the internal control and risk management systems, as well as, where applicable, internal audit,
with regard to the procedures relating to the preparation and processing of the financial statements and sustainability
information, and therefore, more particularly:
(i)
to examine the organization and resources used for internal audit, as well as its annual work program (the Committee shall
receive summaries of reports produced on audits on a quarterly basis and the Chairperson of the Committee shall
receive these reports in full);
(ii) to review Enterprise Risk Management reports including operational risk-mapping and to make sure that measures exist
for preventing or minimizing risks;
(iii) to examine how to optimize risk coverage on the basis of reports requested from internal audit or risk management
functions;
(iv) to examine Group internal control measures and look into the results of entities’ self-assessments with respect to internal
control; to ensure that a relevant process exists for identifying and processing incidents and anomalies;
(v) to ascertain the existence of Group compliance policies notably concerning competition, anti-bribery, ethics and data
protection and the measures implemented to ensure that these policies are circulated and applied; and
(vi) to assess Cyber Risks and the Group’s Cyber Security posture (jointly with the Digital Committee)
The Audit & Risks Committee shall examine proposals for distribution as well as the amount of financial authorizations submitted
for approval at annual general shareholders’ meetings.
The Audit & Risks Committee reports to the Board on the implementation of Schneider Electric SE’s Charter on the related party
transactions and on the relevance of the criteria to qualify related party transactions as regulated agreements or not.
The Audit & Risks Committee shall examine all financial and accounting questions and questions related to risk management
submitted to it by the Board of Directors.
The Audit & Risks Committee reports to the Board on the findings of its works and how they contributed to the integrity of the
financial and sustainability information. It informs the Board of the follow-up actions that it proposes to take. The Chairperson of
the Audit & Risks Committee shall keep the Chairperson and the Vice-Chairperson & Lead Independent Director promptly
informed of any difficulties encountered by the Committee.
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10. Governance, Nominations & Sustainability Committee
10.1. Membership and operation of the Governance, Nominations & Sustainability Committee
The Committee shall be comprised of at least three members.
The Secretary of the Board shall be the secretary of the Governance, Nominations & Sustainability Committee.
The Committee shall meet at the initiative of its Chairperson. The agenda shall be drawn up by the Chairperson of the Committee
after consultation with the Chairperson of the Board of Directors. The Committee shall meet at least three times a year.
In order to carry out its assignments, the Committee may hear any person it wishes.
10.2. Duties of the Governance, Nominations & Sustainability Committee
The Governance, Nominations & Sustainability Committee monitors questions related to the governance of the Company and its
sustainability strategy. It issues recommendations and prepares the Board of Directors’ decisions in these domains. For this
purpose, the Governance, Nominations & Sustainability Committee’s missions include:
-
to formulate proposals to the Board of Directors in view of any appointment made to the Board of Directors: Directors or Observers,
Chairperson of the Board of Directors, Vice-Chairperson & Lead Independent Director, Chairpersons and members of committees;
-
to formulate proposals to the Board of Directors in view of any appointment of Executive Corporate Officers: Chief Executive
Officer and/or Deputy Chief Executive Officer;
-
to ensure the implementation of a procedure for the preparation of succession plans for the Directors and Corporate Officers
in the event of an unforeseen vacancy;
-
to examine succession plans for key Group executives;
-
to be informed of any nomination of members of the Executive Committee and of the main Group executives;
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to ensure that the AFEP-MEDEF Corporate Governance Code to which the Company refers is applied;
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to discuss governance issues related to the functioning and organization of the Board and its committees;
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to propose on the conditions in which the regular evaluation of the Board is carried out;
-
to discuss the qualification of Directors as independent, which is reviewed by the Board every year prior to publication of the
annual report;
-
to conduct a review of the committees that are in charge of preparing the Board’s work;
-
to review the implementation of the assessment process relating to the qualification of the related-party agreements as
‘current’ or ‘regulated’;
-
to prepare the decisions by the Board with regard to the update of its Internal Regulations;
-
to prepare the draft corporate governance report of the Board of Directors;
-
to ensure that the long-term commitments in terms of Sustainability undertaken by the Company are implemented;
-
to review the Group sustainability strategy including the Climate strategy and follow up on the progress made on a regular basis;
-
to review the sustainability risks jointly with the Audit & Risks Committee;
-
to work with the Stakeholder Committee and set its workplan each year.
11. Human Capital & Remunerations Committee
11.1. Membership and operation of the Human Capital & Remunerations Committee
The Committee shall be comprised of at least three members.
The Chief Human Resources Officer of the Group shall be the secretary of the Human Capital & Remunerations Committee.
The Committee shall meet at the initiative of its Chairperson. The agenda shall be drawn up by the Chairperson of the Committee
after consultation with the Chairperson of the Board of Directors. The Committee shall meet at least three times a year.
In order to carry out its assignments, the Committee may hear any person it wishes.
11.2. Duties of the Human Capital & Remunerations Committee
The Human Capital & Remunerations Committee monitors questions related to the human resources of the Company and
compensation. It issues recommendations and prepares the Board of Directors’ decisions in these domains. For this purpose, the
Human Capital & Remunerations Committee’s missions include:
-
to formulate proposals to the Board of Directors on the compensation policy of the Executive Corporate Officers (Chairperson of
the Board of Directors and/or Chief Executive Officer, and/or Deputy Chief Executive Officer, if any), ensuring in particular its
alignment with the corporate interest. The Committee shall prepare annual assessments of the persons concerned and make
recommendations to the Board of Directors concerning the determination of the components of the compensation due to
Executive Corporate Officers in accordance with the compensation policy;
-
to review the compensation of the members of the Executive Committee;
-
to propose an amount of the remuneration package for Directors to be submitted to the annual general shareholders’ meeting
and the method of distribution;
-
to formulate proposals to the Board of Directors on setting up the long-term incentive plans such as, for example, grant of
stock options or performance/restricted shares;
-
to prepare the Board of Directors’ deliberations on employee shareholding;
-
to review the social impact of major re-organization projects and major human resource policies;
-
to review risk management in relation to human resources.
The Committee considers questions relating to the remuneration of Corporate Officers outside their presence.
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12. Investment Committee
12.1. Membership and operation of the Investment Committee
The Committee shall be comprised of at least three members.
The Senior Vice-President Mergers & Acquisitions shall be the secretary of the Investment Committee.
The Committee shall meet at the initiative of its Chairperson. The agenda shall be drawn up by the Chairperson of the Committee
after consultation with the Chairperson of the Board of Directors. The Committee shall meet at least three times a year.
In order to carry out its assignments, the Committee may hear any person it wishes and call upon the Group M&A director.
12.2. Duties of the Investment Committee
The Committee prepares the Board of Directors’ deliberations on investment policy.
To this purpose, the Committee:
-
shall elaborate recommendations to the Board on major capital deployment decisions;
-
shall advise the management team on capital deployment strategies;
-
may launch, at the Board’s request, or suggest research projects leading to material investments for the Company, typically for
capital deployment decisions of 250 million euros or above;
-
may investigate matters of smaller scale, if the strategic significance warrants it or the Board/Chairperson of the Board
specifically requires it;
-
shall provide recommendations on major merger, alliances and acquisition projects;
-
shall pay special attention to reconfiguration or consolidation scenarios happening in the sectors the Company is operating in
or likely to operate in;
-
shall examine portfolio optimizations and divestment projects of financial or strategic significance;
-
shall support the management in the elaboration of investment policies linked to the long-term positioning of Schneider
Electric, such as innovation and R&D strategies or any major organic growth investments;
-
shall present to the Board social and environmental aspects of the strategic projects submitted to it such as M&A projects.
13. Digital Committee
13.1. Membership and operation of the Digital Committee
The Committee shall be comprised of at least three members.
The Chief Digital Officer or the Chief Information Officer shall be the secretary of the Digital Committee.
The Committee shall meet at the initiative of its Chairperson. The agenda shall be drawn up by the Chairperson of the Committee
after consultation with the Chairperson of the Board of Directors. The Committee shall meet at least three times a year.
In order to carry out its assignments, the Committee may hear any person it wishes.
13.2. Duties of the Digital Committee
The purpose of the Digital Committee is to assist the Board in digital matters in order to guide, support and control the Group in
its digitization efforts. The Digital Committee prepares the Board of Directors’ deliberations on digital matters.
For this purpose, the Digital Committee will review, appraise and follow-up on projects and, generally, advise, inter alia on seven
areas:
-
development and growth of the EcoStruxure digital business, including (i) enhancing Core Businesses with Connectivity &
Analytics, (ii) building new digital offers and business models, (iii) establishing its contribution to and consistence with the
overall strategy;
-
assessment of the contribution of potential M&A operations to the Group’s Digital strategy;
-
monitoring and analysis of the Digital landscape (competitors and disrupters, threats and opportunities);
-
improvement and transformation of the Group’s Digital Customers & Partners Experience;
-
improvement of Schneider Electric’s Operational Efficiency through the effective use of Information Technology and digital
automation capabilities;
-
checking that the Company is equipped with the right pool of talents for digital transformation;
-
assessment of Cyber Risks and enhancement of the Group’s Cyber Security posture (jointly with the Audit & Risks Committee).
14. Perimeter of Internal regulations
The present Internal regulations have been unanimously approved by the Board of Directors. A purely internal act, their objective
is to complete the Articles of Association by stipulating the main conditions of organization and operation of the Board of
Directors. Their purpose is not to replace the Articles of Association. They may not be relied upon by shareholders or third parties
for use against members of the Board of Directors, the Company, or any company in Schneider Electric Group. They may be
modified at any time solely by deliberation of the Board of Directors.
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4.1.6 Regulated agreements and commitments
4.1.6.1 Review of the regulated agreements and commitments entered into by Schneider
Electric SE
No agreements were concluded during the year that would have required approval by the Annual General Meeting in accordance with
Article L. 225-38 of the French Commercial Code.
4.1.6.2 Procedure for assessing agreements relating to ordinary business operations
concluded under normal conditions
The Board of Directors, at its meeting of December 11, 2019, established a procedure for regularly assessing whether agreements relating
to ordinary business operations concluded under normal conditions meet these conditions. Any persons directly or indirectly concerned by
any of these agreements shall not participate in its assessment.
The procedure is comprised of two phases:
• The assessment of the application of Schneider Electric SE’s internal charter for regulated agreements approved by the Board of
Directors on February 19, 2020, which results in an annual business report drawn up jointly by the Legal department and the Secretary
of the Board of Directors. This report is made available to the Audit & Risks Committee for preparing the evaluation report it draws up for
the Board of Directors; and
• The assessment by the Board of Directors of criteria for qualifying agreements relating to ordinary business operations concluded under
normal conditions which deliberates on the basis of the above-mentioned assessment report drawn up by the Audit & Risks Committee.
According to this procedure, the Governance, Nominations & Sustainability Committee reviewed at its meeting of December 17, 2024, the
relevance of criteria for qualifying agreements relating to ordinary business operations concluded under normal conditions as defined by
the procedure and decided not to amend it.
4.1.6.3 Statutory auditors’ report on related party agreements
Annual General Meeting of the fiscal year ended December 31, 2024
To the Annual General Meeting of Schneider Electric S.E.,
In our capacity as statutory auditors of your Company, we hereby present to you our report on related party agreements.
We are required to inform you, on the basis of the information provided to us, of the terms and conditions of those agreements indicated
to us, or that we may have identified in the performance of our engagement, as well as the reasons justifying why they benefit the Company.
We are not required to give our opinion as to whether they are beneficial or appropriate or to ascertain the existence of other agreements.
It is your responsibility, in accordance with Article R. 225-31 of the French Commercial Code (Code de commerce), to assess the relevance
of these agreements prior to their approval.
We are also required, where applicable, to inform you in accordance with Article R. 225-31 of the French Commercial Code
(Code de commerce) of the continuation of the implementation, during the year, of the agreements previously approved by the Annual
General Meeting.
We performed those procedures which we deemed necessary in compliance with professional guidance issued by the French Institute
of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to this type of engagement.
Agreements submitted for approval to the Annual General Meeting
Agreements authorized and concluded during the past fiscal year
We hereby inform you that we have not been notified of any agreements authorized during the year to be submitted to the Annual General
Meeting for approval in accordance with Article L. 225-38 of the French Commercial Code (Code de commerce).
Agreements previously approved by the Annual General Meeting
Agreements authorized and concluded during previous past fiscal years
We hereby inform you that we have not been notified of any agreements previously approved by the Annual General Meeting, whose
implementation continued during the year.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 12, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 12, 2025
Juliette Decoux Guillemot
Mathieu Mougard
Jean-Christophe Georghiou
Séverine Scheer
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4.1.7 Stakeholder Committee
In order to reinforce its sustainability governance further with solid external insights, Schneider Electric created a Stakeholder Committee in 2021.
4.1.7.1 Composition
The internal regulations of the Stakeholder Committee provide that the Committee consists of no less than five and no more than ten members.
The members of the Stakeholder Committee are appointed by the Chairperson of the Board of Directors of the Company after consultation
of its Governance, Nominations & Sustainability Committee.
As of the date of this Universal Registration Document, the Stakeholder Committee consisted of nine members. In addition to the Chief
Executive Officer of the Company, it is mainly composed of global experts, recognized for their high level of expertise and engagement on
sustainability issues, including from non-governmental, international, or academic organizations, an independent Director and an employee
Director of the Company.
Olivier Blum
Chief Executive Officer
54 years, French
Salvo Lombardo
Former Chief of Staff, UNHCR
65 years, Italian
Amani Abou-Zeid
(Dr.)
African Union Commissioner
in charge of Infrastructure,
Energy, ICT and Tourism
63 years, Egyptian
Giulia Chierchia
Director of
Schneider Electric SE
46 years, Belgian & Italian
Michela Conterno
CEO, LATI
49 years, Italian
Rita Félix
Employee Director of
Schneider Electric SE
42 years, Portuguese
Lan Xue (Dr.)
Cheung Kong Chair
Distinguished Professor and
Dean of Schwarzman College
in Tsinghua University
65 years, Chinese
Amit Narayan
Founder & CEO of Aina
Climate AI Ventures
53 years, American
Bertrand Piccard
Chairman of Solar Impulse
Foundation
67 years, Swiss
4.1.7.2 Responsibilities
The primary mission for the Stakeholder Committee is to advise Schneider Electric on its journey to deliver the long- and short-term
sustainability commitments undertaken by the Company in accordance with its purpose and sustainability strategy.
More precisely, the mandate of the Stakeholder Committee is:
•
To present the regulatory framework, customer expectations, best practice sharing, insights of the possible future opportunities, and
possible business positioning on two topics defined each year by the Board;
•
To monitor the progress of the current Schneider Sustainable Impact and support in the next Schneider Sustainable Impact cycle; and
•
To give advice on any questions submitted by the Board or the management.
The Stakeholder Committee reports to the Chairperson of the Board. Its recommendations are submitted to the Board for consideration
on a continuous basis.
4.1.7.3 Activity in 2024
In 2024, the Stakeholder Committee held three meetings and a joint meeting with the Governance, Nominations & Sustainability Committee
on February 21, May 22, and December 9, 2024 devoted to the following topics:
•
Update on sustainability;
•
Update on COP19;
•
Topical deep-dive: Africa long-term development plan, Schneider Electric external communication.
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C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.1.8 Senior management
The Senior Management of Schneider Electric SE consists of the Chief Executive Officer supported by the Executive Committee.
The Executive Committee
The operational organization of the Senior Management of the Group is supported by the Executive Committee, which is chaired by the Chief
Executive Officer. The Executive Committee meets every month to analyze and evaluate the financial performance of the Group’s various
businesses compared with the budget, strategic developments, and major events affecting the Group.
As of the date of this Universal Registration Document, the Executive Committee comprises of the 17 following members. As per its Diversity &
Inclusion Policy, Schneider Electric pays a lot of attention to the composition of its Executive Committee, in particular to ensure a diversity of
culture and gender. Thus, seven nationalities from three continents are part of the Executive Committee. According to the objective to comprise
at least 40% women, the Executive Committee comprises 41% women (no change compared to 2023).
Name of Executive Committee member
Gender
Age
Nationality
Responsibility
Olivier Blum
M
54
French
Chief Executive Officer
Gwenaelle Avice-Huet
F
45
French
Executive Vice-President Europe Operations
Laurent Bataille
M
46
French
Executive Vice-President France Operations
Hervé Coureil
M
54
French
Chief Governance Officer & Secretary General
Barbara Frei
F
54
Swiss
Executive Vice-President Industrial Automation
Frédéric Godemel
M
61
French
Executive Vice-President Energy Management
Caspar Herzberg
M
52
German
Executive Vice-President Schneider Electric Software,
Chief Executive Officer - AVEVA
Charise Le
F
52
Chinese
Chief Human Resources Officer
Chris Leong
F
57
Malaysian
Chief Sustainability Officer
Hilary Maxson
F
47
American
Chief Financial Officer
Manish Pant
M
55
Indian
Executive Vice-President International Operations
Aamir Paul
M
47
American
Executive Vice-President North America Operations
Nadège Petit
F
45
French
Chief Innovation Officer
Jing Ren
F
44
Chinese
Executive Vice-President Strategy, Brand &
Communications
Mourad Tamoud
M
53
French
Executive Vice-President Global Supply Chain
Peter Weckesser
M
56
German
Chief Digital Officer
Zheng Yin
M
53
Chinese
Executive Vice-President China & East Asia Operations
The Business Pulse Community
The Business Pulse Community consists of approximatively 2,200 leaders of Schneider Electric’s businesses, functions, and operations. Its
responsibility is to ensure the sharing and cascading of the Group’s objectives and key strategic priorities. The Business Pulse community met
digitally five times in total in 2024 to exchange on these matters.
The Top Pulse Community
The Top Pulse Community includes the Executive Committee members and top executives, for a total of approximately 250 leaders of
Schneider Electric’s businesses, functions, and operations to be inclusive of the key decision makers across the organization. The group meets
once a year, preferably in person, to ensure in depth discussion and decision making, as well as smooth and efficient implementation of such
decisions.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2 Compensation Report
The Compensation Report presents the compensation paid or
granted in 2024 to the Corporate Officers and Directors, as well as
the compensation policies applicable to them in 2025. The Group
had three corporate officers in 2024:
• a Chairman of the Board of Directors (Mr. Jean-Pascal Tricoire)
throughout the 2024 fiscal year;
• a Chief Executive Officer (Mr. Peter Herweck) from January 1,
2024 to November 1, 2024; and
• a Chief Executive Officer (Mr. Olivier Blum) as of November 1,
2024.
This section includes a complete description of the components of
remuneration for the Corporate Officers, including the following
components on which the Annual Shareholders’ Meeting of May 7,
2025 is invited to vote:
• with regard to 2024:
−for the current Chief Executive Officer (Mr. Olivier Blum): the
components which make up the total remuneration and the
benefits of all kinds paid during 2024 (from November 1, 2024
to December 31, 2024) (subject of the 6th resolution proposed
to the Annual Shareholders’ Meeting);
−for the former Chief Executive Officer (Mr. Peter Herweck):
the components which make up the total remuneration and
the benefits of all kinds paid during 2024 (from January 1,
2024 to November 1, 2024) (subject of the 7th resolution
proposed to the Annual Shareholders’ Meeting);
−for the Chairman of the Board of Directors (Mr. Jean-Pascal
Tricoire): the components which make up the total
remuneration and the benefits of all kinds paid during 2024
(throughout the 2024 fiscal year) (subject of the 8th resolution
proposed to the Annual Shareholders’ Meeting); and
−for the Board members of Schneider Electric: the
components of remuneration presented in the Corporate
governance report pursuant to Article L. 22-10-9 I of the
French Commercial Code (subject of the 5th resolution
proposed to the Annual Shareholders’ Meeting); and
• with regard to 2025, the remuneration policies which will be
applicable to:
−the Chief Executive Officer (Mr. Olivier Blum)
(subject of the 9th resolution proposed to the Annual
Shareholders’ Meeting);
−the Chairman of the Board of Directors
(Mr. Jean-Pascal Tricoire) (subject of the 10th resolution
proposed to the Annual Shareholders’ Meeting); and
−the Board members (subject of the 11th resolution proposed
to the Annual Shareholders’ Meeting).
The information included in this section also takes into account the
provisions of the AFEP-MEDEF Corporate Governance Code for
listed companies, as interpreted by the Haut Comité de
Gouvernement d’Entreprise (French High Committee on Corporate
Governance), and the AMF’s (Autorité des Marchés Financiers,
French Financial Market Authority) recommendations.
4.2.1 Overview
All resolutions linked to compensation were approved by the 2024
Annual Shareholders’ Meeting.
The 2023 Compensation Report (say on pay ex-post) were largely
approved by shareholders as follows:
• by more than 94% for the global Compensation Report
• by more than 96% for Mr. Peter Herweck as Chief Executive
Officer;
• by more than 85% for Mr. Jean-Pascal Tricoire as Chief
Executive Officer;
• by more than 97% for the Chairman of the Board of Directors
(Mr. Jean-Pascal Tricoire).
The 2024 compensation policies (say on pay ex-ante) were largely
approved by shareholders as follows:
• by more than 94% for the Chief Executive Officer;
• by more than 97% for the Chairman of the Board of Directors
(Mr. Jean-Pascal Tricoire);
• by more than 96% for the members of the Board of Directors.
As in previous years, key remuneration topics were discussed with
Schneider Electric’s largest shareholders in 2024. Schneider
Electric representatives notably interacted with 24 investors during
the year, representing 42% of the issued share capital during the
governance roadshow. Feedback was reported to the Human
Capital & Remunerations Committee and to the Board of Directors.
This dialogue will be pursued in 2025 to ensure that the Board
takes feedback into account while determining the compensation
policy of the Corporate Officers. The Board values the comments
received during these engagements with shareholders and takes
them into consideration when making a decision regarding
compensation.
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C H 4 – C O R P O R A T E
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C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
2024 performance highlights
Business performance
2024 was another year of record performance for Schneider Electric with +8.4% organic growth in revenues with accelerated execution
during the 4th quarter, a true testament to our focused execution and collaboration across the whole Group. We delivered Free Cash Flow
above €4bn for the second consecutive year, while we also exceeded our Schneider Sustainability Impact targets.
Revenue
€38B
Adjusted EBITA
€7.1B
Progress on Schneider
Sustainability Impact
7.55
Cash conversion
99%
Net Satisfaction Score
+4.1pts
Positioning in relation to the Company’s performance
2024 compensation of Mr. Jean-Pascal Tricoire and the Chief Executive Officer vs. shareholder value creation – share price and
enterprise value growth over ten years (re-based to 100).
€0.85M
€4.66M
€4.7M
€4.7M
€4.9M
€6.04M
€5.71M
€5.85M
€4.73M
€6.32M
€5.95M
0
€1.5M
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
€221
€62
€42B
€145B
Total awarded compensation to Mr. Jean-Pascal Tricoire, Chairman & Chief Executive Officer until May 3, 2023 and then Chairman from May 4, 2023.
Total awarded compensation to Mr. Peter Herweck, Chief Executive Officer from May 4, 2023 until November 1, 2024.
Total awarded compensation to Mr. Olivier Blum, Chief Executive Officer from November 1, 2024.
Schneider Electric share price.
Enterprise value.
Summary of the compensation realized during the year 2024
Olivier Blum, Chief Executive Officer (euros) – November 1 to December 31, 2024
200,000
Salary
198,600
STIP
3,222,519(1)
LTIP
63,125
Other
(1) LTIP represents realized value of shares vested for which performance evaluation ended in 2024 (LTIP 2022). Those Performance Shares were granted to him in 2022
when he was not yet Chief Executive Officer.
Peter Herweck, Chief Executive Officer (euros) – January 1 to November 1, 2024
1,000,000
Salary
993,000
STIP
3,608,923(2)
LTIP
338,588(3)
Other
(2) LTIP represents realized value of shares vested for which performance evaluation ended in 2024 (LTIP 2022). Those Performance Shares were granted to him in 2022
when he was not yet Chief Executive Officer.
(3) Excluding non-compete indemnity and severance indemnity.
Jean-Pascal Tricoire, Chairman (euros) – January 1 to December 31, 2024
930,000
Salary
0
STIP
0
LTIP
59,094
Other
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.2 Report on the compensation granted or paid
during the 2024 fiscal year (say on pay ex-post)
4.2.2.1 Pillars and principles
The principles and criteria determining the 2024 compensation described in this section were supported by the shareholders at the
Annual Shareholders’ Meeting on May 23, 2024. They are deemed to constitute the last policy approved by the shareholders in the
meaning of Article L. 22-10-8 of the French Commercial Code and govern the entirety of the compensation granted by the Group to the
Corporate Officers until the next policy is approved by the shareholders.
Pillar
How it is reflected in the Group 2024 compensation policy
Pay-for-performance
Principle 1: Prevalence of variable components: circa 80% for Chief Executive
Officer (at target).
A prevalent part of the Corporate Officer target package shall be variable; the 2024 target
package (on an annualized basis) thus consists of approximately 76% variable pay component
(excluding pension payments).
Chief Executive Officer: 2024 on target pay mix
Fixed
24%
Annual variable
compensation 24%
Performance shares
52%
24%
76%
Principle 2: Performance evaluated via economic and measurable criteria.
Performance is evaluated via criteria that are mainly economic (70% of variable cash
compensation and 75% of multi-year Performance Shares) and measurable, which are selected
based on key performance indicators (KPIs) used in the market communication and drivers of the
Group’s strategy. All criteria have measurable targets approved by the Board at the beginning of
the performance period, ensuring targets are achievable but demanding.
Principle 3: Financial and sustainability objectives are fairly balanced and
distributed between short-term (annual incentive) and medium-term (long-term
incentive) components.
2024 annual incentive (70% financial /
30% customer satisfaction and sustainability):
• 35% Group organic sales growth
• 25% Adjusted EBITA margin (organic)
improvement
• 10% Group cash conversion rate
• 10% Net Satisfaction Score
• 20% Schneider Sustainability Impact (SSI)
2024 long-term incentive
(75% financial / 25% sustainability):
• 40% Adjusted Earnings per Share (EPS)
• 35% Relative Total Shareholder Return (TSR)
• 25% Carbon emissions reduction targets
Alignment with
shareholders’ interests
Principle 4: Significant proportion of the total compensation delivered in shares.
The Corporate Officer’s target package consists of approximately 52% long-term share-based
compensation, meaning their compensation is subject to the same share price volatility that
shareholders experience.
Principle 5: Performance conditions aligned to shareholders’ expectations and
Schneider Electric’s strategic priorities.
Performance criteria were selected from financial indicators that are most representative of Group
performance and that are closely linked to shareholder value creation. Performance levels required
to reach targets were set at the beginning of the performance period in line with the objectives
disclosed to the market at the same time as the results of the previous fiscal year and were
supplemented by factors that enable the Group to offer a long-term and satisfactory development
outlook for all stakeholders in the Company’s success.
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C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Pillar
How it is reflected in the Group 2024 compensation policy
Competitiveness
Principle 6: To benchmark the Corporate Officer’s compensation package “at
target” in the median range of the Company’s peer group.
Schneider Electric competes for talents in a global marketplace. Most of the Group’s key
competitors are headquartered outside France. To reflect this, the international peer group
consists of 26 French, European, and US companies that are comparable to Schneider Electric in
size or industry sector, or that represent a potential source of recruitment or attrition. Compensation
levels for the Corporate Officer are reviewed annually and benchmarked by reference to the
median of this peer group to ensure they remain reasonable and appropriately competitive. This
benchmarking is primarily used to establish a frame of reference for what competitors are paying
to comparable roles, rather than as the main factor for making compensation decisions.
The 2024 Peer Group has been modified to exclude Bayer which is no longer part of the STOXX
Europe 50 and include three new companies, ASML, Novo Nordisk, and ServiceNow, to introduce
more companies in the technology sector reflecting Schneider Electric’s digital transformation in
Europe and in the US. It comprises European and US-based companies:
• Business competitors (in particular, those identified in the Long-term incentive plan as
performance peers for TSR comparison purposes);
• Talent competitors for operational and functional roles; and
• “Acceptance” peers (i.e. similar groups in terms of size, business, or structure).
Group 1:
European
(Capital
Goods)
Group 2:
European
(Construction)
Group 3:
European
(Technology
Hardware
& Software)
Group 4:
European
(Industrial B2B)
Group 5:
US
(Capital
Goods)
Group 6:
US
(Technology
Hardware
& Software)
– ABB
– Atlas Copco
– CNH
Industrial
– Legrand
– Siemens
– ACS
– Holcim
– Saint-Gobain
– Vinci
– ASML
– Dassault
Systèmes
– Hexagon
– SAP
– TE
Connectivity
– Airbus Group
– Air Liquide
– BASF
– Novo Nordisk
– Eaton
– Emerson
– Honeywell
– Johnson
Controls
– Rockwell
Automation
– Autodesk
– ServiceNow
– PTC
Principle 7: To reference the CAC 40 third quartile and the STOXX Europe 50
median.
The Board reviews the Corporate Officer’s compensation with reference to the upper quartile of the
CAC 40 companies and the median of the STOXX Europe 50 companies, in line with the Group’s
position within these panels.
2024 Chief Executive Officer’s compensation relative to the market benchmarks
75th percentile
25th percentile
Median
3,296
5,009
6,761
8,499
4,682
8,733
14,501
5,004
5,004
5,004
CAC 40
STOXX
Europe 50
Peers
Total compensation package 2024:
Fixed compensation + Targeted annual
variable compensation + LTI granted
5,549
4,159
Total compensation includes annualized base salary, annual incentive at target, and IFRS value of
Performance Shares granted during the year.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.2.2 Corporate Officers’ compensation in relation to the 2024 fiscal year
At its meeting on February 19, 2025, after examining the suitability and fairness of the outcome of the 2024 compensation policy for the
Corporate Officers and its alignment with the Group’s performance, upon recommendation of the Human Capital & Remunerations
Committee, the Board determined the Corporate Officers’ compensation for 2024 in accordance with the principles and criteria previously
approved by the shareholders on May 23, 2024 at the Annual Shareholders’ Meeting. The outcome is detailed and commented on
hereinafter along with the performance results for each Corporate Officer and each component of their respective compensation.
4.2.2.2.1 Chief Executive Officer’s compensation from November 1 to December 31, 2024 (Mr. Olivier Blum)
Table summarizing the compensation paid or granted to the Chief Executive Officer in 2024
The following table summarizes the compensation and benefits awarded or paid to Mr. Olivier Blum as Chief Executive Officer for the period
from November 1, 2024, to December 31, 2024, presented on an allocated basis in accordance with the guidelines of the AFEP-MEDEF
Code, as well as on an effective basis (compensation and benefits realized) when the performance evaluation period ended during the
fiscal year. These amounts do not include the compensation paid to Mr. Olivier Blum prior to this period in his former position as Executive
Vice-President of Energy Management, from January 1, 2024, to October 31, 2024.
Olivier Blum
Chief Executive Officer
Compensation & benefits
awarded for fiscal year
Compensation & benefits
realized in fiscal year
(Euro)
2024
2023
2024
2023
A – CASH COMPENSATION
Fixed compensation
200,000
N/A
200,000
N/A
Annual variable compensation(1)
198,600
N/A
198,600
N/A
Compensation in relation to the Director’s office
0
N/A
0
N/A
SUBTOTAL (A) (CASH)
398,600
N/A
398,600
N/A
B – LONG-TERM INCENTIVE
Valuation of the Performance Shares
450,923(2)
N/A
3,222,519(3)
N/A
SUBTOTAL (B) LONG-TERM INCENTIVE
450,923
N/A
3,222,519
N/A
C – PENSION CASH BENEFIT
Complementary payment for pension building (fixed)
30,000
N/A
30,000
N/A
Complementary payment for pension building (variable)
29,790
N/A
29,790
N/A
SUBTOTAL (C) PENSION CASH BENEFIT
59,790
N/A
59,790
N/A
D – OTHER BENEFITS
Other benefits(4)
3,335
N/A
3,335
N/A
SUBTOTAL (D) OTHER BENEFITS
3,335
N/A
3,335
N/A
TOTAL COMPENSATION AND BENEFITS (A)+(B)+(C)+(D)
912,648
N/A
3,684,244
N/A
(1) Due to the start as Chief Executive Officer on November 1, 2024, no annual incentive in respect of the fiscal year 2023 was paid to Mr. Olivier Blum in 2024 in his
Corporate Officer role. Hence, the total compensation in cash actually paid in the period November 1, 2024 to December 31, 2024 amounts to EUR 230,000 (2024
fixed compensation + fixed portion of pension benefit for the period November 1 to December 31, 2024). In accordance with Article L.22-10-34 II of the French
Commercial Code, the variable elements in cash awarded to Mr. Olivier Blum for the period November 1 to December 31, 2024 will only be paid in 2025, subject to
their prior approval by the shareholders at the Annual Shareholders’ Meeting of May 7, 2025 under the 6th resolution.
(2) Value of Performance Shares granted during fiscal year – As per AFEP-MEDEF Corporate Governance Code methodology, compensation is presented on a
reported basis. Long-term incentives for the period November 1 to December 31, 2024 include Performance Shares granted during the period November 1 to
December 31, 2024, the performance period of which has not elapsed. The value of Performance Shares corresponds to the number of shares granted, before
reduction on account of performance, multiplied by the share price determined in line with IFRS accounting standards.
(3) Value of Performance Shares deemed vested during the fiscal year – In order to facilitate the analysis, the Long-term incentives are also presented on realized
value basis, where the value of Performance Shares corresponds to the actual number of shares (granted in previous years) deemed vested at the end of the fiscal
year, after reduction for performance conditions, multiplied by the share price on December 31, 2024. Performance Shares deemed vested in 2024 were granted to
Mr. Olivier Blum in 2022 when he was not yet Chief Executive Officer.
(4) Other benefits include company car as well as employer matching contributions to the capital increase for employees or contributions to the Employee Saving Plan
and supplementary Health, Life & Disability scheme.
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C H 5
C H 6
C H 7
C H 8
C H 9
Say on pay table relating to the compensation paid or granted to the Chief Executive Officer from November 1 to
December 31, 2024
The fixed, variable, and exceptional components of the total compensation and benefits paid or awarded for the period from November 1 to
December 31, 2024 to the Corporate Officer, as detailed below, will be submitted to the shareholders for approval at the 2025 Annual
Shareholders’ Meeting of May 7, 2025 under the 6th resolution.
The tables below summarize the compensation paid and awarded during the period from November 1 to December 31, 2024, along with a
description of how each component was calculated in compliance with the compensation policy in force.
Elements of
compensation
submitted to
the vote
Amounts
Description
Fixed
compensation
€200,000
(amount due
for period
November 1
to December
31, 2024 paid
in 2024)
Reminder of the 2024 compensation policy
For the fiscal year 2024, the theoretical gross annual fixed compensation of the Chief
Executive Officer was set by the Board of Directors at €1,200,000 upon recommendation from
the Human Capital & Remunerations Committee.
Application of the 2024 compensation policy
Mr. Olivier Blum received in 2024 a fixed compensation of €200,000 corresponding to his fixed
annual compensation prorated for the period from November 1 to December 31, 2024.
Annual
variable
compensation
€198,600
(amount due
for the period
November 1
to December
31, 2024 to
be paid in
2025)
Reminder:
N/A
Reminder of the 2024 compensation policy
The annual variable compensation rewards achievement of the short-term financial, and
sustainability (corporate and social responsibility) objectives of the Group.
The pay-out opportunity is as follows:
• at threshold performance: 0% of the fixed compensation;
• at target: 100% of the fixed compensation; and
• at maximum over-performance: 200% of the fixed compensation.
The payment of the variable annual cash compensation is conditional upon approval by
shareholders of the compensation granted to the concerned Corporate Officer.
The structure of the 2024 annual variable compensation focuses on what matters to Schneider
Electric in delivering value to shareholders. 100% of the variable compensation depends on
measurable objectives:
• 70% depends on financial criteria which closely align pay outcomes for the Corporate
Officer to Schneider Electric’s financial performance:
−organic sales growth (35%);
−organic adjusted EBITA margin improvement (25%); and
−cash conversion rate (10%);
• 10% depends on Net Satisfaction Score highlighting the importance of building trust with
customers and focus on quality; and
• 20% depends on the Schneider Sustainability Impact (SSI) highlighting the importance of
sustainability in Schneider Electric’s business agenda.
The Board also ensured that stringent targets were set for the annual variable compensation
with maximum award only payable if a strong performance is delivered on each performance
metric.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Elements of
compensation
submitted to
the vote
Amounts
Description
Annual
variable
compensation
(continued)
Application of the 2024 compensation policy
The annual incentive due for 2024 was determined by the Board at the meeting of February 19,
2025, based on the attainment rate of the objectives set for fiscal year 2024 as follows:
Weight (%)
Performance range
Achievement
2024 performance criteria
Threshold
0%
Target
100%
Maximum
200%
2024
Results
Achievement
rate
(non-
weighted)
Achievement
rate
(weighted)
Group financial
indicators (70%)
Organic sales growth
35%
6%
8%
12%
8.4%
110%
38.5%
Adjusted EBITA margin
improvement (org.)
25%
0.6 pts
0.9 pts
1.4 pts
0.9 pts
100%
25%
Cash conversion rate
10%
85%
100%
115%
98.8%
92%
9.2%
Net Satisfaction
Score (10%)
10%
2.5 pt
4.5 pt
6.0 pt
4.1 pts
80%
8%
Sustainability (20%)
Schneider
Sustainability Impact
(score)
20%
6.9
7.6
8.3
7.55
93%
18.6%
Total
100%
99.3%
Overall, 2024 annual variable compensation resulted in a total achievement rate of 99.3%, on
target, reflecting good levels in revenues, adjusted EBITA, and Free Cash Flow delivered by
Schneider Electric in 2024.
Indeed, after having set the compensation targets on February 14, 2024, aligned with the
targets disclosed to the market at that time, the Board decided on July 30, 2024 to use the
discretion clause provided in the 2024 compensation policy approved by shareholders at the
2024 Annual Shareholders’ Meeting.
The targets set at the beginning of 2024 did not appear adequate anymore considering the
strong adjusted EBITA margin improvement achieved in the first half of the year. Therefore, the
Board resolved to increase the targets linked to adjusted EBITA margin in order to align it with
the new guidance announced to the market at that time:
• revenue growth of +6% to +8% organic (unchanged);
• adjusted EBITA margin up +60 bps to +80 bps organic (previously +40 bps to +60 bps
organic in February 2024).
These decisions have been made to ensure a better alignment with the shareholders’
experience and to make sure that the Chief Executive Officer was compensated only for the
Company’s intrinsic performance. Without this adjustment:
• the indicator linked to adjusted EBITA margin would have been overachieved by 200%
delivering 50% of target variable compensation for this criteria instead of the 25% which
was delivered after taking into consideration the targets adjustment resolved by the Board;
and
• the indicator linked to Net Satisfaction Score would have been overachieved by 150%
delivering 15% of target variable compensation for this criteria instead of the 8% which was
delivered after taking into consideration the targets adjustment resolved by the Board.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Elements of
compensation
submitted to
the vote
Amounts
Description
Annual
variable
compensation
(continued)
Detailed achievement of each criterion:
• Organic sales growth: The Group delivered an organic sales growth of +8.4%, which was
above the guidance communicated to the market in February of +6% to +8%. However, as
a consequence of a more stringent target setting methodology, this good performance
results only in an achievement rate of this criterion of 38.5% on the range between 0% to
70%.
• Adjusted EBITA margin improvement: In 2024, adjusted EBITA margin rate improved by
+0.9 pts organically to reach 18.6%, as a consequence of the strong gross margin
improvement coupled with support function cost leverage. This result is above the
guidance communicated to the market in July of an adjusted EBITA margin up +0.6 pts to
+0.8 pts organic. However, as a consequence of a more stringent target setting
methodology, this excellent performance results only in an achievement rate of this criterion
of 25% on a scale from 0% to 50%.
• Cash conversion: Free Cash Flow was €4.2billion. Therefore, cash conversion rate was
98.8% in 2024 which represented an achievement rate of 9.2% on this criterion, on a scale
from 0% to 20%.
• Net Satisfaction Score: The Net Satisfaction Score was up 4.1 pts from 53.8% in 2023 to
57.9% in 2024 as a result of a good recovery. This good result led to an achievement rate of
8% on a scale from 0% to 20%.
• Schneider Sustainability Impact: the Schneider Sustainability Impact (SSI) is the
translation of our six long-term commitments into a selection of 11 highly transformative and
innovative sustainability programs. It is the Group’s five-year (2021-2025) plan with
progress tracked and published quarterly, as well as audited annually. In 2024 the SSI
achieved a score of 7.55/10, representing an achievement rate of 18.6% on a scale from 0%
to 40%.
As a result, the 2024 annual variable compensation pay-out for the Corporate Officer was
calculated on the base of his fixed compensation as follows:
At target pay-out
Achievement rate
2024 (Nov. 1-Dec. 31) Actual pay-out
as a % of salary
Amount (€)
as a % of target
as a % of base salary
Amount (€)
100%
€1,200,000
99.3%
99.3%
€198,600
In compliance with Article L.22-10-34 II of the French Commercial Code, the payment of this
annual variable compensation is subject to approval by the shareholders of the compensation
granted to the Corporate Officer for the fiscal year 2024 (see 6th resolution to be submitted to
the Annual Shareholders’ Meeting of May 7, 2025).
Long-term
incentive
(Performance
Shares)
2,229
Performance
Shares
granted in
November
2024
(€450,923
according to
IFRS valuation)
Reminder of the 2024 compensation policy
The 2024 compensation policy provided:
• a maximum annual award to the Chief Executive Officer capped at 150% of the combined
fixed and target annual variable compensation at the date of the grant;
• a vesting period of three years with an additional mandatory one-year holding period for
80% of shares granted under the plan reserved to the Corporate Officer except for the sale
of shares necessary to cover his tax liabilities; and
• performance conditions as follows:
40%
Improvement
of adjusted
Earnings per
Share (EPS)
Average of the annual rates of achievement of adjusted EPS improvement
targets for the 2024 to 2026 fiscal years. Adjusted EPS performance is
published in the external financial communications and its annual variance
will be calculated using adjusted EBITA at constant FX from year N-1 to year
N. Foreign exchange impacts below adjusted EBITA will be taken in full.
Significant unforeseen scope impact could be restated from this calculation
upon decision of the Board.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Elements of
compensation
submitted to
the vote
Amounts
Description
Long-term
incentive
(Performance
Shares)
(continued)
35%
Relative Total
Shareholder
Return (TSR)
17.5% vs. CAC 40
companies
• 0% below median
• 50% at median (rank 20)
• 100% at rank 10
• 120% at ranks 1 to 4*
Vesting linear between these points
17.5% vs. a panel of
11 peer companies
(ABB, Legrand, Siemens,
Eaton, Emerson,
Honeywell, Johnson
Controls, Rockwell
Automation, Fuji Electric,
Mitsubishi Electric, and
Yokogawa)
• 0% at rank 7 and below
• 50% at median (rank 6)
• 100% at rank 4
• 150% at ranks 1 to 3*
Vesting linear between these points
25%
Carbon
emissions
reduction
targets
12.5% Scope 1 & 2 carbon
emissions target
• 0% if the carbon emissions are above or
equal to 159,163 tons of CO2
• 100% if the carbon emissions are below or
equal to 151,584 tons of CO2
Vesting linear between these points
12.5% Scope 3 upstream
carbon intensity target
• 0% if the carbon intensity is above or equal
to 185 g of CO2 per euro of revenue
• 100% if the carbon intensity is below or
equal to 165 g of CO2 per euro of revenue
Vesting linear between these points
*
The over-achievement of relative TSR performance condition can off-set the under-achievement of the
objectives under the adjusted EPS performance condition.
Application of the 2024 compensation policy
According to the authorization given by the Annual Shareholders’ Meeting on May 5, 2022 in
its 15th resolution, the Board of Directors, during its meeting of November 7, 2024 decided to
grant Mr. Olivier Blum a total of 2,229 Performance Shares (representing 0.0004% of
Schneider Electric’s share capital) subject to the performance criteria described above and
measured over a period of three years, under Plan nº 44bis.
The value of this LTIP grant in accordance with IFRS standards was EUR 450,923, i.e. 112.7%
of the combined fixed and target short-term variable compensation(1) (or 225.4% of the fixed
compensation), well below the maximum grant authorized under the compensation policy
(150% of the combined fixed and target annual variable compensation, or 300% of the fixed
compensation). This amount was determined by the Board to be equivalent to 2/12 of the
targeted grant announced in the 2024 compensation policy, so pro rata to the time Mr. Olivier
Blum was Chief Executive Officer in 2024 (two months).
In addition, the Board of Directors, during its meeting of February 19, 2025, decided to review
the Carbon emissions reduction targets (see the LTIP 2024 table in section 4.2.5 of this
Universal Registration Document).
(1) In the 2023 Universal Registration Document, it was stated that the Board intended to grant the Chief Executive Officer, for the full year 2024, an amount of LTIP, which
value in accordance with IFRS standards would be around 108.5% of the combined fixed and target short-term variable compensation (i.e. 217% of the fixed
compensation). At the date of the grant, the IFRS value cannot be known with certainty as it is computed only at the end of the calendar year. For the 2024 grant, as
disclosed in the 2023 Universal Registration Document, the value of the grant to the Chief Executive Officer was based on the assumption that the discount rate
applied according to the IFRS rules would be 18.19% as it was for the 2023 grant. The final discount rate applied according to the IFRS rules to the 2024 grant was
finally equal to 15%, hence the final IFRS value for the 2024 grant, for the full year 2024, represented 112.7% of the combined fixed and target short-term variable
compensation (or 225.4% of the fixed compensation).
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Elements of
compensation
submitted to
the vote
Amounts
Description
Pension
benefits
€59,790
(amount due
for period
November 1
to December
31, 2024
(fixed portion
of €30,000
paid in 2024
and variable
portion of
€29,790 to
be paid in
2025)
Reminder:
N/A
Reminder of the 2024 compensation policy
The Chief Executive Officer receives complementary cash payments whose purpose is to
provide a competitive retirement benefit in a way that is cost effective to the Company and that
allows the Chief Executive Officer to build his retirement benefits independently.
The cash payments will be equal to:
• a fixed portion equal to 15% of the fixed compensation; and
• a variable portion equal to 15% of the actual annual variable compensation paid to the
Chief Executive Officer.
The total pension amount actually paid will thus depend on the Company’s performance, since
the calculation base of the variable portion of the pension includes the actual variable
compensation paid to the Chief Executive Officer depending on performance conditions
linked to the Group’s results. The Chief Executive Officer has committed to depositing these
additional payments, after taxes, into investment vehicles of his choice, dedicated to the
supplementary financing of pensions. Accordingly, Mr. Olivier Blum is entitled to receive
annually a complementary component, split into a fixed and variable portion as follows:
Variable portion
Fixed portion
Minimum
At target
Maximum
Total
at target
Full year amount
€180,000
€0
€180,000
€360,000
€360,000
Amount prorated for the
period from November 1
to December 31, 2024
€30,000
€0
€30,000
€60,000
€60,000
The variable part is dependent on performance criteria aligned with the variable annual
compensation (see above).
Application of the 2024 compensation policy
At the meeting held on February 19, 2025, the achievement rate of the annual complementary
variable portion for pension for 2024 to be paid after the Annual Shareholders’ Meeting of May
7, 2025, if the latter approves it, was set by the Board of Directors at 99.3%.
For the period November 1 to December 31, 2024, Mr. Olivier Blum is entitled to receive:
Fixed amount
for period Nov. 1 to Dec. 31, 2024
Variable amount
for period Nov. 1 to Dec. 31, 2024
Total
for period Nov. 1 to Dec. 31, 2024
€30,000
€29,790
€59,790
(1) Calculated by applying to the fixed portion at target of the pension above (€30,0000) the percentage of target
achievement determined for the calculation of the 2024 annual variable compensation, i.e. 99.3%.
In compliance with applicable law, the payment of the variable amount will be subject to
shareholders’ approval (see 6th resolution submitted to the Annual Shareholders’ Meeting of
May 7, 2025).
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Elements of
compensation
submitted to
the vote
Amounts
Description
Other benefits
€3,335
(received in
the period
November 1
to December
31, 2024)
Reminder:
N/A
Reminder of the 2024 compensation policy
The compensation policy provides that the Chief Executive Officer may benefit from:
• the employer matching contributions;
• the profit-sharing;
• a company car;
• a tax assistance; and
• supplementary Health, Life & Disability scheme.
Application of the 2024 compensation policy
For the period November 1 to December 31, 2024, the Chief Executive Officer is covered by a
private health insurance for a cost of €3,335.
Termination
benefits
No payment
Involuntary severance pay
The Chief Executive Officer is entitled to involuntary termination benefits in case of change of
control or strategy and taking into account the non-compete compensation described below,
is capped at twice the arithmetical average of his annual fixed and variable cash
compensation paid over the last three years (see Chapter 4, section 4.2.3.1.2 of the 2023
Universal Registration Document).
Non-compete compensation
The Chief Executive Officer is entitled to non-compete compensation for a period of one year
capped at 60% of annual fixed and target variable parts (excluding complementary payments)
(see Chapter 4, section 4.2.3.1.2 of the 2023 Universal Registration Document).
For the period November 1 to December 31, 2024, Mr. Olivier Blum was not awarded nor benefited from multi-annual variable
compensation, exceptional compensation, stock options, welcome bonus, or Directors’ fees.
Employer social contributions paid by the Group’s companies in respect of Mr. Olivier Blum’s compensation amounted to EUR 90,895.60 in
the period November 1 to December 31, 2024.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Details relating to the 2022 Long-term incentive plan realized in 2024 (LTIP 2022)
The performance period for shares granted in 2022 finished on December 31, 2024 and shares under the Plan nº 41 are therefore deemed
vested. Their final acquisition is, however, still subject to the satisfaction of the presence condition at the delivery date.
The Board of Directors at its meeting of February 19, 2025 assessed the achievement rate of the performance criteria based on the Group’s
performance over the three-year period 2022 – 2024 and set the final rate of achievement at 98.96%, i.e. a reduction of 1.04% in relation to
the number of shares originally granted.
The Chief Executive Officer was conditionally granted 13,517 shares under Plan nº 41 in 2022 (i.e. when he was not yet Chief Executive
Officer). After applying the final achievement rate base on performance, the outcomes are as follows:
Corporate Officer
Number of shares
(Plan nº 41)
Number of shares
deemed vested
Number of shares
lapsed
Value of deemed
vested shares(1)
Olivier Blum
13,517
13,377
140
€3,222,519
Vesting date
March 24, 2025
(1) Vested shares are valued at the closing share price of December 31, 2024, i.e. EUR 240.90.
Shares granted under the 2022 LTIP were subjected to performance conditions as follows:
40%
Adjusted Earnings per
Share (EPS) improvement
17.5%
Relative Total Shareholder
Return (TSR) vs. CAC 40
17.5%
Relative Total Shareholder
Return (TSR) vs. panel of
competitors
25%
Schneider Sustainability
External and Relative Index
(SSERI)
2022 – 2024 payout rate:
40%
2022 – 2024 payout rate:
17.50%
2022 – 2024 payout rate:
17.50%
2022 – 2024 payout rate:
23.96%
2024 was the final year of performance measurement for the LTIP 2022 running from 2022 to 2024. Schneider Electric delivered robust
organic adjusted EPS improvement year-on-year and demonstrated consistent progress on the Group’s sustainability targets which are at
the heart of the Group’s strategy. Schneider Electric delivered 67.5% return to shareholders over the same three-year period, ranking 5th
among the CAC 40 companies and 3rd among the panel of competitors. These results across the range of performance criteria led to a
vesting outcome of 98.96% out of 100%.
98.96%
23.96%
17.50%
17.50%
40.00%
0%
100%
Adjusted EPS (40%)
Relative TSR vs. Peer group (17.5%)
Relative TSR vs. CAC 40 (17.5%)
Total weighted achievement rate
Achievement scale
2022 LTIP performance criteria achievement
SSERI (25%)
• Adjusted Earnings per Share (EPS) improvement (40%)
During the three-year plan, the adjusted EPS improved organically by almost +16% on average, combining top line growth, positive net
pricing, better mix, industrial productivity, and better efficiency to reduce support function costs. Overall, the achievement rate for this
criterion was 40% (out of 40%).
Reference
period
Weight (%)
Target
Actual
achievement
Pay-out rate
Weighted
pay-out rate
Min 0%
75%
Max 100%
Adjusted Earnings per Share
improvement rate
2022
13.33%
1.1%
5.9%
8.3%
13.13%
100%
13.33%
2023
13.33%
3%
5%
8%
16.50%
100%
13.33%
2024
13.33%
10%
12%
14%
18.24%
100%
13.33%
Total
40%
40%
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Chapter 4 – Corporate governance report
4.2 Compensation Report
• Relative Total Shareholder Return (TSR)
vs. CAC 40 (17.5%) – Schneider Electric delivered 67% return to shareholders over the three-year performance period, ranking 5th among
the CAC 40 companies, demonstrating a strong value creation for the shareholders. Consequently, the achievement rate for this criterion
was set at was set at 17.50% (out of 17.5%). This criterion delivered an over-performance of 2.89% but considering the full achievement of
the EPS criterion, no off-setting mechanism was used for the 2022 LTIP.
vs. panel of peer companies (17.5%) – Over the period, Schneider Electric’s TSR was ranked 3rd versus the selected peers (ABB,
Legrand, Siemens, Eaton, Emerson, Honeywell, Johnson Controls, Rockwell Automation, Fuji Electric, Mitsubishi Electric, and
Yokogawa). The achievement rate for this criterion was set at 17.50% (out of 17.5%). This criterion delivered an over-performance of
8.75% but considering the full achievement of the EPS criterion, no off-setting mechanism was used for the 2022 LTIP.
Weight (%)
Target
Actual
achievement
Pay-out rate
Weighted
pay-out rate
0%
50%
75%
100%
120%
150%
Relative
Total
Shareholder
Return
vs. CAC 40
companies
17.5%
21
20
15
10
4-1
5th rank
116.17%
17.50%
vs. panel of
peer
companies
17.5%
8
4
3-1
3rd rank
150%
17.50%
• Schneider Sustainability External and Relative Index – SSERI (25%)
The Schneider Sustainability External and Relative Index measures the long-term sustainability performance of the Group in terms of
relative performance, through a combination of external indices: (i) DJSI World which covers three dimensions: economic, environmental,
and social; (ii) Euronext Vigeo which covers environment, community involvement, business behavior, human rights, corporate
governance, and human resources; (iii) Ecovadis which covers four dimensions: environment, labor and human rights, sustainable
procurement, and ethics; and (iv) CDP Climate Change which covers climate change, water, and forests and represents a major
reference for climate change leadership globally. The different rating achieved by Schneider Electric in 2022, 2023, and 2024 in those
indexes resulted in an achievement rate of the SSERI of 23.96% (out of 25%).
Actual achievement
2022
2023
2024
Pay-out
rate
Weighted
pay-out rate
Schneider
Sustainability
External &
Relative Index
(SSERI)
6.25% DJSIW
• 0%: not in World
• 50%: included in World
• 100%: sector leader
sector
leader
sector
leader
World
83.3%
5.21%
6.25% Euronext
Vigeo
• 0%: out
• 50%: included in World 120
or Europe 120
• 100%: included in World 120
& Europe 120
World 120 &
Europe 120
World 120 &
Europe 120
World 120 &
Europe 120
100%
6.25%
6.25% Ecovadis
• 0%: Silver Medal or less
• 50%: Gold Medal (top 5%)
• 100%: Platinum Medal (top
1%)
Platinum
Medal
Platinum
Medal
Platinum
Medal
100%
6.25%
6.25% CDP
Climate Change
• 0%: C score
• 50%: B score (25% at B-)
• 100%: A score (75% at A-)
A score
A score
A score
100%
6.25%
Total
25%
23.96%
Historical vesting of the Corporate Officers’ Performance Share plans:
LTIP 2022
98.96%
LTIP 2021
81.46%
LTIP 2020
96.71%
LTIP 2019
96.86%
LTIP 2018
98.18%
LTIP 2017
99.54%
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.2.2.2.2 Chief Executive Officer’s compensation from January 1 to November 1, 2024 (Mr. Peter Herweck)
Table summarizing the compensation paid or granted to the Chief Executive Officer in 2024
The following table summarizes the compensation and benefits awarded or paid to Mr. Peter Herweck as Chief Executive Officer for the
period from January 1 to November 1, 2024, presented on an allocated basis in accordance with the guidelines of the AFEP-MEDEF Code, as
well as on an effective basis (compensation and benefits realized) when the performance evaluation period ended during the financial year.
Peter Herweck
Chief Executive Officer
Compensation & benefits
awarded for fiscal year
Compensation & benefits
realized in fiscal year
(Euro)
2024
2023
2024
2023
A – CASH COMPENSATION
Fixed compensation
1,000,000
790,323
1,000,000
790,323
Annual variable compensation(1)
993,000
853,549
993,000
853,549
Compensation in relation to the Director’s office
0
0
0
0
SUBTOTAL (A) (CASH)
1,993,000
1,643,872
1,993,000
1,643,872
B – LONG-TERM INCENTIVE
Valuation of the Performance Shares
2,705,537(3)
2,255,301
3,608,923(2)
2,410,221
SUBTOTAL (B) LONG-TERM INCENTIVE
2,705,537
2,255,301
3,608,923
2,410,221
C – PENSION CASH BENEFIT
Complementary payment for pension building (fixed)
150,000
118,548
150,000
118,548
Complementary payment for pension building (variable)
148,950
128,032
148,950
128,032
SUBTOTAL (C) PENSION CASH BENEFIT
298,950
246,580
298,950
246,580
D – OTHER BENEFITS
Other benefits(4)
39,638
26,390
39,638
26,390
SUBTOTAL (D) OTHER BENEFITS
39,638
26,390
39,638
26,390
TOTAL COMPENSATION AND BENEFITS (A)+(B)+(C)+(D)
5,037,125
4,172,143
5,940,511
4,327,063
(1) In accordance with Article L.22-10-34 II of the French Commercial Code, the variable elements in cash awarded to Mr. Peter Herweck for the period January 1 to
November 1, 2024 will only be paid in 2025, subject to their prior approval by the shareholders at the Annual Shareholders’ Meeting of May 7, 2025 under the 7h
resolution.
(2) Value of Performance Shares granted during fiscal year – As per AFEP-MEDEF Corporate Governance Code methodology, compensation is presented on a
reported basis. Long-term incentives for the period January 1 to November 1, 2024 include Performance Shares granted during the period January 1 to November 1,
2024, the performance period of which has not elapsed. The value of Performance Shares corresponds to the number of shares granted, before reduction on account
of performance, multiplied by the share price determined in line with IFRS accounting standards.
(3) Value of Performance Shares deemed vested during the fiscal year – In order to facilitate the analysis, the Long-term incentives are also presented on realized
value basis, where the value of Performance Shares corresponds to the actual number of shares (granted in previous years) deemed vested at the end of the fiscal
year, after reduction for performance conditions, multiplied by the share price on December 31, 2023 or 2024, as the case may be. Performance Shares deemed
vested in 2024 were granted to Mr. Peter Herweck in 2022 when he was not yet Chief Executive Officer.
(4) Other benefits include company car as well as employer matching contributions to the capital increase for employees or contributions to the Employee Saving Plan
and supplementary Health, Life & Disability scheme.
The following table summarizes the compensation paid or to be paid to Mr. Peter Herweck in relation with his forced departure as defined
by the 2024 compensation policy for the Chief Executive Officer disclosed in the 2023 Universal Registration Document (see. p. 435 et seq.)
and approved by more than 94% shareholders during the Annual General Meeting held on May 23, 2024.
Paid in or vested in
Total
2024
2025
2026
Non-compete indemnity
1,440,000
240,000
1,200,000
–
Severance indemnity
3,447,600
–
3,447,600(1)
–
LTIP – Number of Performance Shares kept after application of the pro rata
29,843
14,981(2)
10,730(3)
4,132(4)
LTIP – Value of the Performance Shares kept(5)
7,189,179
3,608,923
2,584,857
995,399
LTIP – Number of Performance Shares lost after application of the pro rata
18,464
890
6,829
10,745
LTIP – Value of the Performance Shares lost(6)
4,447,265
213,689
1,645,106
2,588,470
(1) The payment of the severance indemnity to Mr. Peter Herweck will be subject to shareholders’ approval at the 2025 Annual Shareholder’s Meeting of May 7, 2025
under the 7th resolution in accordance with Article L.22-10-34 II of the French Commercial Code.
(2) This number corresponds to the LTIP 2022 granted in 2022 whose performance is assessed over 2022, 2023 and 2024 and delivered in March 2025 to Mr. Peter
Herweck after aplication of the pro-rata rule and performance conditions attached as assessed by the Board of Directors on February 19, 2025. Those Performance
shares are the same mentionned in the third column of the precedent table.
(3) This number corresponds to the LTIP 2023 granted in 2023 whose performance is assessed over 2023, 2024 and 2025 and to be delivered in March 2026 to Mr. Peter
Herweck after aplication of the pro-rata rule and subject to the achievement of the performance conditions attached that the Board will assess in February 2026.
(4) This number corresponds to the LTIP 2024 granted in 2024 whose performance is assessed over 2024, 2025 and 2026 and to be delivered in March 2027 to Mr. Peter
Herweck after aplication of the pro-rata rule and subject to the achievement of the performance conditions attached that the Board will assess in February 2027.
(5) The value of Performance Shares corresponds to the number of shares mentioned on the line just above multiplied by the share price on December 31, 2024.
(6) The value of Performance Shares corresponds to the number of shares mentioned on the line just above multiplied by the share price on December 31, 2024.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Say on pay table relating to the compensation paid or granted to the Chief Executive Officer from January 1 to
November 1, 2024
The fixed, variable, and exceptional components of the total compensation and benefits paid or awarded for the period from January 1 to
November 1, 2024 to the Corporate Officer, as detailed below, will be submitted to the shareholders for approval at the 2025 Annual
Shareholders’ Meeting of May 7, 2025 under the 7th resolution.
The tables below summarize the compensation paid and awarded during the period from January 1 to November 1, 2024, along with
a description of how each component was calculated in compliance with the compensation policy in force.
Elements of
compensation
submitted to
the vote
Amounts
Description
Fixed
compensation
€1,000,000
(amount due
for period
January 1 to
November 1,
2024 paid in
2024)
Reminder:
€790,323
(amount due for
2023 paid in
2023)
Reminder of the 2024 compensation policy
For the fiscal year 2024, the Chief Executive Officer’s theoretical gross annual fixed
compensation was set by the Board of Directors at €1,200,000 upon recommendation from the
Human Capital & Remunerations Committee.
Application of the 2024 compensation policy
Mr. Peter Herweck received in 2024 a fixed compensation of €1,000,000 corresponding to his
fixed annual compensation prorated for the period from January 1 to November 1, 2024.
Annual
variable
compensation
€993,000
(amount due
for the period
January 1 to
November 1,
2024 (to be
paid in 2025)
Reminder:
€853,549
(amount due for
2023 paid in
2024)
Reminder of the 2024 compensation policy
The annual variable compensation rewards achievement of the short-term financial, and
sustainability (corporate and social responsibility) objectives of the Group.
The pay-out opportunity is as follows:
• at threshold performance: 0% of the fixed compensation;
• at target: 100% of the fixed compensation; and
• at maximum over-performance: 200% of the fixed compensation.
The payment of the variable annual cash compensation is conditional upon approval by
shareholders of the compensation granted to the concerned Corporate Officer.
The structure of the 2024 annual variable compensation focuses on what matters to Schneider
Electric in delivering value to shareholders. 100% of the variable compensation depends on
measurable objectives:
• 70% depends on financial criteria which closely align pay outcomes for the Corporate
Officer to Schneider Electric’s financial performance:
−organic sales growth (35%);
−organic adjusted EBITA margin improvement (25%); and
−cash conversion rate (10%);
• 10% depends on Net Satisfaction Score highlighting the importance of building trust with
customers and focus on quality; and
• 20% depends on the Schneider Sustainability Impact (SSI) highlighting the importance of
sustainability in Schneider Electric’s business agenda.
The Board also ensured that stringent targets were set for the annual variable compensation
with maximum award only payable if a strong performance is delivered on each performance
metric.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Elements of
compensation
submitted to
the vote
Amounts
Description
Annual
variable
compensation
(continued)
Application of the 2024 compensation policy
The annual incentive due for 2024 was determined by the Board at the meeting of February 19,
2025, based on the attainment rate of the objectives set for fiscal year 2024 as follows.
The targets of the objectives determining the annual variable compensation of the former Chief
Executive Officer were the same as those used for the new Chief Executive Officer since
November 1, 2024. The detail of these targets and achievements is described in section
4.2.2.2.1 of this Universal Registration Document relating to the new Chief Executive Officer’s
compensation from November 1 to December 31, 2024.
As a result, the 2024 annual variable compensation pay-out for the Corporate Officer was
calculated on the base of his fixed compensation as follows:
At target pay-out
Achievement rate
2024 (Jan. 1-Nov. 1) Actual pay-out
as a % of salary
Amount (€)
as a % of target
as a % of base salary
Amount (€)
100%
€1,200,000
99.3%
99.3%
€993,000
In compliance with Article L.22-10-34 II of the French Commercial Code, the payment of this
annual variable compensation is subject to approval by the shareholders of the compensation
granted to the Corporate Officer for the fiscal year 2024 (see 7th resolution to be submitted to
the Annual Shareholders’ Meeting of May 7, 2025).
Long-term
incentive
(Performance
Shares)
14,877
Performance
Shares (out
of which only
4,132 are
kept after
application of
the pro rata
rule) granted
in March 2024
(€2,705,537
according to
IFRS
valuation)
Reminder:
17,559
Performance
Shares granted in
May 2023
(€2,255,301
according to
IFRS valuation)
Reminder of the 2024 compensation policy
The 2024 compensation policy provided:
• a maximum annual award to the Chief Executive Officer capped at 150% of the combined
fixed and annual variable compensation at the date of the grant;
• a vesting period of three years with an additional mandatory one-year holding period for
80% of shares granted under the plan reserved to the Corporate Officer except for the sale
of shares necessary to cover his tax liabilities; and
• performance conditions upon which the vesting of the Performance Shares depended
were the same as those used for the new Chief Executive Officer since November 1, 2024.
The detail of these targets and achievements is described in section 4.2.2.2.1 of this
Universal Registration Document relating to the new Chief Executive Officer’s
compensation from November 1 to December 31, 2024.
Regarding the retention of unvested share awards, the 2024 compensation policy provided
that in case of voluntary resignation or removal from office for wrongful or gross misconduct,
the Chief Executive Officer will lose all his unvested Performance Shares. If the Chief Executive
Officer leaves the Group in circumstances of a forced departure or in case of retirement or
change of assignment within the Group, the Chief Executive Officer will keep his right to the
unvested Performance Shares granted to him previously, subject to the applicable
performance conditions and which will be prorated for the time the Chief Executive Officer
remained with the Group in this capacity during the vesting period.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Elements of
compensation
submitted to
the vote
Amounts
Description
Long-term
incentive
(Performance
Shares)
(continued)
Application of the 2024 compensation policy
The volume of the maximum annual award was set in consideration of:
• the market practice and competitive positioning of the Chief Executive Officer’s
compensation package;
• the Group’s performance, acknowledged by the market;
• the performance criteria applicable to the final acquisition of LTIP awards; and
• the culture of ownership deeply rooted in Schneider Electric’s DNA.
According to the authorization given by the Annual Shareholders’ Meeting on May 5, 2022 in
its 15th resolution, the Board of Directors, during its meeting of March 26, 2024 decided to
grant Mr. Peter Herweck a total of 14 877 Performance Shares (representing 0.003% of
Schneider Electric’s share capital) subject to the performance criteria described above and
measured over a period of three years:
• 11,902 Performance Shares under Plan nº 44 in his capacity as Chief Executive Officer of
Schneider Electric SE; and
• 2,975 Performance Shares under Plan nº 45 in his capacity as Chairman of Schneider
Electric Software & Digital Hub AG.
The value of this LTIP grant in accordance with IFRS standards was EUR 2,705,537 i.e. 112.7%
of the combined fixed and target short-term variable compensation(1) (or 225.4% of the fixed
compensation), well below the maximum grant authorized under the compensation policy.
As provided for in the 2024 compensation policy in case of forced departure (see the
Severance indemnity section below), the Board of Directors decided on November 7, 2024 that
Mr. Peter Herweck will keep his right to the unvested Performance Shares granted to him
previously to his dismissal, subject to the applicable performance conditions and prorated for
the time the Chief Executive Officer remained with the Group in this capacity during the
vesting period (i.e. until November 1, 2024). Hence, Mr. Peter Herweck kept his right to a total
of 30,000 Performance Shares and lost 18,464 Performance Shares previously granted to him.
Grant date
Performance
period
Plan n°
Number of
shares granted
Number of
shares kept
Number of
shares lost
26/03/24
2024-2026
45
2,975
826
2,149
26/03/24
2024-2026
44
11,902
3,306
8,596
04/05/23
2023-2025
43
14,047
8,584
5,463
04/05/23
2023-2025
42bis
3,512
2,146
1,366
24/03/22(2)
2022-2024
41
16,028
15,138
890
Total
30,000
18,464
(1) In the 2023 Universal Registration Document, it was stated that the Board intended to grant the Chief Executive Officer, for the full year 2024, an amount of LTIP, which
value in accordance with IFRS standards would be around 108.5% of the combined fixed and target short-term variable compensation (i.e. 217% of the fixed
compensation). At the date of the grant, the IFRS value cannot be known with certainty as it is computed only at the end of the calendar year. For the 2024 grant, as
disclosed in the 2023 Universal Registration Document, the value of the grant to the Chief Executive Officer was based on the assumption that the discount rate
applied according to the IFRS rules would be 18.19% as it was for the 2023 grant. The final discount rate applied according to the IFRS rules to the 2024 grant was
finally equal to 15%, hence the final IFRS value for the 2024 grant, for the full year 2024, represented 112.7% of the combined fixed and target short-term variable
compensation (or 225.4% of the fixed compensation).
(2) Performance Shares deemed vested in 2024 were granted to Mr. Peter Herweck in 2022 when he was not yet Chief Executive Officer.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Elements of
compensation
submitted to
the vote
Amounts
Description
Pension
benefits
€298,950
(amount
due for
period
January 1
to
November
1, 2024
(fixed
portion of
€150,000
paid in
2024 and
variable
portion of
€148,950 to
be paid in
2025)
Reminder:
€246,580
(amount due
for 2023 (fixed
portion of
€118,548 paid
in 2023 and
variable
portion of
€128,032 paid
in 2024)
Reminder of the 2024 compensation policy
The Chief Executive Officer receives complementary cash payments whose purpose is to
provide a competitive retirement benefit in a way that is cost effective to the Company and that
allows the Chief Executive Officer to build his retirement benefits independently.
The cash payments will be equal to:
• a fixed portion equal to 15% of the fixed compensation; and
• a variable portion equal to 15% of the actual annual variable compensation paid to the
Chief Executive Officer.
The total pension amount actually paid will thus depend on the Company’s performance, since
the calculation base of the variable portion of the pension includes the actual variable
compensation paid to the Chief Executive Officer depending on performance conditions
linked to the Group’s results. The Chief Executive Officer has committed to depositing these
additional payments, after taxes, into investment vehicles of his choice, dedicated to the
supplementary financing of pensions. Accordingly, Mr. Peter Herweck is entitled to receive
annually a complementary component, split into a fixed and variable portion as follows:
Variable portion
Fixed portion
Minimum
At target
Maximum
Total
at target
Full year amount
€180,000
€0
€180,000
€360,000
€360,000
Amount prorated for the
period from January 1 to
November 1, 2024
€150,000
€0
€150,000
€300,000
€300,000
The variable part is dependent on performance criteria aligned with the variable annual
compensation (see above).
Application of the 2024 compensation policy
At the meeting held on February 19, 2025, the achievement rate of the annual complementary
variable portion for pension for 2024 to be paid after the Annual Shareholders’ Meeting of May
7, 2025, if the latter approves it, was set by the Board of Directors at 99.3%.
For the period January 1 to November 1, 2024, Mr. Peter Herweck is entitled to receive:
Fixed amount
for period Jan. 1 to Nov. 1, 2024
Variable amount
for period Jan. 1 to Nov. 1, 2024(1)
Total
for period Jan. 1 to Nov. 1, 2024
€150,000
€148,950
€298,950
(1) Calculated by applying to the fixed portion at target of the pension above (€150,000) the percentage of target
achievement determined for the calculation of the 2024 annual variable compensation, i.e. 99.3%.
In compliance with applicable law, the payment of the variable amount will be subject to
shareholders’ approval (see 7th resolution submitted to the Annual Shareholders’ Meeting of
May 7, 2025).
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Elements of
compensation
submitted to
the vote
Amounts
Description
Other benefits
€39,638
(received in
the period
January 1 to
November
1, 2024)
Reminder:
€26,390
received in
2023
Reminder of the 2024 compensation policy
The compensation policy provides that the Chief Executive Officer may benefit from:
• the employer matching contributions;
• the profit-sharing;
• a company car;
• a tax assistance; and
• supplementary Life & Disability scheme.
Application of the 2024 compensation policy
For the period January 1 to November 1, 2024, the Chief Executive Officer is eligible for the
employer matching contributions paid to Employee Saving Plan subscribers. In addition, he
was eligible for the employer matching contributions paid to subscribers to the collective
pension fund (PERECO) for the retirement of workers in France. The use of a company car
during the period from January 1 to November 1, 2024 represented an equivalent cost of
€31,272.
Employer matching
contributions to
Employee Saving Plan
Employer matching
contributions to
collective pension
saving plan (PERECO)
Profit-sharing
Company car
Total 2024 benefits
€700
€0
€7,666
€31,272
€39,638
The Chief Executive Officer is eligible for (i) the collective welfare plan applicable to
employees of Schneider Electric SE and Schneider Electric Industries SAS covering the risks
of illness, incapacity, disability, and death and (ii) additional coverages conditional on the
fulfillment of some conditions as described in the compensation policy (see Chapter 4, section
4.2.3.1.2 of the 2023 Universal Registration Document).
Non-compete
indemnity
€1,440,000
(received
from
November
2024 to
October
2025)
Reminder:
N/A
Reminder of the 2024 compensation policy
The 2024 compensation policy (see p. 441 of the 2023 Universal Registration Document)
provides that the Chief Executive Officer is bound by a non-compete agreement in case of
departure. The one-year agreement calls for compensation to be paid at 60% of annual fixed
and target variable compensation (excluding complementary payments). In line with the
recommendations of the AFEP-MEDEF Corporate Governance Code, the Board will determine
whether to apply the non-compete clause at the time of departure of the Corporate Officer.
Application of the 2024 compensation policy
The Board of Directors decided on November 7, 2024 that it was in the interest of the Group to
bind Mr. Peter Herweck by a non-compete agreement for a period of one year in exchange for
a monthly indemnity equal to 60% of his annual fixed and target variable compensation
(excluding complementary payments). This non-compete agreement covers key countries
(including notably China, France, Germany, Hong Kong, India, Singapore, the UK and the
USA) and an extensive list of key competitors or partners. The Board considered that this
undertaking from Mr. Peter Herweck was necessary to protect the Group and avoid any
conflict of interests detrimental to Schneider Electric.
Therefore, Mr. Peter Herweck is entitled to receive a non-compete indemnity of €1,440,000
which will be paid in 12 monthly installments of €120,000 each from November 2024 to
October 2025.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Severance
indemnity
€3,447,600
(amount to
be paid in
2025)
Reminder:
N/A
Reminder of the 2024 compensation policy
As provided for in the 2024 compensation policy (see p. 441 of the 2023 Universal Registration
Document), Mr. Peter Herweck is entitled to a severance indemnity in case of forced departure
from his position as Chief Executive Officer.
The “Maximum Amount” of the involuntary severance indemnity is twice the arithmetical
average of the annual fixed and variable cash compensation, to the exclusion of
complementary pension payments, paid by the Group over the last three years taking into
account the non-compete compensation, if any, and subject to the attainment of performance
conditions.
During the first 12 months from the appointment date, a ratio will be applied to the amount of
involuntary severance indemnity equivalent to: (i) half of the Maximum Amount, plus (ii) 1/ 24th
of the Maximum Amount for each additional month of service until the 12th month is completed
(at which point the involuntary severance indemnity will be computed based on the full
Maximum Amount).
The aggregate amount of the involuntary severance indemnity and the non-compete
compensation, if any, shall not exceed the Maximum Amount.
Payment of the severance indemnity is subject to fulfillment of the following performance
conditions based on the average rate of achievement of the Group’s performance criteria used
in the annual variable compensation for the last three fiscal years preceding the date of the
Board’s decision:
Group criteria achievement
Severance payment
<80%
No payment
80–100%
80–100% of the Maximum Amount, calculated
on a straight-line basis
>100%
100% of the Maximum Amount
It being specified that in case of departure during the first three years of office, the above
performance conditions will be calculated on the fiscal year where the Corporate Officer was
Chief Executive Officer (in case of forced departure in 2024, the performance condition will be
calculated on the 2023 results; in case of forced departure in 2025, the performance condition
will be calculated on the 2023 and 2024 results; in case of forced departure in 2026, the
performance condition will be calculated on the 2023, 2024, and 2025 results).
Application of the 2024 compensation policy
Upon the recommendation of the Human Capital & Remunerations Committee, the Board of
Directors decided on November 7, 2024 that the departure of Mr. Peter Herweck from his
position as Chief Executive Officer on November 1, 2024 was a case of forced departure as
defined by the 2024 compensation policy. Indeed, this decision which has been carefully
discussed by the Board of Directors on several occasions was due to divergence of views
between the Board of Directors and Mr. Peter Herweck in the execution of the Company
strategic roadmap at a time of significant opportunities. In addition to this different strategic
appreciation, the Board considered that the strategy of the Company was not implemented in
a decisive and collaborative manner. Mr. Peter Herweck is thus entitled to a severance
indemnity.
The Board acknowledged that the performance conditions attached to the severance
indemnity were fulfilled since the 2023 Group’s performance criteria used in the annual
variable compensation was 108%. As a consequence, the amount of the involuntary
severance indemnity should be equal to the Maximum amount as defined by the 2024
compensation policy.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Severance
indemnity
(continued)
The Board of Directors decided on November 7, 2024 that the amount of this severance
indemnity will be determined by the Board of Directors at the time of approval of the 2024
Financial Statements and will be equal to:
• the sum of (a) the fixed compensation, calculated on an annual basis, for 2023 and 2024
(i.e. 1,200,000 euros + 1,200,000 euros) and (b) 2023 annual variable compensation (to the
exclusion of complementary pension payments), calculated on an annual basis (i.e.
1,296,000 euros) and (c) Mr. Peter Herweck’s 2024 annual variable compensation (to the
exclusion of complementary pension payments), calculated on an annual basis,
• less the amount of the non-compete indemnity.
After acknowledging the performance condition was reached, in order to determine the
Maximum Amount, the Board considered, as provided for in the compensation policy, twice
the arithmetical average of the annual fixed and variable cash compensation, to the exclusion
of complementary pension payments, paid by the Group over the last three years taking into
account the non-compete compensation, if any. The Board considered the amount paid as
based on the variable remuneration achievement outcome on an annual basis (“paid” being
mentioned in the compensation policy as opposed to the “target” variable remuneration used
in the calculation for the non-compete).
The Board chose to respect the philosophy of the severance agreement by taking into account
Mr. Peter Herweck’s participation to the annual results of the Group, financial and extra
financial, in full year 2023 and full year 2024 as reflected in the annual achievement rates of
108% and 99.3% respectively, as well as the value created for shareholders under his
mandate (TSR of 59.1% between May 4, 2023 and November 1, 2024).
The amount of the involuntary severance indemnity was calculated on an annual basis, as
opposed to the case provided for in the 2023 and 2024 compensation policies of departure
during the first 12 months from the appointment date, whereby the amount of the involuntary
severance indemnity would then have been reduced.
When considering the amount to be paid to Mr. Peter Herweck in the context of his dismissal,
regard should be given to Mr. Peter Herweck’s tenure within the Group and his contribution
during eight years as Executive Vice-President of Industrial Automation (member of the
Executive Committee) and then AVEVA Chief Executive Officer. He notably renounced the
severance package to which he was entitled under his employment contract, which specified
an amount equal to two years of fixed and annual variablecompensation, when resigning as an
employee to become Chief Executive Officer of Schneider Electric.
The amount paid under this severance indemnity is considerably lower than the maximum
opportunity that could have been paid should all criteria of the annual variable compensation
have been met at maximum (7.2 million euros).
The Board of Directors resolved thus on February 19, 2025 that the amount of this severance
indemnity will be 3,447,600 euros which corresponds to:
• the sum of (a) the fixed compensation, calculated on an annual basis, for 2023 and 2024
(i.e. 1,200,000 + 1,200,000 euros) and (b) the 2023 annual variable compensation
calculated on an annual basis (i.e. 1,296,000 euros) and (c) the 2024 annual variable
compensation calculated on an annual basis (i.e. 1,191,600 euros),
• less the amount of the non-compete indemnity (i.e. 1,440,000 euros).
The payment of the severance indemnity to Mr. Peter Herweck will be subject to shareholders’
approval at the 2025 Annual Shareholder’s Meeting of May 7, 2025 under the 7th resolution in
accordance with Article L.22-10-34 II of the French Commercial Code.
For the period January 1 to November 1, 2024, Mr. Peter Herweck was not awarded nor benefited from multi-annual variable compensation,
exceptional compensation, stock options, welcome bonus, or Directors’ fees.
Employer social contributions paid by the Group’s companies in respect of Mr. Peter Herweck’s compensation amounted to EUR 788,461 in
the period January 1 to November 1, 2024.
Mr. Peter Herweck was granted 80% of his cash compensation described above (fixed compensation, annual variable compensation,
pension complementary payments, non-compete indemnity and severance indemnity) in consideration for his duties as a Corporate Officer
(Chief Executive Officer) of Schneider Electric SE exclusively. The remainder is granted to him for the discharge of his operational duties as
President of Schneider Electric Software & Digital Hub AG.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Details relating to the 2022 Long-term incentive plan realized in 2024 (LTIP 2022)
The performance period for shares granted in 2022 finished on December 31, 2024 and shares under the Plan nº 41 are therefore deemed
vested. Their final acquisition is, however, still subject to the satisfaction of the presence condition at the delivery date.
The performance conditions upon which the vesting of the Performance Shares depended were the same as those used for the new Chief
Executive Officer since November 1, 2024. The detail of these targets and achievements is described in section 4.2.2.2.1 of this Universal
Registration Document relating to the Chief Executive Officer’s compensation from November 1 to December 31, 2024.
The Board of Directors at its meeting of February 19, 2025 assessed the achievement rate of the performance criteria based on the Group’s
performance over the three-year period 2022 – 2024 and set the final rate of achievement at 98.96%, i.e. a reduction of 1.04% in relation to
the number of shares originally granted.
Mr. Peter Herweck was conditionally granted 16,028 shares under Plan nº 41. After applying the reduction for performance not achieved
and the pro rata rule due his dismissal (see the Long Term Incentive section above), the resulting outcomes were as follows:
Corporate Officer
Number of shares
(Plan nº 41)
Number of shares
kept after application of
the pro rata rule
Number of shares
deemed vested
Number of shares
lapsed after
application of the
performance
criteria
Value of deemed
vested shares(1)
Peter Herweck
16,028
15,138
14,981
157
€3,608,923
Vesting date
March 25, 2025
(1) Vested shares are valued at the closing share price of December 31, 2024, i.e. EUR 240.90.
4.2.2.2.3 Chairman of the Board’s compensation in relation to the 2024 fiscal year
Table summarizing the compensation paid or granted to the Chairman of the Board of Directors in 2024
The following table summarizes the compensation and benefits awarded or paid to the Chairman of the Board of Directors for the period
from January 1 to December 31, 2024, presented on an allocated basis in accordance with the guidelines of the AFEP-MEDEF Code, as
well as on an effective basis (compensation and benefits realized) when the performance evaluation period ended during the financial year.
Jean-Pascal Tricoire
Chairman of the Board of Directors
Compensation & benefits
awarded for fiscal year
Compensation & benefits
realized in fiscal year
(Euro)
2024
2023
2024
2023
A – CASH COMPENSATION
Fixed compensation
930,000
612,500
930,000
612,500
Annual variable compensation
0
0
0
0
Compensation in relation to the Director’s office
0
0
0
0
SUBTOTAL (A) (CASH)
930,000
612,500
930,000
612,500
B – LONG-TERM INCENTIVE
Valuation of the Performance Shares
0
0
7,415,384(2)
5,612,639(2)
SUBTOTAL (B) LONG-TERM INCENTIVE
0
0
7,415,384
5,612,639
C – PENSION CASH BENEFIT
Complementary payment for pension building (fixed)
0
0
0
N/A
Complementary payment for pension building (variable)
0
0
0
N/A
SUBTOTAL (C) PENSION CASH BENEFIT
0
0
0
N/A
D – OTHER BENEFITS
Other benefits(1)
59,094
39,330
59,094
39,330
SUBTOTAL (D) OTHER BENEFITS
59,094
39,330
59,094
39,330
TOTAL COMPENSATION AND BENEFITS (A)+(B)+(C)+(D)
989,094
651,830
8,404,478
6,264,469
(1) Other benefits include company car, employer matching contributions to capital increase for employees or contributions to Employee Saving Plan and to collective
pension saving plan (PERECO) as well as benefits from French profit-sharing plan.
(2) Value of Performance Shares deemed vested during the fiscal year – In order to facilitate the analysis, the Long-term incentives are also presented on realized
value basis, where the value of Performance Shares corresponds to the actual number of shares (granted in previous years) deemed vested at the end of the fiscal
year, after reduction for performance conditions, multiplied by the share price on December 31, 2023 or 2024, as the case may be.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Say on pay table relating to the compensation paid or granted to the Chairman of the Board from January 1 to
December 31, 2024
The fixed components of the total compensation and benefits paid for the period from January 1 to December 31, 2024 to the Chairman of
the Board, as detailed below, will be submitted to the shareholders for approval at the 2025 Annual Shareholders’ Meeting of May 7, 2025
under the 8th resolution.
The tables below summarize the compensation paid for the period from January 1 to December 31, 2024, along with a description of how
each component was calculated in compliance with the compensation policy in force.
Elements of
compensation
submitted to
the vote
Amounts
Description
Fixed
compensation
€930,000
(due for
period
January 1 to
December
31, 2024 paid
in 2024)
Reminder of the 2024 compensation policy
For the fiscal year 2024, the Chairman of the Board of Directors’ theoretical gross annual fixed
compensation was set by the Board of Directors at €930,000 upon recommendation from the
Human Capital & Remunerations Committee.
Application of the 2024 compensation policy
Mr. Jean-Pascal Tricoire received a fixed compensation of €930,000 for the period from
January 1 to December 31, 2024.
Annual
variable
compensation
€0
Reminder of the 2024 compensation policy
The 2024 compensation policy provided that the Chairman of the Board of Directors does not
benefit from any annual variable compensation.
Application of the 2024 compensation policy
The Chairman of the Board of Directors did neither receive nor was awarded any annual
variable compensation for the period from January 1 to December 31, 2024.
Long-term
incentive
(Performance
Shares)
0
Performance
Shares
Reminder of the 2024 compensation policy
The 2024 compensation policy provided that the Chairman of the Board of Directors does not
benefit from any Long-term incentive plan.
Application of the 2024 compensation policy
The Chairman of the Board of Directors was not granted any Performance Shares during the
period from January 1 to December 31, 2024.
Pension
benefits
€0
Reminder of the 2024 compensation policy
The 2024 compensation policy provided that the Chairman of the Board of Directors does not
benefit from any Company pension arrangement or pension allowance.
Application of the 2024 compensation policy
The Chairman of the Board did not receive any pension benefits during the period from
January 1 to December 31, 2024.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Elements of
compensation
submitted to
the vote
Amounts
Description
Other benefits
€59,094
(received in
period
January 1 to
December 31,
2024).
Reminder of the 2024 compensation policy
The compensation policy provides that the Chairman of the Board may benefit from:
• the employer matching contributions;
• the profit-sharing;
• a company car;
• a tax assistance; and
• supplementary Life & Disability scheme.
Application of the 2024 compensation policy
For period from January 1 to December 31, 2024, the Chairman of the Board was eligible for
profit-sharing and the employer matching contributions paid to Employee Saving Plan
subscribers. In addition, he was eligible for the employer matching contributions paid to
subscribers to the collective pension fund (PERECO) for the retirement of workers in France.
The use of a company car represented an equivalent cost of €46,190.
Employer matching
contributions to
Employee Saving Plan
Employer matching
contributions to
collective pension
saving plan (PERECO)
Profit-sharing
Company car
Total 2024 benefits
€700
€800
€11,404
€46,190
€59,094
The Chairman of the Board is eligible for the collective welfare plan applicable to employees of
Schneider Electric SE and Schneider Electric Industries SAS covering the risks of illness,
incapacity, disability, and death (see Chapter 4, section 4.2.3.1.3 of the 2023 Universal
Registration Document).
Termination
benefits
No
payment
Involuntary severance pay
The 2024 compensation policy provided that the Chairman of the Board of Directors does not
benefit from any severance pay (see Chapter 4, section 4.2.3.1.3 of the 2023 Universal
Registration Document).
Non-compete compensation
The 2024 compensation policy provided that the Chairman of the Board of Directors does not
benefit from any non-compete indemnity (see Chapter 4, section 4.2.3.1.3 of the 2023
Universal Registration Document).
For the period from January 1 to December 31, 2024, Mr. Jean-Pascal Tricoire was not awarded nor benefited from multi-annual variable
compensation, exceptional compensation, stock options, welcome bonus, or Directors’ fees.
Employer social contributions paid by the Group’s companies in respect of Mr. Jean-Pascal Tricoire’s compensation amounted to
EUR 333,097 for the period January 1 to December 31, 2024.
Mr. Jean-Pascal Tricoire was granted 65% of his cash compensation described above (fixed compensation) in consideration for his duties
as Chairman of the Board of Schneider Electric SE exclusively. The remainder was granted to him for the discharge of his duties as
Chairman of Schneider Electric Asia Pacific.
Details relating to the 2022 Long-term incentive plan realized in 2024 (LTIP 2022)
The performance period for shares granted in 2022 finished on December 31, 2024. The performance conditions were the same as those
used for the new Chief Executive Officer (see section 4.2.2.2.1 of this Universal Registration Document). The Board of Directors at its
meeting of February 19, 2025 assessed the achievement rate of the performance criteria, over the three-year period 2022 – 2024, at
98.96%, i.e. a reduction of 1.04% in relation to the number of shares originally granted.
Corporate Officer
Number of shares
(Plan nº 40)(1)
Number of shares
(Plan nº 41)
Number of shares
deemed vested
Number of shares
lapsed
Value of deemed
vested shares(2)
Jean-Pascal Tricoire
9,332
21,773
30,782
323
€7,415,384
Vesting date
March 24, 2025
March 24, 2025
(1) Plan n° 40 – Performance Shares granted under this plan are subject to one-year holding period following vesting.
(2) Vested shares are valued at the closing shares price of December 31, 2024, i.e. €240.90.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.2.3 Non-executive Directors’ compensation in relation to the 2024 fiscal year
Amounts granted to non-executive Directors are determined by
taking into account the Board member’s responsibilities, the
expected commitment for the role and the competitive market rates
among international peers. Besides the fixed base amount,
Directors’ compensation mostly depends upon the said Directors’
attendance at Board and committee meetings.
Upon the recommendation from the Human Capital &
Remunerations Committee, the Board of Directors is responsible for
setting the allocation of the Directors’ fees among Board members
accordingly with the maximum annual amount of Directors’ fees
that can be paid to the Board members set at EUR 2,800,000 by
the Annual Shareholders’ Meeting held on May 4, 2023. The 2024
compensation policy approved by the Annual Shareholders’
Meeting held on May 23, 2024 provides the allocation rules of the
fees to the non-executive Directors which are as follows:
• Non-executive Directors will be paid:
−a fixed basic amount of EUR 25,000 for membership of the
Board;
−an amount of EUR 11,000 per Board meeting physically
attended, and EUR 6,000 per Board meeting digitally
attended;
−an amount of EUR 4,500 per committee meeting attended;
−an amount of EUR 25,000 for the yearly strategy week (half in
case of digital attendance); and
−an amount of EUR 6,000 (for intercontinental travel) or
EUR 3,500 (for intra-continental travel) per Board session
physically attended.
• Additional annual payments are made to non-executive
Directors to reflect the additional responsibilities and workload:
−to the Chairperson of the Audit & Risks Committee:
EUR 20,000, and the other committees: EUR 15,000; and
−to the Lead Independent Director: EUR 250,000.
• For an observer, an annual fixed payment of EUR 20,000 is paid,
unless they become a non-executive Director at the next
General Meeting. In this case, they will receive the same fees for
attending the Board and committee meetings as non-executive
Directors.
• All payments are prorated for time served during the year and
are paid in cash.
Directors’ compensation earned in 2023 and 2024 was as follows,
noting that Mr. Jean-Pascal Tricoire, Chairman of the Board, and
Mrs. Xiaoyun Ma who represents the employee shareholders,
waived the payments of the compensation they were entitled to as
members of the Board.
Directors’ compensation
(€)
Other compensation & benefits
(€)
Total
(€)
2024(1)
2023(2)
2024(1)
2023(2)
2024(1)
2023(2)
Léo Apotheker
213,336
177,000
–
–
213,336
177,000
Nive Bhagat
126,500
138,000
–
–
126,500
138,000
Cécile Cabanis(5)
55,445
114,000
–
–
55,445
114,000
Giulia Chierchia
135,500
87,000
10,833(7)
–
146,333
87,000
Clotilde Delbos
37,623
–
–
–
37,623
–
Rita Félix(3)
122,000
122,000
–
–
122,000
122,000
Fred Kindle
430,000
389,000
–
–
430,000
389,000
Philippe Knoche
122,000
–
–
–
122,000
–
Linda Knoll
207,500
161,000
14,167(7)
20,000(7)
221,667
181,000
Jill Lee
200,500
163,000
–
–
200,500
163,000
Xiaoyun Ma(3)(4)
–
–
–
–
–
–
Anna Ohlsson-Leijon
159,000
135,000
–
–
159,000
135,000
Abhay Parasnis
158,164
115,000
–
–
158,164
115,000
Anders Runevad
180,000
138,000
–
–
180,000
138,000
Gregory Spierkel
227,000
184,000
–
–
227,000
184,000
Lip-Bu Tan
165,500
129,000
–
–
165,500
129,000
Bruno Turchet(3)(6)
128,500
109,000
–
–
128,500
109,000
Total
2,668,568
2,161,000
25,000
20,000
2,693,568
2,181,000
(1) Awarded for the fiscal year 2024 and paid in 2025.
(2) Awarded for the fiscal year 2023 and paid in 2024.
(3) Employee Directors are separately entitled to the compensation granted to them for the performance of their duties as an employee, such compensation is not
affected by their office as a Director and is not disclosed.
(4) Mrs. Xiaoyun Ma waived the payment of the sum of EUR 111,000 she was entitled to.
(5) Board member whose term of office ended in 2024.
(6) Mr. Bruno Turchet waived the payment of 30% of the sum he was entitled to, i.e. EUR 38,550, in favor of the trade union which appointed him.
(7) Amount paid to Mrs. Giulia Chierchia and Mrs. Linda Knoll as members of the Stakeholder Committee.
The total amount awarded to the Board members for their office as
Directors for 2024 was EUR 2,668,568 compared to EUR 2,161,000
for 2023, i.e. an increase of 25%, due to doubling of the number of
Governance, Nominations & Sustainability Committee meetings
and one more Director on the Board of Directors. Excluding the
special fee paid to the Vice-Chairman & Lead Independent
Director, the amount is composed of approximately 20% fixed
compensation and 80% variable.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.2.2.4 Pay equity ratio
Employees experience at Schneider Electric
Delivery of the strategy, both short term and long term, depends upon Schneider Electric’s success in attracting and engaging a highly
talented workforce, and on equipping people with the skills for the future. The Group is committed to fair pay, which is at the forefront of the
Group’s and executives’ agenda, ensuring that all Schneider Electric employees are appropriately and fairly rewarded for their contribution.
The progress is monitored via the Schneider Sustainability Impact indicators. More information can be found in Chapter 2 of this Universal
Registration Document.
Pay equity
Living wage
Recognition
Well-being
Engagement
Fair and equitable pay
is a core component
of the Group’s
compensation
philosophy. Since
2015, the Company
has adopted a Global
Pay equity framework.
With the help of this
Framework, Schneider
Electric has committed
to reaching <1% pay
gap between females
and males by 2025.
Furthermore, pay
equity is fully
integrated during the
annual global salary
review and technology
is embedded at the
core of the process for
managers to take the
right decision during
hiring and promotion
process through a tool
called Fair Pay
Simulator.
Schneider Electric
believes earning a
decent wage is a basic
human right and a key
element to decent
work. The Group is
committed to paying
employees in the lower
salary ranges at or
above the living wage
to meet their family’s
basic needs. By basic
needs, the Group
considers food,
housing, sanitation,
education, and
healthcare, plus
discretionary income
for a given local
standard of living.
Schneider Electric was
certified as the “Living
Wage Certified”
organization through
Fair Wage Network in
2023.
Schneider Electric is
committed to creating
a culture where
employees receive
regular feedback and
coaching from their
managers and
colleagues, celebrating
people who constantly
demonstrate the
Company’s Core
Values and go above
and beyond – using
global recognition
portal “Step Up” and
encouraging the
recognition of small
and big achievements
by simply saying
“Thank you”.
Health and well-being
are embedded in the
Schneider Electric
strategic people
priorities and
contribute to its core
sustainability mission.
The Company has a
commitment to a
comprehensive
well-being at work
program translated into
dual standards of
access to healthcare
and well-being training
programs.
The Group listens to
employees through a
number of different
channels, both formally
and informally. Three of
the Board Directors are
employees of the
Company, appointed
through a formal
designation process.
The Group runs
OneVoice internal
survey designed to
measure employee
satisfaction and
engagement; the
Group also recognizes
the importance of
dialogue and engages
with the local work
councils on
compensation matters
on a regular basis.
(1) Mr. Peter Herweck held this function from January 1 to November 1, 2024 and Mr. Olivier Blum held this function from November 1 to December 31, 2024.
Pay equity ratio
Pay equity ratio measures the ratio between the level of
compensation of the Chairman and the Chief Executive Officer and
the average and median compensation of the employees, as
required by Article L. 22-10-9 I 6° and 7° of the French Commercial
Code.
Calculation methodology
The compensation comparisons and pay ratios set out below were
calculated based on the CSRD guidelines. The calculation includes
employees who were continuously employed during the financial
years concerned. For part-time employees, compensation was
established on a full-time equivalent basis.
Compensation elements taken into account:
For the Chairman
• 2024 fixed compensation;
• Relevant benefits (cost of the company car, profit-sharing,
and employer matching contributions to Employee saving plan)
for 2024.
For the Chief Executive Officer(1)
• 2024 fixed compensation;
• Variable compensation paid in 2024 (for the performance year
2023);
• Relevant benefits (cost of the company car, profit sharing and
employer matching contributions to Employee saving plan) for
2024; and
• Value of the Performance Shares granted in the period January
1 to December 31, 2024 at their final value (IFRS).
For the employees
• 2024 fixed compensation;
• Variable compensation paid in 2024 (for the performance year
2023);
• Relevant bonuses and benefits (in cash and kind) for 2024;
• Profit sharing and employer matching contributions to employee
saving plan for 2024; and
• Value of the Performance Shares granted in 2024 at their fair
value (IFRS) on the grant date.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Scope
(1) Annualized for 2023.
France perimeter:
The legal scope, the issuer, comprises of only two employees,
therefore, an alternate “relevant scope” was defined to reflect a
larger representative employee population in France as prescribed
by Article 27.2 of the AFEP-MEDEF Code. It is based on the French
holding entity Schneider Electric SE (SESE) (the issuer) as well as
all employees in France of the operational company Schneider
Electric Industries (SEI SAS). This group of employees is employed
on comparable terms to the Corporate Officer(s) and the Chairman
and represents more than 4,000 employees in France on a full-time
equivalent basis.
Global perimeter:
In addition, between 2021 and 2023 the Board of Directors, upon
recommendation of the Human Capital & Remunerations
Committee, had decided to voluntarily report the evolution of the
pay ratio between the Chairman & Chief Executive Officer and the
average and median compensation of the employees on a broader
scope which included approximately 131,000 Schneider Electric
employees across the top 30 countries (“Global perimeter”). This
represented circa 89% of all Schneider Electric employees globally.
From 2024, due to the new Corporate Sustainability Reporting
Directive (CSRD), the Board of Directors, upon recommendation of
the Human Capital & Remunerations Committee, decided to report
the evolution of the pay ratio between the Chairman, the Chief
Executive Officer and the average and median compensation of
the employees on a worldwide scope which includes
approximately 154,000 Schneider Electric employees. This
represent 100% of all Schneider Electric employees globally.
Evolution of the Corporate Officers’ and employees’ compensation, pay ratios, and Group’s performance over five years
Chairman
Jean-Pascal Tricoire (January 1 to December 31, 2024)
Total compensation paid
FY2020
FY2021
FY2022
FY2023
FY2024
Adjusted EBITA
Revenue
No graph since new starting point for Global perimeter in 2024
French perimeter
Chairman total compensation paid (in €)
N/A
N/A
N/A
985,189(1)
989,094
% change in total compensation
Pay ratio – average compensation
N/A
N/A
N/A
10
10
% change in average pay ratio
Pay ratio – median compensation
N/A
N/A
N/A
12
12
% change in median pay ratio
Employees average compensation (in €)
N/A
N/A
N/A
101,133
101,624
% change in employment average compensation
Global perimeter
Pay ratio – average compensation
N/A
N/A
N/A
N/A
16
% change in average pay ratio
Pay ratio – median compensation
N/A
N/A
N/A
N/A
22
% change in median pay ratio
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Chief Executive Officer
Peter Herweck (January 1 to November 1, 2024)
Olivier Blum (November 1 to December 31, 2024)
Total compensation paid
FY2020
FY2021
FY2022
FY2023
FY2024
Adjusted EBITA
Revenue
No graph since new starting point for Global perimeter in 2024
French perimeter
Chief Executive Officer total compensation paid in FY (in €)
N/A
N/A
N/A
4,694,643(1)
5,110,091(2)
% change in total compensation
Pay ratio – average compensation
N/A
N/A
N/A
46
50
% change in average pay ratio
Pay ratio – median compensation
N/A
N/A
N/A
57
61
% change in median pay ratio
Employees average compensation (in €)
N/A
N/A
N/A
101,133
101,624
% change in employment average compensation
Global perimeter
Pay ratio – average compensation
N/A
N/A
N/A
N/A
82
% change in average pay ratio
Pay ratio – median compensation
N/A
N/A
N/A
N/A
115
% change in median pay ratio
(1) Mr. Peter Herweck Annualized for 2023.
(2) Mr. Peter Herweck 10 months and Mr. Olivier Blum 2 months.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.3 Compensation policy for the 2025 fiscal year
(say on pay ex-ante)
The compensation policy intention is to provide a clear link between delivery of Schneider Electric’s strategy and the Corporate
Officers’ compensation, while reflecting outcomes for shareholders. Set out below is the Corporate Officers’ and non-executive
Directors’ compensation policy for 2025. It will be submitted to the shareholders at the 2025 Annual Shareholders’ Meeting (9th to 11th
resolutions) and, subject to shareholders approval, will remain in force until the next policy is approved by the shareholders.
For the fiscal year 2025, as a consequence of the change of
governance since 2023, three different compensation policies
will be applicable:
−to the Chief Executive Officer (Mr. Olivier Blum) (subject of
the 9th resolution proposed to the Annual Shareholders’
Meeting);
−to the Chairman of the Board of Directors
(Mr. Jean-Pascal Tricoire) (subject of the 10th resolution
proposed to the Annual Shareholders’ Meeting);
−to the Board members (subject of the 11th resolution
proposed to the Annual Shareholders’ Meeting).
4.2.3.1 Executive compensation policy
4.2.3.1.1 Overview
Schneider Electric follows a rigorous process for determining executive compensation, under the leadership of committed and
independent Directors.
Role of the Human Capital & Remunerations Committee
The general principles and criteria forming part of the
compensation policy for Corporate Officers, and their individual
compensation packages are prepared and reviewed by the Human
Capital & Remunerations Committee which makes
recommendations to the Board of Directors for decision. The Board
also receives inputs and recommendations from the Human Capital
& Remunerations Committee on the incentive structure and
performance criteria (annual variable compensation and Long-term
incentive plan) applied to the members of the Executive Committee
(see section 4.2.4 of the Universal Registration Document), as well
as the Group’s other employees.
To help the Board in the decision-making process, the Human
Capital & Remunerations Committee is authorized to call upon
external experts for specific topics, benchmarking data and
analyses. In 2024, the Committee held one joint meeting with the
Governance, Nominations & Sustainability Committee to discuss
the definition of the ESG criteria for long-term (LTIP) compensation
of executive Corporate Officers and top managers.
One of the two Directors representing the employees is a member
of the Human Capital & Remunerations Committee.
As part of its preparatory work for its proposals to the Board, the Committee:
Defines performance criteria
Benchmarks Corporate Officers’
pay
Engages with shareholders
Defines performance criteria based
on Schneider Electric’s executive
compensation pillars and business
strategy. Targets are determined at
the beginning of the performance
period in accordance with the goals of
the Strategic Plan.
Based on circumstances and
priorities, the targets also encompass
risks raised by the Audit & Risks
Committee as well as the
recommendations of the Governance,
Nominations & Sustainability
Committee.
Benchmarks Corporate Officers’ pay
against the median of a peer group
consisting of 26 French and
international companies that are
comparable to Schneider Electric in
terms of market capitalization,
revenue, and industry, or that
represent a potential source of
recruitment or attrition.
This benchmarking is used as an
indicator, not as a target, and is done
ex-post only for reference.
Relies on the Vice-Chairman & Lead
Independent Director to directly
engage with shareholders to ensure
their perspectives and feedback on
Schneider Electric’s compensation
policy are heard and considered in
decision-making.
The topic of Corporate Officers’
compensation is usually discussed at
four Board meetings every year.
Corporate Officers do not take part in
the debates of the Board concerning
their own compensation.
This process ensures consistency and alignment between the compensation policy applied to the other executives and employees and the
compensation policy applied to Corporate Officers. They share the same objectives and priorities and their rewards are aligned with the
Group’s performance and shareholder value creation.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Use of discretion
In determining executive compensation, the Board could use its
discretionary power to ensure the execution of the compensation
policy and related payouts remain in line with the performance of
the Company.
As such, and only in exceptional circumstances external to Schneider
Electric such as unexpected changes in the industry environment
and in compensation practice generally, not taken into account when
determining the current compensation policy, the Board could
exercise discretion, upwards or downwards, to adjust the formulaic
outcome for annual or long-term incentive awards resulting from the
strict application of the approved policy, where a qualitative
assessment of performance is required to ensure that the awarded
compensation is fair in light of the Corporate Officers’ actual
contribution to the Company’s overall performance, its positioning vs.
competition, and the outcomes for shareholders and employees.
If necessary, the Board could also adjust one or several parameters
of the remuneration schemes, such as weights, targets, or criteria,
being specified that in any event, these adjustments or
modifications will not result in exceeding the maximum of annual
variable compensation and LTIP award as set in the current
compensation policy.
Any use of discretion will be explained and an appropriate
disclosure would be provided, so that shareholders understand the
basis for the Board’s decisions.
Changes in the 2025 compensation policy
The Committee reviewed the existing policy and reassessed the
pillars and principles formulated in 2018, as well as the
compensation elements and criteria in light of shareholders’
feedback received during the shareholder engagement process
described above.
Upon recommendations of the Human Capital & Remunerations
Committee, the Board wishes to maintain the overall stability of the
compensation policy which appears balanced, ensuring a strong
link between pay and performance, strong alignment with both
employees and shareholders, and long-term focus, while at the
same time taking into account the shareholders’ feedback.
In 2023, several changes were implemented including (i) the
strengthening of the performance targets linked to the involuntary
severance indemnity, and (ii) the inclusion of a clawback provision.
Several improvements were also implemented in the 2024
compensation policy such as: (i) the introduction of a stricter
retention rule for unvested share awards that would be prorated for
time in case of retirement or change of assignment within the Group
for the Chief Executive Officer, and (ii) the introduction of new
sustainability performance conditions in the LTIP linked to the
reduction of our Scope 1, 2, and 3 (upstream) CO2 emissions to
align executive remuneration with the Group’s commitment in terms
of climate transition.
Amount of
the different
components
of the
compensation
The Board decided to review the targeted amounts of different components of the compensation in order to take into
account Mr. Olivier Blum’s experience and track record with the Group, his past compensation package, the size of the
Group and its evolution, and the compensation practices within the Company and outside. This review led the Board to
increase the variable components of the compensation package to ensure a perfect alignment with the shareholders’
experience with (i) a targeted annual variable compensation which will represent 130% of the fixed compensation and
(ii) a long-term incentive which will represent 233% of the fixed compensation (valued in accordance with the IFRS
standard). This will lead to an increase of the on-target global remuneration opportunity by 11% compared to the previous
compensation policy.
LTIP – Holding
period
All shares granted will be subject to an additional mandatory one-year holding period after the vesting period of three
years while only 80% of the shares granted were subject to a such requirement previously.
LTIP – Maximum
award
The maximum annual award to the Corporate Officer, valued in accordance with IFRS standards, will be capped at
300% of the fixed compensation (vs. 150% of the combined fixed and target annual variable compensation previously)
at the date of grant to avoid any compounding effect from the adjustment to the annual variable compensation.
LTIP – Over-
performance
Taking into account shareholders’ feedbacks, the Board decided to stop the existing offsetting mechanism for the LTIP
between EPS criteria and TSR criteria and implement instead an over-performance mechanism for the financial criteria
leading to a total maximum vesting at 115%.
LTIP – TSR
In line with investors’ expectations, the Board decided for the TSR criteria of the LTIP that compares Schneider Electric to
the index performance, to replace the CAC 40 with STOXX Europe 50, a European index for broader, more global
comparison beyond France.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
How are performance criteria linked to Schneider Electric strategic priorities?
28%
Target annual
variable
compensation
100% of fixed(2)
22%
Fixed
compensation
50%
LTIP(1)
22%
Not linked to
performance
50%
Paid in cash
50%
Paid in shares
50%
Short term
50%
Long term
(minimum 3 years +
presence condition)
78%
Linked to
performance
Balance between compensation elements
(1) Estimated valued, in accordance with
IFRS standards, of the LTIP to be granted
during 2025 fiscal year.
(2) Between 0% and 200%.
Group’s strategic priorities
How the strategy links to the Corporate Officers’ variable compensation
Organic growth
Value for customers
Sustainability
Continuous efficiency
Value & returns to
shareholders
Annual incentive plan
Delivering strong execution and creating value for customers and shareholders every
year to contribute to Schneider Electric’s long-term success
Group organic
sales growth
Group organic
Adjusted
EBITA margin
improvement
Group cash
conversion
rate
Net
Satisfaction
Score
Schneider
Sustainability
Impact
35% 25% 10% 10% 20%
Long-term incentive plan
Building an integrated and leading company with strong sustainability focus and
attractive returns to shareholders
Adjusted Earnings
per Share
Relative Total
Shareholder Return
Carbon emissions
reduction targets
40%
35%
25%
Variable pay is linked to performance metrics designed to deliver Schneider Electric’s strategy. At the start of each year, the Board reviews
the measures, targets, and weightings to ensure they remain consistent with the annual priorities and Group strategy. For the annual
variable compensation and the Performance Shares, the approach to performance measurement is intended to provide a balance of
measures to assess performance focusing on execution of the Group’s strategic priorities.
Considerations of wider workforce compensation and shareholders’ views
The Board monitors and reviews the effectiveness of the compensation policy for Corporate Officers and Senior Management and has
regard to its impact and consistency with compensation policies in the wider workforce. During the year, the Board is provided with
information and context on pay in the wider workforce and various HR initiatives to enable its decision-making. This includes the approach
to gender pay gap and living wage programs rolled out globally, the annual variable compensation results, and the total cost of LTIP
awards.
The Board is committed to an open and transparent dialogue with Schneider Electric’s shareholders through the Vice-Chairman & Lead
Independent Director. Where appropriate, Schneider Electric actively engages with shareholders and shareholder representative bodies,
taking their views into account when making any decisions about the Corporate Officers’ compensation. The Vice-Chairman & Lead
Independent Director is also available to answer questions at the Annual Shareholders’ Meeting.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
2025 compensation pillars and principles
Pay-for-performance
Alignment with shareholders’
interest
Competitiveness
• Principle 1: Prevalence of variable
components: circa 80% for Chief
Executive Officer (at target).
• Principle 2: Performance is
evaluated via economic and
measurable criteria.
• Principle 3: Financial and
sustainability objectives are fairly
balanced and distributed between
short-term (annual variable
compensation) and medium-term
(long-term incentive) components.
• Principle 4: Significant proportion
of the total compensation delivered
in shares.
• Principle 5: Performance
conditions support Schneider
Electric’s strategic priorities and
are aligned with shareholders’
expectations.
• Principle 6: To benchmark the
Corporate Officers’ compensation
package “at target” in the median
range of the Company’s updated
peer group.
• Principle 7: To reference the
CAC 40 third quartile and the
STOXX Europe 50 median.
4.2.3.1.2 Compensation policy of Mr. Olivier Blum as Chief Executive Officer
Pursuant to the principles of the remuneration policy of Executive
Officers described above, the Board of Directors on February 19,
2025, on the recommendation of the Human Capital &
Remunerations Committee, decided to set as follows the
components of the Chief Executive Officer’s compensation policy
for 2025.
To determine this remuneration policy, the Human Capital &
Remunerations Committee used an in-depth study of industry
practices, including a benchmark of remuneration practices in CAC
40 and STOXX Europe 50 indices, and a selected group of peer
companies (the composition of which is described in section 4.2.2.1
of the Universal Registration Document), with the assistance of an
outside firm (Mercer) based on publicly available data. With regard
to this panel, it exhibits the necessary characteristics of
competitiveness and comparability.
The remuneration policy is designed to be attractive and
motivating. It notably takes into account:
• Mr. Olivier Blum’s experience and skills, his successful career
within the Group including Country President of Greater India,
Strategy and business leader in China before joining the
Executive Committee in 2014 as Chief Human Resources
Officer, Group Chief Strategy & Sustainability Officer, and then
Executive Vice-President Energy Management;
• the size of the Group and its evolution over the past years,
notably since the Board last adjusted the fixed salary of its top
executive in 2023;
• the positioning of the compensation components compared with
executive corporate officers with a comparable profile;
• the consistency of the Chief Executive Officer’s compensation
with that of Executive Committee members and compensation
practices within the Company;
• Mr. Olivier Blum’s intention to unilaterally end his current
employment contract with the Group by means of resignation as
from the start of his corporate office, in compliance with the
recommendations of the AFEP-MEDEF Code and best
governance practices.
Based on those considerations, the Board has decided to set the
key compensation elements of Mr. Olivier Blum as follows:
• a fixed compensation of 1,200,000 euros unchanged compared
to his predecessor. This amount will position the fixed
component between the 25th centile and the median of the CAC
40 companies, considerably below the 25th centile of the STOXX
Europe 50 companies, and considerably below the median of
the peer group;
• a targeted annual variable compensation representing 130% of
the fixed compensation: this amount will be in the 75th centile of
the CAC 40 companies, at the 75th centile of the STOXX Europe
50 companies, and just above the median of the peer group;
• a grant in performance shares for 2025 representing 233% of
the fixed compensation (valued in accordance with the IFRS
standard): this amount will be at the top of the CAC 40
companies, just above the median of the STOXX Europe 50
Companies, and below the median of the peer group, this grant
will be well below the cap of the maximum award.
The Board thus proposes to position the total target compensation
package of the Chief Executive Officer just above the 75th centile
of the CAC 40 companies and around the 25th centile of the STOXX
Europe 50 companies and peer group.
The Board decided not to increase the fixed component to
avoid any compounding effects it would have had on the global
remuneration package. It also chose to adjust the short-term
incentive on-target and at maximum to 130% and 260%
respectively. This decision was driven by the analysis of the
market practice as well as the need to incentivize the Chief
Executive Officer in a rapidly changing environment at a time of
significant opportunities and acceleration needed in the execution
of the strategy.
Adjustments of annual variable compensation, alongside the
targeted grant of Performance Shares for 2025 allow to maintain a
high portion of performance-based remuneration (>78% on target
and 85% at maximum) in order to maintain a strong pay for
performance alignment.
Compared to the former 2024 compensation policy, these
proposed adjustments represent an increase of 11% of the total
target compensation package.
The Board also wished to reinforce the link between the Chief
Executive Officer performance and the experience of shareholders
and emphasize the long-term value creation by reinforcing the one
year holding period for 100% of the shares (vs. 80% before) and
wanted to maintain the maximum level of Long-term incentive at
grant at 300% of the fixed remuneration to avoid the compounding
effects of the change in targeted annual variable compensation
and avoid excessive remuneration. The target-setting process has
historically been stringent in order to maintain the alignment
between pay and performance and these decisions also reflect the
enlarged scope and responsibilities related to Mr. Olivier Blum’s
change of role, when comparing to his previous pay package.
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Positioning of Mr. Olivier Blum’s compensation package compared to the market benchmarks
Fixed
compensation
Targeted annual
variable
compensation (as
% of fixed
compensation)
Fixed
compensation +
Targeted annual
variable
compensation
LTI granted (as %
of fixed
compensation
Fixed
compensation +
Targeted annual
variable
compensation +
LTI granted
Olivier Blum, CEO
€1,200,000
130%
€2,760,000
233%
€5,560,000
75th percentile
25th percentile
Median
3,296
6,761
8,499
8,733
14,501
CAC 40
STOXX
Europe 50
Peers
Total compensation package:
Fixed compensation + Targeted annual
variable compensation + LTI granted
4,159
5,009
4,682
5,560
5,560
5,560
5,549
75th percentile
25th percentile
Median
2,130
3,492
3,399
3,965
2,620
3,065
3,641
2,760
CAC 40
STOXX
Europe 50
Peers
Fixed compensation + Targeted
annual variable compensation
2,760
2,750
2,760
2,724
75th percentile
25th percentile
Median
1,015
1,617
1,600
1,976
1,100
1,360
1,688
1,200
1,200
1,200
CAC 40
STOXX
Europe 50
Peers
Fixed compensation
1,336
1,400
75th percentile
25th percentile
Median
71
177
193
291
150
308
879
CAC 40
STOXX
Europe 50
Peers
LTI granted
(as % of Fixed compensation)
135
135
233
233
233
75th percentile
25th percentile
Median
100
120
107
133
100
123
160
CAC 40
STOXX
Europe 50
Peers
Targeted annual variable compensation
(as a % of Fixed compensation)
100
100
130
130
130
This benchmark conducted by Mercer is based on:
• all Chief Executive Officers (when the roles of Chairman and Chief Executive Officer are separated) of CAC 40 companies;
• all Chief Executive Officers (when the roles of Chairman and Chief Executive Officer are separated) of STOXX Europe 50 companies;
• all Chief Executive Officers (when the roles of Chairman and Chief Executive Officer are separated) of companies in the reference group (see Competitiveness pillar
and principle in Chapter 4 Section 4.2.2.1 of this Universal Registration Document).
Fixed compensation
The Board decided to set the fixed compensation of the Chief Executive Officer at €1,200,000 for the fiscal year 2025, unchanged
compared to 2024 on a full year basis.
The fixed compensation will be reviewed at long intervals by the Board in accordance with the AFEP-MEDEF Corporate Governance
Code, unless there are specific circumstances that would warrant a salary increase, for example a major change in the duties.
Corporate Officer
FY 2025
Olivier Blum, Chief Executive Officer
€1,200,000
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Annual variable compensation
Annual variable compensation provides variable cash compensation which rewards achievement of the short-term financial, and
sustainability targets of the Group.
At the start of the fiscal year, financial and sustainability performance criteria, weightings, and annual targets are reviewed in detail by
the Committee and recommended to the Board for approval. Outcomes will be determined based on performance against each of
those targets. The Board has the flexibility to review targets during the year notably to align with the guidance made to the market and
thus ensure a continuous alignment with shareholders’ interests. The pay-out opportunity at threshold performance is 0%, with 50% of
maximum annual variable compensation payable for achieving target. The maximum annual variable compensation will only be earned
where a strong performance is delivered on each performance metric. Pay-outs between threshold and target, and between target
and maximum, are determined on a straight-line basis.
For 2025, the Board proposes that the measurable financial performance criteria determine 70% and sustainability and customer
satisfaction criteria 30% of the variable cash compensation of Mr. Olivier Blum.
Performance criteria
Description and link to strategy
35% Group organic sales growth
Fostering organic growth through deployment of strategic priorities in key markets
25% Adjusted EBITA organic margin improvement
Enabling shareholder value creation through continuous efficiency
10% Group cash conversion
Enabling returns to shareholders
10% Net Satisfaction Score improvement
Focusing the Company on clients’ satisfaction and quality
20% Schneider Sustainability Impact
Promoting continuous progress towards more sustainability and value for customers
For business confidentiality reasons and as in previous years, the targets cannot be disclosed; however, the targets have been set
precisely by the Board at the meeting of February 19, 2025 and will be communicated ex-post. In case of unforeseen scope impact or
exceptional events, the Board may decide to adjust and restate from the calculation of the achievement of these criteria the impact of
such events. These adjustments or restatements would be disclosed ex-post in the Universal Registration Document.
The Net Satisfaction Score is measured since 2018, it is a weighted average of the grade given by customers on six Critical Touch
Points: 1) Select offer, 2) Get quotation, 3) Get delivered, 4) Get delivered solutions, 5) Get technical support, and 6) Get failure
support. More than 240,000 answers of customers are provided to the survey each year. The grades given by customers range from 0
(very dissatisfied) to 10 (very satisfied). The Net Satisfaction Score is calculated by subtracting the percentage of customers who are
dissatisfied (grade 0 to 6) from the percentage who are very satisfied (grade 9 and 10). It generates a score between -100% and 100%:
• At one end of the spectrum, if all of the customers gave a grade lower or equal to 6, this would lead to an Net Satisfaction Score of
-100%;
• On the other end of the spectrum, if all of the customers gave a grade of 9 or 10, then the Net Satisfaction Score would be 100%.
In consideration of all elements described above, the Board decided to set the annual variable compensation opportunity at target and
maximum as follows:
Minimum
At target
Maximum
0% of fixed compensation
130% of fixed compensation
260% of fixed compensation
Nil
€ 1,560,000
€3,120,000
The payment of the annual variable compensation is conditional upon approval by shareholders of the compensation granted to the
Chief Executive Officer.
Schneider Electric does not operate a deferral program for its Chief Executive Officer.
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Performance Shares (Long-term incentive plan – LTIP)
LTIP links the largest part of the Chief Executive Officer’s
compensation with the long-term performance of the Group
and the actual outcome varies with performance against
criteria linked directly to strategic priorities.
All shares granted are subject to a vesting period of three
years with an additional mandatory one-year holding period
for the shares granted to the Corporate Officers, except for
the sale of shares necessary to cover his tax (while only 80%
of the shares granted were subject to a such requirement
previously).
For threshold performance, 0% of shares granted will vest,
for maximum, 115% will vest.
LTIP time horizon
Year 1
Year 2
Performance period
Year 3
Year 4
1-year
holding
period
Shares
released
Shares
granted
Performance assessed and
shares vest (20% released)
80% of shares
that vest
Long-term
incentive
plan
The Board considered shareholder feedback and propose to implement two changes in the 2025 LTIP.
• The previous offsetting mechanism in case of under-performance of the EPS criteria with an over-performance of the TSR criteria
would be stopped to implement a new overperformance mechanism without any offsetting mechanism. There would be therefore
a maximum vesting of 120% in case of exceptional performance of the EPS and TSR which would lead to a total maximum vesting
at 115% if all targets are overachieved. An over-performance would not be possible for the Sustainability criteria but only for the
financial criteria. This mechanism ensures that the experience of the management is perfectly aligned with that of the shareholders
and that the management is incentivized to go for the extra-mile.
• For the TSR criteria of the LTIP, the CAC 40 would be replaced by STOXX Europe 50, a European index for broader, more global
comparison beyond France.
In addition, the changes implemented in 2024 are maintained. In line with Schneider Electric’s most material sustainability topics and
strategy, the sustainability criteria that will be used to determine the Chief Executive Officer’s long-term remuneration will still be linked
to Carbon emissions reduction.
In order to align the interests of the Group’s executives to those of the shareholders, in 2025, the Board will allocate Performance
Shares to more than 4,500 Group executives and Senior Management, leaders, and key talents. For the Group Senior Management,
100% of shares allocated will be subject to performance conditions measured over three years.
The maximum targeted annual award to the Corporate Officer, valued in accordance with IFRS standards, will be capped at 300% of
the fixed compensation (vs. 150% of the combined fixed and target annual variable compensation previously) at the date of grant to
ensure that it does not represent a disproportionate percentage of his overall compensation. This decision has been made to avoid any
compounding effects from the adjustment to the annual variable compensation and maintain a cap (in quantum) stable compared to
the previous policy.
Each year, the volume of the annual award is set in consideration of:
• the market practice and competitive positioning of the Chief Executive Officer’s compensation package;
• the Group’s performance, acknowledged by the market;
• the performance criteria applicable to the final acquisition of LTIP awards; and
• the culture of ownership deeply rooted in Schneider Electric’s DNA.
For 2025, the Board intends to grant Mr. Olivier Blum an amount of LTIP, which value in accordance with IFRS standards will be
around(1) 233.33% of the fixed compensation), well below the maximum grant authorized under the compensation policy (300% of the
fixed compensation). To determine the LTI grant level, the Board took into consideration the market practice (see section 4.2.3.1 of the
Universal Registration Document), the Group’s performance in 2024, and the strong and ambitious objectives as announced during the
Capital Market Day in November 2024 and adjusted upward the LTIP grant in value for 2025, within the maximum limit provided by the
compensation policy, to reflect the importance of the strategic orientation.
In the context described above, the Board decided that the number of shares granted to the Chief Executive Officer continues to be
reasonable in terms of quantum and market practice for comparable roles; it rewards the Company’s good performance in a
challenging year and supports the culture of ownership strongly promoted by Schneider Electric.
(1) At the date of the grant, the IFRS value cannot be known with certainty as it is computed only at the end of the year. For the 2025 grant, the value of the grant to the
Chief Executive Officer will be based on the assumption that the discount rate applied according to the IFRS rules will be 15% as it was for the 2024 grant.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Performance conditions
100% measurable and quantifiable criteria
75% financial and TSR, and 25% sustainability
Performance conditions and weightings applicable to the 2025 LTIP:
• 40%, improvement of adjusted EPS;
• 35%, relative TSR performance of Schneider Electric:
−17.5% measured vs. a bespoke panel of 11 companies: ABB, Legrand, Siemens, Eaton, Emerson, Honeywell, Johnson Controls,
Rockwell Automation, Fuji Electric, Mitsubishi Electric, and Yokogawa,
−17.5% measured vs. STOXX Europe 50 companies; and
• 25%, based on Schneider Electric’s carbon emissions reduction targets.
• Adjusted EPS (40%)
Adjusted EPS is a key long-term performance metric which promotes the execution of Schneider Electric’s strategy to deliver profitable
growth, thus reinforcing alignment with shareholders. Performance Shares could vest subject to the achievement of the following
targets as set by the Board of Directors at the beginning of each year:
• a minimum adjusted EPS improvement threshold under which there will be no vesting;
• an intermediary targeted adjusted EPS improvement objective that the Company will have to achieve in order to vest 75% of the
shares under this condition;
• a targeted adjusted EPS improvement objective that the Company will have to achieve in order to vest 100% of the shares under this
condition;
• a maximum over-performance adjusted EPS improvement objective that the Company will have to achieve in order to vest 120% of
the shares under this condition; and
• the Performance Shares will vest progressively, on a linear basis, if the adjusted EPS improvement is between these objectives.
As explained above, the Board commits to disclose ex-post, at the end of each Long-term incentive plan, the minimum adjusted EPS
improvement thresholds, the targeted adjusted EPS improvement objectives and the maximum over-performance Adjusted EPS
improvement objective.
Adjusted EPS performance is published in the external financial communications and its annual variance will be calculated using
adjusted EBITA at constant FX from year N-1 to year N. Foreign exchange impacts below adjusted EBITA will be taken in full. In case of
unforeseen scope impact or exceptional events, the Board may decide to adjust and restate from the calculation of the achievement of
these criteria the impact of such events. These adjustments or restatements would be disclosed ex-post in the Universal Registration
Document.
• Relative TSR (35%)
This criterion strengthens the alignment between the shareholders’ interests and compensation of the Corporate Officer.
• For 17.5% of the shares, Schneider Electric TSR will be compared to a bespoke industry panel consisting of 11 companies (ABB,
Legrand, Siemens, Eaton, Emerson, Honeywell, Johnson Controls, Rockwell Automation, Fuji Electric, Mitsubishi Electric, and
Yokogawa) with a vesting scale as follows: 0% at rank 7 or below, 50% at median (rank 6), 100% at rank 4, 120% for ranks 3 to 1, and
linear between these points.
• For the remaining 17.5%, Schneider Electric TSR will be compared with the TSR of the companies in the STOXX Europe 50 index to
reflect the macro-economic and stock-market specific trends which influence the performance of the share and in turn, the return to
shareholders with a vesting scale as follows: 0% below median, 50% at median (rank 25), 100% at rank 13, 120% in ranks 1 to 5,
and linear between these points.
If the Schneider Electric TSR is closely clustered with that of other companies in the panel, then the Board of Directors will apply its
judgment to decide whether Schneider Electric’s TSR shall be deemed to be ranked in the same position as those companies.
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• Carbon emissions reduction targets (25%)
This criterion aims at linking the Chief Executive Officer’s compensation with Schneider Electric’s greenhouse gas (GHG) reduction
targets as validated by the Science Based Targets initiative (SBTi), aligned with its “Corporate Net-Zero Standard” published in
October 2021. The Board thus decided to link the LTIP:
• For 12.5% to an absolute number of tons of CO2 emissions (carbon budget) that the Group would have to reach for its Scope 1 & 2
emissions for the full year 2027 (last year before the vesting in March 2028) with (i) a minimum objective (105,000 tons of CO2
emissions, i.e. a reduction of 27% vs. the 2024 emissions) under which no vesting will occur for this criteria; (ii) a targeted objective
(100,000 tons of CO2 emissions, i.e. a reduction of 31% vs. the 2024 emissions) that the Group will have to achieve in order to vest all
shares under this criteria, and (iii) a linear vesting if the actual achievement is between these two objectives.
• For 12.5% to an absolute number of Scope 3 upstream CO2 emissions per euro of revenue (carbon intensity) that the Group would
have to reach for the full year 2027 (last year before the vesting in March 2028) with (i) a minimum objective (185 g of CO2 emissions
per euro of revenue, i.e. a reduction of 12% vs. the 2024 Scope 3 upstream carbon intensity) under which no vesting will occur for
this criteria, (ii) a targeted objective (165 g of CO2 emissions per euro of revenue i.e. a reduction of 21% vs. the 2024 Scope 3
upstream carbon intensity) that the Group will have to achieve in order to vest all shares under this criteria, and (iii) a linear vesting
if the actual achievement is between these two objectives.
In case of significant change in the consolidation scope or in the methods used to calculate GHG emissions, Schneider Electric will
apply the recalculation rules defined by the GHG Protocol and the Science Based Target Initiative. In case of significant regulatory
changes or any other external event significantly impacting this condition, the Board may adjust the target or decide not to take in
consideration this criteria.
The table below summarizes the performance conditions that will apply to the plan:
40% Improvement of
adjusted Earnings per
Share (EPS)
• 0% at the minimum adjusted EPS improvement threshold
• 75% at the intermediary adjusted EPS improvement objective
• 100% at the targeted adjusted EPS improvement objective
• 120% at the maximum over-performance adjusted EPS
improvement objective
Vesting linear between these points
35% Relative TSR
17.5% vs. STOXX Europe 50
• 0% at rank 26 and below (median)
• 50% at median (rank 25)
• 100% at rank 13
• 120% at ranks 5 to 1
Vesting linear between these points
17.5% vs. a panel of 11 companies
(ABB, Legrand, Siemens, Eaton,
Emerson, Honeywell, Johnson Controls,
Rockwell Automation, Fuji Electric,
Mitsubishi Electric, and Yokogawa)
• 0% at rank 7 and below
• 50% at median (rank 6)
• 100% at rank 4
• 120% at ranks 3 to 1
Vesting linear between these points
25% Carbon emissions
reduction targets
12.5% Scope 1 & 2 carbon emissions
target
• 0% if the carbon emissions are above or equal to 105,000 tons
of CO2
• 100% if the carbon emissions are below or equal to 100,000
tons of CO2
Vesting linear between these points
12.5% Scope 3 upstream carbon
intensity target
• 0% if the carbon intensity is above or equal to 185 g of CO2 per
euro of revenue
• 100% if the carbon intensity is below or equal to 165 g of CO2
per euro of revenue
Vesting linear between these points
For each grant, the performance conditions will be determined by the Board and, although the Board favors stability, they could be
adapted from the ones presented above. Depending on the evolution of the Group’s strategic objectives, should they cease to be
relevant or new criteria be deemed more appropriate based on their review by the Board of Directors, the latter would elect for criteria
with similar long-term stringency, that will ensure a strong link between pay and performance.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
Pension benefits
The Chief Executive Officer receives complementary cash payments whose purpose is to provide a competitive retirement benefit in a
way that is cost effective to the Company and that allows the Chief Executive Officer to build his retirement benefits independently. The
cash payments will be equal to:
• a fixed portion equal to 15% of the fixed compensation; and
• a variable portion equal to 15% of the actual annual variable compensation paid to the Chief Executive Officer.
The total pension amount actually paid will thus depend on the Company’s performance, since the calculation base of the variable
portion of the pension includes the actual variable compensation paid to the Chief Executive Officer depending on performance
conditions linked to the Group’s results.
The Chief Executive Officer has committed to depositing these additional payments, after taxes, into investment vehicles of his choice,
dedicated to the supplementary financing of pensions.
Variable portion
Fixed portion
Minimum
At target
Maximum
Total at target
€180,000
€0
€234,000
€468,000
€414,000
Other benefits
Schneider Electric aims to provide an appropriate level of benefits considering market practice and the level of benefits provided for
other employees in the Group. The benefits currently provided are described below, but may also include, for example, relocation
assistance if required and subject to the Board’s decision.
Employer matching contributions and profit-sharing
The Chief Executive Officer is eligible for profit-sharing and the employer matching contribution paid to subscribers to the capital
increase reserved for employees. He is also eligible for the employer matching contribution paid to subscribers to the collective
pension fund (PERECO), for the retirement of employees in France.
Company car
The Corporate Officer may use the cars made available to Group Senior Management with or without chauffeur services. In addition,
the Chief Executive Officer is provided with a company car.
Tax assistance
The Corporate Officer may benefit from tax assistance.
Health, life and disability schemes
The Corporate Officer is eligible for:
i. a private medical cover;
ii. the collective welfare plan applicable to employees of Schneider Electric SE and Schneider Electric Industries SAS covering the
risks of illness, incapacity, disability, and death;
iii. additional coverage of the Group’s French executives for risks of illness, incapacity, disability, and death. The main features of this
coverage are:
1) in case of illness or accident resulting in a temporary stoppage or incapacity (of any category), the Corporate Officer shall be
entitled to continue to receive 18 months’ worth of his compensation (fixed and target variable) authorized by the Board,
2) in case of death or permanent total disability, the policyholder’s beneficiaries shall be entitled to the compensation (fixed and
target variable) authorized by the Board of Directors for the current month, along with a death benefit equal to six months of the
average compensation authorized by the Board of Directors (monthly average of the fixed and variable compensation paid
during the last 12 months of employment);
iv. the entitlement to a life annuity pension paid to the surviving spouse in the event of death before the age of 60 equal to 2.5% of his
actual annual compensation at the time of death.
v. in the event of an accident, the Group insurance covering the executive’s accident risk, stipulating the payment of a benefit the sum
of which may be up to four times the annual compensation based on the type and circumstances of the accident.
Eligibility for benefits (iii) through (v) above is conditional on the fulfillment of one of the following conditions:
• the average of the net income of the last five fiscal years preceding the event is positive; and
• the average of the Free Cash Flow of the last five fiscal years preceding the event is positive.
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Director’s fee
The Chief Executive Officer will not receive any attendance fees.
Extraordinary awards
The compensation policy does not include any provisions for extraordinary payments. The Board decided to maintain the prohibition of
one-off payments that are not provided for in the compensation policy approved by the shareholders.
Clawback provision
In the event of gross misconduct or fraud causing a material adverse impact to the Group, in particular, resulting in a financial
restatement, the Board reserves the right to reduce or cancel unvested LTIP or annual variabIe compensation amounts (malus), seek
reimbursement of paid annual variabIe compensation or vested LTIP, and/or obtain damages.
Post-mandate benefits
As announced in the letter from Mr. Fred Kindle, Vice-Chairman & Lead Independent Director, dated April 13, 2023 and in response to the
concerns raised by shareholders, the Board implemented a strict prorata vesting rule in case of departure of the Chief Executive Officer.
The post-mandate vesting rules will provide that, in case of retirement or change of assignment within the Group, the Chief Executive
Officer will keep his right to the unvested Performance Shares granted to him previously, subject to the applicable performance conditions
and to a prorata for the time the Chief Executive Officer remained with the Group in this capacity during the vesting period.
The table below presents a summary of the benefits that could be granted to the Chief Executive Officer on leaving office depending
on the terms of the departure. The information provided in this summary is without prejudice to any decisions that may be made by the
Board. In determining overall termination arrangements, the Board will ensure that termination benefits shall be granted only in case of
forced departure and regardless of the form of the departure.
Voluntary resignation/Removal from
office for wrongful or gross misconduct Forced departure
Retirement or change of assignment
within the Group
Involuntary Severance Pay
Not applicable
Payment of an indemnity (twice
the average of the annual fixed
and variable cash compensation
paid over the last three years
subject to performance
conditions)
Not applicable
Non-compete indemnity
If not waived by the Board, 60% of annual fixed and target variable
compensation (excluding complementary pension payments)
Not applicable
Retention of unvested share
awards
Forfeited in full
Rights retained on prorata basis
to presence within Schneider
Electric
Rights retained subject to a pro
rata basis to the time served in
executive functions
• Definition of a forced departure: the termination benefits only become payable if the departure of the Chief Executive Officer is
forced, including requested resignation, in the following cases:
−dismissal, non-renewal, or requested resignation of the Chief Executive Officer, within the six months following a material change
in Schneider Electric’s shareholder structure that could change the membership of the Board of Directors;
−dismissal, non-renewal, or requested resignation of the Corporate Officer, in the event of a reorientation of the strategy pursued
and promoted by the Chief Executive Officer until that time, whether or not in connection with a change in shareholder structure
as described above; and; and
−dismissal, non-renewal, or requested resignation of the Chief Executive Officer, although, on average, two-thirds of the Group
performance criteria have been achieved for the last four fiscal years from the day of departure.
In any case, involuntary severance indemnity will not be paid if the resignation is a consequence of wrongful or gross misconduct.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
• Amount of the involuntary severance indemnity: the “Maximum Amount” of the involuntary severance indemnity will be twice the
arithmetical average of the annual fixed and variable cash compensation, to the exclusion of complementary pension payments,
paid by the Group over the last three years taking into account the non-compete compensation, if any, and subject to the attainment
of performance conditions. For the sake of clarity, the Maximum Amount will be computed on an annual basis of both fixed and
variable compensation.
The aggregate amount of the involuntary severance indemnity and the non-compete compensation, if any, shall not exceed the
Maximum Amount.
During the first 12 months from the appointment date, a ratio will be applied to the amount of involuntary severance indemnity
equivalent to: (i) half of the Maximum Amount, plus (ii) 1/ 24th of the Maximum Amount for each additional month of service until the
12th month is completed (as which point the involuntary severance indemnity will be computed based on the full Maximum Amount
on an annual basis).
• Performance conditions: Payment of the involuntary severance indemnity is subject to fulfillment of the following performance
conditions based on the average rate of achievement of the Group’s performance criteria used in the annual variable compensation
for the last three fiscal years preceding the date of the Board’s decision:
Group criteria achievement
Severance payment
<80%
No payment
80–100%
80–100% of the Maximum Amount, calculated on a straight-line basis
>100%
100% of the Maximum Amount
It being specified that in case of departure during the first three years of office, the above performance conditions will be calculated
on the fiscal year where the Corporate Officer was Chief Executive Officer (in case of forced departure in 2025, the performance
condition will be calculated on the 2024 results; in case of forced departure in 2026, the performance condition will be calculated on
the 2024 and 2025 results; in case of forced departure in 2027, the performance condition will be calculated on the 2024, 2025, and
2026 results).
• Non-compete agreement: The Chief Executive Officer is bound by a non-compete agreement in case of departure. The one-year
agreement calls for compensation to be paid at 60% of annual fixed and target variable compensation (excluding complementary
payments). In line with the recommendations of the AFEP-MEDEF Corporate Governance Code, the Board will determine whether to
apply the non-compete clause at the time of departure of the Corporate Officer.
• Retention of unvested share awards: In case of voluntary resignation or removal from office for wrongful or gross misconduct, the
Chief Executive Officer will lose all his unvested Performance Shares. If the Chief Executive Officer leaves the Group in
circumstances of a forced departure or in case of retirement or change of assignment within the Group, the Chief Executive Officer
will keep his right to the unvested Performance Shares granted to him previously, subject to the applicable performance conditions
and which will be prorated for the time the Chief Executive Officer remained with the Group in this capacity during the vesting
period.
• Best practices: In conformity with the recommendations of the AFEP-MEDEF Corporate Governance Code:
−the entitlement to involuntary severance indemnity is subject to strict performance conditions, assessed over a period not less
than two years;
−only circumstances of a forced departure, regardless of the form of the departure, could trigger the entitlement to involuntary
severance indemnity;
−together with the non-compete indemnity, if any, the involuntary severance indemnity could not exceed twice the average of the
Corporate Officer’s annual compensation (fixed and variable part, to the exclusion of the pension benefits);
−the Board shall determine unilaterally whether or not to apply the non-compete clause at the time of the departure of the
Corporate Officer; and
−the Corporate Officer shall not be entitled to involuntary severance indemnity in the case that he is entitled to benefit from his/her
pension rights.
Corporate Officer
Employment contract
Top-Hat pension benefits
Payments or benefits that may
be due in the event of
termination of assignment
Payments in relation to a
non-compete agreement
Olivier Blum
Chief Executive Officer
NO
NO
YES
YES
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Chapter 4 – Corporate governance report
4.2 Compensation Report
Recruitment policy
On appointment of a new Corporate Officer, the Board expects any new Corporate Officer to be engaged on terms that are consistent
with, and in no case more favorable than the policy approved by the shareholders at the last Annual Shareholders’ Meeting, until the
next policy is approved. However, it is recognized that not all circumstances in which the Corporate Officer may be appointed can be
anticipated. The Board will aim to set compensation that is appropriate to attract, motivate, retain, and reward an individual of the quality
required to run the Group successfully, while avoiding paying more than is necessary. If the Board determines that it is in the best
interests of the Company and shareholders to secure the services of a particular individual not promoted within the Group, it may require
considering the terms of that individual’s existing employment and/or their personal circumstances.
The table below summarizes the policy on appointment of a new Corporate Officer.
Fixed compensation
Salaries are set by the Board, taking into consideration a number of factors including the current pay for other
Corporate Officers, the experience, skill, and current pay level of the individual, and external market forces.
The Board may choose to set the salary below that of the market or the other Corporate Officers with the
intention of applying staged increases as the individual gains experience in the role.
Annual variable
compensation
Annual variable compensation will be awarded within the parameters of the policy in force.
Pension
The Board would set the pension cash supplementary payments at the appropriate level based on an
individual’s circumstances.
Other benefits
The Board would expect any new Corporate Officer to participate in the benefit schemes that are open to other
senior employees (where appropriate, referencing the candidate’s home country) but would take into account
the individual’s existing arrangements, market norms, and their status as a Corporate Officer.
Buy-out awards
The Board may offer compensatory payments or buy-out awards where an individual forfeits outstanding
variable pay opportunities or contractual rights as a result of their appointment. The specifics of any buy-out
awards would be dependent on the individual circumstances of recruitment and would be determined on a
case-by-case basis. On assessing such awards, the Board will seek to make awards on a like-for-like basis to
ensure that the value awarded would be no greater than the value forfeited by the individual. The Board may
choose to apply performance conditions to these awards.
Relocation
Where an individual relocates in order to take up the role, the Board may approve certain one-off benefits such
as reasonable relocation expenses, accommodation for a defined period following appointment, assistance
with visa applications or other immigration issues, and ongoing arrangements such as tax equalization, annual
flights home, and a housing allowance.
Internal promotion
Where an existing employee is appointed to the Board, he/she will be required to resign from his/her
employment contract and the Board will consider all existing contractual commitments including any
outstanding share awards or pension entitlements.
In making any decision on the compensation of a new Corporate Officer, the Board would balance shareholder expectations, current
best practice and the circumstances of any new Corporate Officer. It would strive not to pay more than is necessary to recruit the right
candidate and would give full details in the next compensation report.
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C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.2.3.1.3 Compensation policy of Mr. Jean-Pascal Tricoire as non-executive Chairman of the Board
Fixed compensation
The Board decided to set the fixed compensation of the Chairman of the Board at €930,000 for the fiscal year 2025, unchanged
compared to 2024.
This compensation is explained by the enlarged mission given by the Board to its Chairman (which is described in section 4.1.2.1.2 of
the Universal Registration Document) in order to ensure a smooth and efficient transition.
The fixed compensation will be reviewed at long intervals by the Board in accordance with the AFEP-MEDEF Corporate Governance
Code, unless there are specific circumstances that would warrant a salary increase, for example a major change in the duties.
Other benefits
The Chairman of the Board will be entitled to receive the following benefits.
Employer matching contributions and profit-sharing
The Chairman is eligible for profit-sharing and the employer matching contribution paid to subscribers to the capital increase reserved
for employees. He is also eligible for the employer matching contribution paid to subscribers to the collective pension fund (PERECO),
for the retirement of employees in France.
Company car
The Chairman may use the cars made available to Group Senior Management with or without chauffeur services. In addition, the
Chairman is provided with a company car.
Health, life and disability schemes
The Chairman will be eligible to the collective welfare plan applicable to employees of Schneider Electric SE and Schneider Electric
Industries SAS covering the risks of illness, incapacity, disability, and death.
Tax assistance
The Chairman may benefit from tax assistance.
Annual variable compensation, Long-term incentive plan, Director’s fee, extraordinary awards,
post-mandate benefits
The Chairman will not benefit from:
• any annual variable compensation;
• any Long-term incentive plan;
• any Director’s fee;
• any extraordinary awards;
• any Company pension arrangement or pension allowance;
• any severance pay; or
• any non-compete indemnity.
Chairman of the Board
Employment contract
Top-Hat pension benefits
Payments or benefits that
may be due in the event of
termination of assignment
Payments in relation to a
non-compete agreement
Jean-Pascal Tricoire, Chairman
NO
NO
NO
NO
Voluntary non-compete undertaking
The Board asked Mr. Jean-Pascal Tricoire to undertake that, in the event of termination of his duties as Chairman for whatever reasons,
he will be required, for a period of twelve months following termination, not to work, in whatever manner it may be, for the benefit of any
entity carrying on operations which are in direct competition with Schneider Electric in any country. This commitment will not be
indemnified in any way by the Company.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.3.2 Non-executive Directors’ compensation policy
Change in the 2025 compensation policy
Taking into account the implementation of the use of written consultation of Directors for the taking of certain decisions of the Board of
Directors, subject to the adoption of the 30th resolution by the 2025 Annual Shareholders’ Meeting, it is proposed to modify the 2025
compensation policy in order to provide for the remuneration of Directors in the event of decisions being taken by written consultation.
Upon recommendations of the Human Capital & Remunerations Committee, the Board of Directors proposes to provide for the absence of
compensation in the event of decisions of the Board of Directors taken by written consultation.
2025 compensation policy subject to the approval by the 2025 Annual Shareholders’ Meeting under the
11th resolution
At the 2023 Annual Shareholders’ Meeting, the shareholders approved under the 10th resolution the maximum total amount of the annual
compensation that can be paid to the members of the Board which stands at EUR 2,800,000. It is proposed:
• to maintain the cap of annual total compensation payable to the members of the Board of Directors at EUR 2,800,000; and
• to keep the allocation rules unchanged, as detailed below, and to provide for the absence of compensation in the event of decisions of
the Board of Directors taken by written consultation.
Director’s individual compensation
• Non-executive Directors will be paid:
−a fixed basic amount of EUR 25,000 for membership of the Board;
−an amount of EUR 11,000 per Board meeting physically attended, and EUR 6,000 per Board meeting digitally attended;
−an amount of EUR 4,500 per committee meeting attended;
−an amount of EUR 25,000 for the yearly strategy week (half in case of digital attendance); and
−an amount of EUR 6,000 (for intercontinental travel) or EUR 3,500 (for intra-continental travel) per Board session physically attended.
• Additional annual payments are made to non-executive Directors to reflect the additional responsibilities and workload:
−to the Chairperson of the Audit & Risks Committee: EUR 20,000, and the other committees: EUR 15,000; and
−to the Lead Independent Director: EUR 250,000.
• No compensation paid for written resolutions.
• For an observer, an annual fixed payment of EUR 20,000 is paid, unless they become non-executive Director at the next General
Meeting. In this case, they will receive the same fees for attending the Board and committee meetings as non-executive Directors.
• All payments are prorated for time served during the year and are paid in cash.
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
4.2.4 Compensation of Group Senior Management
(excluding Corporate Officers)
Scope of Senior Management in 2024
At December 31, 2024, Group Senior Management is composed of 14 Executive Committee members. The Executive Committee is chaired
by the Chief Executive Officer and includes:
• Executive Vice-Presidents of corporate functions: Finance, Supply Chain, Digital, Innovation, Governance, Marketing, and
Human Resources;
• Executive Vice-President of Schneider Electric Software Organization and Chief Executive Officer of AVEVA;
• Executive Vice-Presidents of Operations: North America Operations, China & East Asia Operations, France Operations, Europe
Operations, and International Operations;
• Executive Vice-President of Business: Industry Automation.
40% of the Group Senior Management (including Chief Executive Officer) is composed of women.
Mr. Olivier Blum held the position of Executive Vice-President of Energy Management until November 1, 2024 (i.e. until he became the
Chief Executive Officer of the Company).
Compensation policy
The compensation principles of the Group Senior Management (excluding the Corporate Officer) and their individual analyses are reviewed
by the Human Capital & Remunerations Committee for information and consultation with the Board of Directors. The Human Capital &
Remunerations Committee may consult external experts for specific analyses.
The compensation policy of the Group Senior Management follows the principles of competitiveness, pay-for-performance, and alignment
with shareholders’ long-term interests, aligned with the principles applicable to the Corporate Officer as described in this report, with the
following variations:
• The competitiveness of the Group Senior Management compensation is considered using a relevant geographical panel and the scope
of responsibilities as prepared by the consultancy firm Mercer; and
• The proportion of variable components within their on target compensation package is around 75%.
Compensation paid in 2024
Gross compensation, including benefits in kind, paid by Group companies in 2024 to the members of Group Senior Management other than
the Corporate Officer, amounted to EUR 39.7 million, including EUR 11.1 million in variable compensation paid in the 2024 fiscal year.
The performance objectives for the annual incentive for the fiscal year 2024 were:
• Group organic sales growth;
• Improvement of Group adjusted EBITA margin (organic);
• Group cash conversion rate;
• Improvement of Net Satisfaction Score; and
• Schneider Sustainability Impact.
Long-term incentive plans
During the last three financial years, 437,534 Performance Shares have been allocated to the Group Senior Management, excluding
Corporate Officers. No stock options and no Stock Appreciation Rights (SARs) have been granted during the last three financial years.
In 2024, Performance Shares were allocated under the 2024 Long-term incentive Plan n°45.
Pension benefits
Schneider Electric’s policy concerning pension benefits states that:
• The Group’s Senior Management who are not subject to the French Social Security System are covered by pension plan arrangements in
line with local practices in their respective countries; and
• The Group’s Senior Management subject to the French Social Security system, with the exception of the Corporate Officer, are covered
by the additional defined-contribution pension (Article 83) plans for employees, and/or Group Senior Management. Their defined-benefit
pension plan (Article 39) was canceled on March 22, 2016.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
4.2.5 Long-term incentive plans
Grant policy
As part of its overall staff pay policy, Schneider Electric sets up a Long-Term Incentive Plan (LTIP) every year. These plans allow the Group
to ensure the competitiveness of the compensation offered by the Group, in dynamic and competitive international markets, and in sectors
where the ability to attract talent is a key factor to success. These plans also aim at mobilizing Schneider Electric’s management for the
achievement of the Group’s long-term objectives and align their interest with those of our shareholders.
The LTIPs are based on an allocation of Performance Shares. No stock options or SARs have been granted since December 2009 and the
last plan of stock options implemented expired on December 31, 2019.
These plans are granted by the Board of Directors, based on the recommendation from the Human Capital & Remunerations Committee.
Beneficiaries include members of Group Senior Management, top managers, high-potential managers, and employees in all countries
whose performance was judged remarkable. The grants made in 2024 are characterized by:
• a total of 4,492 beneficiaries in the 2024 LTIP (vs. 4,259 beneficiaries in the 2023 LTIP);
• allocations to Executive Committee members, including the Corporate Officers, represented 12.7% of the total attributions in the
framework of the 2024 LTIP (vs. 14.6% in the framework of the 2023 LTIP); and
• 31.5% of the beneficiaries were women in the 2024 LTIP to whom 30.9% of the shares were granted (vs. 30.2% of women in the 2023
LTIP to whom 29.1% of the shares were granted).
Corporate Officers formally undertake, for each grant of shares, not to engage in hedging transactions until the end of their duties as
executive officers.
Past share plans (as of December 31, 2024)
LTIP 2021
LTIP 2022
LTIP 2023
LTIP 2024
Plan number
Plans 38, 39, 39bis, 39ter
Plans 40, 41, 41bis, 41ter
Plans 42, 42bis, 43, 42ter,
42quater
Plans 44, 44bis, 45, 45bis,
45ter
Date of Annual Shareholders’
Meeting
Apr. 25, 2019
Apr. 25, 2019
May 5, 2022
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 25, 2021
Jul. 29, 2021
Oct. 26, 2021
Mar. 24, 2022
Jul. 27, 2022
Oct. 26, 2022
Mar. 28, 2023
May 4, 2023
Jul. 26, 2023
Oct. 25, 2023
Mar. 26, 2024
Jul. 30, 2024
Nov. 7, 2024
Number of shares at grant of which:
1,557,170
1,423,558
1,510,001
1,059,113
– Jean-Pascal Tricoire
– Olivier Blum
37,903
14,323
31,105
13,517
15,719
14,148
– Peter Herweck
16,276
16,028
17,559
14,877
– Top ten employee beneficiaries
129,791
123,522
143,510
85,534
Vesting/delivery date
Mar. 25, 2024
Jul. 29, 2024
Oct. 26, 2024
Mar. 24, 2025
Jul. 27, 2025
Oct. 26, 2025
Mar. 28, 2026
May 4, 2026
Jul. 26, 2026
Oct. 25, 2026
Mar. 26, 2027
Jul. 30, 2027
Nov. 7, 2027
End of holding period
Mar. 25, 2025 for
Plan 38
(only for
11,371 shares
granted to
Jean-Pascal Tricoire)
Mar. 24, 2026 for
Plan 40
(only for
9,932 shares
granted to
Jean-Pascal Tricoire)
May 4, 2027 for
Plan 43
(only for
14,047 shares
granted to
Peter Herweck)
Nov. 7, 2028 for
Plan 44bis
(only for
2,229 shares
granted to Olivier Blum)
Mar. 26, 2028 for
Plan 44
(only for
11,902 shares
granted to
Peter Herweck)
Number of rights outstanding
as of Dec. 31, 2023
1,402,255
1,334,015
1,488,930
N/A
Number of rights granted in 2024
N/A
N/A
N/A
1,059,113
Number of shares delivered in 2024
1,195,662
0
96
0
Number of rights canceled in 2024
206,593
48,026
61,812
21,437
Number of rights outstanding
as of Dec. 31, 2024
0
1,285,989
1,427,022
1,037,676
Total number of rights outstanding
as of Dec. 31, 2024
3,750,687
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I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
LTIP 2021
Plan number
Plan 38
Plan 39
Plan 39bis
Plan 39ter
Date of Annual Shareholders’ Meeting Apr. 25, 2019
Apr. 25, 2019
Apr. 25, 2019
Apr. 25, 2019
Date of the grant by the Board
Mar. 25, 2021
Mar. 25, 2021
Jul. 29, 2021
Oct. 26, 2021
Number of shares at grant of which:
11,371
1,463,997
48,720
33,082
– Jean-Pascal Tricoire
– Olivier Blum
– Peter Herweck
11,371
26,532
14,323
16,276
Number of rights outstanding as of
Dec. 31, 2023
11,371
1,313,033
45,550
32,301
Number of shares granted in 2024
N/A
N/A
N/A
N/A
Number of shares delivered in 2024
9,263
1,119,429
38,938
28,032
Number of rights canceled in 2024
2,108
193,604
6,612
4,269
Number of rights outstanding as of
Dec. 31, 2024
0
0
0
0
Vesting date/vesting period
Mar. 25, 2024
3 years
Mar. 25, 2024
3 years
Jul. 29, 2024
3 years
Oct. 26, 2024
3 years
End of holding period
Mar. 25, 2025
N/A
N/A
N/A
Presence condition
Yes
Performance conditions
• Yes for 70% of the shares/100% for the Corporate Officer and Executive Committee
• 2021, 2022, 2023 Adjusted EPS improvement average achievement rate (40%)
• TSR ranking at end of 2023 vs. bespoke peer group and CAC 40 (35%)
• 2021, 2022, 2023 SSERI (25%)
Achievement of the performance
conditions
81.46%
Detailed achievement of the
Performance conditions of
Plans 38, 39, 39bis, and 39ter
The Board of Directors at its meeting of February 14, 2024 as well as the Chief Executive
Officer on March 1, 2024 pursuant to the delegation of powers granted by the Board of
Directors on February 14, 2024 assessed the achievement rate of performance criteria for
Plans nº 38, 39, 39bis, and 39ter granted in 2021 based on the Group’s performance over the
three-year period 2021 to 2023, and set the final rate of achievement at 81.46%, i.e. a
reduction of 18.54% in relation to the number of shares originally granted.
Performance conditions of Plans
38, 39, 39bis, and 39ter
Reference
period
Weight
Actual
achievement
Pay-out rate
Weighted
pay-out rate
Adjusted Earnings per Share
improvement rate
2021
13.33%
31.77%
100.00%
40.00%
2022
13.33%
13.13%
100.00%
2023
13.33%
16.50%
100.00%
Relative Total
Shareholder Return
vs. CAC 40
companies
2021 – 2023 17.50%
22nd rank
0.00%
0.00%
vs. panel of
peer companies
2021 – 2023 17.50%
3rd rank
150.00%
17.50%*
Schneider Sustainability External and
Relative Index
2021
8.33%
87.50%
87.50%
23.96%
2022
8.33%
100.00%
100.00%
2023
8.33%
100.00%
100.00%
Total
100%
81.46%
*
The relative TSR criterion delivered an over-performance but considering the full achievement of the EPS
criterion, no off-setting mechanism was used for the 2021 LTIP.
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Chapter 4 – Corporate governance report
4.2 Compensation Report
LTIP 2022
Plan number
Plan 40
Plan 41
Plan 41bis
Plan 41ter
Date of Annual Shareholders’ Meeting Apr. 25, 2019
Apr. 25, 2019
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 24, 2022
Mar. 24, 2022
Jul. 27, 2022
Oct. 26, 2022
Number of shares at grant of which:
9,332
1,321,546
67,590
25,090
– Jean-Pascal Tricoire
– Olivier Blum
– Peter Herweck
9,332
21,773
13,517
16,028
Number of rights outstanding as of
Dec. 31, 2023
9,332
1,234,904
65,640
24,139
Number of shares granted in 2024
N/A
N/A
N/A
N/A
Number of shares delivered in 2024
0
0
0
0
Number of rights canceled in 2024
0
46,042
880
1,104
Number of rights outstanding as of
Dec. 31, 2024
9,332
1,188,862
64,760
23,035
Vesting date/vesting period
Mar. 24, 2025
3 years
Mar. 24, 2025
3 years
Jul. 27, 2025
3 years
Oct. 26, 2025
3 years
End of holding period
Mar. 24, 2026
N/A
N/A
N/A
Presence condition
Yes
Performance conditions
• Yes for 70% of the shares/100% for the Corporate Officer and Executive Committee
• 2022, 2023, 2024 Adjusted EPS improvement average achievement rate (40%)
• TSR ranking at end of 2024 vs. bespoke peer group and CAC 40 (35%)
• 2022, 2023, 2024 SSERI (25%)
Achievement of the performance
conditions
98.96%
Detailed achievement of the
Performance conditions of
Plans 40, 41, 41bis, and 41ter
The Board of Directors at its meeting of February 19, 2025 assessed the achievement rate of
performance criteria for Plans nº 40, 41, 41bis, and 41ter granted in 2022 based on the
Group’s performance over the three-year period 2022 to 2024, and set the final rate of
achievement at 98.96%, i.e. a reduction of 1.04% in relation to the number of shares originally
granted.
Performance conditions of Plans
40, 41, 41bis, and 41ter
Reference
period
Weight
Actual
achievement
Pay-out rate
Weighted
pay-out rate
Adjusted Earnings per Share
improvement rate
2022
13.33%
13.13%
100.00%
40.00%
2023
13.33%
16.50%
100.00%
2024
13.33%
18.24%
100.00%
Relative Total
Shareholder Return
vs. CAC 40
companies
2022 – 2024 17.50%
5th rank
116.7%
17.50%*
vs. panel of
peer companies
2022 – 2024 17.50%
3rd rank
150.00%
17.50%*
Schneider Sustainability External and
Relative Index
2022
8.33%
100.00%
100.00%
23.96%
2023
8.33%
100.00%
100.00%
2024
8.33%
87.50%
87.50%
Total
100%
98.96%
*
The relative TSR criterion delivered an over-performance but considering the full achievement of the EPS
criterion, no off-setting mechanism was used for the 2022 LTIP.
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
LTIP 2023
Plan number
Plan 42
Plan 43
Plan 42bis
Plan 42ter
Plan 42quater
Date of Annual Shareholders’ Meeting May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 28, 2023
May 4, 2023
May 4, 2023
Jul. 26, 2023
Oct. 25, 2023
Number of shares at grant of which:
1,414,309
14,047
3,512
47,528
30,605
– Olivier Blum
– Peter Herweck
15,719
14,047
3,512
Number of rights outstanding as of
Dec. 31, 2023
1,393,351
14,047
3,512
47,415
30,605
Number of shares granted in 2024
0
0
0
0
0
Number of shares delivered in 2024
96
0
0
0
0
Number of rights canceled in 2024
54,356
5,463
1,366
627
0
Number of rights outstanding as of
Dec. 31, 2024
1,338,899
8,584
2,146
46,788
30,605
Vesting date/vesting period
Mar. 28, 2026
3 years
May 4, 2026
3 years
May 4, 2026
3 years
Jul. 26, 2026
3 years
Oct. 25, 2026
3 years
End of holding period
N/A
May 4, 2027
N/A
N/A
N/A
Presence condition
Yes
Performance conditions
• Yes for 70% of the shares/100% for the Corporate Officer and Executive Committee
• 2023, 2024, 2025 Adjusted EPS improvement average achievement rate (40%)
• TSR ranking at end of 2025 vs. bespoke peer group and CAC 40 (35%)
• 2023, 2024, 2025 SSERI (25%)
Achievement of the performance
conditions
To be assessed by the Board of Directors in February 2026
LTIP 2024
Plan number
Plan 44
Plan 45
Plan 45bis
Plan 44bis
Plan 45ter
Date of Annual Shareholders’ Meeting May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 26, 2024
Mar. 26, 2024
Jul. 30, 2024
Nov. 7, 2024
Nov. 7, 2024
Number of shares at grant of which:
11,902
997,732
32,818
2,229
14,432
– Olivier Blum
– Peter Herweck
11,902
11,919
2,975
2,229
Number of rights outstanding as of
Dec. 31, 2023
N/A
N/A
N/A
N/A
N/A
Number of shares granted in 2024
11,902
997,732
32,818
2,229
14,432
Number of shares delivered in 2024
0
0
0
0
0
Number of rights canceled in 2024
8,596
12,841
0
0
0
Number of rights outstanding as of
Dec. 31, 2024
3,306
984,891
32,818
2,229
14,432
Vesting date/vesting period
Mar. 26, 2027
3 years
Mar. 26, 2027
3 years
Jul. 30, 2027
3 years
Nov. 7, 2027
3 years
Nov. 7, 2027
3 years
End of holding period
Mar. 26, 2028
N/A
N/A
Nov. 7, 2028
N/A
Presence condition
Yes
Performance conditions
• Yes for 70% of the shares/100% for the Corporate Officer and Executive Committee
• 2024, 2025, 2026 Adjusted EPS improvement average achievement rate (40%)
• TSR ranking at end of 2026 vs. bespoke peer group and CAC 40 (35%)
• Carbon emissions reduction targets achievement for the full year 2026 (25%)
Achievement of the performance
conditions
To be assessed by the Board of Directors in February 2027
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Chapter 4 – Corporate governance report
4.2 Compensation Report
For the LTIP 2024, the Board of Directors, during its meeting of February 19, 2025 decided to review the targets of carbon emissions
reduction. Indeed, it appeared that after only one year over the vesting period which is running from 2024 to 2026:
• the target of 100% of vesting for the Scope 1 & 2 carbon emissions is already overachieved (the 2024 emissions amounted for 144,309
tons of CO2 while the target set in February 2024 for the end of 2026 was carbon emission below or equal to 151,584 tons of CO2); and
• the target of 100% of vesting for the Scope 3 upstream carbon intensity emission seems to be too challenging to have a chance to be
reached by the Group (the 2024 carbon intensity is 210 g of CO2 per euro of revenue while the 2023 baseline was 216 g of CO2 per euro
and the target set in February 2024 for the end of 2026 was a carbon intensity below or equal to 165 g of CO2 per euro of revenue).
For Scope 1 & 2, emissions were primarily reduced on sites with an outstanding result of -29% of reduction vs. 2023. For Scope 3 upstream,
emissions increased, +3.4% vs. 2023 due to volume growth (more material purchased and more freight) and inclusion of a broader scope of
entities (as required with CSRD reporting, CO2 emissions were directly captured for some entities, while the emissions of these entities were
previously estimated).
Further to this change in methodology in the context of CSRD reporting, the Board considered that it was in the interest of the Company to
review those targets which were not adequate anymore. The Chief Executive Officer and the employees should be incentivized to pursue
their efforts to reduce the Scope 1 & 2 carbon emissions. At the same time, the target set for Scope 3 upstream carbon emission should be
a challenging one but reachable which did not seem the case anymore. The Chief Executive Officer and the employees should not be
discouraged to increase their efforts to reduce the Scope 3 upstream carbon emissions.
Using the discretion clause provided for in the compensation policy, the Board of Directors, during its meeting of February 19, 2025 decided
therefore to review the targets as follows:
• Scope 1 & 2 emissions for the full year 2026: the Group would have to reach (i) a minimum objective (120,750 tons of CO2 emissions, i.e.
a reduction of 39% vs. the 2023 emissions) under which no vesting will occur for this criteria; (ii) a targeted objective (115,000 tons of CO2
emissions, i.e. a reduction of 43% vs. the 2023 emissions) that the Group will have to achieve in order to vest all shares under this criteria,
and (iii) a linear vesting if the actual achievement is between these two objectives.
• Scope 3 upstream CO2 emissions for the full year 2026, the Group would have to reach (i) a minimum objective (201.6 g of CO2 emissions
per euro of revenue, i.e. a reduction of 7% vs. the 2023 Scope 3 upstream carbon intensity) under which no vesting will occur for this
criteria, (ii) a targeted objective (180 g of CO2 emissions per euro of revenue i.e. a reduction of 17% vs. the 2023 Scope 3 upstream
carbon intensity) that the Group will have to achieve in order to vest all shares under this criteria, and (iii) a linear vesting if the actual
achievement is between these two objectives.
This modification of the targets does not imply any change to Schneider Electric’s Net-Zero commitment and especially on the 2030
objective to reduce its absolute Scope 3 GHG emissions across its entire value chain by 25% from a 2021 base year.
2023 baseline
Targets set in February 2024
2024 achievement
New targets set in February 2025
25%
Carbon
emissions
reduction
targets
12.5%
Scope 1 & 2
carbon
emissions
target
• 200,768 tons
of CO2
• 0% if the carbon emissions are
above or equal to 159,163 tons
of CO2
• 100% if the carbon emissions
are below or equal to 151,584
tons of CO2
Vesting linear between
these points
• 144,309 tons
of CO2
• 0% if the carbon emissions
are above or equal to 120,750
tons of CO2
• 100% if the carbon emissions
are below or equal to 115,000
tons of CO2
Vesting linear between
these points
12.5%
Scope 3
upstream
carbon
intensity target
• 216 g of CO2
per euro of
revenue
• 0% if the carbon intensity is
above or equal to 185 g of CO2
per euro of revenue
• 100% if the carbon intensity is
below or equal to 165 g of CO2
per euro of revenue
Vesting linear between
these points
• 210 g of CO2
per euro of
revenue
• 0% if the carbon intensity
is above or equal to 201.6 g
of CO2 per euro of revenue
• 100% if the carbon intensity is
below or equal to 180 g of CO2
per euro of revenue
Vesting linear between
these points
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C O R P O R A T E G O V E R N A N C E R E P O R T
I R
C H 1
C H 2
C H 4 – C O R P O R A T E
G O V E R N A N C E R E P O R T
C H 3
C H 5
C H 6
C H 7
C H 8
C H 9
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Chapter 5 – Consolidated financial statements at December 31, 2024
Consolidated financial statements
at December 31, 2024
5
5.1 Consolidated statement of income
504
5.2 Consolidated statement of cash flows
506
5.3 Consolidated balance sheet
507
5.4 Consolidated statement of changes in equity
509
5.5 Notes to the consolidated financial statements
510
5.6 Statutory Auditors’ report on the
consolidated financial statements
562
5.7 Extract of the management report for
the year ended December 31, 2024
567
503
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 3
C H 4
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 6
C H 7
C H 8
C H 9
503
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Chapter 5 – Consolidated financial statements at December 31, 2024
5.1 Consolidated statement of income
(in millions of euros except for earnings per share)
Note
Full Year 2024
Full Year 2023
Revenue
3
38,153
35,902
Cost of sales
(21,885)
(20,890)
Gross profit
16,268
15,012
Research and development
4
(1,308)
(1,168)
Selling, general and administrative expenses
(7,877)
(7,432)
Adjusted EBITA *
3
7,083
6,412
Other operating income and expenses
6
(87)
98
Restructuring costs
(141)
(147)
EBITA **
6,855
6,363
Amortization and impairment of purchase accounting intangibles
5
(406)
(430)
Operating income
6,449
5,933
Interest income
174
79
Interest expense
(435)
(387)
Finance costs, net
(261)
(308)
Other financial income and expense
7
(148)
(222)
Net financial income/(loss)
(409)
(530)
Profit from continuing operations before income tax
6,040
5,403
Income tax expense
8
(1,398)
(1,285)
Share of profit/(loss) of associates
12
17
51
Impairment of investments in associates
12
(220)
–
PROFIT FOR THE YEAR
4,439
4,169
attributable to owners of the parent
4,269
4,003
attributable to non–controlling interests
170
166
Basic earnings (attributable to owners of the parent) per share (in euros per share)
19
7.61
7.15
Diluted earnings (attributable to owners of the parent) per share (in euros per share)
19
7.53
7.07
*
Adjusted EBITA (Earnings Before Interest, Taxes, Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase
accounting intangible assets, before goodwill impairment, other operating income and expenses and restructuring costs.
** EBITA (Earnings Before Interest, Taxes and Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase
accounting intangible assets and before goodwill impairment.
The accompanying notes are an integral part of the consolidated financial statements.
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Other comprehensive income
(in millions of euros)
Note
Full Year 2024
Full Year 2023
Profit for the year
4,439
4,169
Other comprehensive income:
Translation adjustment
1,426
(1,034)
Revaluation of assets and liabilities due to hyperinflation
44
31
Net gains/(losses) on hedging
(29)
(46)
Income tax effect of cash flow hedges
19
6
6
Gains and losses recorded in equity with recycling
1,447
(1,043)
Net gains/(losses) on financial assets
26
20
Income tax effect of gains/(losses) on financial assets
19
(7)
(6)
Actuarial gains/(losses) on defined benefit plans
20
(39)
(119)
Income tax effect of actuarial gains/(losses) on defined benefit plans
19
18
69
Gains and losses recorded in equity with no recycling
(2)
(36)
Other comprehensive income for the year, net of tax
1,445
(1,079)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
5,884
3,090
attributable to owners of the parent
5,695
2,950
attributable to non–controlling interests
189
140
The accompanying notes are an integral part of the consolidated financial statements.
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Chapter 5 – Consolidated financial statements at December 31, 2024
5.2 Consolidated statement of cash flows
(in millions of euros)
Note
Full Year 2024
Full Year 2023
Profit for the year
4,439
4,169
Share of (profit)/losses of associates
(17)
(51)
Income and expenses with no effect on cash flow:
Depreciation of property, plant and equipment
11
822
743
Amortization of intangible assets other than goodwill
10
716
717
Impairment losses on non–current assets
251
60
Increase/(decrease) in provisions
21
93
87
Losses/(gains) on disposals of business and assets
(115)
(252)
Difference between tax paid and tax expense
(81)
(164)
Other non–cash adjustments
200
220
Net cash provided by operating activities
6,308
5,529
Decrease/(increase) in accounts receivable
(199)
62
Decrease/(increase) in inventories and work in progress
(834)
(382)
(Decrease)/increase in accounts payable
439
493
Decrease/(increase) in other current assets and liabilities
(134)
205
Change in working capital requirement
(728)
378
TOTAL I – CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
5,580
5,907
Purchases of property, plant and equipment
11
(950)
(914)
Proceeds from disposals of property, plant and equipment
55
52
Purchases of intangible assets
10
(469)
(451)
Net cash used by investment in operating assets
(1,364)
(1,313)
Acquisitions and disposals of businesses, net of cash acquired & disposed
2
(452)
611
Other long–term investments
(91)
(89)
Increase in long–term pension assets
20
(80)
(257)
Sub–total
(623)
265
TOTAL II – CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
(1,987)
(1,048)
Issuance of bonds
22
3,466
3,509
Repayment of bonds
22
(1,384)
(1,299)
Sale/(purchase) of treasury shares
(322)
(703)
Increase/(decrease) in other financial debt
(1,338)
939
OCEANEs issuance and repayment (equity component)
(66)
65
Increase/(decrease) of share capital
19
252
219
Transaction with non–controlling interests*
2
(183)
(4,702)
Dividends paid to Schneider Electric’s shareholders
19
(1,963)
(1,767)
Dividends paid to non–controlling interests
(86)
(84)
TOTAL III – CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
(1,624)
(3,823)
TOTAL IV – NET FOREIGN EXCHANGE DIFFERENCE
189
(240)
TOTAL V – IMPACT OF RECLASSIFICATION OF ITEMS HELD FOR SALE
–
(4)
INCREASE/(DECREASE) IN NET CASH AND CASH EQUIVALENTS: I + II + III + IV + V
2,158
792
Net cash and cash equivalents, beginning of the year
18
4,654
3,863
Increase/(decrease) in cash and cash equivalents
2,158
792
NET CASH AND CASH EQUIVALENTS, END OF THE YEAR
18
6,812
4,654
*
In 2023, transactions with non–controlling interests mainly related to the purchase of AVEVA’s non–controlling interests.
The accompanying notes are an integral part of the consolidated financial statements.
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
5.3 Consolidated balance sheet
Assets
(in millions of euros)
Note
Dec. 31, 2024
Dec. 31, 2023
NON–CURRENT ASSETS:
Goodwill, net
9
26,281
24,664
Intangible assets, net
10
6,280
5,837
Property, plant and equipment, net
11
4,884
4,209
Investments in associates and joint ventures
12
1,111
1,206
Non–current financial assets
13
1,601
1,245
Deferred tax assets
14
1,794
1,636
TOTAL NON–CURRENT ASSETS
41,951
38,797
CURRENT ASSETS:
Inventories and work in progress
15
5,411
4,519
Trade and other operating receivables
16
9,364
8,388
Other receivables and prepaid expenses
17
2,330
2,290
Cash and cash equivalents
18
6,887
4,696
TOTAL CURRENT ASSETS
23,992
19,893
Assets held for sale
2
–
209
TOTAL ASSETS
65,943
58,899
The accompanying notes are an integral part of the consolidated financial statements.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Liabilities
(in millions of euros)
Note
Dec. 31, 2024
Dec. 31, 2023
EQUITY:
19
Share capital
2,303
2,291
Additional paid in capital
3,354
2,872
Retained earnings
23,677
21,593
Translation reserve
1,155
(294)
Equity attributable to owners of the parent
30,489
26,462
Non–controlling interests
791
706
TOTAL EQUITY
31,280
27,168
NON–CURRENT LIABILITIES:
Pensions and other post–employment benefit obligations
20
1,098
1,069
Other non–current provisions
21
1,251
959
Non–current financial liabilities
22
10,910
11,592
Non–current purchase commitments over non–controlling interests
22
19
50
Deferred tax liabilities
14
810
703
Other non–current liabilities
1,006
848
TOTAL NON–CURRENT LIABILITIES
15,094
15,221
CURRENT LIABILITIES:
Trade and other operating payables
8,893
7,596
Accrued taxes and payroll costs
4,015
4,013
Current provisions
21
1,052
1,061
Other current liabilities
1,504
1,379
Current financial liabilities
22
3,921
2,341
Current purchase commitments over non–controlling interests
22
184
80
TOTAL CURRENT LIABILITIES
19,569
16,470
Liabilities held for sale
2
–
40
TOTAL EQUITY AND LIABILITIES
65,943
58,899
The accompanying notes are an integral part of the consolidated financial statements.
5.3 Consolidated balance sheet
509
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
5.4 Consolidated statement of changes
in equity
(in millions of euros)
Number of
shares
(thousands)
Capital
Additional
paid–in
capital
Retained
earnings
Translation
reserve
Equity
attributable to
owners of the
parent
Noncontrolling
interests
Total
Dec. 31, 2022
571,093
2,284
2,660
19,812
683
25,439
655
26,094
Profit for the year
–
–
–
4,003
–
4,003
166
4,169
Other comprehensive income
–
–
–
(76)
(977)
(1,053)
(26)
(1,079)
Comprehensive income for the year
–
–
–
3,927
(977)
2,950
140
3,090
Capital increase
1,743
7
212
–
–
219
–
219
OCEANEs issuance
–
–
–
65
–
65
–
65
Dividends
–
–
–
(1,767)
–
(1,767)
(84)
(1,851)
Purchase of treasury shares
–
–
–
(703)
–
(703)
–
(703)
Share–based compensation expense
–
–
–
196
–
196
–
196
IAS 29 Hyperinflation
–
–
–
68
–
68
–
68
Other
–
–
–
(5)
–
(5)
(5)
(10)
Dec. 31, 2023
572,836
2,291
2,872
21,593
(294)
26,462
706
27,168
Profit for the year
–
–
–
4,269
4,269
170
4,439
Other comprehensive income
–
–
–
(23)
1,449
1,426
19
1,445
Comprehensive income for the year
–
–
–
4,246
1,449
5,695
189
5,884
Capital increase
1,410
6
246
–
–
252
–
252
OCEANEs issuance, conversion and
repurchase
1,386
6
237
(88)
–
155
–
155
Dividends
–
–
–
(1,963)
–
(1,963)
(86)
(2,049)
Purchase of treasury shares
–
–
–
(322)
–
(322)
–
(322)
Share–based compensation expense
–
–
–
234
–
234
–
234
IAS 29 Hyperinflation
–
–
–
(13)
–
(13)
(13)
Other
–
–
–
(11)
–
(11)
(18)
(29)
Dec. 31, 2024
575,632
2,303
3,354
23,677
1,155
30,489
791
31,280
The accompanying notes are an integral part of the consolidated financial statements.
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Chapter 5 – Consolidated financial statements at December 31, 2024
5.5 Notes to the consolidated financial
statements
Contents
Note
Note
1
Summary of accounting policies
511
2
Changes in the scope of consolidation
524
3
Segment information
525
4
Research and development expenditures
526
5
Impairment losses, depreciation and
amortization expenses
527
6
Other operating income and expenses
527
7
Other financial income and expenses
527
8
Income tax expenses
527
9
Goodwill
529
10 Intangible assets
530
11
Property, plant and equipment
532
12 Investments in associates and joint ventures
533
13 Non–current financial assets
534
14 Deferred taxes by nature
535
15 Inventories and work in progress
535
16 Trade and other operating receivables
536
17 Other receivables and prepaid expenses
536
18 Cash and cash equivalents
537
19 Shareholder’s equity
537
20 Pensions and other post–employment benefit obligations 540
21 Provisions for contingencies and charges
544
22 Current and non–current financial liabilities
544
23 Classification of financial instruments
547
24 Employees
552
25 Related party transactions
552
26 Commitments and contingent liabilities
553
27 Subsequent events
553
28 Statutory Auditors’ fees
554
29 Consolidated companies
555
All amounts are in millions of euros unless otherwise indicated.
The following notes are an integral part of the consolidated financial statements.
The Schneider Electric Group’s consolidated financial statements for the financial year ended December 31, 2024 were authorized for issue
by the Board of Directors on February 19, 2025. They will be submitted to shareholders for approval at the Annual General Meeting of May 7,
2025.
The Group’s main businesses are described in Chapter 1 of the Universal Registration Document.
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C H 2
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C H 4
C H 6
C H 7
C H 8
C H 9
Note 1: Summary of accounting policies
1.1 – Accounting standards
The consolidated financial statements have been prepared in compliance with the international accounting standards (IFRS) as adopted by
the European Union as of December 31, 2024. The same accounting methods were used as for the consolidated financial statements for the
year ended December 31, 2023.
The IFRS standards and interpretations as adopted by the European Union are available at the following website: https://finance.ec.euro
pa.eu/capital–markets–union–and–financial–markets/company–reporting–and–auditing/company–reporting/financial–reporting
Standards, interpretations and amendments endorsed by the European Union whose application is
mandatory as of January 1, 2024
The following standards and interpretations that were applicable during the period did not have a material impact on the consolidated
financial statements as of December 31, 2024:
• Amendments to IAS 1 – Presentation of Financial Statements: Classification of Liabilities as Current or Non–current; Deferral of Effective
Date; Non–current Liabilities with Covenants;
• Amendments to IFRS 16 – Leases: Lease Liability in a Sale and Leaseback;
• Amendments to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial Instruments: Disclosures on supplier finance arrangements.
Standards, interpretations and amendments unendorsed by the European Union as of December 31, 2024
or whose application is not mandatory as of January 1, 2024
• IFRS 18 – Presentation and Disclosure in Financial Statements;
• Amendments to IFRS 7 – Financial Instruments: Disclosures and IFRS 9 – Financial Instruments on the Classification and Measurement of
Financial Instruments;
• Amendments to IFRS 7 – Financial Instruments: Disclosures and IFRS 9 – Financial Instruments for Contracts Referencing Nature–
dependent Electricity;
• Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability;
• Annual Improvements to IFRS Standards Volume 11.
The Group is currently assessing the potential effect on the Group’s consolidated financial statements of the standards not yet applicable as
of December 31, 2024. At this stage of analysis, the Group does not expect any material impact on its consolidated financial statements.
Climate–related matters
The potential impacts of climate–related matters on the measurement of the Group’s assets and liabilities, as well as on significant judge–
ments and estimates, have been analyzed from multiple perspectives: climate transition risks and opportunities, physical risks, and
Schneider Electric’s net–zero commitment. The Group is committed to be “net–zero ready” in its operation (scope 1 and 2) by 2030 and
net–zero across the whole value chain by 2050. Those objectives are concretely integrated in the Group’s sustainability strategy through the
Schneider Sustainability Impact (SSI) and Schneider Sustainability Essentials (SSE) programs that are externally reported respectively on a
quarterly and annual basis.
To achieve its emission reduction objectives and meet the net–zero commitment taken, the Group has defined a comprehensive roadmap
and key actions to enable the decarbonization of both its own operations and its value chain, having direct implications on its processes,
sites decarbonization, R&D and investment priorities:
• Significant investments on both industrial processes (e.g., electrification) and real estate portfolio (e.g., electric vehicles chargers
instalment) planned to decarbonize operations by 2030 (scopes 1 & 2) in line with company–wide energy climate targets (150 Zero– CO2
sites by 2025, double energy productivity by 2030, 100% of electricity from renewables by 2030, shift 100% of corporate vehicle fleet to
electric vehicles by 2030). Specifically on manufacturing and distribution centers, the Group has defined a priority list and invests
progressively on electric and efficient systems (e.g., heat pumps, micro grids, solar panels, thermal insulation) to achieve net–zero ready
operations by 2030.
• Implementation of a process to follow carbon footprint evolution at an early stage of new product development to reduce the footprint of
future generations of products. The Group committed on a step up in R&D in coming years, from a circa 5% of Group revenues
dedicated to strategic R&D investment pre–covid to a future circa 7%, with a strong focus on sustainability. In total, around EUR 13 billion
have been invested by the Group in R&D between 2017 and 2024 (refer to Note 4 for more details about the year 2024).
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The actual and potential financial links and effects of the Group’s external commitments and specific climate risks identified, are detailed as
follows:
• At Schneider Electric, climate risks to operations and supply chain are addressed with a comprehensive supply chain resilience and
adaptation program, aiming at identifying climate risks, quantifying the value at risk under different climate scenarios, and reducing the
Group’s vulnerability. Schneider Electric is working with multiple actors on its value chain to adapt to climate change and increase its
resilience. The Group invests in protecting sites exposed to extreme weather events by implementing engineered and built environment
adaptation solutions. It also detects potential risks using real–time predictive weather analysis to alert at–risk sites, enabling them to
proactively activate their business continuity plans. This approach helps contain the potential impact of these risks and defines necessary
remediation and control measures. The Group is not a capital–intensive company, majority of its sites are leased and not owned, and the
individual residual value of its tangible assets in the most at–risk locations is not material. The Group has a low dependence on water in its
production processes. Additionally, the multi hub position of the Group with agile capacity to relocate its production in case of climate
disaster is a way to significantly mitigate risks and potential effects. No material impact has been identified, notably on evaluation and
useful life of tangible assets or in the impairment tests performed at Group level. From 2023, the Group has worked on quantifying
investments and additional costs, as well as opportunities, to achieve long–term net–zero carbon commitments, taking into consideration
several scenarios to integrate them into the Group’s impairment tests. Schneider Electric is well positioned to capitalize on the global push
for electrification and the net–zero commitments of other companies. The alignment between the Group’s sustainability commitments, its
transformation, and its financial statements was further strengthened in 2024 with the implementation of the Corporate Sustainability
Reporting Directive (CSRD). The Group has not identified any risk of impairment as of December 31, 2024.
• The Schneider Sustainability Impact (SSI), which encompasses several climate objectives, serves as a factor in the annual short– term
variable compensation. Over 100,000 employees, including Corporate Officer, are eligible, with the weight varying up to 20%, depending
on the type of plan. Also, criteria related to climate targets on scopes 1, 2, and upstream scope 3 have been introduced in 2024 in the
long–term incentive plan granted to more than 4,000 employees, including the Corporate Officer (25% weight). These criteria replace the
previous Schneider Sustainability External and Relative Index (SSERI). This amendment has been designed to align executive
remuneration with the Group’s commitment in terms of climate transition and Schneider Electric’s sustainable value creation over the
long–term.
• To further tie climate–related issues to financial planning, Schneider Electric has linked in 2022 its bank fundings with the SSI performance
with the signature of a KPIs linked facility.
1.2 – Basis of presentation
The financial statements have been prepared on a historical cost basis, except for the following:
• derivative instruments and certain financial assets, measured at fair value;
• assets held for sale – measured at the lower of carrying amount and fair value less costs to sell;
• defined benefit pension plans – plan assets measured at fair value.
Financial liabilities are measured using the amortized cost model. The book value of hedged assets and liabilities, under fair–value hedge,
corresponds to their fair value, for the part corresponding to the hedged risk.
1.3 – Use of estimates and assumptions
The preparation of financial statements requires the Group management and subsidiaries to make estimates and assumptions that are
reflected in the amounts of assets and liabilities reported in the consolidated balance sheet, revenues and expenses in the statement of
income and the commitments created during the reporting period. Actual results may differ.
These assumptions and estimates mainly concern:
• the measurement of the recoverable amount of goodwill, property, plant and equipment and intangible assets (Note 1.8 and 1.9) and the
measurement of impairment losses (Note 1.11);
• the measurement of the recoverable amount of non–current financial assets (Note 1.12 and 13);
• the realizable value of inventories and work in progress (Note 1.13);
• the recoverable amount of trade and other operating receivables (Note 1.14);
• the valuation of share–based payments (Note 1.20);
• the calculation of provisions or risk contingencies (Note 1.21);
• the measurement of pension and other post–employment benefit obligations (Note 1.19 and Note 20);
• the recoverability of deferred tax assets (Note 14);
• the measurement of provisions covering uncertainties over income tax treatment (Note 1.21);
• the estimation of the margin at completion for Construction contracts (Note 1.24);
• the assumptions retained to evaluate the lease liability (IFRS 16): lease term and discount rate (Note 1.10).
5.5 Notes to the consolidated financial statements
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1.4 – Consolidation principles
Subsidiaries, over which the Group exercises exclusive control, either directly or indirectly, are fully consolidated.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity.
Accounting policies of subsidiaries, joint–venture and associates have been changed when necessary to ensure consistency with the poli–
cies adopted by the Group.
Group investments in entities controlled jointly with a limited number of partners, such as joint ventures and companies over which the
Group has significant influence (“associates”) are accounted for by the equity method. Significant influence is presumed to exist when more
than 20% of voting rights are held by the Group.
Under equity method, the net assets and net result of a company are recognized pro rata to the interest held by the Group in the share
capital.
On acquisition of an investment in a joint venture or an associate, goodwill relating to the joint venture or the associate is included in the
carrying amount of the investment.
When the Group’s share of losses in an equity–accounted investment equals or exceed its interest in the entity, the Group does not
recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity.
Companies acquired or sold during the year are included in or removed from the consolidated financial statements as of the date when
effective control is acquired or relinquished.
Any acquisition or disposal of an interest in a subsidiary that doesn’t change the control is considered as a shareholder transaction and
must be recognized directly in equity.
A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non–controlling interests to
reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non–controlling interests and any
consideration paid or received is recognized in a separate reserve within equity attributable to owners.
Intra–group transactions and balances are eliminated.
The list of consolidated main subsidiaries, joint ventures and associates can be found in Note 29.
The reporting date for all companies included in the scope of consolidation is December 31, with the exception of certain immaterial
associates accounted for by the equity method. For the latter however, financial statements up to September 30 of the financial year have
been used (maximum difference of three months in line with the standards).
1.5 – Business combinations
Business combinations are accounted for using the acquisition method, in accordance with IFRS 3 – Business Combinations. Acquisition
costs are presented under “Other operating income and expenses” in the statement of income.
All acquired assets, liabilities and contingent liabilities are recognized at their fair value at the acquisition date, the fair value can be adjusted
during a measurement period that can last for up to 12 months from the date of acquisition.
The differential between the cost of acquisition excluding acquisition expenses and the Group’s share in the fair value of assets and
liabilities at the date of acquisition is recognized in goodwill. When the cost of acquisition is lower than the fair value of the identified assets
and liabilities acquired, the badwill is immediately recognized in the statement of income.
Goodwill is allocated to Cash–Generating Units (CGUs) or groups of cash–generating units that benefit from business combination
synergies.
Goodwill is not amortized but tested for impairment at least annually and whenever there is an indication that it may be impaired (see Note
1.11). Any impairment losses are recognized under “Amortization and impairment of purchase accounting intangible”.
The full goodwill method is applied at Group level, therefore, non–controlling interests are valued at fair value.
In accordance with IAS 32, put options granted to minority shareholders are recorded as financial liabilities at the option’s estimated
strike price.
The share in the net assets of subsidiaries is reclassified from “Non–controlling interests” to “Purchase commitments over non–controlling
interests” and the differential between the value of the non–controlling interests and the liability, corresponding to the commitment, is
recorded in equity.
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1.6– Translation of the financial statements of foreign subsidiaries
The consolidated financial statements are prepared in euros.
The financial statements of subsidiaries that use another functional currency are translated into euros as follows:
• assets and liabilities are translated at the official closing rates;
• income statement, backlog and cash flow items are translated at average annual exchange rates.
The functional currency of an entity is the currency of the primary economic environment in which it carries out its operations. In most cases,
the functional currency corresponds to the local currency. However, a functional currency other than the local currency can be retained for
certain entities, if it represents the currency of the main transactions carried out by the entity and that it ensures faithful representation of its
economic environment.
Translation adjustments are recorded in consolidated equity under “Translation reserve”.
Upon exit from the scope of consolidation, the cumulative translation reserve of a company whose functional currency is not the euro are
recycled in the income statement and are part of the gain or loss on disposal.
The Group applies IAS 29 – Financial Reporting in Hyperinflationary Economies to the Group’s subsidiaries in countries with hyperin–
flationary economies (Argentina and Türkiye). IAS 29 – Financial Reporting in Hyperinflationary Economies requires the non–monetary
assets and liabilities and income statements of countries with hyperinflationary economies to be restated to reflect the changes in the gen–
eral purchasing power of their functional currency, thereby generating a profit or loss on the net monetary position which is recognized in
net income within “Other financial income and expenses”. In addition, the financial statements of the subsidiaries in these countries are
translated at the closing exchange rate of the reporting period concerned, in accordance with IAS 21. In 2024, all the necessary conditions
were met to consider Türkiye and Argentina as a hyperinflationary country within the meaning of IFRS. The Group has applied IAS 29 to
Argentina in its financial statements from January 1, 2018 and to Türkiye in its financial statements from January 1, 2022. The Group used
the Consumer Price Index (CPI) for both Argentina and Türkiye to remeasure its income statement items, cash flows and non–monetary
assets and liabilities. This index was up 118% for Argentina and up 44% for Türkiye between December 2023 and December 2024.
1.7 – Foreign currency transactions
Foreign currency transactions are recorded using the exchange rate in effect at the transaction date or at the hedging rate. At the balance
sheet date, monetary items in foreign currency (e.g. payables, receivables, etc.) are translated into the functional currency of the entity at
the closing rate or at the hedging rate. Gains or losses on translation of foreign currency transactions are recorded under “Net financial
income/ (loss)”. Foreign currency hedging is described in Note 1.23.
However, certain long–term receivables and loans to subsidiaries are considered to be part of a net investment in a foreign operation, as
defined by IAS 21 – The Effects of Changes in Foreign Exchange Rates. As such, the impact of exchange rate fluctuations is recorded in
equity and recognized in the statement of income when the investment is sold or when the long–term receivable or loan is reimbursed.
1.8 – Intangible assets
Intangible assets acquired separately or as part of a business combination
Intangible assets acquired separately are initially recognized in the balance sheet at historical cost. They are subsequently measured using
the amortized cost model.
Intangible assets (mainly trademarks, technologies and customer relationships) acquired as part of business combinations are recognized
in the balance sheet at fair value at the combination date, appraised externally for the most significant assets and internally for the rest, and
that represents its historical cost in consolidation. The valuations are performed using generally accepted methods, based on future inflows.
Intangible assets are generally amortized on a straight–line basis over their useful life or, alternatively, over the period of legal protection.
Amortized intangible assets are tested for impairment when there is any indication that their recoverable amount may be less than their
carrying amount.
Amortization expenses and impairment losses on intangible assets acquired in a business combination are presented on a separate
statement of income line item, “Amortization and impairment of purchase accounting intangible” assets.
Trademarks
The trademarks are recognized at fair value at the acquisition date. The trademarks fair value is determined using the relief from royalty method.
Trademarks acquired as part of a business combination are not amortized when they are considered to have an indefinite life.
5.5 Notes to the consolidated financial statements
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The criteria used to determine whether or not such trademarks have indefinite lives and, as the case may be, their lifespan, are as follows:
• brand awareness;
• outlook for the brand in light of the Group’s strategy for integrating the trademark into its existing portfolio.
Indefinite–lived trademarks are tested for impairment at least annually and whenever there is an indication they may be impaired. When
necessary, an impairment loss is recorded.
Internally generated intangible assets
Research and development costs
Research costs are expensed in the statement of income when incurred. Development costs for new projects are capitalized if, and only if:
• the project is clearly identified and the related costs are separately identified and reliably monitored;
• the project’s technical feasibility has been demonstrated and the Group has the intention and financial resources to complete the project
and to use or sell the resulting products;
• the Group has allocated the necessary technical, financial and other resources to complete the development;
• it is probable that the future economic benefits attributable to the project will flow to the Group.
Development costs that do not meet these criteria are expensed in the financial year in which they are incurred.
Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.
Before the commercial launch, capitalized development projects are tested for impairment at least annually. From the date of the
commercial launch, capitalized development projects are amortized over the lifespan of the underlying technology, which generally ranges
from three to ten years. The amortization expenses of such capitalized projects are included in the cost of the related products and
classified into “Cost of sales” when the products are sold.
As for development–related assets which are in the amortization period, they are tested for impairment in case an impairment risk has been
identified.
Software implementation
External and internal costs relating to the implementation of Enterprise Resource Planning (ERP) applications are capitalized when they
relate to the programming, coding and testing phase. They are amortized over the applications’ useful lives.
1.9 – Property, plant and equipment
Property, plant and equipment is primarily comprised of land, buildings and production equipment and is carried at acquisition cost, less
accumulated depreciation and any accumulated impairment losses.
Each component of an item of property, plant and equipment with a useful life that differs from that of the whole item is depreciated
separately on a straight–line basis. The main useful lives are as follows:
• buildings: 20 to 40 years;
• machinery and equipment: 3 to 10 years;
• other: 3 to 12 years.
The useful life of property, plant and equipment used in operating activities, such as production lines, reflects the related products’ esti–
mated life cycles.
Useful lives of items of property, plant and equipment are reviewed periodically and may be adjusted prospectively if appropriate. The
depreciable amount of an asset is determined after deducting its residual value, when the residual value is material.
Depreciation is expensed in the period and included in the production cost of inventory or the cost of internally generated intangible assets.
It is recognized in the statement of income under “Cost of sales”, “Research and development costs” or “Selling, general and administrative
expenses”, as the case may be.
Items of property, plant and equipment are tested for impairment whenever there is an indication they may be impaired. Impairment losses
are charged to the statement of income under “Other operating income and expenses”.
Since 2019, property, plant and equipment also includes right–of–use assets, in accordance with the recommended treatment in IFRS 16 –
Leases, and as described in the following note.
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1.10 – Leases
Scope of the Group’s contracts
The lease contracts identified within all the Group entities fall under the following categories:
• real estate: office buildings, factories, and warehouses;
• vehicles: cars and trucks;
• forklifts used mainly in factories or storage warehouses.
The Group has retained the exemption for low–value assets (i.e. assets with a cost lower than USD 5,000). Thus, the defined scope does not
include small office or IT equipment, mobile phones or other small equipment, which all correspond to low–value equipment. Short– term
contracts (i.e. less than 12 months without purchase option) are also exempted under the standard. In this case, for example, for occasional
vehicle or accommodation rentals.
Rental obligation
At the inception date of the lease, the Group recognizes the lease liabilities, measured at the present value of the lease payments to be
made over the term of the lease. The present value of payments is calculated mainly using the marginal borrowing rate of the contracting
entity’s country, at the contract starting date.
Rental payments include fixed payments (net of rental incentives receivable), variable payments based on an index or rate initially mea–
sured using the index or rate as at the commencement date and amounts that should be paid under residual value guarantees. Besides, the
simplification allowing not to split services components has not been elected by the Group. Therefore, only the rents are taken into account
in the lease payments.
Lease payments also include, when applicable, the exercise price of a purchase option reasonably certain to be exercised by the Group
and the payment of penalties for the termination of a lease, if the term of the lease takes into account the fact that the Group has exercised
the termination option.
Variable lease payments that are not dependent on an index or rate are recognized as an expense in the period in which the event or
condition that triggers the payment occurs.
After the start date of the contract, the amount of rental obligations is increased to reflect the increase in interest and reduced for lease
payments made.
In addition, the carrying amount of the lease liabilities is revalued in the event of a reassessment or modification in the lease (e.g. change in
the term of the lease, change in lease payments, application of annual indexation, etc.).
The obligation is recorded under other current and other non–current liabilities.
Right–of–use assets
The Group accounts for the assets related to the right–of–use on the lease starting date (i.e. the date on which the underlying asset is
available).
Assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for the revaluation of lease liabilities.
The cost of right–of–use assets includes the amount of lease liabilities, initial direct costs incurred and lease payments made on or before
the effective date, minus lease inducements received. They are recognized as tangible assets, in the Balance Sheet.
Unless the Group is reasonably certain that it will become the owner of the leased asset at the end of the lease term, the recorded right–of–
use assets are depreciated using the linear method over the shortest period of time between estimated life of the underlying asset and the
duration of the lease. The assets related to the right–of–use are subject to depreciation.
Determining the duration of contracts
The duration of the Group’s contracts varies according to geographies.
The real estate contracts have variable durations depending on the countries and local regulations. Vehicles and forklifts are generally
contracted between 3 and 6 years.
In certain geographies, the Group’s real estate contracts offer unilateral options for termination of contracts (particularly in France with
contracts 3–6–9).
According to the recommendation of IFRIC, on a case–by–case analysis and based on Real Estate teams’ expertise, experience strategy
and projects, the Group is determining the most probable duration to perform our calculations.
In most of cases, the duration chosen is the enforceable duration of the real estate contracts, in particular on the most strategic buildings
and factories.
5.5 Notes to the consolidated financial statements
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1.11 – Impairment of assets
Impairment tests
The Group assesses the recoverable amount of its long–lived assets as follows:
• for all property, plant and equipment subject to depreciation and intangible assets subject to amortization, the Group carries out a review
at each balance sheet date to assess whether there is any indication that they may be impaired. Indications of impairment are identified
based on external or internal information. If such an indication exists, the Group tests the asset for impairment by comparing its carrying
amount to the higher of fair value minus costs to sell and value in use;
• non–amortizable intangible assets and goodwill are tested for impairment at least annually and whenever there is an indication that the
assets may be impaired.
Value in use is determined by discounting future cash flows that will be generated by the tested assets. These future cash flows are based
on Group management’s economic assumptions and operating forecasts presented in business plans over a period generally not
exceeding five years, and then extrapolated based on a perpetuity growth rate. The discount rate corresponds to the Weighted Average
Cost of Capital (WACC) at the measurement date, it stood at 9.0% at December 31, 2024 for the Group (8.9% at December 31, 2023). This
rate is based on the following main assumptions:
• a long–term interest rate of 3.0%, corresponding to the interest rate for 10–year OAT treasury bonds;
• the average premium applied to financing obtained by the Group in 2024;
• the weighted country risk premium for the Group’s businesses in the countries in question.
Impairment tests are performed at the level of CGUs (or groups of CGUs) to which the asset belongs. A cash–generating unit is the smallest
group of assets that generates cash inflows that are largely independent of the cash flows from other assets or groups of assets. The
groups of cash–generating units are Low Voltage, Medium Voltage, Secure Power, Sustainability, EM Software, Industrial Automation and
Industrial Automation Software.
Net assets were allocated to the group of CGUs at the lowest possible level on the basis of the group of CGUs activities to which they
belong.
Goodwill is allocated when initially recognized. The CGU allocation is done on the same basis as used by Group management to monitor
operations and assess synergies deriving from acquisitions.
When the recoverable amount of an asset or CGU is lower than its book value, an impairment loss is recognized for the excess of the book
value over the recoverable value. The recoverable value is defined as the highest value between the value in use and the selling price less
costs to sell. When the tested CGU comprises goodwill, any impairment losses are firstly deducted from goodwill.
Impairment indicators
For intangible assets with finite useful lives, the Group reviews indicators of impairment at each closing date.
For research and development integrated in sold offers, deviations from business plan of selected quantitative indicators such as revenue,
volumes, price, costs, and qualitative indicators such as change in market, strategic turnaround, changes in R&D roadmap priorities, etc.,
constitute indicators of impairment that trigger an impairment test.
1.12 – Non–current financial assets
Investments in non–consolidated companies are initially recorded at their cost of acquisition and subsequently measured at fair value. The
fair value of investments listed in an active market may be determined reliably and corresponds to the listed price at balance sheet date
(Level 1 from the fair value hierarchy as per IFRS 7).
IFRS 9 standard allows two accounting treatments for equity instruments:
• change in fair value is recognized through “Other Comprehensive Income” in the comprehensive income statement, and in equity under
“Other reserves” in the balance sheet, with no subsequent recycling in the income statement even upon sale;
• change in fair value, as well as gain or loss in case of sale, are recognized in the income statement.
The election between those two methods is to be made from inception for each equity investment and is irrevocable. For significant
investments not listed in an active market, the valuation is performed by external experts at least annually and whenever there is an
indication that it may be impaired.
Venture capital (FCPR) / Mutual funds (SICAV) are recognized at fair value through income statement, in accordance with IFRS 9.
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1.13 – Inventories and work in progress
Inventories and work in progress are measured at the lower of their initial recognition cost (acquisition cost or production cost generally
determined by the weighted average price method) or of their estimated net realizable value.
Net realizable value corresponds to the estimated selling price net of remaining expenses to complete and/or sell the products. Inventory
impairment losses are recognized in “Cost of sales”.
The cost of work in progress, semi–finished and finished products includes the cost of materials and direct labor, subcontracting costs, all
production overheads based on normal manufacturing capacity and the portion of development costs that are directly related to the
manufacturing process (corresponding to the amortization of capitalized projects in production and product and range of products
maintenance costs).
Impairment risk is based on historical or forecasted consumptions, depending on the nature of inventories and taking into account:
• inventory turnover;
• strategic nature of the inventory;
• phasing in or out of the inventory.
1.14 – Trade and other operating receivables
Trade and other receivables are measured at their transaction price upon initial recognition and then at amortized cost less any impair–
ment losses based on expected credit losses model.
Trade and other operating receivables are depreciated according to the simplified IFRS 9 model. From inception, trade receivables are
depreciated to the extent of the expected losses over their remaining maturity.
The credit risk of trade receivables is assessed on a collective basis country by country, as the geographical origin of receivables is con–
sidered representative of their risk profile. Countries are classified by risk profile using the assessment provided by an external agency. The
provision for expected credit losses is evaluated using (i) the probabilities of default communicated by a credit agency, (ii) historical default
rates, (iii) aging balance, (iv) as well as the Group’s assessment of the credit risk considering actual guarantees and credit insurance.
Once it is known with certainty that a doubtful receivable will not be collected, the doubtful account and its related depreciation are written
off through the income statement.
Accounts receivable are discounted in cases where they are due in over one year and the discounting impact is significant.
Assignment of receivables
When it can be demonstrated that the Group has transferred substantially all the risks and benefits related to assignment of receivables,
particularly the credit risk, the items concerned are derecognized. Otherwise, the operation is considered as a financing operation, and the
receivables remain in the balance sheet assets, with recognition of a corresponding financial liability.
1.15 – Assets held for sale and liabilities of discontinued operations
Assets held for sale
Non–current assets or disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. This classification occurs when the Group takes the decision to sell them and that the sale is
considered highly probable.
The assets and liabilities held for sale are presented on different lines of the balance sheet. They are measured at the lower of their carrying
amount or fair value less costs to sell. Assets classified as held for sale are no longer depreciated (amortized) as of the date they are
classified as assets or disposal groups held for sale.
When a sale involving the loss of control of the subsidiary is considered highly probable, all the assets and liabilities of this subsidiary are
classified as being held for sale, independently of whether or not the Group retains a residual interest in the entity after its sale.
Discontinued operation
A discontinued operation is a clearly identifiable component that the Group either has abandoned or that is classified as held for sale:
• representing a separate major line of business or geographical area of operations;
• being part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or,
• being a subsidiary acquired exclusively with a view to resale.
Once the criteria are met, the profit and loss and the cash flow from discontinued operations are presented separately in the consolidated
income statement and the consolidated cash flow statement for each period.
5.5 Notes to the consolidated financial statements
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1.16 – Taxes
Income tax expense
The tax rate is calculated on the basis of the fiscal regulations enacted or substantively enacted at the fiscal year closing date in each
country where the Group’s companies carry out their business. The Group’s applicable tax rate corresponds to the average of the
theoretical tax rates in force in each country, weighted according to profit obtained in each of these countries. The average effective tax rate
is calculated as follows: (current and deferred income tax expense)/(net profit before tax less share of profit of associates, and net profit
from discontinued operations).
Deferred taxes
Deferred taxes are recognized for all temporary differences between the carrying amount of assets and liabilities and their tax base
(excluding if it arises from the initial recognition of goodwill), the tax loss carryforwards and the unused tax credits.
Deferred taxes are based on tax rates and tax rules that have been enacted or substantively enacted by the end of the reporting period and
are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect of any
change in the current and deferred taxes is recognized in P&L, except to the extent that it relates to items recognized on OCI or directly in
equity. In this case, the tax is also recognized in OCI or equity.
When the Group decides not to distribute profits retained by the subsidiary within the foreseeable future, no deferred tax liability is
recognized.
Future tax benefits arising from the utilization of tax loss carry forwards (including amounts available for carry forward without time limit) are
recognized only when they can reasonably be expected to be realized. The carrying amount of deferred tax assets is tested for impairment
at each balance sheet date and an impairment loss is recognized to the extent that it is no longer probable that sufficient taxable profits will
be available against which the deferred tax asset can be fully or partially offset.
Deferred tax assets and liabilities are not discounted and are recorded in the balance sheet under non–current assets and liabilities.
Deferred tax assets and liabilities related to the same unit and which are expected to reverse in the same period are offset.
1.17 – Cash and cash equivalents
Cash and cash equivalents presented in the balance sheet consist of cash, bank accounts, term deposits of three months or less and
marketable securities traded on organized markets. Marketable securities are short–term, highly liquid investments that are readily
convertible to known amounts of cash at maturity. They notably consist of bank deposits, commercial paper, mutual funds and equivalents.
Considering their nature and maturities, these instruments represent insignificant risk of changes in value and are treated as cash
equivalents.
1.18 – Treasury shares
Schneider Electric SE shares held by the parent company or by fully consolidated companies are measured at acquisition cost and de–
ducted from equity.
Gains/(losses) on the sale of own shares are cancelled from consolidated reserves, net of tax.
1.19 – Pensions and other employee benefit obligations
Depending on local practices and laws, the Group’ subsidiaries participate in pension, termination benefit and other long–term benefit
plans. Benefits paid under these plans depend on factors such as seniority, compensation levels and payments into mandatory retirement
programs.
Defined contribution plans
Payments made under defined contribution plans are recorded in the income statement, in the year of payment, and are in full settlement of
the Group’s liability. As the Group is not committed beyond these contributions, no provision related to these plans has been booked.
In most countries, the Group participates in mandatory general plans, which are accounted for as defined contribution plans.
IFRIC decision – Attribution of benefits to periods of service IAS 19 – Employee Benefits
The Group has taken into account the impact of the IFRIC agenda decision issued in April 2021 when measuring employee benefit obliga–
tions. This decision, without any material impact for the Group, clarifies the periods over which employee benefits should be attributed in
allocating the IAS 19 expense.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Defined Benefit plans
Defined Benefit plans are measured using the projected unit credit method.
Expenses recognized in the statement of income are split between operating costs (for service costs rendered during the period) and net
financial income/(loss) (for financial costs and expected return on plan assets).
The amount recognized in the balance sheet corresponds to the present value of the obligation, and net of plan assets. The valuation is
performed by external actuaries.
When this is an asset, the recognized asset is limited to the present value of any economic benefit due in the form of plan refunds or
reductions in future plan contributions.
Changes resulting from periodic adjustments to actuarial assumptions regarding general financial and business conditions or demograph–
ics (i.e., changes in the discount rate, annual salary increases, return on plan assets, years of service, etc.) as well as experience
adjustments are immediately recognized in the balance sheet as a separate component of equity in “Other reserves” and in comprehensive
income as “Other comprehensive income/loss”.
Past service cost is recorded in “Other operating income and expenses”.
Other commitments
Provisions are funded and expenses recognized to cover the cost of providing health–care benefits for certain Group retirees in Europe and
the United States. The accounting policies applied to these plans are similar to those used to account for Defined Benefit pension plans.
The Group also funds provisions for all its subsidiaries to cover seniority–related benefits (primarily long service awards for its French
subsidiaries). Actuarial gains and losses on these benefit obligations are fully recognized in profit or loss.
1.20 – Share–based payments
The Group grants performance shares to senior executives and certain employees.
These equity instruments are measured at fair value, on the date of grant, using the market price discounted from the expected dividend
yield during the vesting period and adjusted for market conditions achievement.
The Group is using the Monte Carlo method to estimate the achievement of Relative Total Shareholder Return (TSR) vs. CAC 40 and a Panel
of peer companies (market conditions).
The number of equity instruments granted can be adjusted during the vesting period to reflect the Group best estimate of non–market
conditions achievement.
Main non–market conditions are the following:
• Adjusted Earnings per Share (EPS) improvement rate;
• Schneider Sustainability External and Relative Index (“SSERI”) (until 2023);
• Carbon Emissions Reduction Targets (since 2024);
• Service conditions.
An employee benefits expense is recognized with a corresponding increase in equity on a straight–line basis over the vesting period, in
general three years.
1.21 – Provisions and risk contingencies
A provision is recognized when it is probable that the Group has a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. If the loss or liability is not likely and cannot be reliably estimated, but remains possible, the Group discloses it as a
contingent liability. Provisions are calculated on a case–by–case or statistical basis and discounted when the impact from discounting is
significant.
Provisions are primarily set aside to cover:
• economic risks: these provisions relate to probable tax risks, other than income tax related, arising on positions taken by the Group or
its subsidiaries. Each position is assessed individually and not offset, and reflects the best estimate of the risk at the end of the reporting
period. Where applicable, it includes any late–payment interest and fines;
• customer risks: provisions for customer risks mainly integrate the provisions for losses at completion for some of long–term contracts.
Provisions for expected losses are fully recognized as soon as they are identified;
• product risks: these provisions comprise
– statistical provisions for warranties: the Group funds provisions on a statistical basis for the residual cost of Schneider Electric
product warranties not covered by insurance. The provisions are estimated with consideration of historical claim statistics and the
warranty period;
5.5 Notes to the consolidated financial statements
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– provisions to cover disputes concerning defective products and recalls of clearly identified products.
• environmental risks: these provisions are primarily funded to cover clean–up costs. The estimation of the expected future outflows is
based on reports from independent experts;
• restructuring costs, when the Group has prepared a detailed plan for the restructuring and has either announced or started to
implement the plan before the end of the year. The estimation of the liability includes only direct expenditure arising from the
restructuring.
1.22 – Financial liabilities
Financial liabilities primarily comprise bonds, commercial paper and short and long–term bank borrowings. These liabilities are initially
recorded at fair value, from which any direct transaction costs are deducted. Subsequently, they are measured at amortized cost based on
their effective interest rate.
1.23 – Financial instruments and derivatives
Risk hedging management is centralized. The Group’s policy is to use derivative financial instruments exclusively to manage and hedge
changes in exchange rates, interest rates or prices of certain raw materials. The Group uses instruments such as foreign exchange
forwards, foreign exchange options, cross currency swaps, interest rate swaps and commodities future, swaps or options, depending on
the nature of the exposure to be hedged.
All derivatives are recorded in the balance sheet at fair value with changes in fair value recorded in the statement of income, except when
they are qualified in a hedging relationship.
Cash flows from financial instruments are recognized in the consolidated statement of cash flows in a manner consistent with the under–
lying transactions.
Foreign currency hedges
The Group periodically enters into foreign exchange derivatives to hedge the currency risk associated with foreign currency transactions.
Whenever possible, monetary items (except specific financing items) denominated in foreign currency carried in the balance sheet of Group
companies are hedged by rebalancing assets and liabilities per currency through foreign exchange spots realized with Corporate Treasury
(natural hedge). The foreign exchange risk is thus aggregated at Group level and hedged with foreign exchange derivatives. When foreign
exchange risk management cannot be centralized, the Group contracts foreign exchange forwards to hedge operating receivables and
payables carried in the balance sheet of Group companies. In both cases, the Group does not apply hedge accounting because gains and
losses generated on these foreign exchange derivatives naturally offset within “Net financial income/(loss)” with gains or losses resulting
from the translation at end–of–year rates of payables and receivables denominated in foreign currency.
The Group also hedges future cash flows, including recurring future transactions and planned acquisitions or disposals of investments. In
accordance with IFRS 9, these are treated as cash flow hedges. These hedging instruments are recognized at fair value in the balance
sheet. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is accumulated in equity, under
“Other reserves”, and then recognized in the income statement when the hedged item affects profit or loss.
The Group also hedges foreign exchange risk financing receivables or payables (including current accounts and loans with subsidiaries)
using foreign exchange derivatives that can be documented either in Cash Flow Hedge or Fair Value Hedge depending on the nature of the
derivative.
The Group may also designate foreign exchange derivatives or borrowings as hedging instruments of its investments in foreign operations
(net investment hedge). Changes of value of those hedging instruments are accumulated in equity and recognized in the statement of
income symmetrically to the hedged items.
The Group qualifies foreign exchange derivative based on the spot rate. The Group adopted the cost of hedging option offered by IFRS 9 to
limit volatility in the statement of income related to forward points:
• For foreign exchange derivatives hedging an item on the balance sheet: forward points are amortized in statement of income on a
straight–line basis. Forward points related to foreign exchange derivatives hedging financing transactions are included in “Finance
costs, net”;
• For foreign exchange derivatives hedging future transactions not yet recorded on the balance sheet: Forward points are recorded in the
statement of income when the hedged transaction impacts the statement of income.
Interest rate hedges
Interest rate swaps allow the Group to manage its exposure to interest rate risk. The derivative instruments used are financially adjusted to
the schedules, rates and currencies of the borrowings they cover. They involve the exchange of fixed and floating–rate interest payments.
The differential to be paid (or received) is accrued as an adjustment to interest income or expense over the life of the agreement. The Group
applies hedge accounting as described in IFRS 9 for interest rate swaps. Gains and losses on re–measurement of interest rate swaps at fair
value on the balance sheet are recognized in equity (for Cash Flow Hedges) or in profit or loss (for Fair Value Hedges).
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Chapter 5 – Consolidated financial statements at December 31, 2024
Borrowings hedged by an interest rate derivative in a fair value hedge are revaluated at fair value for the portion of risk being hedged, with
offsetting entry in the statement of income.
Cross–currency swaps may be presented as foreign exchange hedges or as interest rate hedges depending on the characteristics of the
derivative.
Commodity hedges
The Group also purchases commodity derivatives including forward purchase contracts, swaps and options to hedge price risks on all or
part of its forecast future purchases. According to IFRS 9, these qualify as cash flow hedges. These instruments are recognized in the
balance sheet at fair value at the period–end (mark to market). The effective portion of the hedge is recognized separately in equity (under
“Other reserves”) and then recognized in income (gross margin) when the underlying hedge affects consolidated income. The effect of this
hedging is then incorporated in the cost price of the products sold.
1.24 – Revenue recognition
The Group’s revenues primarily include transactional sales and revenues from services, system contracts (projects) and software.
Some contracts may include the supply to the customer of distinct goods and services (for instance contracts combining build followed by
operation and maintenance). In such situations, the contract is analyzed and segmented into several components (“performance
obligations”), each component being accounted for separately, with its own revenue recognition method and margin rate. The selling price
is allocated to each performance obligation in proportion to the specific selling price of the underlying goods and services. This allocation
should reflect the share of the price to which Schneider Electric expects to be entitled in exchange for the supply of these goods or
services.
Revenue associated with each performance obligation identified within a contract is recognized when the obligation is satisfied, i.e. when
the control of the promised goods or services is transferred to the customer.
The following revenue recognition methods can be applied:
Recognition of revenue at a point of time
Revenue from sales is recognized at a point of time, when the control of the promised goods or services is transferred to the customer.
This method is applicable for all transactional sales and for specific services such as spare parts deliveries, or on–demand services.
Recognition of revenue over time
To demonstrate that the transfer of goods is progressive and recognize revenue over time, the following cumulative criteria are required:
• the goods sold have no alternative use, and
• enforceable right to payment (corresponding to costs incurred, plus a reasonable profit margin) for the work performed to date exists, in
the event of early termination for convenience by the customer.
When these criteria are fulfilled, revenue is recognized using the percentage–of–completion method, based on the percentage of costs
incurred in relation to total estimated costs of the performance obligation. The cost incurred includes direct and indirect costs relating to the
contracts.
Expected losses on contracts are fully recognized as soon as they are identified.
Penalties for late delivery or for the improper execution of a contract are recognized as a deduction from revenue.
This method is applicable for systems contracts (projects) as the constructed assets are highly customized, and thus the Group would incur
significant economic losses to redirect the built solutions to other customers.
Revenue from most services contracts is recognized over time, as the customer simultaneously receives and consumes the benefits of the
services provided. When costs incurred are stable over the contract’s period, revenue is linearized over the contract’s length.
Provisions for the discounts offered to distributors are accrued when the products are sold to the distributor and recognized as a deduction
from revenue. Certain Group’ subsidiaries also offer cash discounts to distributors. These discounts and rebates are deducted from sales.
Consolidated revenue is presented net of these discounts and rebates.
Recognition of software revenue
The group generates software–related revenue mainly through subscriptions, licenses, maintenance and services. Revenue is recognized
upon transfer of control of the promised software or service to the customers.
• Subscriptions contracts are either:
– SaaS (Software as a Service: remote access to a cloud software solution, hosting and services) contracts, which are recognized
linearly over the contract term;
5.5 Notes to the consolidated financial statements
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C H 8
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– On premise subscriptions: containing two separate performance obligations pertaining to on premise software license and
maintenance, the revenue from such arrangements is recognized in line with revenue from arrangements with multiple performance
obligations.
• Software license revenue represents fees earned from granting customers licenses to use the Group’s software. It includes license
revenue of perpetual and periodic license sales of software products and is recognized at a point in time when control is transferred to
the client.
• Maintenance includes annual fees as well as separate support and maintenance contracts. Revenue is recognized over time on a
straight–line basis over the period of the contract.
• Services include notably setup services, training services, customization services. Revenue from these services is recognized over time
as the services are performed.
Backlog and balance sheet presentation
Backlog (as disclosed in Note 3) corresponds to the amount of the selling price allocated to the performance obligations that are unsatisfied
(or partially unsatisfied) at closing date and includes binding contracts only.
The cumulated amount of revenue accounted for, less progress payments and accounts receivable (presented on a dedicated line of the
balance sheet) is determined on a contract–by–contract basis. If this amount is positive, the balance is recognized under “contract assets”
in the balance sheet. If it is negative, the balance is recognized under “contract liabilities” (see Note 16). Reserves for onerous contracts
(so– called reserves for loss at completion) are excluded from contract assets and liabilities and presented among the “provisions for
customer risks” item.
1.25 – Earnings per share
Earnings per share are calculated in accordance with IAS 33 – Earnings Per Share.
Diluted earnings per share are calculated by adjusting profit attributable to equity holders of the parent and the weighted average number
of shares outstanding for the dilutive effect of performance shares outstanding at the balance sheet date. The dilutive effect of performance
shares is determined by applying the “treasury stock” method.
1.26 – Statement of cash flows
The consolidated statement of cash flows has been prepared using the indirect method, which consists of reconciling net profit to net cash
provided by operations. The opening and closing cash positions include cash and cash equivalents, comprised of marketable securities,
net of bank overdrafts and facilities.
1.27 – Other operating income and expenses
Material non–recurring operations that could affect operating performance readability are classified under “Other operating income and
expenses”.
They notably include:
• gains or losses from the disposal of activities or groups of assets;
• costs in relation with acquisitions or separation (advisors’ fee, costs from external experts involved in the due diligence process);
• costs in relation with integration (one–off costs expensed in the next three years after acquisition, in relation with upgrade or modification
of existing IT systems, to reach the Group standards);
• significant provisions and impairment losses for property, plant and equipment and intangible assets;
• provisions or costs relating to significant legal risks or litigations;
• gain or loss related to the amendment, curtailment or settlement of a defined benefit plan.
1.28 – Other financial income and expense
Other financial income and expenses notably include:
• exchange gains and losses;
• IFRS 16 – Leases financial interests;
• financial component of defined benefit plan costs;
• IAS 29 – Financial Reporting in Hyperinflationary Economies Net monetary gain or loss;
• fair value adjustment of financial assets;
• effect of discounting or unwinding of discount;
• bank commissions;
• factoring fees.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Note 2: Changes in the scope of consolidation
The list of main consolidated companies can be found in Note 29.
2.1 – Scope variations
Main acquisitions of the period
Transaction with ETAP’s non–controlling interests
On January 23, 2024, the Group purchased the remaining 20% non–controlling interests of ETAP in accordance with the forward agreement
concluded in 2021 when it acquired 80% of the company.
Planon
On July 30, 2024, Schneider Electric signed an agreement to acquire an additional 55% stake in Planon for a consideration of EUR 525
million, fully paid in cash, increasing its ownership of Planon to a controlling stake of 80%. The transaction further strengthens Schneider’s
agnostic software strategy, with Planon’s established and strong footprint in the global buildings market, cloud–based Integrated Workplace
Management System offer and subscription–based software business model well positioned to capitalize on the fast–growing smart
building software market. Planon, with revenues of EUR 161 million in 2023, was previously consolidated under the equity method and this
operation is treated as if it were disposed of and reacquired at fair value on the acquisition date, resulting in a non–cash gain in “Other
operating income and expenses”. Since transaction closing date on October 28, 2024, Planon is consolidated within the Energy
Management reporting segment.
Until January 2030, the minority shareholder has the right to sell and transfer to the Group their remaining 20% stake in Planon. The Group
also holds a right to acquire the remaining 20% of non–controlling interests between July 2027 and January 2030. The related debt has
been recognized in “Current purchase commitments over non–controlling interests” for EUR 191 million at acquisition date.
The purchase accounting as per IFRS 3 is not completed as of December 31, 2024. Planon carrying value at acquisition date for net
identifiable assets was EUR 48 million. The preliminary net adjustment of the opening balance sheet is EUR 288 million, resulting mainly
from the booking of identifiable intangible assets (developed technology, customer relationships and trademark) net of deferred tax
liabilities. The preliminary goodwill recognized amounts to EUR 608 million at acquisition date.
Main divestments of the period
Autogrid
On December 14, 2023, the Group entered into an agreement with Uplight Inc. (in which Schneider Electric holds a strategic minority
investment) to sell AutoGrid to Uplight. This transaction represents a reorganization among Schneider Electric–owned or affiliated
businesses aimed at Prosumers, to better align their capabilities. The transaction, which closed on February 8, 2024, has raised the interest
percentage of the Group in Uplight Inc. to 43.46%, which remains consolidated as an equity investment. The impact from the disposal in the
income statement of the period is not material.
Follow–up on acquisitions and divestments transacted in 2023 with effect in 2024
EcoAct
On November 2, 2023, the Group acquired 100% of the capital of EcoAct SAS (“EcoAct”), an international leader in climate consulting and
net–zero solutions headquartered in Paris, France. EcoAct is reported within the Energy management reporting segment.
The purchase accounting as per IFRS 3 is completed as of December 31, 2024. The main identifiable assets recognized as part of the
purchase price allocation were customer relationships and trademark. At acquisition date, goodwill amounted to EUR 130 million.
5.5 Notes to the consolidated financial statements
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2.2 – Impact of changes in the scope of consolidation on the Group cash flow
Changes in the scope of consolidation at December 31, 2024, decreased the Group’s cash position by a net EUR 635 million outflow, as
described below:
(in millions of euros)
Full Year 2024
Full Year 2023
Acquisitions
(535)
(307)
of which Planon
(495)
–
Disposals
83
918
FINANCIAL INVESTMENTS NET OF DISPOSALS
(452)
611
AVEVA
–
(4,681)
Others
(183)
(21)
TRANSACTION WITH NON–CONTROLLING INTERESTS
(183)
(4,702)
TOTAL CASH FLOW IMPACT
(635)
(4,091)
In 2024, cash outflow is mainly due to the acquisitions of Planon and ETAP’s non–controlling interests and other individually not significant
acquisitions. The main acquisitions and disposals of the year are described in Note 2.1.
In 2023, cash outflows mainly related to the acquisitions of AVEVA’s non–controlling interests and EcoAct. Cash inflows mainly related to the
disposals of Telemecanique Sensors, VinZero and Gutor.
Note 3: Segment information
The Group is organized into two reporting segments as follows:
Energy Management leverages a complete end–to–end technology offering enabled by EcoStruxure. The Group’s go–to–market is
oriented to address customer needs across its four end–markets of Buildings, Data Centers, Industry and Infrastructure, supported by a
worldwide partner network.
Industrial Automation includes Industrial Automation and Industrial Control activities, across discrete, process & hybrid industries.
Expenses concerning General Management that cannot be allocated to a particular segment are presented under “Central functions &
digital costs”.
The Executive Committee, which is chaired by the Chief Executive Officer, has been identified as the main decision–making body for
allocating resources and evaluating segment performance. Performance and decisions on the allocation of resources are assessed by the
Executive Committee and are mainly based on Adjusted EBITA.
Share–based payment is presented under “Central functions & digital costs”.
The Executive Committee does not review assets and liabilities by reporting segments.
The same accounting principles governing the consolidated financial statements apply to segment data.
Details are provided in the Management Report.
Due to the substantial number of customers served by the Group, to their significant diversity in multiple sectors and to their wide
geographical dispersion, the Group’s largest customer does not exceed 10% of Schneider Electric’s revenue.
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Chapter 5 – Consolidated financial statements at December 31, 2024
3.1 – Information by reporting segment
Full Year 2024
(in millions of euros)
Energy
Management
Industrial
Automation
Central functions
& digital costs
Total
Backlog
17,698
3,722
–
21,420
Revenue
31,131
7,022
–
38,153
Adjusted EBITA
6,865
1,041
(823)
7,083
Adjusted EBITA (%)
22.1%
14.8%
18.6%
On December 31, 2024, the total backlog to be executed in more than a year amounted to EUR 4,842 million.
Full Year 2023
(in millions of euros)
Energy
Management
Industrial
Automation
Central functions
& digital costs
Total
Backlog
15,414
3,748
–
19,162
Revenue
28,241
7,661
–
35,902
Adjusted EBITA
5,967
1,304
(859)
6,412
Adjusted EBITA (%)
21.1%
17.0%
17.9%
On December 31, 2023, the total backlog to be executed in more than a year amounted to EUR 4,287 million.
3.2 – Information by region
The geographic regions covered by the Group are:
• Western Europe;
• North America (including Mexico);
• Asia–Pacific;
• Rest of the World (Eastern Europe, Middle East, Africa, South America).
Non–current assets include net goodwill, net intangible assets and net property, plant and equipment.
Full Year 2024
(in millions of euros)
Western
Europe
of which
France
Asia
Pacific
of which
China
North
America
of which
USA
Rest of the
World
Total
Revenue by country market
8,993
2,137
10,347
4,670
13,850
12,108
4,963
38,153
Non–current assets as of Dec. 31, 2024
13,807
2,975
5,868
1,156
16,328
15,947
1,442
37,445
Full Year 2023
(in millions of euros)
Western
Europe
of which
France
Asia
Pacific
of which
China
North
America
of which
USA
Rest of the
World
Total
Revenue by country market
8,912
2,067
10,247
4,871
12,211
10,553
4,532
35,902
Non–current assets as of Dec. 31, 2023
12,396
2,823
5,616
1,154
15,338
14,958
1,360
34,710
Note 4: Research and development expenditures
Research and development expenditures are as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Research and development expenditures in costs of sales
(594)
(520)
Research and development expenditures in R&D costs*
(1,308)
(1,168)
Capitalized development costs
(358)
(328)
TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES**
(2,260)
(2,016)
* Including EUR 46 million of research and development tax credit in full year 2024 and EUR 58 million in full year 2023
** Excluding amortization of capitalized development costs
In addition to the research and development expenditures, amortization expenses of capitalized development costs booked in cost of sales,
amounted to EUR 232 million in 2024 and EUR 236 million in 2023.
5.5 Notes to the consolidated financial statements
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I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Note 5: Impairment losses, depreciation and
amortization expenses
(in millions of euros)
Full Year 2024
Full Year 2023
Depreciation, amortization and impairment included in cost of sales
(590)
(544)
Depreciation, amortization and impairment included in selling, general and administrative expenses
(570)
(486)
Amortization expenses of purchase accounting intangible assets
(406)
(396)
Impairment losses of purchase accounting intangible assets
–
(34)
IMPAIRMENT LOSSES, DEPRECIATION AND AMORTIZATION EXPENSES
(1,566)
(1,460)
In 2023, a EUR 34 million impairment was recognized on Clipsal brand following the annual impairment tests realized by the Group.
Note 6: Other operating income and expenses
Other operating income and expenses are as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Gains/(losses) on assets disposals
6
(8)
Gains/(losses) on business disposals
110
265
Impairment of assets
–
(30)
Costs of acquisitions and integrations
(96)
(111)
Others
(107)
(18)
OTHER OPERATING INCOME AND EXPENSES
(87)
98
In 2024, the gains on business disposals mainly relate to the revaluation of the Planon’s shares previously owned by the Group, following the
acquisition of a controlling stake in 2024 as described in Note 2. The costs of acquisitions and integrations are mainly related to the recent
and ongoing acquisitions of the year. “Others” mainly include EUR 104 million provision in relation to the French Competition Authority
decision described in Note 26.2.
In 2023, the gains on business disposals mainly related to the 2023 divestments (Telemecanique Sensors, VinZero and Gutor). The costs of
acquisitions and integrations mainly related to the recent acquisitions.
Note 7: Other financial income and expenses
(in millions of euros)
Full Year 2024
Full Year 2023
Exchange gains and losses, net
3
(50)
Net monetary gain/(loss) (IAS 29 Hyperinflation)
(23)
(39)
Financial component of defined benefit plan costs
(44)
(54)
Dividends received
4
3
Fair value adjustment of financial assets
(12)
6
Financial interests – IFRS16
(48)
(36)
Effect of discounting & unwinding of discount
(16)
2
Other financial expenses, net
(12)
(54)
OTHER FINANCIAL INCOME AND EXPENSES
(148)
(222)
Note 8: Income tax expenses
Wherever the regulatory environment allows it, the Group entities file consolidated tax returns. Schneider Electric SE files a consolidated tax
return with its French subsidiaries held directly or indirectly through Schneider Electric Industries SAS.
8.1 – Analysis of income tax expense
(in millions of euros)
Full Year 2024
Full Year 2023
Current taxes
(1,599)
(1,411)
Deferred taxes
201
126
INCOME TAX EXPENSE
(1,398)
(1,285)
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Chapter 5 – Consolidated financial statements at December 31, 2024
8.2 – Income tax expense by country market
Full Year 2024
(in millions of euros)
Western
Europe
of which
France
Asia
Pacific
of which
China
North
America
of which
USA
Rest of the
World
Total
Revenue by country market
8,993
2,137
10,347
4,670
13,850
12,108
4,963
38,153
in %
24%
6%
27%
12%
36%
32%
13%
Income tax expense by country market*
(234)
(44)
(582)
(280)
(457)
(409)
(125)
(1,398)
in %
17%
3%
42%
20%
33%
29%
9%
*
after reallocation of withholding taxes on dividends
Full Year 2023
(in millions of euros)
Western
Europe
of which
France
Asia
Pacific
of which
China
North
America
of which
USA
Rest of the
World
Total
Revenue by country market
8,912
2,067
10,247
4,871
12,211
10,553
4,532
35,902
in %
25%
6%
29%
14%
34%
29%
13%
Income tax expense by Income tax expense
(290)
(113)
(528)
(327)
(415)
(366)
(52)
(1,285)
in %
23%
9%
41%
25%
32%
29%
4%
*
after reallocation of withholding taxes on dividends
8.3 – Tax reconciliation
(in millions of euros)
Full Year 2024
Full Year 2023
Profit attributable to owners of the parent
4,269
4,003
Income tax expense
(1,398)
(1,285)
Non–controlling interests
(170)
(166)
Share of profit of associates
17
51
Impairment of investments in associates
(220)
–
Profit before tax
6,040
5,403
Geographical weighted average Group tax rate
22.6%
22.7%
Theoretical income tax expense
(1,367)
(1,225)
Reconciling items:
Tax credits and other tax reductions
111
139
Impact of tax losses
25
(9)
Withholding taxes
(120)
(89)
Other elements without tax bases (current or deferred)
(58)
(59)
Other permanent differences
11
(42)
INCOME TAX EXPENSE
(1,398)
(1,285)
EFFECTIVE TAX RATE
23.1%
23.8%
The Company’s consolidated income from continuing operations being predominantly generated outside of France, theoretical tax ex–
pense from continuing operations is reconciled above from the Company’s weighted–average global tax rate (rather than from the French
domestic statutory tax rate).
In December 2022, member states of the European Union adopted the Pillar 2 directive, introducing an overall minimum corporate tax rate
of 15%, which came into force for the financial year ending December 31, 2024. The impact on the Group’s effective tax rate is 0.4%, in line
with the range communicated in 2023.
5.5 Notes to the consolidated financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Note 9: Goodwill
9.1 – Main items of goodwill
Goodwill is broken down by groups of Cash Generating Units (CGUs) as follows, with long–term growth rates and WACC used for annual
impairment test:
(in millions of euros)
LTG
WACC
Dec. 31, 2024
Dec. 31, 2023
Energy Management:
15,356
14,332
Low Voltage
2.0%
9.0%
7,904
7,629
Medium Voltage
2.0%
9.0%
3,858
3,183
Secure Power
2.0%
9.0%
3,068
2,989
Other
2.0 to 3.0%
8.0 to 9.1%
526
531
Industrial Automation
10,925
10,332
Industrial Automation
2.0%
9.2%
6,113
5,809
Industrial Automation Software
3.0%
9.1%
4,812
4,523
TOTAL GOODWILL
26,281
24,664
The Group performed the annual impairment test of all the groups of CGUs’ assets using the same methodology as the one used on
previous periods and described in Note 1.11.
Impairment tests performed in 2024 did not trigger any impairment losses on the groups of CGUs’ assets.
The sensitivity analysis on the test’s main assumptions shows that no impairment losses would be recognized in each of the following
scenarios, for each group of CGUs:
• a 0.5 point increase of the discount rate;
• a 1.0 point decrease in the growth rate;
• a 0.5 point decrease in the margin rate.
9.2 – Climate–related matters
In 2024, the Group mandated external experts to evaluate the potential impact of climate–related matters and physical risks on fixed assets
over the Group future cash flows. This risk assessment covered a broad spectrum of risks as outlined below:
• Policy: Legislation that are or could be enacted by governments to price and penalize Greenhouse gas (GHG) emissions;
• Market consumer: Consumer preferences could shift towards sustainable alternative products and services, transforming market
demand;
• Technology: Disruptive lower–carbon technology could change in key economic sectors and risks to carbon intensive assets and
operations;
• Liability: Litigation that could be brought by plaintiffs against companies for their liabilities in causing harm from climate change;
• Investor: Investors prioritize returns from lower–carbon companies, driving cost of capital and valuation changes;
• Reputation: Customer sentiment could be influenced by company’s actions to address climate change risk;
• Physical risk: Key facility operational risk and physical asset damage due to extreme weather.
Results of the risk assessment are showing that most of those risks do not have a significant impact on the Group future cash flows. The
most impactful risk would be the Policy risk. To evaluate this particular risk, external experts considered the Group scope 1, 2 and 3 GHG
emissions by country and projected them over 10 years period (based on growth of the business) multiplied by current and projected
country–level carbon pricing data, taken from several databases (including IEA, WB, NGFS), and projected across various climate futures
based on academic research. Our scope 3 emissions, that represents almost 100% of the Policy risk, are impacting our future cash flows
from a drop in demand (downstream) and an increase in our cost of sales (upstream).
However, the model, being conservative, is not considering any upside from the Group’s strong long–term position to meet the increasing
demand of organizations making meaningful progress on their energy transition and decarbonization goals, neither the actions taken by the
Group to decarbonate its value chain.
In addition, the Group also considered the impact on future cash flows of its commitments to be “net–zero ready” in its operation (scopes 1
and 2) by 2030 and net–zero across the whole value chain by 2050.
Considering the above risk assessment and our commitments, the Group has performed a sensitivity analysis to our impairment tests at
groups of CGUs level and did not identify impairment risk on its assets.
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Chapter 5 – Consolidated financial statements at December 31, 2024
9.3 – Movements during the year
The main movements during the year are summarized as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Net goodwill at opening
24,664
25,136
Acquisitions
616
209
Disposals
(4)
(7)
Reclassifications
24
(95)
Translation adjustment
981
(579)
NET GOODWILL AT END OF YEAR
26,281
24,664
Including cumulative impairment losses
(371)
(367)
Acquisitions & Disposals
Movements from acquisitions and disposals are described in Note 2.
Other changes
Translation adjustments mainly concern goodwill denominated in US dollar.
Note 10: Intangible assets
10.1 – Change in intangible assets
Gross value
(in millions of euros)
Trademarks
Software
Development
Projects (R&D)
Acquired
technologies
and customer
relationships
Other
Total
Dec. 31, 2022
2,993
1,075
4,077
4,859
300
13,304
Acquisitions
–
114
328
–
9
451
Translation adjustments
(85)
(10)
(56)
(121)
(18)
(290)
Reclassifications
(36)
36
(174)
(178)
17
(335)
Reclassifications to assets held for sale
(2)
–
(23)
(4)
(1)
(30)
Changes in scope of consolidation and other
1
(1)
(4)
(20)
(15)
(39)
Dec. 31, 2023
2,871
1,214
4,148
4,536
292
13,061
Acquisitions
–
111
358
–
–
469
Translation adjustments
126
17
54
227
17
441
Reclassifications
–
(50)
(53)
55
(9)
(57)
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
45
2
–
388
10
445
Dec. 31, 2024
3,042
1,294
4,507
5,206
310
14,359
Amortization and impairment
(in millions of euros)
Trademarks
Software
Development
Projects (R&D)
Acquired
technologies
and customer
relationships
Other
Total
Dec. 31, 2022
(546)
(891)
(2,841)
(2,440)
(213)
(6,931)
Amortization
(35)
(78)
(239)
(355)
(10)
(717)
Impairment
(34)
–
(15)
(1)
–
(50)
Translation adjustments
6
9
43
59
11
128
Reclassifications
35
17
136
151
(4)
335
Reclassifications to assets held for sale
–
–
3
1
–
4
Changes in scope of consolidation and other
–
–
1
6
–
7
Dec. 31, 2023
(574)
(943)
(2,912)
(2,579)
(216)
(7,224)
Amortization
(40)
(72)
(233)
(361)
(10)
(716)
Impairment
–
–
(19)
–
–
(19)
Translation adjustments
(4)
(11)
(35)
(137)
(4)
(191)
Reclassifications
6
15
65
(38)
20
68
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
–
–
–
10
(7)
3
Dec. 31, 2024
(612)
(1,011)
(3,134)
(3,105)
(217)
(8,079)
5.5 Notes to the consolidated financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Net value
(in millions of euros)
Trademarks
Software
Development
Projects (R&D)
Acquired
technologies
and customer
relationships
Other
Total
Dec. 31, 2022
2,447
184
1,236
2,419
87
6,373
Dec. 31, 2023
2,297
271
1,236
1,957
76
5,837
Dec. 31, 2024
2,430
283
1,373
2,101
93
6,280
10.2 – Trademarks
On December 31, 2024, the main trademarks recognized were as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
APC (Secure Power)
1,770
1,664
Asco (Low Voltage)
120
113
Clipsal (Low Voltage)
114
122
OSIsoft (Industrial Automation Software)
107
112
Aveva (Industrial Automation Software)
92
86
Invensys – Triconex and Foxboro (Industrial Automation)
53
50
Digital (Industrial Automation)
33
35
Planon (Medium Voltage)
32
–
Lauritz Knudsen (Low Voltage)
25
36
Other
84
79
TRADEMARKS NET BOOK VALUE
2,430
2,297
Indefinite–lived brands are tested on a yearly basis for impairment.
In 2024, the Group reviewed the value of the main trademarks in accordance with the valuation model described in Note 1.8. Particularly,
APC brand was tested using the royalty relief method. The future cash flows used are based on Group management’s economic
assumptions and operating forecasts presented in Secure Power’s business plan, and then extrapolated based on a perpetuity growth rate
of 2%.
Impairment tests carried out on indefinite–lived brands in 2024 did not show any impairment risk.
The sensitivity analysis on the main assumptions shows that no material impairment losses would be recognized in the following scenarios:
• a 0.5 point increase of the discount rate;
• a 1.0 point decrease in the growth rate;
• a 0.5 point decrease in the royalty rate.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Note 11: Property, plant and equipment
Gross value
(in millions of euros)
Land
Buildings
Machinery and
equipment
Other
Rights of
use of assets
(IFRS 16)
Total
Dec. 31, 2022
165
2,001
4,805
1,414
2,267
10,652
Acquisitions
–
31
133
746
305
1,215
Disposals
(3)
(76)
(176)
(108)
(155)
(518)
Translation adjustments
(3)
(18)
(84)
(37)
(30)
(172)
Reclassifications
2
135
265
(378)
–
24
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
–
1
2
(25)
(27)
(49)
Dec. 31, 2023
161
2,074
4,945
1,612
2,360
11,152
Acquisitions
15
21
81
838
574
1,529
Disposals
(2)
(59)
(175)
(76)
(201)
(513)
Translation adjustments
4
16
99
35
36
190
Reclassifications
2
185
434
(635)
(51)
(65)
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
–
2
(23)
3
9
(9)
Dec. 31, 2024
180
2,239
5,361
1,777
2,727
12,284
Amortization and impairment
(in millions of euros)
Land
Buildings
Machinery and
equipment
Other
Rights of
use of assets
(IFRS 16)
Total
Dec. 31, 2022
(17)
(1,154)
(3,722)
(614)
(1,210)
(6,717)
Depreciation and impairment
(1)
(108)
(272)
(76)
(303)
(760)
Reversals
1
69
161
81
134
446
Translation adjustments
–
7
61
19
12
99
Reclassifications
(2)
(23)
(6)
14
–
(17)
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
–
(1)
(6)
3
10
6
Dec. 31, 2023
(19)
(1,210)
(3,784)
(573)
(1,357)
(6,943)
Depreciation and impairment
(1)
(103)
(281)
(81)
(365)
(831)
Reversals
–
45
161
54
158
418
Translation adjustments
(1)
(16)
(72)
(16)
(16)
(121)
Reclassifications
(1)
–
24
(14)
52
61
Reclassifications to assets held for sale
–
–
–
–
–
–
Changes in scope of consolidation and other
–
(2)
18
(2)
2
16
Dec. 31, 2024
(22)
(1,286)
(3,934)
(632)
(1,526)
(7,400)
Net value
(in millions of euros)
Land
Buildings
Machinery and
equipment
Other
Rights of
use of assets
(IFRS 16)
Total
Dec. 31, 2022
148
847
1,083
800
1,057
3,935
Dec. 31, 2023
142
864
1,161
1,039
1,003
4,209
Dec. 31, 2024
158
953
1,427
1,145
1,201
4,884
5.5 Notes to the consolidated financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Reclassifications primarily correspond to assets put into use.
The cash impact of purchases of property, plant and equipment in 2024 was as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Increase in property, plant and equipment
(1,529)
(1,215)
Of which non–cash impact related to IFRS 16
574
305
Changes in receivables and liabilities on property, plant and equipment
5
(4)
TOTAL
(950)
(914)
The depreciation and impairment of property, plant and equipment restated in the statement of cash flows were as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Depreciation of property, plant and equipment
822
743
Impairment of property, plant and equipment
9
17
TOTAL
831
760
IFRS 16 debt by maturity:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
2024
–
284
2025
236
214
2026
246
170
2027
187
121
2028
134
82
2029
94
57
2030
75
44
2031
64
24
2032 and beyond
243
76
TOTAL
1,279
1,072
Note 12: Investments in associates and joint ventures
Investments in associates and joint ventures can be analyzed as follows:
(in millions of euros)
Delixi
Sub-Group
Uplight
Planon
Fuji Electrics
Sunten
Electric
Equipments
Other
Total
% of interest
Dec. 31, 2023
50.0%
30.4%
25.0%
36.8%
25.0%
Dec. 31, 2024
50.0%
43.5%
80.0%
36.8%
25.0%
CLOSING VALUE DEC. 31, 2022
481
414
110
155
36
45
1,241
Net Income/(loss)
52
(30)
5
19
4
1
51
Dividends distribution
(20)
–
–
(16)
(3)
(1)
(40)
Perimeter changes
–
13
–
–
–
(2)
11
Translation impacts & others
(26)
(9)
–
(16)
(3)
(3)
(57)
CLOSING VALUE DEC. 31, 2023
487
388
115
142
34
40
1,206
Net Income/(loss)
54
(51)
–
14
2
(2)
17
Impairment of investments in associates
–
(220)
–
–
–
–
(220)
Dividends distribution
(19)
–
–
(13)
(1)
(1)
(34)
Perimeter changes
–
229
(115)
–
–
(27)
87
Translation impacts & others
16
38
–
(4)
1
4
55
CLOSING VALUE DEC. 31, 2024
538
384
–
139
36
14
1,111
In 2024, following slower adoption at customers than was envisaged in the business plan impacting near–term growth, in part due to
regulatory challenges, the Group performed an impairment test on its Uplight’s investment and recorded an impairment of EUR (220) million.
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Chapter 5 – Consolidated financial statements at December 31, 2024
12.1– Main entities consolidated under the equity method:
Delixi Electric Ltd.
In 2007, Schneider Electric joined Delixi Group to establish a win–win partnership in a joint–venture, Delixi Electric Ltd., aka “Delixi Electric”.
Delixi Electric, based in China, is specialist in manufacturing, retail and distribution of low voltage products.
The key financial indicators for the Delixi Electric subgroup (on a 100% basis) are as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Non-current assets
754
754
Current assets
531
472
TOTAL ASSETS
1,285
1,225
Equity
737
643
Non–current liabilities
22
21
Current liabilities
526
560
TOTAL EQUITY AND LIABILITIES
1,285
1,225
Revenue
1,371
1,342
Adjusted EBITA
145
143
PROFIT FOR THE YEAR
108
104
Dividends paid
38
40
Note 13: Non–current financial assets
Non–current financial assets, primarily comprising investments, are detailed below:
Dec. 31, 2024
Dec. 31, 2023
(in millions of euros)
%
of interest
Acquisitions
disposals
Fair value
through
P&L
Fair value
through
Equity
FX &
others
Fair value
Fair value
LISTED FINANCIAL ASSETS:
Gold Peak Industries Holding Ltd
3.2%
–
–
–
–
2
2
Others (Unit fair value lower than EUR 3 million)
–
–
–
–
13
13
TOTAL LISTED FINANCIAL ASSETS
–
–
–
–
15
15
UNLISTED FINANCIAL ASSETS:
Funds
SE Ventures Funds of Funds in Portfolio
8
(6)
–
7
103
94
Sensetime & Stalagnate Fund China
33.2%
(5)
(2)
–
1
64
70
FCPR Aster II (part A, B and C)
32.1%
–
–
–
1
19
18
SICAV SESS
63.1%
–
1
–
–
12
11
FCPI Energy Access Ventures Fund
28.6%
(1)
–
–
–
18
19
Others (Unit fair value lower than EUR 10 million)
4
(4)
–
–
14
14
Direct investments
SE Ventures – Claroty
4.4%
4
–
15
5
88
64
SE Ventures – Sense Labs
13.0%
–
–
(14)
2
23
35
SE Ventures – Augury
2.6%
–
–
(17)
2
25
40
SE Ventures – Scandit
2.4%
–
–
1
1
19
17
SE Ventures – Oosto
8.6%
–
–
2
1
14
11
SE Ventures – Verkor
2.8%
–
–
3
3
45
39
SE Ventures – AiDash
7.6%
4
–
–
1
14
9
SE Ventures – Titan Advanced Energy Solutions
17.4%
–
–
2
1
13
10
SE Ventures – Enable
0.9%
–
–
2
–
12
10
SE Ventures (Unit fair value lower than EUR 10
million)
9
–
(4)
6
113
102
Nozomi Networks
6.4%
–
–
26
4
75
45
Star Charge
1.3%
–
–
10
1
38
27
Others (Unit fair value lower than EUR 10 million)
–
(1)
–
(15)
35
51
TOTAL UNLISTED FINANCIAL ASSETS
23
(12)
26
21
744
686
PENSIONS ASSETS
5
–
20
45
323
253
OTHER
104
–
–
124
519
291
TOTAL NON–CURRENT FINANCIAL ASSETS
132
(12)
46
190
1,601
1,245
5.5 Notes to the consolidated financial statements
535
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
The fair value of investments listed in an active market corresponds to the stock price on the balance sheet date.
“Others” include mainly convertible and treasury bonds, insurance recoveries as well as contributions to US employee deferred compen–
sation trusts (“rabbi trusts”).
“SE Ventures” is a corporate venture capital fund created in partnership with Schneider Electric. SE Ventures current portfolio is composed
of direct investments in various start–up companies and funds of funds.
Note 14: Deferred taxes by nature
Deferred taxes by type can be analyzed as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Tax loss carryforwards (net)
622
629
Provisions for pensions and other post–retirement benefit obligations (net)
233
234
Non–deductible provisions and accruals (net)
483
474
Differences between tax and accounting depreciation on tangible assets (net)
(35)
(41)
Differences between tax and accounting amortization on intangible assets (net)
(719)
(752)
Differences on working capital (net)
262
207
Other deferred tax assets/(liabilities) (net)
138
182
TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES)
984
933
of which total deferred tax assets
1,794
1,636
of which total deferred tax liabilities
810
703
Deferred tax assets recorded in respect of tax losses carried forward on December 31, 2024 essentially concern France (EUR 412 million).
These deficits can be carried forward indefinitely, and have been activated using the rate of 25.83%, in accordance with the applicable rate
in the expected consumption horizon of 7 years. Unrecognized deferred tax losses amount EUR 116 million as of December 31, 2024.
Note 15: Inventories and work in progress
Inventories and work in progress changed as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
COST:
Raw materials
2,721
2,279
Production work in progress
351
355
Semi–finished and finished products
1,807
1,518
Finished goods
1,010
759
Solution work in progress
244
211
INVENTORIES AND WORK IN PROGRESS AT COST
6,133
5,122
IMPAIRMENT:
Raw materials
(468)
(338)
Production work in progress
(10)
(10)
Semi–finished and finished products
(224)
(239)
Finished goods
(12)
(9)
Solution work in progress
(8)
(7)
IMPAIRMENT LOSSES
(722)
(603)
NET:
Raw materials
2,253
1,941
Production work in progress
341
345
Semi–finished and finished products
1,583
1,279
Finished goods
998
750
Solution work in progress
236
204
INVENTORIES AND WORK IN PROGRESS, NET
5,411
4,519
536
Schneider Electric | Universal Registration Document 2024
se.com
Chapter 5 – Consolidated financial statements at December 31, 2024
Note 16: Trade and other operating receivables
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Accounts receivable
7,024
6,330
Unbilled revenue
2,244
1,911
Notes receivable
256
264
Advances to suppliers
204
256
Accounts receivable at cost
9,728
8,761
Impairment
(364)
(373)
ACCOUNTS RECEIVABLE, NET
9,364
8,388
Dec. 31, 2024
Dec. 31, 2023
(in millions of euros)
Accounts
receivable
at cost
Impairment
Accounts
receivable
net
Accounts
receivable
at cost
Impairment
Accounts
receivable
net
On time
8,391
(76)
8,315
7,454
(110)
7,344
Less than one month past due
538
(6)
532
526
(9)
517
One to two months past due
204
(8)
196
207
(7)
200
Two to three months past due
133
(6)
127
88
(6)
82
Three to four months past due
83
(9)
74
123
(14)
109
More than four months past due
379
(259)
120
363
(227)
136
TOTAL
9,728
(364)
9,364
8,761
(373)
8,388
Accounts receivable result from sales to end–customers, who are widely spread both geographically and economically. Consequently, the
Group believes that there is no significant concentration of credit risk.
In addition, the Group takes out substantial credit insurance and uses other types of guarantees to limit the risk of losses on trade accounts
receivable.
Changes in provisions for impairment of short and long–term trade accounts receivable were as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Provisions for impairment at opening balance
(373)
(489)
Additions
(173)
(131)
Utilizations
83
132
Reversal of surplus provisions
95
73
Translation adjustments
(8)
18
Changes in scope of consolidation and other
12
24
PROVISIONS FOR IMPAIRMENT AT CLOSING BALANCE
(364)
(373)
The contracts assets and liabilities, respectively reported within the “Trade and other operating receivables” and “Trade and other operat–
ing payables”, are as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Unbilled revenue (contract assets)
2,244
1,911
Contract liabilities
(3,102)
(2,402)
NET CONTRACT ASSETS
(858)
(491)
Contract assets increase is linked to an increase of activity on long term contracts, notably data centers, where invoicing milestone are not
yet achieved. Contract liabilities increase is linked to new contracts signed in 2024 with large upfront milestone payment received, in excess
of revenue recognized as of December 31, 2024, notably on data centers contracts.
Note 17: Other receivables and prepaid expenses
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Other receivables
601
447
VAT receivables
638
746
Current income tax receivables
528
618
Other tax receivables
47
37
Derivative instruments
131
122
Prepaid expenses
385
320
OTHER RECEIVABLES AND PREPAID EXPENSES
2,330
2,290
5.5 Notes to the consolidated financial statements
537
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Note 18: Cash and cash equivalents
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Marketable securities
3,978
2,024
Negotiable debt securities and short–term deposits
1,027
588
Cash
1,882
2,084
Total cash and cash equivalents
6,887
4,696
Bank overdrafts
(75)
(42)
NET CASH AND CASH EQUIVALENTS
6,812
4,654
Non–recourse factorings of trade receivables were realized in 2024 for a total amount of EUR 343 million, compared with EUR 286 million in
2023. Substantially all risks and rewards have been transferred.
Note 19: Shareholder’s equity
19.1 – Capital
Share capital
The company’ share capital on December 31, 2024 amounted to EUR 2,302,526,704 represented by 575,631,676 shares with a par value of
EUR 4, all fully paid up.
On December 31, 2024, a total of 602,144,867 voting rights were attached to the 575,631,676 issued shares. Schneider Electric’s capital
management strategy is designed to:
• ensure Group liquidity;
• optimize its financial structure;
• optimize the weighted average cost of capital.
The strategy must also ensure the Group has access to different capital markets under the best possible conditions. Factors taken into
account for decision–making purposes include objectives expressed in terms of earnings per share, ratings or balance sheet stability.
Finally, decisions may be implemented depending on specific market conditions.
Changes in share capital and cumulative number of shares
Changes in share capital since December 31, 2022 were as follows:
(in number of shares and in euros)
Cumulative
number of shares
Share capital
SHARE CAPITAL AT DEC. 31, 2022
571,092,921
2,284,371,684
Cancellation of own shares
–
–
Capital increase
1,742,963
6,971,852
SHARE CAPITAL AT DEC. 31, 2023
572,835,884
2,291,343,536
Cancellation of own shares
–
–
Capital increase
2,795,792
11,183,168
SHARE CAPITAL AT DEC. 31, 2024
575,631,676
2,302,526,704
In 2024, the additional paid-in capital increased by EUR 483 million following the increases in capital due to:
• Employee share ownership plan: in 2024, it represents a capital increase of EUR 252 million, of which EUR 246 million of additional
paid-in capital (refer to Note 19.4);
• OCEANEs conversion: in 2024, 1.4 million OCEANEs maturing in 2026 were converted, resulting in the creation of 1.4 million shares and
representing a capital increase of EUR 243 million, of which 237 million of additional paid-in capital.
538
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Chapter 5 – Consolidated financial statements at December 31, 2024
19.2 – Earnings per share
Full Year 2024
Full Year 2023
(in thousands of shares and in euros per share)
Basic
Diluted
Basic
Diluted
Issued shares (Net of treasury shares)
560,716
560,716
559,846
559,846
Performance shares
–
2,702
–
2,807
Bonds convertible into shares
–
5,667
–
3,935
AVERAGE WEIGHTED NUMBER OF SHARES
560,716
569,085
559,846
566,588
Earnings per share before tax
10.77
10.65
9.65
9.54
EARNINGS PER SHARE
7.61
7.53
7.15
7.07
19.3 – Dividends paid and proposed
In 2024, the Group paid out the 2023 dividend of EUR 3.50 per share, for a total of EUR 1,963 million.
At the Shareholders’ Meeting of May 7, 2025, shareholders will be asked to approve a dividend of EUR 3.90 per share for fiscal year 2024.
On December 31, 2024, Schneider Electric SE had distributable reserves in an amount of EUR 4,183 million (versus EUR 3,102 million at
December 31, 2023, not including profit for the year).
19.4 – Share-based payments
Nature and extent of existing share-based payments
The Board of Directors of Schneider Electric SE and later the Management Board have set up performance shares plans for senior
executives and certain employees of the Group.
Rules governing the performance shares plans are as follows:
• to receive the shares, the grantee must generally be an employee or corporate officer of the Group. Vesting is also conditional on the
achievement of performance criteria;
• the vesting period is three to four years;
• the lock-up period is zero or one year.
The main characteristics of these plans were as follows at December 31, 2024:
LTIP 2021
LTIP 2022
LTIP 2023
LTIP 2024
Plan no.
38 & 39
40 & 41
42
44 & 45
39bis
41bis
42bis & 43
45bis
39ter
41ter
42ter
44bis & 45ter
42quater
Date of Annual Shareholders’ Meetings
Apr. 25, 2018
Apr. 25, 2019
May 5, 2022
May 5, 2022
Apr. 25, 2018
May 5, 2022
May 5, 2022
May 5, 2022
Apr. 25, 2018
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 25, 2021
Mar. 24, 2022
Mar. 28, 2023
Mar. 26, 2024
July 29, 2021
July 27, 2022
May 4, 2023
July 30, 2024
Oct. 26, 2021
Oct. 26, 2022
July 26, 2023
Nov 7, 2024
Oct. 25, 2023
Vesting date
Mar. 25, 2024
Mar. 24, 2025
Mar. 28, 2026
Mar. 26, 2027
July 29, 2024
July 27, 2025
May 4, 2026
July 30, 2027
Oct. 26, 2024
Oct. 26, 2025
July 26, 2026
Nov 7, 2027
Oct. 25, 2026
End of holding period
Mar. 25, 2025
for Plan 38
Mar. 24, 2026
for Plan 40
May 4, 2027
for Plan 43
March 26, 2028
for Plan 44
Nov 7, 2028
for Plan 44bis
Number of performance shares
Outstanding as of Dec. 31, 2023
1,402,255
1,334,015
1,488,930
–
4,225,200
Granted in 2024
–
–
–
1,059,113
1,059,113
Delivered in 2024
(1,196,364)
–
(96)
–
(1,196,460)
Canceled in 2024
(205,891)
(48,026)
(61,812)
(21,437)
(337,166)
Outstanding as of Dec. 31, 2024
–
1,285,989
1,427,022
1,037,676
3,750,687
Schneider Electric SE has not created shares in 2024 to deliver vested plans but used existing treasury shares.
5.5 Notes to the consolidated financial statements
539
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Determination of fair values
In accordance with the accounting policies described in Note 1.20, the below fair value was calculated for each plan:
Plan no.
Fair Value per
share (in euros
LTIP 2021
Plan 38
93.4
Plan 39 – ExCom
97.3
Plan 39 – Other
102.9
Plan 39bis
116.6
Plan 39ter
117.5
LTIP 2022
Plan 40
119
Plan 41 – ExCom
123
Plan 41 – Other
128.8
Plan 41bis
107.8
Plan 41ter
111
LTIP 2023
Plan 42 – ExCom
119.2
Plan 42 – Other
124.5
Plan 42bis – ExCom
127.1
Plan 43
127.1
Plan 42ter
139.4
Plan 42quater
118.1
LTIP 2024
Plan 44
179.6
Plan 45 – ExCom
179.6
Plan 45 – Other
186.8
Plan 45bis
188.7
Plan 44bis
199.7
Plan 45ter
208.9
IFRS 2 expense
The expense recorded under “Selling, general and administrative expenses” breaks down as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Group LTIP
163
144
WESOP discount
64
41
Other
6
23
TOTAL
233
208
Worldwide Employee Stock Purchase Plan
Every year, Schneider Electric gives its employees the opportunity to become group shareholders thanks to employee share issues. In
countries that meet legal and fiscal requirements, the classic plan has been proposed to employees. Under the plan, employees may
purchase Schneider Electric shares at a 15% discount to the price quoted for the shares on the stock market. Employees must then hold
their shares for five years, except in certain cases provided for by law.
On April 19, 2024, Schneider Electric gave its employees the opportunity to purchase shares at a price of EUR 179.19 per share, as part of
its commitment to employee share ownership. This represented a 15% discount to the reference price of EUR 210.82 calculated as the
average opening price quoted for the share during the 20 days preceding the Board of Directors decision to launch the employee share
issue. Altogether, 1.4 million shares were subscribed, increasing the capital by EUR 252 million as of July 10, 2024.
As of December 31, 2024, the share-based payment expense recorded in accordance with IFRS 2, measured by reference to the fair value
of the discount amounted to EUR 64 million.
19.5 – Schneider Electric SE treasury shares
On December 31, 2024, the Group held 14,659,991 Schneider Electric shares in treasury stock, which have been recorded as a deduction
from retained earnings.
The Group has repurchased 1,337,391 shares for a total amount of EUR 322 million in 2024.
540
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Chapter 5 – Consolidated financial statements at December 31, 2024
19.6 – Income tax recorded in equity
Total income tax recorded in equity amounts as of December 31, 2024 can be analyzed as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Change in tax
Cash-Flow hedges
31
25
6
Available-for-sale financial assets
(26)
(19)
(7)
Actuarial gains/(losses) on defined benefits obligations
187
169
18
Other
(3)
(3)
–
TOTAL
189
172
17
19.7 – Non-controlling interests
In 2024, the Group finalized the acquisition of ETAP’s non-controlling interests. Lauritz Knudsen, for which the Group holds 65%, is the main
contributor of non-controlling interests.
Note 20: Pensions and other post-employment benefit
obligations
The Group has set up various post-employment benefit plans for employees covering pensions, termination benefits, healthcare, life
insurance and other benefits, as well as long-term benefit plans for active employees.
The benefits offered to each employee depends on local laws and regulations and choices made by the subsidiaries.
Defined Contribution Pension Plans
The Group policy regarding pensions is to propose defined contribution pension plans, including a contribution from the employer. This is
the most common active benefit offered worldwide, including for example 401k in US and PERO in France. The contribution to these plans is
booked as an operating cost and do not translate into any further obligation by the employer.
Defined Benefit Pension Plans
The Group’s main Defined Benefit pension plans are located in the United Kingdom (UK) and the United States (US). They respectively
represent 61% (2023: 62%) and 16% (2023: 17%) of the Group’s total Defined Benefit Obligations (DBO) on pensions. The majority of benefit
obligations under these plans, which represent 90% of the Group’s total commitment on December 31, 2024, are partially or fully funded
through payments to external funds. These funds are never invested in Group assets.
United Kingdom
The Group companies operate several Defined Benefit pension plans in the UK. The main one is related to the Invensys Pension Scheme.
Pensions payable to employees depend on average final salary and length of service within the Group. These plans are registered schemes
under UK tax law and managed by independent Boards of Trustees. They are closed to new entrants, and for most of them, the vested
rights were frozen as they have been replaced by Defined Contributions plans.
These plans are funded by employer contributions, which are negotiated every three years based on plan valuations carried out by
independent actuaries, so that the long-term financing services are ensured.
In relation to risk management and asset allocation, the Board of Trustees’ aims of each plan are to ensure that it can meet its obligations to
the plan’s beneficiaries both in the short and long-term. The Board of Trustees is responsible for the plan’s long-term investment strategy
and defines and manages long-term investment strategies to reduce risks, including interest rate risks and longevity risks. A certain
proportion of assets hedges the liability valuation change resulting from the interest rates evolution. Those assets are primarily invested in
fixed income investments, particularly intermediate and longer-term instruments.
Following the agreement reached with the Trustee of the Invensys Pension Scheme on February 2014, Schneider Electric SE guaranteed all
obligations of the Invensys subsidiaries which participate in the Scheme, up to a maximum amount of GBP 1.75 billion. On December 31,
2024, plan assets exceed the value of obligations subject to this guarantee and thus this guarantee cannot be called.
Schneider Electric UK pension plans liabilities reflect GMP requirements.
5.5 Notes to the consolidated financial statements
541
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
There was a High Court ruling in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others in June 2023, and
subsequent appeal outcome on 25 July 2024, which make void any amendment to the rules of a contracted-out pension scheme without
required actuarial confirmation under Regulation 42(2) of the Occupational Pension Schemes (Contracting Out) Regulations 1996, for the
pension plans in question.
It is not currently possible to reliably estimate if there is any potential impact to the defined benefit obligations of the Pension Schemes
should any such amendments be found to be not in accordance with section 37 of the Pension Schemes Act 1993 requirements.
United States
The United States’ subsidiaries operate several Defined Benefit pension plans. These plans are closed to new entrants, frozen to future
accruals and have been replaced by Defined Contributions plans. Pensions payable to employees depend on the average final salary and
the length of service within the Group.
Each year, the Group companies contribute a certain amount to the Defined Benefit pension plans. This amount is determined actuarially
and is comprised of service costs, administrative expenses and payments toward any existing deficits. Since the plans are closed and
frozen, there is generally no service cost component.
The companies delegate various responsibilities to Pension Committees. These committees define and manage long-term investment
strategies to reduce risks, including interest rate risks and longevity risks. A certain proportion of assets hedges the liability valuation
change, resulting from the interest rates evolution. Those assets are primarily invested in fixed income investments, particularly intermediate
and longer-term instruments.
In October 2022, a contract was purchased from an insurer for USD 518 million covering all current retirees and a portion of non-retirees of
Invensys pension plan. The buy-in contract was purchased using assets from the pension trust and is accounted for at fair value as an
investment of the trust. This transaction resulted in an additional net experience adjustment of USD 24 million recognized in other
comprehensive income in 2022.
Effective in December 2023, the buy-in contract was converted to buy-out contract in conjunction with the plan termination. All liabilities
were transferred to the insurer with no further benefit obligation for the Invensys.
In June 2024, Schneider Electric Pension Plan purchased a Group Annuity Contract from high-quality insurer. As part of the buy-in contract,
lump sums were offered to active and terminated participants, to be paid in December 2024 and February 2025. Lump sums were paid in
December 2024 for a total of USD 106 million and this generated a credit of USD 22 million recognized through settlement in 2024.
Remaining lump sums are expected to be paid in February 2025.
France
The French subsidiaries offer a Retirement Benefit (ICDR) that can be either taken as a lumpsum at retirement or as time off (partial or full)
before retirement is effective.
This benefit is calculated based on salary and years of services in company, according to the collective agreements and there is no funding
requirement.
The French pension reform voted in April 2023 increased progressively the legal retirement age from 62 to 64 years old. The accounting
impacts are not significant on the Group financial statements.
Assumptions
Actuarial valuations are generally performed each year. The assumptions used vary according to the economic conditions prevailing in the
country concerned, as follows:
Group weighted average rate
Of which United Kingdom
Of which United States
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Discount rate
5.11%
4.53%
5.50%
4.58%
5.61%
5.08%
Rate of compensation increases
2.71%
2.76%
3.51%
3.51%
n.a.
n.a.
The discount rate is determined based on the interest rate for investment-grade (AA) corporate bonds or, if a liquid market does not exist,
government bonds with a maturity that matches the duration of the benefit obligation. In the United States, the average discount rate is
determined based on a yield curve for AA and AAA investment-grade corporate bonds.
In the Euro zone, the 2024 discount rate is 3.40% for the main plans.
The rate of compensation increases includes both the salary increase and inflation rate if relevant. Weighted average duration of defined
benefit obligations plans:
Total
Of which United Kingdom
Of which United States
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Weighted average duration in years
9.8
10
9.6
9.7
8.2
9.7
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Chapter 5 – Consolidated financial statements at December 31, 2024
20.1 – Changes in provisions for pensions and other post-employment benefit obligations
Annual changes in obligations, the market value of plan assets and the corresponding assets and provisions recognized in the financial
statements can be analyzed as follows:
(in millions of euros)
Defined benefit
obligations
Plan assets
Asset ceiling
Net liability
Dec. 31, 2022
(6,922)
6,196
(180)
(906)
of which UK
(3,977)
4,339
(140)
222
of which US
(1,663)
1,287
–
(376)
of which France
(312)
66
–
(246)
Service cost
(66)
–
–
(66)
Past service cost
(3)
–
–
(3)
Curtailments and settlements
517
(509)
–
8
Interest cost
(300)
–
(8)
(308)
Interest income
–
254
–
254
Net impact in P&L, (expense)/profit
148
(255)
(8)
(115)
of which UK
(199)
200
(8)
(7)
of which US
(65)
38
–
(27)
of which France
(18)
2
–
(16)
Benefits paid
498
(439)
–
59
Plan participants’ contributions
(6)
6
–
–
Employer contributions
–
257
–
257
Changes in the scope of consolidation
30
(32)
–
(2)
Actuarial gains/(losses) recognized in equity
(185)
50
16
(119)
Translation adjustment
(43)
69
(6)
20
Other changes
(10)
–
–
(10)
Dec. 31, 2023
(6,490)
5,852
(178)
(816)
of which UK
(4,018)
4,351
(130)
203
of which US
(1,122)
937
–
(185)
of which France
(353)
65
–
(288)
Service cost
(67)
–
–
(67)
Past service cost
(3)
–
–
(3)
Curtailments and settlements
125
(99)
–
26
Interest cost
(283)
–
(7)
(290)
Interest income
–
246
–
246
Net impact in P&L, (expense)/profit
(228)
147
(7)
(88)
of which UK
(187)
187
(7)
(7)
of which US
(34)
42
–
8
of which France
(18)
2
–
(16)
Benefits paid
508
(431)
–
77
Plan participants’ contributions
(6)
6
–
–
Employer contributions
–
80
–
80
Changes in the scope of consolidation
11
–
–
11
Actuarial gains/(losses) recognized in equity
223
(295)
33
(39)
Translation adjustment
(304)
309
(4)
1
Other changes
(1)
–
–
(1)
Dec. 31, 2024
(6,287)
5,668
(156)
(775)
of which UK
(3,846)
4,219
(99)
274
of which US
(997)
835
–
(162)
of which France
(359)
59
–
(300)
The Group defined benefit obligations of EUR 6,287 million (2023: EUR 6,490 million) are broken down as EUR 6,067 million (2023: EUR
6,246 million) for post-employment benefits and EUR 220 million (2023: EUR 244 million) for other post-employment and long-term benefits.
The post-employment benefits are broken down between EUR 5,493 million for pension of which 95% are funded, and EUR 574 million for
lump sum benefits of which 71% are funded.
5.5 Notes to the consolidated financial statements
543
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
The total present value of Defined Benefit Obligations breaks down as follows between wholly or partly funded plans and wholly unfunded
plans:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Present value of wholly or partly funded benefit obligation
(5,643)
(5,882)
Fair value on plan assets
5,668
5,852
Effect of assets ceiling
(156)
(178)
Net position of wholly or partly funded benefit obligation
(131)
(208)
Present value of wholly or partly unfunded benefit obligation
(644)
(608)
NET LIABILITY FROM FUNDED AND UNFUNDED PLANS
(775)
(816)
Balance Sheet impact:
surplus of plans recognized as assets*
323
253
provisions recognized as liabilities
(1,098)
(1,069)
* The surplus of plans recognized as assets represents the assets in excess of the liabilities, generally assumed to be recoverable, and after applying any asset ceiling
Changes in gross items recognized in equity were as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Actuarial (gains)/losses on Defined Benefit Obligations arising from demographic assumptions
61
(40)
Actuarial (gains)/losses on Defined Benefit Obligations arising from financial assumptions
(319)
160
Actuarial (gains)/losses on Defined Benefit Obligations from experience effects
35
66
Actuarial (gains)/losses on plan assets
295
(50)
Effect of asset ceiling
(33)
(17)
TOTAL RECOGNIZED IN EQUITY DURING THE YEAR
39
119
of which UK
11
(47)
of which US
12
1
The table below shows the expected timing of benefit payments under pension and other post-employment benefit plans for the next 3 years:
(in millions of euros)
United Kingdom
United States
Rest of the World
Total
2025
323
84
89
496
2026
314
40
74
428
2027
310
39
64
413
Plans asset allocation:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Equity
3%
8%
Bonds
71%
79%
Others
26%
13%
TOTAL
100%
100%
20.2 – Sensitivity analysis
The effect of a ± 0.5% change in the discount rate and in the rate of compensation increases on the 2024 Defined Benefit Obligations is as
follows:
United Kingdom
United States
Rest of the World
Total
(in millions of euros)
+0.5%
-0.5%
+0.5%
-0.5%
+0.5%
-0.5%
+0.5%
-0.5%
Discount rate
(172)
188
(37)
40
(73)
74
(282)
302
Rate of compensation increases
73
(70)
–
–
39
(35)
112
(105)
544
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Chapter 5 – Consolidated financial statements at December 31, 2024
Note 21: Provisions for contingencies and charges
(in millions of euros)
Economic
risks
Customer
risks
Products
risks
Environmental
risks
Restructuring
Other
risks
Provisions
Dec. 31, 2022
206
149
684
319
171
501
2,030
of which long-term portion
130
97
155
278
8
326
994
Additions
59
43
305
39
92
255
793
Utilizations
(49)
(68)
(219)
(45)
(82)
(241)
(704)
Reversals of surplus provisions
–
(2)
(24)
–
(4)
(28)
(58)
Translation adjustments
(7)
(5)
(25)
(10)
(2)
(17)
(66)
Changes in the scope of consolidation and other
–
2
6
(6)
(6)
29
25
Dec. 31, 2023
209
119
727
297
169
499
2,020
of which long-term portion
124
61
194
256
16
308
959
Additions
35
26
165
9
51
314
600
Utilizations
(21)
(25)
(146)
(24)
(68)
(151)
(435)
Reversals of surplus provisions
–
(1)
(52)
(14)
(4)
(12)
(83)
Translation adjustments
5
5
15
14
1
22
62
Changes in the scope of consolidation and other
(3)
–
18
8
(5)
121
139
Dec. 31, 2024
225
124
727
290
144
793
2,303
of which long-term portion
144
64
208
243
16
576
1,251
Provisions are recognized following the principles described in Note 1.21.
Reconciliation with cash flow statement:
(in millions of euros)
Full Year 2024
Full Year 2023
Increase of provision
600
793
Utilization of provision
(435)
(704)
Reversal of surplus provision
(83)
(58)
Provision variance excluding employee benefit obligation
82
31
Employee benefit obligation net variance contribution to plan assets
11
56
INCREASE/(DECREASE) IN PROVISIONS IN CASH-FLOW STATEMENT
93
87
Note 22: Current and non-current financial liabilities
The breakdown of net debt is as follows:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Bonds
12,650
10,843
Other bank borrowings
1,840
1,793
Short-term portion of bonds
(1,800)
(999)
Short-term portion of long-term debt
(1,780)
(45)
NON-CURRENT FINANCIAL LIABILITIES
10,910
11,592
Commercial paper
70
1,018
Accrued interest
139
109
Other short-term borrowings
57
128
Bank overdrafts
75
42
Short-term portion of convertible and non-convertible bonds
1,800
999
Short-term portion of long-term debt
1,780
45
SHORT-TERM DEBT
3,921
2,341
TOTAL CURRENT AND NON-CURRENT FINANCIAL LIABILITIES
14,831
13,933
CASH AND CASH EQUIVALENTS
(6,887)
(4,696)
NET FINANCIAL DEBT excl. purchase commitments over non-controlling interests
7,944
9,237
Non-current purchase commitments over non-controlling interests
19
50
Current purchase commitments over non-controlling interests
184
80
NET FINANCIAL DEBT incl. purchase commitments over non-controlling interests
8,147
9,367
In January 2023, the Group had drawn 1,700 million under the Term loan facility set up to fund the acquisition of the minority interest of
AVEVA. This term loan matures in October 2025. As of December 31, 2024, the amount used remains unchanged at 1,700 million at a rate of
Euribor increased by a 0.525% margin and is presented in the current financial liabilities.
5.5 Notes to the consolidated financial statements
545
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Life Is On | Schneider Electric
F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
22.1 – Breakdown by maturity
Dec. 31, 2024
Dec. 31, 2023
(in millions of euros)
Carrying amount
Interests
Carrying amount
2024
–
–
2,341
2025
3,921
326
3,503
2026
748
258
1,398
2027
1,750
241
1,747
2028
1,269
201
1,268
2029
1,391
187
1,390
2030
1,337
164
582
2031 and beyond
4,415
407
1,704
TOTAL
14,831
1,784
13,933
22.2 – Breakdown by currency
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Euro
14,655
13,723
Brazilian Real
59
63
Turkish Lira
33
16
Indian Rupee
27
74
US Dollar
22
8
Algerian Dinar
14
14
Other
21
35
TOTAL
14,831
13,933
22.3 – Bonds
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Interest rate
Maturity
Schneider Electric SE 2024
–
999
0.250% fixed
September 2024
Schneider Electric SE 2025
750
749
0.875% fixed
March 2025
Schneider Electric SE 2025
750
751
3.375% fixed
April 2025
Schneider Electric SE 2025
300
300
1.841% fixed
October 2025
Schneider Electric SE 2026 (OCEANEs)
–
650
0.000% fixed
June 2026
Schneider Electric SE 2026
748
747
0.875% fixed
December 2026
Schneider Electric SE 2027
499
498
1.000% fixed
April 2027
Schneider Electric SE 2027
747
746
1.375% fixed
June 2027
Schneider Electric SE 2027
499
499
3.250% fixed
November 2027
Schneider Electric SE 2028
754
755
1.500% fixed
January 2028
Schneider Electric SE 2028
497
496
3.250% fixed
June 2028
Schneider Electric SE 2029
796
795
0.250% fixed
March 2029
Schneider Electric SE 2029
595
594
3.125% fixed
October 2029
Schneider Electric SE 2030
744
–
3.000% fixed
September 2030
Schneider Electric SE 2030 (OCEANEs)
592
582
1.970% fixed
November 2030
Schneider Electric SE 2031
597
–
3.000% fixed
January 2031
Schneider Electric SE 2031 (OCEANEs)
666
–
1.625% fixed
June 2031
Schneider Electric SE 2032
595
595
3.500% fixed
November 2032
Schneider Electric SE 2033
495
495
3.500% fixed
June 2033
Schneider Electric SE 2034
592
592
3.375% fixed
April 2034
Schneider Electric SE 2035
690
–
3.250% fixed
October 2035
Schneider Electric SE 2036
744
–
3.375% fixed
September 2036
TOTAL
12,650
10,843
546
Schneider Electric | Universal Registration Document 2024
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Chapter 5 – Consolidated financial statements at December 31, 2024
Euro Medium Term Notes program
As part of its Euro Medium Term Notes (EMTN) program, Schneider Electric has issued bonds admitted to trading on Euronext Paris. Issues
that had not yet matured as of December 31, 2024 are as follow:
• EUR 750 million worth of bonds issued in March 2015, at a rate of 0.875%, maturing in March 2025;
• EUR 750 million worth of bonds issued in April 2023, at a rate of 3.375%, maturing in April 2025;
• EUR 200 million and EUR 100 million worth of Climate bonds issued successively in October and December 2015, at a rate of 1.841%,
maturing in October 2025;
• EUR 750 million worth of bonds issued in December 2017, at a rate of 0.875%, maturing in December 2026;
• EUR 500 million worth of bonds issued in April 2020, at a rate of 1.00%, maturing in April 2027;
• EUR 750 million worth of bonds issued in June 2018, at a rate of 1.375%, maturing in June 2027;
• EUR 500 million worth of bonds issued in November 2022, at a rate of 3.25%, maturing in November 2027;
• EUR 500 million worth of bonds issued in January 2019 and EUR 250 million worth of bonds issued in May 2019, at a rate of 1.50%,
maturing in January 2028;
• EUR 500 million worth of bonds issued in June 2023, at a rate of 3.25%, maturing in June 2028;
• EUR 800 million worth of bonds issued in March 2020, at a rate of 0.25%, maturing in March 2029;
• EUR 600 million worth of bonds issued in January 2023, at a rate of 3.125%, maturing in October 2029;
• EUR 750 million worth of bonds issued in September 2024, at a rate of 3.00%, maturing in September 2030;
• EUR 600 million worth of bonds issued in January 2024, at a rate of 3.00%, maturing in January 2031;
• EUR 600 million worth of bonds issued in November 2022, at a rate of 3.50%, maturing in November 2032;
• EUR 500 million worth of bonds issued in June 2023, at a rate of 3.50%, maturing in June 2033;
• EUR 600 million worth of bonds issued in January 2023, at a rate of 3.375%, maturing in April 2034;
• EUR 700 million worth of bonds issued in January 2024, at a rate of 3.25%, maturing in October 2035;
• EUR 750 million worth of bonds issued in September 2024, at a rate of 3.375%, maturing in September 2036.
OCEANE due 2026
In November 2020, the Group issued sustainabilty-linked bonds convertible into new shares and/or exchangeable for existing shares
(OCEANEs) for EUR 650 million at a rate of 0.00%, maturing in June 2026.
On June 25, 2024, the Group launched a repurchase of its outstanding OCEANEs due 2026 by way of a reverse book building process. The
final repurchase price was set at EUR 230.81 per 2026 OCEANE, representing a total consideration of approximately EUR 532.7 million for
an aggregate principal amount of approximately EUR 407.2 million, representing approximately 97% of the 2026 OCEANEs outstanding.
The 2026 OCEANEs accepted in the repurchase were cancelled in accordance with their terms and conditions.
The settlement of the repurchase which took place in July 2024 led to a financial income gain of EUR 25 million and to a EUR 150 million
deduction from equity.
The remaining outstanding OCEANEs due in June 2026 were early repaid on December 13, 2024 at par value, i.e. EUR 176.44 per 2026
OCEANE.
OCEANE due 2030
In 2023, the Group issued OCEANEs for EUR 650 million at a rate of 1.97%, maturing in November 2030. At end of December 2024, the
debt component recorded at net book value amounts to EUR 592 million and the optional component to EUR 66 million. The initial
conversion and/or exchange ratio of the Bonds was 426.66 shares per bond with a nominal value set at EUR 100,000.00 corresponding to
EUR 234.38 per share and has been adjusted to 433.06 shares per bond in May 2024.
OCEANE due 2031
Concurrently with the repurchase of the OCEANE due 2026, the Group issued on June 25, 2024, bonds convertible into new shares and/or
exchangeable for existing shares (OCEANEs) for EUR 750 million at a rate of 1.625%, maturing in June 2031. The OCEANE has a debt
com- ponent, assessed on inception date on the basis of the market interest rate applied to an equivalent non-convertible bond, and
recognized in non-current financial debts and an optional component recognized in equity. At end of December 2024, the debt component
recorded at net book value amounts to EUR 666 million and the optional component to EUR 84 million. The initial conversion and/or
exchange ratio of the Bonds was 321.48 shares per bond with a nominal value set at EUR 100,000 corresponding to EUR 311.07 per share.
For all those transactions, issue premium and issue costs are amortized per the effective interest rate method.
22.4 – Cash flow statement impact
Non-cash variations
(in millions of euros)
Dec. 31, 2023
Cash variations
Scope impacts
Equity impacts
Forex
and others
Dec. 31, 2024
Bonds
10,843
2,016
–
(176)
(33)
12,650
Other borrowings
3,048
(945)
–
–
3
2,106
Bank overdrafts
42
32
–
–
1
75
TOTAL CURRENT AND NON- CURRENT
FINANCIAL LIABILITIES
13,933
1,103
–
(176)
(29)
14,831
5.5 Notes to the consolidated financial statements
547
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Life Is On | Schneider Electric
F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
22.5 – Purchase commitments over non-controlling interests
(in millions of euros)
Maturity
Dec. 31, 2024
Dec. 31, 2023
Current portion
184
80
Non-current portion
2026
19
50
TOTAL PURCHASE COMMITMENTS OVER NON-CONTROLLING INTEREST
203
130
In 2024, purchase commitments over non-controlling interests relate to Planon and Qmerit.
In 2023, purchase commitments over non-controlling interests mainly related to ETAP, Qmerit and EnergySage.
Note 23: Classification of financial instruments
The Group uses financial instruments to manage its exposure to fluctuations in interest rates, exchange rates and metal prices.
Financial assets and liabilities can be classified at the fair value following the hierarchy levels below:
1. Level 1: market value (non-adjusted) on active markets, for similar assets and liabilities, which the company can obtain on a given
valuation date;
2. Level 2: data other than the market rate available for level 1, which are directly or indirectly observable on the market;
3. Level 3: data on the asset or liability that are not observable on the market.
23.1 – Balance sheet exposure and fair value hierarchy
Dec. 31, 2024
(in millions of euros)
Carrying amount
Fair value
through P&L
Fair value
through equity
Financial assets/
liabilities
measured at
amortized cost
Fair value
Fair value
hierachy
ASSETS:
Listed financial assets
15
15
–
–
15
Level 1
Venture capital (FCPR)/mutual funds
(SICAV)
127
127
–
–
127
Level 3
Other unlisted financial assets
617
103
514
–
617
Level 3
Other non-current financial assets
842
–
323
519
842
Level 2
TOTAL NON-CURRENT ASSETS
1,601
245
837
519
1,601
Trade accounts receivables
9,364
–
–
9,364
9,364
Level 2
Marketable securities
3,978
3,978
–
–
3,978
Level 1
Negotiable debt securities and short-term
deposits
1,027
1,027
–
–
1,027
Level 2
Cash
1,882
1,882
–
–
1,882
Level 2
Derivative instruments – foreign currencies
80
64
16
–
80
Level 2
Derivative instruments – interest rates
50
50
–
–
50
Level 2
Derivative instruments – commodities
1
–
1
–
1
Level 2
TOTAL CURRENT ASSETS
16,382
7,001
17
9,364
16,382
LIABILITIES:
Long-term portions of non-convertible
bonds*
(9,592)
–
–
(9,592)
(9,599)
Level 1
Long-term portions of convertible bonds*
(1,258)
–
–
(1,258)
(1,313)
Level 2
Non-current purchase commitments over
non- controlling interests
(19)
–
(19)
–
(19)
Level 2
Other long-term debt
(60)
–
–
(60)
(60)
Level 2
TOTAL NON-CURRENT LIABILITIES
(10,929)
–
(19)
(10,910)
(10,991)
Short-term portion of bonds*
(1,800)
–
–
(1,800)
(1,796)
Level 1
Short-term debt
(2,121)
–
–
(2,121)
(2,121)
Level 2
Trade accounts payable
(8,893)
–
–
(8,893)
(8,893)
Level 2
Current purchase commitments over
noncontrolling interests
(184)
–
(184)
–
(184)
Level 2
Other
(106)
–
–
(106)
(106)
Level 2
Derivative instruments – foreign currencies
(112)
(33)
(79)
–
(112)
Level 2
Derivative instruments – interest rates
–
–
–
–
–
Level 2
Derivative instruments – commodities
(27)
(4)
(23)
–
(27)
Level 2
TOTAL CURRENT LIABILITIES
(13,243)
(37)
(286)
(12,920)
(13,239)
*
The majority of financial instruments listed in the balance sheet have a fair value close to their book value, except for bonds, for which the amortized cost in the balance
sheet represents EUR 12,650 million compared to EUR 12,708 million at fair value.
548
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Chapter 5 – Consolidated financial statements at December 31, 2024
Dec. 31, 2023
(in millions of euros)
Carrying amount
Fair value
through P&L
Fair value
through equity
Financial assets/
liabilities
measured at
amortized cost
Fair value
Fair value
hierachy
ASSETS:
Listed financial assets
15
15
–
–
15
Level 1
Venture capital (FCPR)/mutual funds (SICAV)
132
132
–
–
132
Level 3
Other unlisted financial assets
554
94
460
–
554
Level 3
Other non-current financial assets
544
–
253
291
544
Level 2
TOTAL NON-CURRENT ASSETS
1,245
241
713
291
1,245
Trade accounts receivables
8,388
–
–
8,388
8,388
Level 2
Marketable securities
2,024
2,024
–
–
2,024
Level 1
Negotiable debt securities and short-term
deposits
588
588
–
–
588
Level 2
Cash
2,084
2,084
–
–
2,084
Level 2
Derivative instruments – foreign currencies
73
42
31
–
73
Level 2
Derivative instruments – interest rates
44
44
–
–
44
Level 2
Derivative instruments – commodities
4
–
4
–
4
Level 2
TOTAL CURRENT ASSETS
13,205
4,782
35
8,388
13,205
LIABILITIES:
–
Long-term portions of non-convertible bonds*
(8,612)
–
–
(8,612)
(8,488)
Level 1
Long-term portions of convertible bonds*
(1,232)
–
–
(1,232)
(1,218)
Level 2
Non-current purchase commitments over
non-controlling interests
(50)
–
(50)
–
(50)
Level 2
Other long-term debt
(1,748)
–
–
(1,748)
(1,748)
Level 2
TOTAL NON-CURRENT LIABILITIES
(11,642)
–
(50)
(11,592)
(11,504)
Short-term portion of bonds*
(999)
–
–
(999)
(977)
Level 1
Short-term debt
(1,342)
–
–
(1,342)
(1,342)
Level 2
Trade accounts payable
(7,596)
–
–
(7,596)
(7,596)
Level 2
Current purchase commitments over
non-controlling interests
(80)
–
(80)
–
(80)
Level 2
Other
(100)
–
–
(100)
(100)
Level 2
Derivative instruments – foreign currencies
(48)
(48)
–
–
(48)
Level 2
Derivative instruments – interest rates
–
–
–
–
–
Level 2
Derivative instruments – commodities
(1)
–
(1)
–
(1)
Level 2
TOTAL CURRENT LIABILITIES
(10,166)
(48)
(81)
(10,037)
(10,144)
*
The majority of financial instruments listed in the balance sheet have a fair value close to their book value, except for bonds, for which the amortized cost in the balance
sheet represents EUR 10,843 million compared to EUR 10,683 million at fair value.
23.2 – Derivative instruments
Dec. 31, 2024
(in millions of euros)
Accounting
qualification
Maturity
Nominal
sales
Nominal
purchases
Fair value
Carrying
amount in
assets
Carrying
amount in
liabilities
Of which
carrying
amounts in
OCI
Forwards contracts
CFH
< 1 year
611
(466)
(11)
16
(27)
(11)
Forwards contracts
CFH
< 2 years
39
(42)
–
1
(1)
–
Forwards contracts
CFH
> 2 years
2
–
–
–
–
–
Forwards contracts
FVH
< 1 year
2,647
(1,790)
19
48
(29)
(2)
Forwards contracts
NIH
< 1 year
719
–
(28)
–
(28)
(28)
Forwards contracts
Trading
< 1 year
877
(4,920)
10
15
(5)
–
Cross currency swaps
CFH
< 1 year
69
–
–
–
–
–
Cross currency swaps
NIH
> 2 years
529
–
(22)
–
(22)
(22)
TOTAL FOREIGN CHANGE
DERIVATIVES
5,493
(7,218)
(32)
80
(112)
(63)
Forwards contracts
CFH
< 1 year
–
(423)
(22)
1
(23)
(22)
Forwards contracts
Trading
> 2 years
–
–
(4)
–
(4)
–
Commodities derivatives
–
(423)
(26)
1
(27)
(22)
Interest Rate Swap
FVH
> 2 years
1,050
(1,050)
50
50
–
–
Interest Rate Derivatives
1,050
(1,050)
50
50
–
–
TOTAL
6,543
(8,691)
(8)
131
(139)
(85)
5.5 Notes to the consolidated financial statements
549
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Dec. 31, 2023
(in millions of euros)
Accounting
qualification
Maturity
Nominal
sales
Nominal
purchases
Fair value
Carrying
amount in
assets
Carrying
amount in
liabilities
Of which
carrying
amounts in
OCI
Forwards contracts
CFH
< 1 year
483
(296)
3
10
(7)
2
Forwards contracts
CFH
< 2 years
69
(30)
–
1
(1)
–
Forwards contracts
CFH
> 2 years
3
(7)
–
–
–
–
Forwards contracts
FVH
< 1 year
1,755
(1,659)
1
18
(17)
–
Forwards contracts
FVH
< 2 years
550
–
17
17
–
8
Forwards contracts
NIH
< 1 year
714
–
12
12
–
12
Forwards contracts
Trading
< 1 year
990
(3,944)
(17)
5
(22)
–
Cross currency swaps
CFH
< 1 year
65
(18)
(1)
–
(1)
(1)
Cross currency swaps
NIH
< 1 year
502
–
10
10
–
10
TOTAL FX DERIVATIVES
5,131
(5,954)
25
73
(48)
31
Forwards contracts
CFH
< 1 year
–
(409)
3
4
(1)
3
Commodities derivatives
–
(409)
3
4
(1)
3
Interest Rate Swap
FVH
> 2 years
1,050
(1,050)
44
44
–
–
Interest Rate Derivatives
1,050
(1,050)
44
44
–
–
TOTAL
6,181
(7,413)
72
121
(49)
34
23.3 – Foreign currency hedges
Since a significant proportion of affiliates’ transactions are denominated in currencies other than the affiliate’s functional currency, the Group is
exposed to currency risks. If the Group is not able to hedge these risks, fluctuations in exchange rates between the functional currency and
other currencies can have a significant impact on its results and distort year-on-year performance comparisons. As a result, the Group uses
derivative instruments to hedge its exposure to exchange rates mainly through FX forwards and natural hedges. Furthermore, some long-term
loans and borrowings granted to the affiliates are considered as net investment in foreign operations according to IAS 21.
Schneider Electric’s currency hedging policy is to protect its subsidiaries against risks on transactions denominated in a currency other than
their functional currency. Hedging approaches are detailed in Note 1.23.
The breakdown of the nominal of foreign change derivatives related to operating and financing activities is as follows:
Dec. 31, 2024
(in millions of euros)
Sales
Purchases
Net
US Dollar
2,234
(3,021)
(787)
Chinese Yuan
71
(765)
(694)
British Pound
1,381
(1,124)
257
Singapore Dollar
474
(673)
(199)
Japanese Yen
8
(139)
(131)
Hong Kong Dollar
38
(133)
(95)
UAE Dirham
69
(153)
(84)
Swiss Franc
17
(101)
(84)
Brazilian real
147
(69)
78
Swedish Crown
77
(147)
(70)
Danish Crown
21
(72)
(51)
Saudi Riyal
28
(74)
(46)
South African Rand
45
(7)
38
Norwegian Krone
130
(159)
(29)
Australian Dollar
41
(78)
(37)
Canadian Dollar
1
(15)
(14)
Others
711
(488)
223
TOTAL
5,493
(7,218)
(1,725)
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Chapter 5 – Consolidated financial statements at December 31, 2024
23.4 – Interest rate hedges
Interest rate risk on borrowings is managed at the Group level, based on consolidated debt and taking into consideration market conditions to
optimize overall borrowing costs. The Group uses derivative instruments to hedge its exposure to interest rates through swaps or cross-
currency swaps. Cross-currency swaps may be presented both as foreign exchange hedges and interest rate hedges depending on the
characteristics of the derivative.
During the fiscal year 2024, the Group did no set up new interest rate swaps.
Dec. 31, 2024
Dec. 31, 2023
(in millions of euros)
Fixed Rates
Floating rates
Total
Fixed Rates
Floating rates
Total
Total current and non-current financial liabilities
12,650
2,181
14,831
10,843
3,090
13,933
Cash and cash equivalent
–
(6,887)
(6,887)
–
(4,696)
(4,696)
NET DEBT BEFORE HEDGING
12,650
(4,706)
7,944
10,843
(1,606)
9,237
Impact of Hedges
(1,050)
1,050
–
(1,050)
1,050
–
NET DEBT AFTER HEDGING
11,600
(3,656)
7,944
9,793
(556)
9,237
23.5 – Commodity hedges
The Group is exposed to fluctuations in energy and raw material prices, in particular steel, copper, aluminum, silver, lead, nickel, zinc and
plastics. If the Group is not able to hedge, compensate for or pass on to customers any such increased costs, this could have an adverse
impact on its results. The Group has, however, implemented certain procedures to limit exposure to rising non-ferrous and precious raw
material prices. The Purchasing departments of the operating units report their purchasing forecasts to the Corporate Finance and Treasury
department. Purchase commitments are hedged using forward contracts, swaps and, to a lesser extent, options.
All commodities instruments are futures and options designated as cash flow hedge under IFRS standards, of which:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Fair value
(26)
3
Nominal amount
(423)
(409)
23.6 – Financial assets and liabilities subject to netting
In accordance with IFRS 7 standards, this section discloses financial instruments that are subject to netting agreements.
Dec. 31, 2024
(in millions of euros)
Gross
amounts
Gross amounts
offset in the
statement of
financial position
Net amounts
presented in the
statement of
financial position
Related amounts
not offset in the
statement of
financial position
Net amounts as
per IFRS 7
Financial assets
131
–
131
(73)
58
Financial liabilities
(139)
–
(139)
73
(66)
Dec. 31, 2023
(in millions of euros)
Gross
amounts
Gross amounts
offset in the
statement of
financial position
Net amounts
presented in the
statement of
financial position
Related amounts
not offset in the
statement of
financial position
Net amounts as
per IFRS 7
Financial assets
121
–
121
(40)
81
Financial liabilities
(49)
–
(49)
40
(9)
The Group trades over-the-counter derivatives with tier-one banks under agreements which provide for the offsetting of amounts payable and
receivable in the event of default by one of the contracting parties. These conditional offsetting agreements do not meet the eligibility criteria
within the meaning of IAS 32 for offsetting derivative instruments recorded under assets and liabilities. However, they do fall within the scope of
disclosures under IFRS 7 on offsetting.
23.7 – Counterparty risk
Financial transactions are entered with carefully selected counterparties. Banking counterparties are chosen according to the customary
criteria, including the credit rating issued by an independent rating agency.
Group policy consists of diversifying counterparty risks and periodic controls are performed to check compliance with the related rules.
In addition, the Group takes out substantial credit insurance and uses other types of guarantees to limit the risk of losses on trade
accounts receivable.
5.5 Notes to the consolidated financial statements
551
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
23.8 – Liquidity risk
As of December 31, 2024, the Group had confirmed credit lines of EUR 2,950 million, all unused with EUR 2,950 million maturing after
December 2025. Among them, EUR 2,700 million are sustainable-linked credit line with margin indexed on the annual performance of the
Schneider Sustainability Impact (SSI).
With EUR 3.0 billion available committed facility and EUR 6.9 billion cash & cash equivalent, the liquidity of the Group amounts to EUR 9.9
billion end of the year. In the next 12 months, the total short-term debt and bond maturity amounts to EUR 3.9 billion.
Loan Agreement and committed credit lines do not include any financial covenants or credit rating triggers in case of rating downgrade.
23.9 – Financial risk management
Foreign currency risk arises from the Group undertaking a significant number of foreign currency transactions in the course of operations.
These exposures arise from sales in currencies other than the Group’s presentational currency of Euro.
The main exposure of the Group in terms of currency exchange risk is related to the US dollar, Chinese Yuan and currencies linked to the US
dollar. In 2024, revenue in foreign currencies amounted to EUR 31.1 billion (EUR 29.2 billion in 2023), including around EUR 13.3 billion in US
dollars and EUR 4.4 billion in Chinese yuan (respectively EUR 11.2 and EUR 4.5 billion in 2023).
The Group manages its exposure to currency risk to reduce the sensitivity of earnings to changes in exchange rates. The financial instruments
used to hedge the Group’s exposure to fluctuations in exchange rates are described above.
The table below shows the impact of a 10% change in the US dollar and the Chinese Yuan against the Euro on Revenue and Adjusted EBITA.
It includes the impact from the translation of financial statements into the Group’s presentation currency and assumes no scope impact.
Dec. 31, 2024
(in millions of euros)
Increase/
(decrease) in
average rate
Revenue
Adj. EBITA
US Dollar
10%
1,327
281
(10)%
(1,206)
(255)
Chinese Yuan
10%
435
113
(10)%
(396)
(103)
Dec. 31, 2023
(in millions of euros)
Increase/
(decrease) in
average rate
Revenue
Adj. EBITA
US Dollar
10%
1,122
212
(10)%
(1,020)
(193)
Chinese Yuan
10%
454
122
(10)%
(413)
(111)
23.10 – Supplier Financing
The Group has set up supplier financing programs in several countries. The total amount of discounted payables as of December 31, 2024,
amounts to EUR 110 million, and is not considered material. In addition, payment terms remain in line with payment practices in those countries.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Note 24: Employees
24.1 – Employees
The Group average number of permanent and temporary employees is as follows:
(in millions of euros)
Full Year 2024
Full Year 2023
Production
92,074
86,482
Administration
84,888
81,562
TOTAL AVERAGE WORKFORCE*
176,962
168,044
of which Western Europe
43,821
42,927
of which North America
45,432
41,145
of which Asia-Pacific
65,767
61,946
of which Rest of the world
21,942
22,026
*The total average workforce includes non-employee interim workers for 18,809 in 2024 and 16,764 in 2023.
24.2 – Employee benefit expense
(in millions of euros)
Full Year 2024
Full Year 2023
Payroll costs
(10,481)
(9,925)
Share-based payments
(233)
(208)
EMPLOYEE BENEFITS EXPENSE
(10,714)
(10,133)
24.3 – Benefits granted to key management personnel
In 2024, the Group granted EUR 2.7 million in attendance fees to the members of its Board of directors.
Gross compensation, including benefits in kind, allocated in 2024 by Group companies to the chairman, totaled EUR 1.0 million.
Gross compensation, including benefits in kind, allocated by Group companies in 2024 to the Corporate Officer, amounted to EUR 6.2
million, including EUR 1.4 million in variable compensation and EUR 3.4 million severance indemnity allocated in the 2024 fiscal year.
Gross compensation, including benefits in kind, allocated by Group companies in 2024 to the members of Group Senior Management other
than the Corporate Officer, amounted to EUR 39.7 million, including EUR 11.1 million in variable compensation allocated in the 2024 fiscal
year.
During the last three financial years, 560,487 performance shares have been allocated to key management personnel (Chairman, Corpo-
rate officer and Other Members of Group Senior Management). No stock options have been granted during the last three financial years. In
2024, performance shares were allocated under the 2024 long-term incentive plans 44, 45 and 44bis. Since December 16, 2011, 100% of
performance shares are conditional on the achievement of performance criteria for members of the Executive Committee.
Note 25: Related party transactions
25.1 – Transactions with associates
Companies over which the Group has significant influence are accounted through the equity method. Transactions with these related
parties are carried out on arm’s length terms.
Related party transactions were not material in 2024.
25.2 – Transactions with key management personnel
No transactions were carried out during the year with members of the supervisory board or management board. Compensation and
benefits paid to the Group’s top senior executives are described in Note 24.
5.5 Notes to the consolidated financial statements
553
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Note 26: Commitments and contingent liabilities
26.1 – Guarantees and similar undertakings
The following table discloses the maximum exposure on guarantees given and received:
(in millions of euros)
Dec. 31, 2024
Dec. 31, 2023
Market counter guarantees*
1,571
1,481
Pledges, mortgages and sureties**
131
207
Invensys Pension Scheme guarantees
2,111
2,070
Other commitments given
472
411
GUARANTEES GIVEN
4,285
4,169
Endorsements and guarantees received
233
168
GUARANTEES RECEIVED
233
168
*
On certain contracts, customers require some commitments to guarantee that the contract will be fully executed by the subsidiaries of the Group. The risk linked to the
commitment is assessed and a provision for contingencies is recorded when the risk is considered probable and can be reasonably estimated. Market counter
guarantees also include the guaranteed obligations towards pension schemes.
** Some loans are secured by property, plant and equipment and securities lodged as collateral.
26.2 – Contingent liabilities
As previously disclosed, investigations were conducted in September 2018 by the French judicial authority and French Competition Au-
thority (Autorité de la concurrence) at Schneider Electric’s head office and other premises concerning the sale of electrical products
through commercial distribution activities in France.
• After 6 years of procedure, the French Competition Authority issued on October 29, 2024 a decision to sanction several companies
concerning the electrical distribution activities in France, including Schneider Electric for a EUR 207 million penalty considering that the
pricing autonomy of some distributors in the French market had been limited by Schneider Electric, in breach of competition rules. This
fine will be paid in 2025.
• Schneider Electric strongly disagrees with the conclusion of the French Competition Authority and has appealed the decision in front of
the Paris Appeal Court.
• Considering the difficulty to assess the extent to which the Appeal Court will consider the arguments of Schneider Electric in its defense,
the Group has booked, as of December 31, 2024, a provision of EUR 104 million in “Other operating income and expenses”.
• Concurrently on October 7, 2022, Schneider Electric was indicted by an investigating judge who required Schneider Electric to provide a
bank guarantee of EUR 20 million (which validity has now expired) and a cash guarantee of EUR 80 million. Schneider Electric officially
contested the indictment decision and raised numerous arguments in law and fact. Procedure is ongoing.
Schneider Electric rejects any allegation that its distribution practices are not compliant with competition rules. Schneider Electric com-
mercial policy is designed to comply with all regulations. Schneider Electric has always cooperated with the authorities and intends to
continue to do so.
Schneider Electric has other contingent liabilities relating to legal, arbitration or regulatory proceedings arising in the normal course of its
business. Known or ongoing claims and litigation involving the Group, or its subsidiaries were reviewed at the date on which the
consolidated financial statements were approved for issue. Based on the advice of legal counsel, all provisions deemed necessary have
been made to cover the related risks.
Note 27: Subsequent events
No significant subsequent events occurred between December 31, 2024 and February 19, 2025, the date at which the consolidated
financial statements were authorized for issue by the Board of Directors.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Note 28: Statutory Auditors’ fees
Fees paid by the Group to the Statutory Auditors and their networks:
Full Year 2024
(in millions of euros)
PwC
%
Forvis
Mazars
%
Total
Statutory auditors, certification, examination of the parent
company and consolidated accounts
13,187
78%
10,555
92%
23,742
o/w Schneider Electric SE
1,651
1,132
2,783
o/w subsidiaries
11,536
9,423
20,959
Limited assurance procedures on CSRD
1,103
7%
473
4%
1,576
Services other than statutory audit – Audit-related services
(“SACC”)*
2,594
15%
503
4%
3,097
o/w Schneider Electric SE
1,365
27
1,392
o/w subsidiaries
1,229
476
1,705
TOTAL FEES
16,884
100%
11,531
100%
28,415
*
Audit related services include services required by regulations and those provided at the request of the parent company or controlled entities, in particular: the review
of environmental, social and societal information, contractual audits, comfort letters, audit certificates, agreed procedures, audits of procedures and information
systems, and tax services that do not impair auditor independence.
Full Year 2023
(in millions of euros)
PwC
%
Forvis
Mazars
%
Total
Statutory auditors, certification, examination of the parent
company and consolidated accounts
11,956
88%
9,886
97%
21,842
o/w Schneider Electric SE
1,506
942
2,448
o/w subsidiaries
10,450
8,944
19,394
Services other than statutory audit – Audit-related services
(“SACC”)*
1,681
12%
349
3%
2,030
o/w Schneider Electric SE
413
16
429
o/w subsidiaries
1,268
333
1,601
TOTAL FEES
13,637
100%
10,235
100%
23,872
*
Audit related services include services required by regulations and those provided at the request of the parent company or controlled entities, in particular: the review
of environmental, social and societal information, contractual audits, comfort letters, audit certificates, agreed procedures, audits of procedures and information
systems, and tax services that do not impair auditor independence.
5.5 Notes to the consolidated financial statements
555
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Note 29: Consolidated companies
The main companies included in the Schneider Electric Group scope of consolidation are listed below:
The percentage of control is equal to the percentage of interest for most of the companies.
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Europe
Fully consolidated
Nxtcontrol GmbH
Austria
100
100
RIB Saa Software Engineering Gmbh
Austria
90
90
Schneider Electric ”Austria” GMBH
Austria
100
100
Schneider Electric Power Drives GmbH
Austria
100
100
Schneider Electric Systems Austria GmbH
Austria
100
100
Schneider Electric Energy Belgium SA
Belgium
100
100
Schneider Electric ESS BV
Belgium
100
100
Schneider Electric NV SA
Belgium
100
100
Schneider Electric Services International
Belgium
100
100
Schneider Electric Systems Belgium NV/SA
Belgium
100
100
Proleit Bulgaria OOD
Bulgaria
100
100
Schneider Electric Bulgaria EOOD
Bulgaria
100
100
Schneider Electric d.o.o.
Croatia
100
100
RIB Stavebni Software S.R.O.
Czech Republic
100
100
Schneider Electric A.S.
Czech Republic
98.3
98.3
Schneider Electric CZ S.R.O.
Czech Republic
100
100
Schneider Electric Systems Czech Republic S.R.O.
Czech Republic
100
100
Orbaekvej 280 A/S
Denmark
–
100
RIB A/S
Denmark
100
100
Schneider Electric Danmark A/S
Denmark
100
100
Schneider Electric IT Denmark ApS
Denmark
100
100
Schneider Electric Eesti AS
Estonia
100
100
Schneider Electric Finland Oy
Finland
100
100
Schneider Electric Fire & Security OY
Finland
100
100
Schneider Electric Vamp Oy
Finland
100
100
Aveva Sas
France
100
100
Behar-Securite
France
100
100
Boissiere Finance
France
100
100
Construction Electrique du Vivarais
France
100
100
Eckardt SAS
France
100
100
EcoAct SAS FR
France
100
100
France Transfo
France
100
100
Informatique Graphisme Energetique
France
100
100
Invensys Holding France SAS
France
100
100
Merlin Gerin Ales
France
100
100
Merlin Gerin Loire
France
100
100
Muller & Cie
France
100
100
Newlog
France
100
100
Rectiphase SAS
France
100
100
Sarel – Appareillage Electrique
France
100
100
Scanelec
France
100
100
Schneider Electric Alpes
France
100
100
Schneider Electric Energy France
France
100
100
Schneider Electric France
France
100
100
Schneider Electric Industries SAS
France
100
100
Schneider Electric International
France
100
100
Schneider Electric IT France
France
–
100
Schneider Electric Manufacturing Bourguebus
France
100
100
Schneider Electric SE
France
100
100
Schneider Electric Solar France
France
100
100
Schneider Electric Systems France
France
100
100
Schneider Electric Telecontrol
France
–
100
Schneider Toshiba Inverter Europe SAS
France
60
60
Schneider Toshiba Inverter SAS
France
60
60
Societe D’Application Et D’Ingenierie Industrielle Et Informatique – SA3I
France
100
100
Societe Electrique d’Aubenas
France
100
100
Societe Francaise de Constructions Mecaniques Et Electriques
France
100
100
Societe Francaise Gardy
France
100
100
Systemes Equipements Tableaux Basse Tension, SETBT
France
100
100
Transfo Services
France
100
100
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Chapter 5 – Consolidated financial statements at December 31, 2024
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
ABN GmbH
Germany
100
100
Aveva Gmbh
Germany
100
100
J&K Regeltechnik GmbH
Germany
–
100
Merten GmbH
Germany
100
100
Proleit GmbH
Germany
100
100
RIB Cosinus Gmbh
Germany
100
100
RIB Deutschland Gmbh
Germany
100
100
RIB Software GmbH
Germany
100
100
RIB IMS Gmbh
Germany
100
100
Schneider Electric Automation GmbH
Germany
100
100
Schneider Electric GmbH
Germany
100
100
Schneider Electric Holding Germany GmbH
Germany
100
100
Schneider Electric Investment AG
Germany
100
100
Schneider Electric Operations Consulting GmbH
Germany
100
100
Schneider Electric Real Estate GmbH
Germany
100
100
Schneider Electric Sachsenwerk GmbH
Germany
100
100
Schneider Electric Systems Germany GmbH
Germany
–
100
Schneider Electric AEBE
Greece
100
100
Schneider Electric Hungaria Villamossagi ZRT
Hungary
100
100
SE – CEE Schneider Electric Közep-Kelet Europai Korlatolt Felelösségü Tarsasag
Hungary
100
100
Schneider Electric Ireland Limited
Ireland
100
100
Schneider Electric IT Limited
Ireland
100
100
Schneider Electric IT Logistics Europe Limited
Ireland
100
100
Validation Technologies (Europe) Ltd
Ireland
100
100
Eliwell Controls S.r.l.
Italy
100
100
Schneider Electric Industrie Italia S.p.a.
Italy
100
100
Schneider Electric S.p.a.
Italy
100
100
Schneider Electric Systems Italia S.p.a.
Italy
100
100
Uniflair S.p.a.
Italy
100
100
Lexel Fabrika, SIA
Latvia
100
100
Schneider Electric Baltic Distribution Center
Latvia
100
100
Schneider Electric Latvija SIA
Latvia
100
100
UAB Schneider Electric Lietuva
Lithuania
100
100
Industrielle De Reassurance S.A.
Luxembourg
100
100
Schneider Electric Holding Luxembourg
Luxembourg
–
100
American Power Conversion Corporation (A.P.C.) B.V.
Netherlands
100
100
APC International Corporation B.V.
Netherlands
100
100
Aveva Software Netherlands B.V.
Netherlands
100
100
BTR (European Holdings) Bv
Netherlands
100
100
Clovis Systems B.V.
Netherlands
100
70
InTwo International B.V
Netherlands
–
100
Planon Beheer BV
Netherlands
80
25
Proleit B.V.
Netherlands
100
100
Schneider Electric Ecommerce Europe B.V.
Netherlands
100
100
Schneider Electric Logistic Centre B.V.
Netherlands
100
100
Schneider Electric Systems Netherlands N.V.
Netherlands
100
100
Schneider Electric The Netherlands B.V.
Netherlands
100
100
ELKO AS (Elektrokontakt AS)
Norway
100
100
Lexel Holding Norge AS
Norway
100
100
Schneider Electric Norge AS
Norway
100
100
Schneider Electric Elda S.A.
Poland
100
100
Schneider Electric Industries Polska Sp. Z o.o.
Poland
100
100
Schneider Electric Polska Sp. Z o.o.
Poland
100
100
Schneider Electric Portugal, LDA
Portugal
100
100
Schneider Electric Romania, SRL
Romania
100
100
Schneider Electric Systems LLC
Russia
100
100
Schneider Electric LLC Novi Sad
Serbia
100
100
Schneider Electric Srbija doo Beograd
Serbia
100
100
Schneider Electric Slovakia, Spol SRO
Slovakia
100
100
Schneider Electric Systems Slovakia S.R.O.
Slovakia
100
100
EcoAct Iberica ES
Spain
100
100
Manufacturas Electricas S.A.U.
Spain
100
100
Proleit Iberia Slu
Spain
100
100
RIB Spain Sa
Spain
100
100
Schneider Electric Espana, S.A.U
Spain
100
100
Schneider Electric IT Spain, S.L.
Spain
100
100
Schneider Electric Solar Spain, S.A.
Spain
100
100
Schneider Electric Systems Iberica S.L.
Spain
100
100
5.5 Notes to the consolidated financial statements
557
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Telemantenimiento De Alta Tension, S.L.
Spain
100
100
AB Crahftere 1
Sweden
–
100
Elektriska Aktiebolaget Delta
Sweden
100
100
Elko AB
Sweden
100
100
Lexel AB
Sweden
100
100
Schneider Electric Buildings AB
Sweden
100
100
Schneider Electric Distribution Centre AB
Sweden
100
100
Schneider Electric Sverige AB
Sweden
100
100
Feller AG
Switzerland
83.7
83.7
RIB Cosinus Ag
Switzerland
100
100
Schneider Electric (Suisse) SA
Switzerland
100
100
Proleit Automation Ooo
Ukraine
100
100
Schneider Electric Ukraine
Ukraine
100
100
Ascot Acquisition Holdings Limited
United Kingdom
100
100
Aveva Group Limited
United Kingdom
100
100
Aveva Financing limited
United Kingdom
100
100
Aveva Solutions Limited
United Kingdom
100
100
Aveva Software GB Limited
United Kingdom
100
100
Aveva UK 1 Limited
United Kingdom
100
100
BTR Industries Ltd
United Kingdom
100
100
BTR Property Holdings Ltd
United Kingdom
100
100
Carbon Clear Limited
United Kingdom
100
100
Invensys Group Holdings Ltd
United Kingdom
100
100
Invensys Group Ltd
United Kingdom
100
100
Invensys Holdings Ltd
United Kingdom
100
100
Invensys International Holdings Ltd
United Kingdom
100
100
Invensys Ltd
United Kingdom
100
100
M&C Energy Group Limited
United Kingdom
100
100
RIB Solutions (Uk) Ltd
United Kingdom
100
100
Samos Acquisition Company Limited
United Kingdom
100
100
Schneider Electric (UK) Limited
United Kingdom
100
100
Schneider Electric Buildings UK Limited
United Kingdom
100
100
Schneider Electric Controls UK Limited
United Kingdom
100
100
Schneider Electric Invensys (UK) Ltd
United Kingdom
100
100
Schneider Electric IT UK Ltd
United Kingdom
100
100
Schneider Electric Limited
United Kingdom
100
100
Schneider Electric Systems UK Limited
United Kingdom
100
100
Tac Products Limited
United Kingdom
100
100
Yorkshire Switchgear Group Limited
United Kingdom
100
100
Accounted for by equity method
Delta Dore Finance SA (sub-group)
France
–
20
Schneider Lucibel Managed Services SAS
France
50
50
North America
Fully consolidated
Aveva Software Canada Inc.
Canada
100
100
Schneider Electric Canada Inc.
Canada
100
100
Schneider Electric Solar Inc.
Canada
–
100
Schneider Electric Systems Canada Inc.
Canada
100
100
Electronica Reynosa S. de R.L. de C.V.
Mexico
100
100
Industrias Electronicas Pacifico, S.A. de C.V.
Mexico
100
100
Proleit S. De R. L.
Mexico
100
100
Schneider Electric Mexico S.A. de C.V.
Mexico
100
100
Schneider Electric Systems Mexico, S.A. de C.V.
Mexico
100
100
Schneider Industrial Tlaxcala S.A. de C.V.
Mexico
100
100
Schneider Mexico S.A. de C.V.
Mexico
100
100
Schneider R&D, S.A. de C.V.
Mexico
100
100
Square D Company Mexico, S.A. de C.V.
Mexico
100
100
Steck De Mexico S.A. De C.V.
Mexico
100
100
Telvent Mexico, S.A. de C.V.
Mexico
100
100
American Power Conversion Holdings Inc.
United States
100
100
ASCO Power Services, Inc.
United States
100
100
ASCO Power Technologies, L.P.
United States
100
100
Autogrid Systems, Inc.
United States
–
91.81
Aveva Inc.
United States
100
100
Aveva Software, LLC
United States
100
100
Aveva US Blocker Corp.
United States
100
100
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Chapter 5 – Consolidated financial statements at December 31, 2024
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Aveva US 1 Corp.
United States
100
100
Aveva US 2 Corp.
United States
100
100
BTR, LLC
United States
100
100
Charge Holdings, LLC
United States
90.83
85.4
Echo HoldCo LLC
United States
100
90.84
EcoAct Inc US
United States
100
100
ETAP Automation Inc. (sub-group)
United States
100
80
EV Connect, LLC
United States
100
99.43
Foxboro Controles S.A.
United States
–
100
GPI Interim Inc.
United States
100
100
H.S. Investments, LLC
United States
100
100
Integration Technologies Corp.
United States
–
60
Invensys LLC
United States
100
100
Osisoft, LLC
United States
100
100
Proleit Corp.
United States
100
100
Ranco Incorporated of Delaware
United States
100
100
RIB Software North America Inc.
United States
100
100
RIB US Cost Inc.
United States
100
100
RIB Usa Inc.
United States
100
100
Schneider Electric Buildings Americas, Inc.
United States
100
100
Schneider Electric Buildings Critical Systems, Inc.
United States
100
100
Schneider Electric Digital, Inc.
United States
100
100
Schneider Electric Engineering Services, LLC
United States
100
100
Schneider Electric Foundries LLC
United States
100
100
Schneider Electric Holdings, Inc.
United States
100
100
Schneider Electric IT Corporation
United States
100
100
Schneider Electric IT Mission Critical Services, Inc.
United States
100
100
Schneider Electric Smart Grid Solutions, LLC
United States
100
100
Schneider Electric Solar Inverters USA, Inc.
United States
100
100
Schneider Electric Systems USA, Inc.
United States
100
100
Schneider Electric USA, Inc.
United States
100
100
SE Vermont Ltd
United States
100
100
Siebe Inc.
United States
100
100
SNA Holdings Inc.
United States
100
100
Square D Investment Company
United States
100
100
Stewart Warner Corp.
United States
100
100
Summit Energy Services, Inc.
United States
100
100
Veris Industries LLC
United States
100
100
Accounted for by equity method
Uplight Inc.
United States
43.46
30.36
Asia-Pacific
Fully consolidated
Aveva Software Australia Pty Ltd
Australia
100
100
Clipsal Technologies Australia Pty Ltd
Australia
100
100
Futureworx Proprietary Limited
Australia
–
100
RIB Holdings Pty Ltd
Australia
100
100
RIB Australia Pty Ltd
Australia
100
100
Scada Group Pty Limited
Australia
100
100
Schneider Electric (Australia) Pty Limited
Australia
100
100
Schneider Electric Australia Holdings Pty Ltd
Australia
100
100
Schneider Electric Buildings Australia Pty Ltd
Australia
100
100
Schneider Electric IT Australia Pty Ltd
Australia
100
100
Schneider Electric Solar Australia Pty Ltd
Australia
100
100
Schneider Electric Sustainability Business Australia Pty Ltd
Australia
100
100
Schneider Electric Systems Australia Pty Ltd
Australia
100
100
Serck Controls Pty Limited
Australia
100
100
Tamco Electrical Industries Australia Pty Limited
Australia
65
65
AVEVA Solutions (Shanghai) Co., Ltd
China
100
100
Beijing Leader Harvest Electric Technologies Co., Ltd
China
100
100
Beijing Leader Harvest Energy Efficiency Investment Co., Ltd
China
100
100
FSL Electric (Dongguan) Limited
China
54
54
Guangzhou RIB Software Co., Ltd
China
–
100
Guangzhou Two Information Technology Co., Ltd
China
100
100
Jingxin Hongde (Beijing) Technology Co., Ltd.
China
–
51
Pro-Face China International Trading (Shanghai) Co., Ltd
China
100
100
Proleit Automation Systems (Shanghai) Co., Ltd
China
100
100
5.5 Notes to the consolidated financial statements
559
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Life Is On | Schneider Electric
F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Schneider (Beijing) Low Voltage Co., Ltd.
China
95
95
Schneider (Beijing) Medium Voltage Co., Ltd
China
100
100
Schneider (Shaanxi) Baoguang Electrical Apparatus Co., Ltd
China
70
70
Schneider (Suzhou) Transformers Co., Ltd
China
100
100
Schneider (Wuxi) Drives Co., Ltd.
China
90
90
Schneider Busway (Guangzhou) Limited
China
95
95
Schneider Electric (China) Company Limited
China
100
100
Schneider Electric (Xiamen) Switchgear Co., Ltd
China
100
100
Schneider Electric (Xiamen) Switchgear Equipment Co., Ltd
China
100
100
Schneider Electric Equipment and Engineering (Xi’An) Co., Ltd
China
100
100
Schneider Electric IT (China) Co., Ltd
China
100
100
Schneider Electric IT (Xiamen) Co., Ltd
China
100
100
Schneider Electric Manufacturing (Chongqing) Co., Ltd
China
100
100
Schneider Electric Manufacturing (Wuhan) Co., Ltd
China
100
100
Schneider Great Wall Engineering (Beijing) Co., Ltd
China
100
100
Schneider Merlin Gerin Low Voltage (Tianjin) Co.,Ltd.
China
75
75
Schneider Shanghai Apparatus Parts Manufacturing Co., Ltd
China
100
100
Schneider Shanghai Industrial Control Co., Ltd
China
80
80
Schneider Shanghai Low Voltage Terminal Apparatus Co., Ltd
China
75
75
Schneider Shanghai Power Distribution Electrical Apparatus Co., Ltd
China
80
80
Schneider Smart Technology Co., Ltd.
China
100
100
Schneider South China Smart Technology (Guangdong) Co. Ltd.
China
100
100
Schneider Switchgear (Suzhou) Co., Ltd
China
58
58
Schneider Wingoal (Tianjin) Electric Equipment Co., Ltd
China
100
100
Shanghai ASCO Electric Technology Co., Ltd.
China
100
100
Shanghai Foxboro Co., Ltd
China
100
100
Shanghai Invensys Process System Co., Ltd
China
100
100
Shanghai Schneider Electric Power Automation Co., Ltd
China
100
100
Shanghai Tayee Electric Co., LTD
China
67.05
67.05
Shenzhen Easydrive Electric Co., Ltd
China
–
51
Tianjin Wingoal Electric Equipment Co., Ltd.
China
100
100
Uniflair (Zhuhai) Electrical Appliance Manufacturing Co., Ltd
China
100
100
Wuxi Pro-Face Co., Ltd
China
100
100
Zircon Investment (Shanghai) Co., Ltd
China
74.5
74.5
Clipsal Asia Holdings Limited
Hong Kong
100
100
Construction Computer Software (Asia) Ltd
Hong Kong
100
100
Fed-Supremetech Limited
Hong Kong
54
54
Himel Hong Kong Limited
Hong Kong
100
100
MTWO Ltd
Hong Kong
–
100
RIB Creative Limited
Hong Kong
100
100
RIB Software Hong Kong Limited
Hong Kong
100
100
RIB Software International Ltd
Hong Kong
–
100
RIB Solutions Ltd
Hong Kong
100
100
Schneider Electric (Hong Kong) Limited
Hong Kong
100
100
Schneider Electric Asia Pacific Limited
Hong Kong
100
100
Schneider Electric IT Hong Kong Limited
Hong Kong
100
100
Two Hong Kong Ltd
Hong Kong
100
100
Aveva Solutions India Llp
India
100
100
Luminous Power Technologies Private Limited
India
100
100
RIB Itwo Software Private Limited
India
100
100
Schneider Electric India Private Limited
India
65
65
Schneider Electric Infrastructure Limited
India
75
75
Schneider Electric IT Business India Private Limited
India
100
100
Schneider Electric President Systems Limited
India
74.3
75
Schneider Electric Private Limited
India
100
100
Schneider Electric Solar India Pte Ltd
India
100
100
Schneider Electric Systems India Private Limited
India
100
100
Winjit Technologies Private Limited
India
100
100
Zenatix Solutions Private Limited
India
95
95
PT Schneider Electric Indonesia
Indonesia
100
100
PT Schneider Electric IT Indonesia
Indonesia
100
100
PT Schneider Electric Manufacturing Batam
Indonesia
100
100
PT Schneider Electric Systems Indonesia
Indonesia
95
95
PT Schneider Indonesia
Indonesia
95
95
PT Tamco Indonesia
Indonesia
65
65
PT RIB Indonesia Software
Indonesia
100
100
Aveva K.K.
Japan
100
100
Ranco Japan Ltd
Japan
100
100
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Chapter 5 – Consolidated financial statements at December 31, 2024
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Schneider Electric Japan Holdings Inc
Japan
100
100
Schneider Electric Japan, Inc.
Japan
100
100
Schneider Electric Solar Japan Inc.
Japan
100
100
Schneider Electric Systems Japan Inc.
Japan
100
100
Toshiba Schneider Inverter Corporation
Japan
60
60
Aveva Korea Limited
Korea
100
100
Schneider Electric Korea Limited
Korea
100
100
Schneider Electric Systems Korea Ltd
Korea
100
100
Desea Sdn. Bhd.
Malaysia
100
100
Henikwon Corporation Sdn. Bhd.
Malaysia
–
65
RIB Malaysia Sdn Bhd
Malaysia
100
100
Schneider Electric (Malaysia) Sdn. Bhd.
Malaysia
30
30
Schneider Electric Industries (M) Sdn. Bhd.
Malaysia
100
100
Schneider Electric IT Malaysia Sdn. Bhd.
Malaysia
100
100
Schneider Electric Systems (Malaysia) Sdn. Bhd.
Malaysia
–
100
Tamco Switchgear (Malaysia) Sdn. Bhd.
Malaysia
65
65
RIB Pacific Ltd
New Zealand
100
100
Schneider Electric (NZ) Limited
New Zealand
100
100
Schneider Electric Systems New Zealand Limited
New Zealand
100
100
RIB ITWO Software Inc.
Philippines
100
100
Schneider Electric (Philippines), Inc.
Philippines
100
100
Schneider Electric IT Philippines Inc.
Philippines
100
100
RIB Software Singapore Pte. Ltd.
Singapore
100
100
RIB Singapore Pte Ltd
Singapore
100
100
Schneider Electric Asia Pte. Ltd.
Singapore
100
100
Schneider Electric IT Logistics Asia Pacific Pte Ltd
Singapore
100
100
Schneider Electric IT Singapore Pte Ltd
Singapore
100
100
Schneider Electric JV Holdings 2 Pte. Ltd.
Singapore
65
65
Schneider Electric Overseas Asia Pte Ltd
Singapore
100
100
Schneider Electric Singapore Pte Ltd
Singapore
100
100
Schneider Electric South East Asia (HQ) Pte Ltd
Singapore
100
100
Schneider Electric Systems Singapore Pte. Ltd.
Singapore
100
100
Schneider Electric Lanka (Private) Limited
Sri Lanka
100
100
Schneider Electric Systems Taiwan Corp.
Taiwan
100
100
Schneider Electric Taiwan Co., Ltd
Taiwan
100
100
RIB (Thailand) Co., Ltd
Thailand
100
100
Schneider (Thailand) Limited
Thailand
100
100
Schneider Electric CPCS (Thailand) Co., Ltd
Thailand
100
100
Schneider Electric Solar (Thailand) Co., Ltd
Thailand
100
100
Schneider Electric Systems (Thailand) Co., Ltd
Thailand
100
100
Clipsal Vietnam Co., Ltd
Viet Nam
–
100
Invensys Vietnam Ltd
Viet Nam
100
100
RIB Vietnam Company Limited
Viet Nam
100
100
Schneider Electric IT Vietnam Limited
Viet Nam
100
100
Schneider Electric Manufacturing Vietnam Company Limited
Viet Nam
100
100
Schneider Electric Vietnam Limited
Viet Nam
100
100
Accounted for by equity method
Delixi Electric Limited (sub-group)
China
50
50
Sunten Electric Equipment Co., Ltd
China
25
25
Fuji Electric FA Components & Systems Co., Ltd (sub-group)
Japan
36.8
36.8
Foxboro (Malaysia) Sdn. Bhd.
Malaysia
49
49
Rest of the World
Fully consolidated
Schneider Electric Algerie
Algeria
100
100
Schneider Electric Argentina S.A.
Argentina
100
100
Steck Electric S.A.
Argentina
100
100
Schneider Electric Systems Argentina S.A.
Argentina
100
100
Proleit Automaçao Ltda
Brazil
100
100
Schneider Electric Brasil Automação de Processos Ltda
Brazil
100
100
Schneider Electric Brasil Ltda
Brazil
100
100
Steck Da Amazonia Industria Elétrica Ltda
Brazil
100
100
Steck Distribuidora Ltda
Brazil
100
100
Steck Industria Eletrica Ltda
Brazil
100
100
Telseb Serviços de Engenharia E Comércio de Equipamentos Eletrônicos e
Telecomunicações Ltda
Brazil
100
100
Marisio S.P.A
Chile
100
100
5.5 Notes to the consolidated financial statements
561
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Life Is On | Schneider Electric
F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
(in % of interest)
Dec. 31, 2024
Dec. 31, 2023
Schneider Electric Chile S.P.A
Chile
100
100
Schneider Electric Systems Chile Limitada
Chile
100
100
Schneider Electric de Colombia S.A.S
Colombia
100
100
Schneider Electric Systems Colombia Ltda
Colombia
100
100
Steck Andina S.A.S.
Colombia
100
100
Schneider Electric Centroamerica Limitada
Costa Rica
100
100
Schneider Electric Ecuador Sociedad Anonima
Ecuador
100
100
Invensys Engineering & Service S.A.E.
Egypt
51
51
Schneider Electric Distribution Company
Egypt
91.99
91.99
Schneider Electric Egypt S.A.E.
Egypt
92
92
Schneider Electric Engineering And Services – Free Zone S.A.E
Egypt
51
51
Schneider Electric For Supplying And Services – Free Zone
Egypt
100
–
Schneider Electric Systems Egypt S.A.E
Egypt
60
60
KMG Automation Limited Liability Partnership
Kazakhstan
51
51
Schneider Electric LLP
Kazakhstan
85
85
Schneider Electric (Kenya) Limited
Kenya
100
100
Kana Controls General Trading & Contracting Company WLL
Kuwait
31.9
31.9
Schneider Electric Services Kuweit
Kuwait
49
49
Schneider Electric Israël Ltd
Israel
100
100
Schneider Electric East Mediterranean SAL
Lebanon
100
100
Schneider Electric CFC
Morocco
100
100
Schneider Electric Maroc
Morocco
100
100
Schneider Electric Free Zone Enterprise
Nigeria
100
100
Schneider Electric Nigeria Limited
Nigeria
100
100
Schneider Electric Systems Limited
Nigeria
100
100
Schneider Electric O.M LLC
Oman
100
100
Schneider Solutions And Services (Private) Limited
Pakistan
100
100
Schneider Electric Peru S.A.
Peru
100
100
Schneider Electric Systems del Peru S.A.
Peru
100
100
Schneider Electric Services LLC
Qatar
49
49
Electrical & Automation Saudi Arabian Manufacturing Company (LLC)
Saudi Arabia
65
65
Schneider Electric Saudi Arabia Limited
Saudi Arabia
100
100
Schneider Electric Systems Saudi Arabia Co. LTD.
Saudi Arabia
100
100
Ccs Mining & Industrial (Pty) Limited
South Africa
–
100
RIB South Africa (Pty) Ltd
South Africa
100
100
Invensys SA (Pty) Ltd
South Africa
100
100
Schneider Electric South Africa (Pty) Ltd
South Africa
74.9
74.9
Gunsan Elektrik Malzemelerï Sanayï Ve Ticaret Anonïm Sïrketi
Türkiye
100
100
Schneider Elektrik Sanayi Ve Ticaret A.S.
Türkiye
100
100
Cimac FZCO
United Arab Emirates
100
100
RIB Gulf Software LLC
United Arab Emirates
100
100
SEMEA Electrical & Automation FZE
United Arab Emirates
65
65
INTWO DMCC
United Arab Emirates
–
100
Schneider Electric DC MEA FZCO
United Arab Emirates
100
100
Schneider Electric FZE
United Arab Emirates
100
100
Schneider Electric Systems Middle East FZE
United Arab Emirates
100
100
Schneider Electric Systems de Venezuela, C.A.
Venezuela
100
100
Schneider Electric Venezuela S.A.
Venezuela
93.56
93.56
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Chapter 5 – Consolidated financial statements at December 31, 2024
5.6 Statutory auditors’ report on the
consolidated financial statements
For the year ended December 31, 2024
To the annual general meeting of Schneider Electric S.E.
Opinion
In compliance with the engagement entrusted to us by your annual general meeting, we have audited the accompanying consolidated
financial statements of Schneider Electric S.E. for the year ended December 31, 2024, as attached to this report.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the
Group as at December 31, 2024 and of the results of its operations for the year then ended in accordance with International Financial
Reporting Standards as adopted by the European union.
The audit opinion expressed above is consistent with our report to the Audit and Risks Committee.
Basis for Opinion
Audit Framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the Audit of the Consolidated
Financial Statements section of our report.
Independence
We conducted our audit engagement in compliance with independence requirements of the French Commercial Code (code de commerce)
and the French Code of Ethics (code de déontologie) for statutory auditors, for the period from January 1st 2024 to the date of our report
and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014.
Justification of Assessments – Key Audit Matters
In accordance with the requirements of Articles L.821-53 and R.821-180 of the French Commercial Code (code de commerce) relating to
the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional
judgment, were of most significance in our audit of the consolidated financial statements of the current period, as well as how we addressed
those risks.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion
thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements.
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C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Measurement of goodwill and trademarks with indefinite useful lives
Notes 1.3, 1.8, 1.11, 5, 9 and 10 to the consolidated financial statements
Description of risk
As of December 31, 2024, the carrying amount of goodwill and trademarks with indefinite useful lives was
€26,281 million and €2,430 million respectively, representing 44% of the Group’s total assets.
As described in Notes 1.8 “Intangible assets” and 1.11 “Impairment of assets” to the consolidated financial
statements, trademarks with indefinite useful lives and Cash Generating Units (CGUs) to which goodwill has been
allocated are tested for impairment at least once a year and whenever there is an indication of impairment.
Goodwill is tested at CGU group level, as described in note 1.11 “Impairment of assets” to the consolidated
financial statements: Low Voltage, Medium Voltage, Secure Power, Industrial Automation, Industrial Automation
Software, Energy Management Software and Sustainability.
The recoverable amount of a CGU is defined as the higher between its value in use and its fair value less costs to
sell. The value in use of a CGU is determined by discounting future cash flows that will be generated by its
underlying assets and which are based on the Group management’s economic assumptions and operating
forecasts.
The recoverable amount of trademarks with an indefinite useful life is measured using the royalty method.
An impairment loss is recognized whenever the recoverable amount of a CGU or a trademark is less than its
carrying amount, to the extent that its carrying amount exceeds its recoverable amount. When the tested CGU
comprises goodwill, the impairment loss is primarily deducted therefrom.
The valuation of goodwill and trademarks with indefinite useful lives is a key audit matter due to their significance in
the Group’s consolidated balance sheet and the level of judgment required by management to:
• define the CGUs, as improper mapping could lead the Group to not recognize, or to underestimate, the
impairment of goodwill;
• determine the assumptions used for the impairment tests of goodwill, particularly the discount rate, perpetuity
growth rate and the expected margin rates, the consideration of climate risks and, for trademarks with indefinite
useful lives, royalty rates.
How our audit
addressed this risk
Our audit work consisted in:
• reviewing the methods used to determine the level of goodwill impairment testing;
• comparing the carrying amount of assets tested with the accounting data;
• assessing the procedures implemented by the Group to evaluate the discounted future cash flows underlying
the determination of the value in use of each CGU and checking their consistency with the business plans/cash
flow projections approved by the Group’s Board of Directors;
• assessing the procedures implemented by the Group to evaluate the impact of climate risks in determining the
value in use of each group of CGUs;
• for the main trademarks with indefinite useful lives, assessing the procedures implemented to model the
revenue projections attached to the trademarks;
• assessing the reasonableness of the business forecasts underlying the future cash flows, in particular with
respect to past performance;
• with the assistance of our valuation experts, assessing the assumptions used such as the discount rate,
perpetuity growth rate and expected margin rates, as well as the sensitivity of impairment test results to
changes in these key assumptions;
• corroborate the royalty rates used with respect to (i) the theoretical royalty rates determined at the acquisition
date of the trademark and (ii) the performance achieved;
• reconciling the sensitivity analyses performed by the Group with our sensitivity calculations;
• verifying the arithmetical accuracy of the impairment tests.
Lastly, we assessed the appropriateness of the disclosures provided in the notes to the consolidated financial
statements.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Uncertain tax positions and recognition and recoverability of deferred tax assets recognized
for tax loss carryforwards
Notes 1.3, 1.16, 1.21 et 14 to the consolidated financial statements
Description of risk
The Group operates in several different tax jurisdictions around the world. As a result, the company and its
subsidiaries may be subject to audits or questions from local tax authorities. Situations where cash outflows are
considered probable give rise to liabilities, measured on the basis of the known facts in the jurisdiction concerned.
In accordance with IFRIC 23 – Uncertainty over Income Tax Treatments, provisions covering uncertainties over tax
treatments are presented under “Accrued taxes and payroll costs”, as specified in Note 1.21 to the consolidated
financial statements.
In addition, the Group recognizes deferred tax assets in several countries based on its ability to recover them in
future years. As of December 31, 2024, deferred tax assets in respect of tax loss carryforwards recognized in the
consolidated balance sheet amounted to €622 million, mainly in France for an amount of €412 million.
As described in Note 1.16 to the consolidated financial statements, the Group only recognizes future tax relief
arising from the use of tax loss carryforwards when it can be reasonably anticipated that such relief will be granted,
including when such amounts can be carried forward indefinitely.
The Group’s ability to recover deferred tax assets on tax loss carryforwards is assessed by management at the
end of each reporting period. The recognition and correct valuation of these deferred tax assets are subject to the
quality of the forecasts made by the Group.
The recognition and recoverability of deferred tax assets relating to tax loss carryforwards and the recognition of
liabilities for uncertain tax positions are key audit matters, given the judgment required from the Group to (i) assess
the recoverability of the deferred taxes and (ii) estimate the likely outflow of resources in a constantly changing
international environment.
How our audit
addressed this risk
We held meetings with management, gained an understanding of the internal control procedures implemented by
the Group to identify tax risks, and, where appropriate, to recognize any tax loss.
With the assistance of our tax specialists, we also assessed the judgments made by management as part of our
estimate of the income tax likely to be payable and the amount of any potential exposure, and, by extension, the
reasonableness of the estimates as regards tax liabilities.
With regard to the recognition and recoverability of deferred tax assets relating to tax loss carryforwards, our audit
approach consisted in assessing the Group’s likelihood of benefiting from future tax relief arising from the use of
tax loss carryforwards, in particular with regard to:
• plans for the consumption of the tax loss carryforwards of the subsidiaries or tax consolidation groups
concerned;
• the main data and assumptions underlying the plans for the consumption of tax loss carryforwards underlying
the recognition and measurement of the corresponding deferred tax assets by the Group.
We also verified the appropriateness of the disclosures provided in the notes to the consolidated financial
statements.
Specific verifications
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and
regulations of the Group’s information given in the management report of the Board of Directors.
We have no matters to report as to their fair presentation and their consistency with the consolidated financial statements.
Report on Other Legal and Regulatory Requirements
Format of presentation of the consolidated financial statements intended to be included in the annual financial
report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by the
statutory auditor relating to the annual and consolidated financial statements presented in the European single electronic format, that the
presentation of the consolidated financial statements intended to be included in the annual financial report mentioned in Article L.451-1-2, I
of the French Monetary and Financial Code (code monétaire et financier), prepared under the responsibility of the Chief Executive Officer,
complies with the single electronic format defined in the European Delegated Regulation No 2019/815 of 17 December 2018. As it relates to
consolidated financial statements, our work includes verifying that the tagging of these consolidated financial statements complies with the
format defined in the above delegated regulation.
Based on the work we have performed, we conclude that the presentation of the consolidated financial statements intended to be included
in the annual financial report complies, in all material respects, with the European single electronic format.
We have no responsibility to verify that the consolidated financial statements that will ultimately be included by your company in the annual
financial report filed with the AMF are in agreement with those on which we have performed our work.
5.6 Statutory Auditors’ report on the consolidated financial statements
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C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Schneider Electric SE by the Annual General Meetings held on May 6, 2004 for Frovis Mazars SA
(formerly Mazars) and on May 5, 2022 for PricewaterhouseCoopers Audit.
As of December 31, 2024, Forvis Mazars SA was in the twenty-first consecutive year of their engagement and PricewaterhouseCoopers in
their third year.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
International Financial Reporting Standards as adopted by the European Union and for such internal control as management determines
is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected
to liquidate the Company or to cease operations.
The Audit and Risks Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and
risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.
The consolidated financial statements were approved by the Board of Directors.
Statutory Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Objectives and audit approach
Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As specified in Article L.821-55 of the French Commercial Code (code de commerce), our statutory audit does not include assurance on the
viability of the Company or the quality of management of the affairs of the Company.
As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional
judgment throughout the audit and furthermore:
• Identifies and assesses the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, designs
and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to
provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management in the consolidated financial statements.
• Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future
events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material
uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the consolidated financial
statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
• Evaluates the overall presentation of the consolidated financial statements and assesses whether these statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. The statutory auditor is responsible for the direction, supervision and
performance of the audit of the consolidated financial statements and for the opinion expressed on these consolidated financial
statements.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Report to the Audit and Risks Committee
We submit a report to the Audit and Risks Committee which includes in particular a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the
accounting and financial reporting procedures that we have identified.
Our report to the Audit and Risks Committee includes the risks of material misstatement that, in our professional judgment, were of most
significance in the audit of the consolidated financial statements of the current period and which are therefore the key audit matters that we
are required to describe in this report.
We also provide the Audit and Risks Committee with the declaration provided for in Article 6 of Regulation (EU) Nº 537/2014, confirming our
independence within the meaning of the rules applicable in France such as they are set in particular by Articles L.821-27 to L.821-34 of the
French Commercial Code (code de commerce) and in the French Code of Ethics (code de déontologie) for statutory auditors. Where
appropriate, we discuss with the Audit and Risks Committee the risks that may reasonably be thought to bear on our independence, and the
related safeguards.
The statutory auditors
Forvis Mazars
Paris La Défense on March 12, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 12, 2025
Juliette Decoux Guillemot
Associée
Mathieu Mougard
Associé
Jean-Christophe Georghiou
Associé
Séverine Scheer
Associée
5.6 Statutory Auditors’ report on the consolidated financial statements
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C H 5 – C O N S O L I D A T E D
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C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
5.7 Extract of the management report for
the year ended December 31, 2024
Consolidated financial statements
Business and Statement of Income highlights
Main acquisitions of the period
Transaction with ETAP’s non-controlling interests
On January 23, 2024, the Group purchased the remaining 20% non-controlling interests of ETAP in accordance with the forward agreement
concluded in 2021 when it acquired 80% of the company.
Planon
On July 30, 2024, Schneider Electric signed an agreement to acquire an additional 55% stake in Planon for a consideration of EUR 525
million, fully paid in cash, increasing its ownership of Planon to a controlling stake of 80%. The transaction further strengthens Schneider’s
agnostic software strategy, with Planon’s established and strong footprint in the global buildings market, cloud-based Integrated Workplace
Management System offer and subscription-based software business model well positioned to capitalize on the fast-growing smart building
software market. Planon, with revenues of EUR 161 million in 2023, was previously consolidated under the equity method and this operation
is treated as if it were disposed of and reacquired at fair value on the acquisition date, resulting in a non-cash gain in “Other operating
income and expenses”. Since transaction closing date on October 28, 2024, Planon is consolidated within the Energy Management
reporting segment.
Until January 2030, the minority shareholder has the right to sell and transfer to the Group their remaining 20% stake in Planon. The Group
also hold a right to acquire the remaining 20% of non-controlling interests between July 2027 and January 2030. The related debt has been
recognized in “Current purchase commitments over non-controlling interests” for EUR 191 million at acquisition date.
The purchase accounting as per IFRS 3 is not completed as of December 31, 2024. Planon carrying value at acquisition date for net
identi- fiable assets was EUR 48 million. The preliminary net adjustment of the opening balance sheet is EUR 288 million, resulting mainly
from the booking of identifiable intangible assets (developed technology, customer relationships and trademark) net of deferred tax
liabilities. The preliminary goodwill recognized amounts to EUR 608 million at acquisition date.
Main divestments of the period
Autogrid
On December 14, 2023, the Group entered into an agreement with Uplight Inc. (in which Schneider Electric holds a strategic minority
investment) to sell AutoGrid to Uplight. This transaction represents a reorganization among Schneider Electric-owned or affiliated busi-
nesses aimed at Prosumers, to better align their capabilities. The transaction, which closed on February 8, 2024, has raised the interest
percentage of the Group in Uplight Inc. to 43.46%, which remains consolidated as an equity investment. The impact from the disposal in the
income statement of the period is not material.
Follow-up on acquisitions and divestments transacted in 2023 with effect in 2024
EcoAct
On November 2, 2023, the Group acquired 100% of the capital of EcoAct SAS (“EcoAct”), an international leader in climate consulting and
net-zero solutions headquartered in Paris, France. EcoAct is reported within the Energy management reporting segment.
The purchase accounting as per IFRS 3 is completed as of December 31, 2024. The main identifiable assets recognized as part of the
purchase price allocation were customer relationships and trademark. At acquisition date, goodwill amounted to EUR 130 million.
Exchange rate changes
Fluctuations in the euro exchange rate had a negative impact in 2024, decreasing consolidated revenue by EUR 412 million due mainly to
the evolution observed in US Dollar and in Chinese Yuan compared to the Euro and a negative impact decreasing adjusted EBITA by EUR
151 million.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Results of Operations
The following table sets forth our results of operations for 2024 and 2023:
in millions of euros except for earnings per share)
Full Year 2024
Full Year 2023
Variance
Revenue
38,153
35,902
6.3%
Cost of sales
(21,885)
(20,890)
4.8%
Gross profit
16,268
15,012
8.4%
% Gross profit
42.6%
41.8%
Research and development
(1,308)
(1,168)
12.0%
Selling, general and administrative expenses
(7,877)
(7,432)
6.0%
Adjusted EBITA *
7,083
6,412
10.5%
% Adjusted EBITA
18.6%
17.9%
Other operating income and expenses
(87)
98
(188.8)%
Restructuring costs
(141)
(147)
(4.1)%
EBITA **
6,855
6,363
7.7%
% EBITA
18.0%
17.7%
Amortization and impairment of purchase accounting intangibles
(406)
(430)
(5.6)%
Operating income
6,449
5,933
8.7%
% Operating income
16.9%
16.5%
Interest income
174
79
120.3%
Interest expense
(435)
(387)
12.4%
Finance costs, net
(261)
(308)
(15.3)%
Other financial income and expense
(148)
(222)
(33.3)%
Net financial income/(loss)
(409)
(530)
(22.8)%
Profit from continuing operations before income tax
6,040
5,403
11.8%
Income tax expense
(1,398)
(1,285)
8.8%
Share of profit/(loss) of associates
17
51
(66.7)%
Impairment of investments in associates
(220)
–
0.0%
PROFIT FOR THE YEAR
4,439
4,169
6.5%
attributable to owners of the parent
4,269
4,003
6.6%
attributable to non-controlling interests
170
166
2.4%
Basic earnings (attributable to owners of the parent) per share (in euros per share)
7.61
7.15
6.4%
Diluted earnings (attributable to owners of the parent) per share (in euros per share)
7.53
7.07
6.5%
*
Adjusted EBITA (Earnings Before Interest, Taxes, Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase
accounting intangible assets, before goodwill impairment, other operating income and expenses and restructuring costs.
** EBITA (Earnings Before Interest, Taxes and Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase
accounting intangible assets and before goodwill impairment.
Revenue
Consolidated revenue totaled EUR 38,153 million for the year ended December 31, 2024, up +8.4% organic and up +6.3% on a reported
basis. The Group continued to benefit from strong and dynamic market demand linked to structural megatrends. There was strong growth in
sales of the Group’s Systems offers, notably in the Data Center and Infrastructure end-markets. The Group also saw strong growth in
Services linked to digital offers and trends of renovation and modernization in mature economies. The Group’s agnostic software assets
continued their transition to a subscription revenue model, mechanically impacting organic growth as expected, while displaying good
underlying evolution, characterized by strong growth in annualized recurring revenues at AVEVA. Product sales grew, with good growth in
sales of electrical distribution products across many end-markets and segments, while sales into the Residential market were stable
globally, though varied by geography. As expected, weakness in discrete automation markets remained as OEMs and Distributors
rebalance inventories to reflect an improved supply environment. Price contribution returned to a normalized level across the Group in 2024,
following a period of elevated contribution in 2022 and 2023. FX impacts were -1.2% mainly driven by weakening of Chinese Yuan and
several new economies, partly offset by strengthening British Pound against the Euro and a positive impact from hyperinflation accounting.
There was a net negative impact of -0.7% from acquisitions and disposals, primarily relating to the divestment of the Group’s industrial
sensors business and Gutor and partly offset by acquisitions of EcoAct and Planon.
Evolution of revenue by reporting segment
The following table sets forth our revenue by business segment for years ended December 31, 2024 and 2023:
(in millions of euros)
Energy
Management
Industrial
Automation
Total
Full Year 2024
31,131
7,022
38,153
Full Year 2023
28,241
7,661
35,902
5.7 Extract of the management report for the year ended December 31, 2024
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C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Energy Management generated revenues of EUR 31,131 million, equivalent to 82% of the Group’s revenues and was up +12% organic. North
America grew +18% organic led by strong Systems growth primarily in the Data Center end-market, supported by good growth elsewhere.
Western Europe was up +5% organic with double-digit growth in Italy led by Data Center sales, high-single digit growth in Spain, mid-single
digit growth in France led by Infrastructure, mid-single digit growth in the U.K., while Germany saw a slight decline. The Buildings end-
market remains subdued across the region, with sales into the Residential market stable in most major economies except Germany, which
continues to decline. Outside of the major economies, there was strong growth in the Nordics region. Asia-Pacific grew +6% organic, led by
strong double-digit growth in India, with traction across end-markets. China was down low-single digit impacted by weak construction
markets and general economic uncertainty delaying customer investment plans. Australia saw good growth, led by performance in the Data
Center end-market. The remainder of the region was up in aggregate. Rest of the World was up +19% organic, seeing strong double-digit
growth in the Middle East and Africa while additionally benefitting from price actions taken in response to previous currency devaluation in
certain countries.
Industrial Automation generated revenues of EUR 7,022 million, equivalent to 18% of the Group’s revenues and was down -4% organic.
Sales into Process & Hybrid markets grew, with good traction for Services, while the Group’s industrial software at AVEVA delivered strong
growth in annualized recurring revenue, during its ongoing transition to a subscription revenue model. Discrete markets remained impacted
by weakness at OEMs and Distributors as they rebalance inventories leading to a decline in sales. North America contracted -4% organic
due to weakness in discrete automation markets with growth in sales into Process & Hybrid markets and for Industrial Software at AVEVA.
Western Europe declined -12% organic, with France, Germany and Italy notably impacted by the weakness in discrete automation, while
Process markets remained better oriented across the region. Asia Pacific was down -5% organic, with China down low-single digit, primarily
due to weakness in Discrete automation. India delivered positive growth, up in both Discrete automation and Process & Hybrid markets. The
remainder of the region was down in aggregate with Australia, Japan and Korea declining due to weak OEM demand across the region.
Rest of the World was up +14% organic, led by strong growth in the Middle East across both Discrete and Process & Hybrid markets, with
the region additionally benefitting from price actions taken in response to previous currency devaluation in certain countries.
Gross profit
Gross profit was up +10.5% organic with Gross margin up +80 bps organic, reaching 42.6% in 2024. The organic increase in margin
percentage was driven by industrial productivity and improved Gross margin in the Systems business, mainly due to pricing.
Support Function costs: Research and development and selling, general and administrative expenses
Research and development expenses, net of capitalized development costs and excluding research and development costs booked in
costs of sales, increased by 12.0% from EUR 1,168 million for 2023 to EUR 1,308 million for 2024. As a percentage of revenues, the net cost
of research and development increased slightly from 3.3% in 2023 to 3.4% in 2024.
Total research and development expenditures, including capitalized development costs and development costs reported as cost of sales
(see Note 4 to the Consolidated Financial Statements) increased by 12.1% from EUR 2,016 million for 2023 to EUR 2,260 million for 2024. As
a percentage of revenues, total research and development expenses increased slightly to 5.9% for 2024 (5.6% for 2023).
In 2024, the net effect of capitalized development costs and amortization of capitalized development costs amounts to EUR 126 million on
operating income (EUR 92 million in 2023).
Selling, general and administrative expenses increased by 6.0% to EUR 7,877 million for 2024 (EUR 7,432 million for 2023). As a percentage
of revenues, selling, general and administrative expenses decreased slightly to 20.6% for 2024 (20.7% for 2023).
Combined, total support function costs, that is, research and development expenses together with selling, general and administrative costs,
totaled EUR 9,185 million for 2024 compared to EUR 8,600 million for 2023, an increase of 6.8%. Support functions costs to sales ratio has
increased from 24.0% in 2023 to 24.1% in 2024.
Other operating income and expenses
For 2024, other operating income and expenses amounted to a net expense of EUR 87 million. The gains and losses on disposal of business
for EUR 110 million are mainly due to the revaluation of the Planon’s shares previously owned by the Group, following the acquisition of a
controlling stake in 2024. The costs of acquisition and integration totaled EUR (96) million (EUR (111) million for 2023). “Others” mainly
include EUR 104 million provision in relation to the French Competition Authority decision.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Restructuring costs
For 2024, restructuring costs decreased to EUR 141 million in 2024 compared to 147 million in 2023, and are linked to the Group’s initiatives
to decrease support function costs.
EBITA and Adjusted EBITA
EBITA is defined as earnings before interest, taxes and amortization of purchase accounting intangibles. EBITA comprises operating profit
before amortization and impairment of purchase accounting intangible assets and before goodwill impairment. Adjusted EBITA is adjusted
as EBITA before restructuring costs and before other operating income and expenses, which includes acquisition, integration and
separation costs.
Adjusted EBITA amounted to EUR 7,083 million for 2024, compared to EUR 6,412 million for 2023, an organic increase of 14.2%. As a
percentage of revenues, adjusted EBITA increased at 18.6% with margin improving 90 bps organically.
EBITA increased from EUR 6,363 million for 2023 to EUR 6,855 million in 2024. As a percentage of revenues, EBITA increases at 18.0% in
2024 (17.7% for 2023).
Adjusted EBITA by business segment
The following table sets out adjusted EBITA by business segment:
Full Year 2024
(in millions of euros)
Energy
Management
Industrial
Automation
Central functions
& digital costs
Total
Backlog
17,698
3,722
–
21,420
Revenue
31,131
7,022
–
38,153
Adjusted EBITA
6,865
1,041
(823)
7,083
Adjusted EBITA (%)
22.1%
14.8%
18.6%
On December 31, 2024, the total backlog to be executed in more than a year amounts to EUR 4,842 million.
Full Year 2023
(in millions of euros)
Energy
Management
Industrial
Automation
Central functions
& digital costs
Total
Backlog
15,414
3,748
–
19,162
Revenue
28,241
7,661
–
35,902
Adjusted EBITA
5,967
1,304
(859)
6,412
Adjusted EBITA (%)
21.1%
17.0%
17.9%
On December 31, 2023, the total backlog to be executed in more than a year amounted to EUR 4,287 million.
Energy Management reporting segment generated an adjusted EBITA of EUR 6,865 million, or 22.1% of revenues, up c. +110 bps organic
(up +100 bps on a reported basis), due mainly to a strong contribution from higher volumes, a good level of industrial productivity and a
positive mix effect from improved Systems margin, partly offset by inflation and investment, primarily in SFC.
Industrial Automation reporting segment generated an adjusted EBITA of EUR 1,041 million, or 14.8% of revenues, down c. -150 bps organic
(down -220 bps on a reported basis), with a strong negative volume contribution and production labor inflation, partly offset by a small
positive net price contribution, improved mix and SFC savings.
Central functions & digital costs in 2024 amounted to EUR 823 million (EUR 859 million in 2023), decreasing to 2.2% of Group revenues
(from 2.4% of Group revenues last year).
5.7 Extract of the management report for the year ended December 31, 2024
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Amortization and impairment of purchase accounting intangibles
The amortization and impairment of purchase accounting intangibles linked to acquisitions amounted to EUR 406 million in 2024 com-
pared with EUR 430 million last year. The decrease is mainly due to the impairment booked in 2023.
Operating income (EBIT)
Operating income or EBIT (Earnings Before Interest and Taxes), increased from EUR 5,933 million for 2023 to 6,449 million for 2024, an
increase of 8.7%.
Net financial income/loss
Net financial loss amounted to EUR 409 million for 2024, compared to EUR 530 million for 2023, mainly due to the decrease in cost of debt
(from EUR 308 million in 2023 to EUR 261 million in 2024). This was mainly due to higher interest income on cash deposits and OCEANEs
buyback in 2024. In addition, there was a positive impact from foreign exchange fluctuations (from a loss of EUR 50 million in 2023 to a gain
of EUR 3 million in 2024).
Income tax expense
The effective tax rate was 23.1% for 2024, and 23.8% for 2023. The corresponding income tax expense increased from EUR 1,285 million for
2023 to EUR 1,398 million for 2024.
Share of profit/ (loss) of associates
The share of associates was a EUR 17 million profit for 2024, compared to EUR 51 million profit for 2023.
Impairment of investments in associates
The impairment of investments in associates amounted to EUR 220 million for 2024 and related to the investment in Uplight following slower
adoption at customers than was envisaged in the business plan impacting near-term growth, in part due to regulatory challenges. No
impairment was recognized in 2023.
Non-controlling interests
Non-controlling interests in net income for 2024 totaled EUR 170 million, compared to EUR 166 million for 2023. This represents the share in
net income attributable to the non-controlling interests, mainly coming from the Group Chinese and Indian subsidiaries.
Profit for the year (attributable to owners of the parent)
Profit for the year attributable to the equity holders of the parent company amounted to EUR 4,269 million for 2024, compared to EUR 4,003
million profit for 2023.
Earnings per share
Basic Earnings per share amounted to EUR 7.61 per share for 2024 and EUR 7.15 per share for 2023.
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Chapter 5 – Consolidated financial statements at December 31, 2024
Comments to the consolidated Cash-flow
The following table sets forth our cash-flow statement for 2024 and 2023:
(in millions of euros)
Note
Full Year 2024
Full Year 2023
Profit for the year
4,439
4,169
Share of (profit)/losses of associates
(17)
(51)
Income and expenses with no effect on cash flow:
Depreciation of property, plant and equipment
11
822
743
Amortization of intangible assets other than goodwill
10
716
717
Impairment losses on non-current assets
251
60
Increase/(decrease) in provisions
21
93
87
Losses/(gains) on disposals of business and assets
(115)
(252)
Difference between tax paid and tax expense
(81)
(164)
Other non-cash adjustments
200
220
Net cash provided by operating activities
6,308
5,529
Decrease/(increase) in accounts receivable
(199)
62
Decrease/(increase) in inventories and work in progress
(834)
(382)
(Decrease)/increase in accounts payable
439
493
Decrease/(increase) in other current assets and liabilities
(134)
205
Change in working capital requirement
(728)
378
TOTAL I – CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
5,580
5,907
Purchases of property, plant and equipment
11
(950)
(914)
Proceeds from disposals of property, plant and equipment
55
52
Purchases of intangible assets
10
(469)
(451)
Net cash used by investment in operating assets
(1,364)
(1,313)
Acquisitions and disposals of businesses, net of cash acquired & disposed
2
(452)
611
Other long-term investments
(91)
(89)
Increase in long-term pension assets
20
(80)
(257)
Sub-total
(623)
265
TOTAL II – CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
(1,987)
(1,048)
Issuance of bonds
22
3,466
3,509
Repayment of bonds
22
(1,384)
(1,299)
Sale/(purchase) of treasury shares
(322)
(703)
Increase/(decrease) in other financial debt
(1,338)
939
OCEANEs issuance and repayment (equity component)
(66)
65
Increase/(decrease) of share capital
19
252
219
Transaction with non-controlling interests*
2
(183)
(4,702)
Dividends paid to Schneider Electric’s shareholders
19
(1,963)
(1,767)
Dividends paid to non-controlling interests
(86)
(84)
TOTAL III – CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
(1,624)
(3,823)
TOTAL IV – NET FOREIGN EXCHANGE DIFFERENCE
189
(240)
TOTAL V – IMPACT OF RECLASSIFICATION OF ITEMS HELD FOR SALE
–
(4)
INCREASE/(DECREASE) IN NET CASH AND CASH EQUIVALENTS: I + II + III + IV + V
2,158
792
Net cash and cash equivalents, beginning of the year
18
4,654
3,863
Increase/(decrease) in cash and cash equivalents
2,158
792
NET CASH AND CASH EQUIVALENTS, END OF THE YEAR
18
6,812
4,654
The accompanying notes are an integral part of the consolidated financial statements.
*
In 2023, transactions with non-controlling interests mainly related to the purchase of AVEVA’s non-controlling interests.
5.7 Extract of the management report for the year ended December 31, 2024
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 5 – C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 6
C H 7
C H 8
C H 9
Operating Activities
Net cash from operating activities before changes in working capital requirement reached EUR 6,308 million for 2024, increasing compared
to EUR 5,529 million for 2023. It represented 16.5% of revenues for 2024 (15.4% of revenues from 2023).
Change in working capital requirement consumed EUR 728 million in cash in 2024, compared to a generation of cash of EUR 378 million in
2023.
In all, net cash from operating activities decreased from EUR 5,907 million in 2023 to EUR 5,580 million in 2024.
Investing Activities
Net capital expenditure, which includes capitalized development projects, increased, at EUR 1,364 million for 2024, compared to EUR 1,313
million for 2023, and representing 3.6% of sales in 2024 compared to 3.7% in 2023.
Free cash-flow (cash from operating activities net of net capital expenditure) amounted to EUR 4,216 million in 2024 versus EUR 4,594
million in 2023.
Cash conversion rate (free cash-flow over net income attributable to the equity holders of the parent company on continuing operations)
was 99% in 2024 versus 115% in 2023.
The acquisitions net of disposals represented a cash-out of EUR 452 million (net of acquired cash) for 2024, compared with a cash-in of
EUR 611 million for 2023. Those amounts correspond mainly to the acquisitions and disposals described in Notes 2.1 and 2.2 of the
Consolidated Financial Statements (Chapter 5).
Financing Activities
Net cash outflow from financing activities amounted to EUR 1,624 million during the year 2024, compared to cash outflow of EUR 3,823
million during the year 2023. The variance is mainly due to the purchase of AVEVA’s non-controlling interests for EUR 4.7 billion partially
offset by term loan drawdown for 1.7 billion in 2023, higher reimbursements of commercial papers in 2024 and OCEANEs 2026 repurchase
in 2024.
The dividend paid by Schneider Electric was EUR 1,963 million in 2024, compared with EUR 1,767 million in 2023.
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
6.1 Balance sheet
576
6.2 Statement of income
578
6.3 Notes to the financial statements
579
6.3.1 Significant events of the financial year
579
6.3.2 Accounting principles
580
6.3.3 Notes
582
6.4 Statutory auditors’ report on
the annual financial statements
591
6.5 List of securities held at
December 31, 2024
595
6.6 Subsidiaries and affiliates
596
6.7 The company’s financial results
over the last 5 years
598
6.8 Extract of the management report for
the year ended December 31, 2024
599
Parent company
financial statements
6
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Chapter 6 – Parent company financial statements
6.1 Balance Sheet
Assets
(in thousands of euros)
Note
12/31/2024 Gross
Amort./Dep./Prov.
12/31/2024 Net
12/31/2023 Net
NON–CURRENT ASSETS
Intangible assets
1.1
Intangible rights
27,429
(27,429)
–
–
Property, plant and equipment
1.2
Land
2,784
–
2,784
2,784
Buildings
48
(48)
–
–
Other
1,221
–
1,221
1,221
Total intangible assets and property, plant and
equipment
31,482
(27,477)
4,006
4,006
Financial investments
Shares in subsidiaries and affiliates
2.1
5,377,099
(19,468)
5,357,631
5,357,631
Other investment securities
2.2
1,651,701
–
1,651,701
1,375,376
Advances to subsidiaries and affiliates
2.3
2,529,051
–
2,529,051
2,532,111
Other (Loans/Deposits and guarantees)
96,553
–
96,553
80,010
Total financial investments
9,654,404
(19,468)
9,634,936
9,345,127
Total non–current assets
9,685,886
(46,945)
9,638,942
9,349,132
CURRENT ASSETS
Accounts receivable
Accounts receivable – trade
3
440,272
–
440,272
570,104
Other
3
242,996
–
242,996
323,972
Total accounts receivable
683,268
–
683,268
894,076
Marketable securities and cash
Marketable securities
4
248,693
–
248,693
279,624
Advances to the Group cash pool
5
12,164,122
–
12,164,122
12,286,738
Other cash
251
–
251
285
Total marketable securities and cash
12,413,066
–
12,413,066
12,566,647
Total current assets
13,096,334
–
13,096,334
13,460,723
PREPAYMENTS AND OTHER ASSETS
Prepaid expenses
6.1
861
–
861
3,278
Deferred expenses
6.2
30,711
–
30,711
22,865
Call premiums
6.3
42,333
–
42,333
33,786
Translation losses
9
–
–
–
–
TOTAL ASSETS
22,856,125
(46,945)
22,809,180
22,869,784
The notes form an integral part of these parent company financial statements.
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
Equity and liabilities
(in thousands of euros)
Note
12/31/2024
12/31/2023
EQUITY
7
Share capital
7.1
2,302,527
2,291,344
Additional paid–in capital
7.2
3,311,308
2,827,850
Reserves
Legal reserve
243,027
243,027
Retained earnings
7.3
871,826
273,900
Net income for the financial year
544,809
2,560,475
Regulated provisions
2
2
Total equity
7,273,499
8,196,598
PROVISIONS FOR CONTINGENCIES
8
Provisions for contingencies and expenses
254,688
286,602
Total provisions for contingencies and expenses
254,688
286,602
LIABILITIES
Convertible bonds
9
1,400,000
1,300,000
Bonds
9
11,573,502
9,773,502
Other borrowings
10
1,857,254
1,808,904
Debts related to investments
11
42,000
42,000
Borrowings and financial liabilities
12
70,000
1,018,000
Accounts payable – trade
84,565
109,162
Accrued taxes and payroll costs
244,470
296,565
Other liabilities
9,202
2,088
Total liabilities
15,280,993
14,350,221
Deferred revenue
–
–
Call premiums
6.3
4,617
28,987
Translation gains
5,233
7,376
TOTAL EQUITY AND LIABILITIES
22,809,180
22,869,784
The notes form an integral part of these parent company financial statements.
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Chapter 6 – Parent company financial statements
6.2 Statement of income
(in thousands of euros)
Note
2024
2023
Sales of services and other
0
1
Reversals of provisions, depreciation and amortization and expense transfers
–
–
Other operating revenue
15
535,353
486,927
Operating revenues
535,353
486,928
Purchase and external expenses
16
(112,668)
(122,475)
Taxes other than on income
(717)
(1,306)
Payroll expenses
(11,281)
(14,607)
Depreciation and provision expense
(975)
(1,071)
Other operating expenses and joint–venture losses
(3,721)
(2,382)
Operating expenses
(129,363)
(141,841)
Operating profit/(loss)
405,990
345,087
Dividend income
2,479
2,002,364
Interest income
582,878
536,573
Reversals of impairment provisions for long–term receivables and other
–
–
Financial income
585,357
2,538,937
Interest expense
(471,921)
(327,774)
Provision expense
(6,834)
(578)
Financial expenses
(478,755)
(328,352)
Net financial income/(loss)
17
106,602
2,210,585
Current result before tax
512,592
2,555,672
Proceeds from fixed asset disposals
10
39
Reinvoicing performance share
45,886
91,009
Provision reversals and expense transfers
99,358
138,116
Other non–recurring income
–
–
Non–recurring income
145,254
229,164
Carrying amount of fixed asset disposals
–
–
Provisions, depreciation and amortization
(68,428)
(105,761)
Other non–recurring expenses
(119,368)
(161,507)
Non–recurring expenses
(187,796)
(267,268)
Net non–recurring income/(loss)
18
(42,542)
(38,104)
Net income tax benefit
19
74,759
42,907
NET INCOME
544,809
2,560,475
The notes form an integral part of these parent company financial statements.
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
6.3 Notes to the financial statements
(All amounts are in thousands of euros unless otherwise indicated)
6.3.1 Significant events of the financial year
• The tax audit, which commenced in 2023 and concerned the financial years 2018 to 2022, was completed in May 2024, without any
significant impact on Schneider Electric SE.
• In May 2024, the 2023 dividend was paid in the amount of EUR 1,963 million.
• In November 2020, Schneider Electric SE issued sustainable bonds that are convertible into or exchangeable for new or existing shares
(OCEANEs), for a nominal value of around EUR 650 million at a rate of 0.00%, maturing in June 2026. On June 25, 2024, the Group
launched an offer to buy back its OCEANEs in circulation that are due to mature in 2026 by means of a reverse book building process.
The final purchase price was set at EUR 230.81 per OCEANE 2026, representing a total consideration of approximately EUR 532.7
million, amounting, in principle, to a total of approximately EUR 407.2 million for roughly 97% of the OCEANEs 2026 still in circulation. The
OCEANEs 2026 accepted in the context of the buyback have been canceled in accordance with their terms and conditions. The
settlement of the buyback took place in July 2024 and generated a financial expense of EUR 125 million. The OCEANE securities due to
mature in June 2026 that were still in circulation were repaid in advance on December 13, 2024 at their nominal value, i.e. EUR 176.44
per 2026 OCEANE.
• Concurrently with this repurchase, on June 25, 2024, Schneider Electric SE issued bonds convertible into new shares and/or
exchangeable for existing shares (OCEANEs) for EUR 750 million at a rate of 1.625%, maturing in June 2031. The initial conversion and/or
exchange ratio of the bonds is 321.48 shares per bond with a nominal value of EUR 100,000 which corresponds to EUR 311.07 per
share.
• Schneider Electric issued 4 bonds with respective values of EUR 600 million (maturing in 2031), EUR 700 million (maturing in 2035),
EUR 750 million (maturing in 2030) and EUR 750 million (maturing in 2036).
• The company bought back 1.3 million of its own shares for EUR 322 million.
• As of December 31, 2024, the company decided to fund some of its current action plans on existing shares and to re-invoice the related
expense to the various Group companies. As a result of these movements, the provision for charges was adjusted to EUR 249 million.
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Chapter 6 – Parent company financial statements
6.3.2 Accounting principles
As in the prior financial year, the financial statements for the financial year ended December 31, 2024 have been prepared in accordance
with French generally accepted accounting principles and with ANC regulation no. 2014-03.
Accounting principles for the preparation of the financial statements were applied, in accordance with the principle of prudence and based
on the following fundamental assumptions:
• going concern,
• consistency of accounting methods from one period to the next,
• accrual basis.
Assets and liabilities are measured according to the historical cost convention.
Only significant information is disclosed.
Non-current assets
Non-current assets of all types are stated at their acquisition or transfer cost.
Acquisition costs include purchase price, including import duties and non-refundable taxes, as well as any expenses directly attributable to
the preparation of the asset for use (registration fees, employee expenses related to establishment and preparation, installation and set-up
costs, testing, etc.).
The company uses the component approach as defined by CRC regulation no. 2002-10. The analysis and investigations carried out by the
company and the Schneider Electric Group made it possible to ensure that the current split of non-current assets was in line with this
principle: components with distinct useful lives are accounted for separately, according to their own depreciation plan.
Intangible assets
Intangible rights are amortized over a maximum of five years.
Property, plant and equipment
Amortizable items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives (3 to 10 years).
Land is not depreciated.
Financial investments
Shares in subsidiaries and affiliates are recorded at acquisition cost, plus directly attributable costs (including acquisition costs related to
these transactions).
Provisions for impairment may be made if the book value is higher than the value in use estimated at the end of the financial year.
This estimate is determined mainly by reference to the net book value of the investment.
Own shares
Own shares are assessed by category (investment securities, marketable securities), according to the FIFO “first-in, first-out” method.
The accounting classification of own shares depends on the purpose for which they are held:
• own shares are classified as marketable securities if they are explicitly or implicitly allocated to cover performance share distribution
plans or if they are purchased to regulate the share price of the Group.
• own shares are classified as financial investments if they are not explicitly allocated to cover a share distribution plan or if they are
purchased for use within the framework of a liquidity contract by an investment services provider, or for their subsequent cancellation as
part of a capital reduction.
The accounting of an impairment of own shares depends on the purpose for which they are held:
• when own shares are allocated to cover performance share distribution plans, there is no reason to record an impairment;
• in other cases, it is necessary to book an impairment if the average stock market price of the month before the reporting date is lower
than the weighted average cost.
• A provision for risks and charges is recognized when the own shares are explicitly or implicitly allocated to cover performance share
distribution plans.
6.3 Notes to the financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
Receivables and debts
Receivables and debts are valued at their face value (historical cost). Receivables are, where applicable, depreciated by means of a
provision to take account of the risk of non-recovery.
At the end of the period, receivables and debts in foreign currencies are revalued at the rate at the end of the period and this revaluation is
recognized in the balance sheet as a translation gain or loss.
The foreign exchange risk borne by the company is managed centrally at the level of Boissière Finance SNC.
The Schneider Electric Group organizes a foreign exchange risk hedging policy (“Fair Value Natural Hedge,” hereinafter “FVNH”) aimed at
comprehensively managing the monetary assets and liabilities in foreign currencies recorded on the balance sheets of the subsidiaries.
The monetary assets and liabilities included in the company’s FVNH position (customer invoices, supplier invoices, banks, current accounts)
are consolidated and balanced on a daily basis through spot foreign exchange transactions carried out in current accounts with Boissière
Finance SNC.
Provisions for depreciation of bad debts are recorded when it becomes probable that the debt will not be collected, and it is possible to
reasonably estimate the amount of the loss. The identification of doubtful debts as well as the amount of the corresponding provisions are
based on the historical experience of definitive losses on debts and the analysis by age of the specific accounts as well as the related credit
risks. When it becomes certain that a bad debt will not be recovered, it, as well as its provision, is canceled on the statement of income.
Other operating revenue
Royalties from the Schneider Electric brand have been recognized in this item of the statement of income.
Net non-recurring income/(loss)
Income and expenses for the financial year are classified in the income statement in such a way as to differentiate between the items of
current income and the items of non-recurring income, including :
• those for which the achievement is not related to the day-to-day operation of the business;
• which are not likely to be recurring;
• over which the company has only limited control.
Pension obligations
The present value of termination benefits is determined using the projected unit credit method. Provisions are funded for the supplementary
pension benefits provided by the company on the basis of the contractual terms of top-hat agreements, granting a level of benefits
exceeding the general schemes.
The company applies the corridor method to actuarial gains and losses arising from changes in estimates. Under this method, the portion of
net cumulative actuarial gains and losses exceeding 10% of the projected benefit obligation is amortized over 10 years.
The actuarial assumptions used to determine the company’s commitment are as follows:
• Valuation date: 12/31/2024
• Data date: 10/31/2024
• Inflation rate: 2.00%
• Discount rate: 3.40%
• Rate of return on assets: 3.40%
• Retirement age: Full rate age;
• Age at start of employment: 23 years old;
• Turnover rate: 0.00%
• Mortality rate: TGH, TGF 05;
• Annuity growth rate: 1.65%
Currency risk
When necessary, a contingency provision is put in place for unrealized exchange losses. However, when there are unrealized exchange
gains and losses on back-to-back transactions in the same currency and with the same maturity, the amount of the provision is then limited
to the net loss.
Bonds
Issuance costs are amortized over the life of the bonds and are booked under “deferred expenses”.
Issuance premiums are booked under “Call premiums” and amortized over the duration of the bonds.
In the case of convertible bonds (OCEANE), at conversion, the bond will be reclassified as equity for its nominal conversion amount.
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Chapter 6 – Parent company financial statements
6.3.3 Notes
Note 1 Non-current assets
1.1 – Intangible assets
This item primarily consists of capital increase and merger expenses. These expenses, which are fully amortized.
1.2 – Property, plant and equipment
(in thousands of euros)
Property, plant and equipment
12/31/2023
Increase
Decrease
12/31/2024
Gross
4,054
–
–
4,054
Depreciation
(48)
–
–
(48)
NET
4,006
–
–
4,006
Property, plant and equipment are mainly comprised of undeveloped land.
Note 2 Financial investments
2.1 – Shares in subsidiaries and affiliates
(in thousands of euros)
Shares in subsidiaries and affiliates
12/31/2023
Increase
Decrease
12/31/2024
Gross
5,377,099
–
–
5,377,099
Provisions
(19,468)
–
–
(19,468)
NET
5,357,631
–
–
5,357,631
The main investments at December 31, 2024 were as follows:
Shares in subsidiaries and affiliates
Carrying amount
Schneider Electric Industries SAS
5,343,544
Schneider Electric Japan Holding
6,049
Muller SAS
8,038
TOTAL
5,357,631
2.2 – Other investment securities
(in thousands of euros)
Other investment securities
12/31/2023
Increase
Decrease
12/31/2024
Own shares
1,375,376
322,211
(45,886)
1,651,701
Other
–
–
–
–
Provisions for other shares and own shares
–
–
–
–
NET
1,375,376
322,211
(45,886)
1,651,701
Other investments securities include treasury shares if they are not explicitly or implicitly earmarked to cover share plans, or if they are
purchased for use under a liquidity contract with an investment services provider, or for subsequent cancellation as part of a capital
reduction.
In accordance with the authorization granted to the Board of Directors by the Annual General Meeting of May 23, 2024, the company
bought back 1,337,391 of its own shares for a total of EUR 322 million.
In line with previous years, the Group decided to fund the performance shares of plans 40, 41ter and 45 with Schneider Electric own shares;
990,539 shares for a total amount of EUR 68 million have been classified as marketable securities and 310,179 shares for EUR 22.5 million
were reclassified from marketable securities to “Other investment securities” following the departure of the beneficiaries.
2.3 – Advances to subsidiaries and affiliates
(in thousands of euros)
Advances to subsidiaries and affiliates
12/31/2023
Increase
Decrease
12/31/2024
Gross
2,532,111
–
(3,060)
2,529,051
NET
2,532,111
–
(3,060)
2,529,051
At December 31, 2024, this item mainly consisted of a loan of EUR 2,500 million granted to Schneider Electric Industries SAS with a maturity
date of 2024, and accrued interests for a total amount of EUR 29 million.
6.3 Notes to the financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
Note 3 Receivables
(in thousands of euros)
12/31/2024
12/31/2023
Trade receivables
440,272
570,104
Other receivables
242,996
323,972
NET
683,268
894,076
Trade receivables mainly include the reinvoicing of the bonus share plans to Schneider Electric Industries SAS and reinvoicing related to
brand royalties.
At December 31, 2024, the “Other receivables” are mainly composed of tax receivables for EUR 243 million and R&D tax credits for EUR 35
million.
Note 4 Marketable securities
12/31/2023
Increase
Decrease
12/31/2024
(in thousands of euros)
Number of shares
Value
Value
Value
Value
Number of
shares
OWN SHARES
Gross
4,159,845
279,624
45,886
(76,817)
248,693
3,609,779
Provisions
–
–
–
–
–
–
NET TOTAL
4,159,845
279,624
45,886
(76,817)
248,693
3,609,779
Marketable securities primarily represent own shares held by the company for allocation to future performance share distribution plans.
In 2024, following the Group’s decision to fund the performance shares of plans 40, 41ter, and 45 with Schneider Electric own shares,
990,539 shares for a total amount of EUR 68 million have been transferred into marketable securities.
Following the loss of the rights of employees who left the Group, the company switched back 310,179 shares for a total amount of EUR 22.5
million to “Other investment securities.”
The company has distributed 1.2 million shares for a total amount of EUR 77 million in connection with performance share plans, which have
been re-invoiced to the concerned Group entities.
Note 5 Group cash and cash equivalents
This item consists of interest-bearing advances by Schneider Electric SE to the Group cash pool (Boissière Finance) that are immediately
recoverable on demand.
Note 6 Prepayment and other assets
6.1 – Prepaid expenses
The prepaid expenses relate mainly to interest on commercial paper of EUR 861,000 and fees.
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Chapter 6 – Parent company financial statements
6.2 – Deferred expenses
The table below summarizes all bond issuance fees :
(in thousands of euros)
Bond issue expenses
12/31/2023
Increase
Decrease
12/31/2024
From Mar. 11, 2015 over 10 years (EUR 750 million)
392
–
(328)
64
From Dec. 15, 2015 over 10 years (EUR 100 million)
72
–
(40)
32
From Oct. 13, 2015 over 10 years (EUR 200 million)
179
–
(99)
80
From Sep. 9, 2016 over 8 years (EUR 800 million)
312
–
(312)
–
From Dec. 13, 2017 over 9 years (EUR 750 million)
874
–
(297)
577
From Jun. 21, 2018 over 9 years (EUR 750 million)
882
–
(255)
627
From Jan. 15, 2019 over 9 years (EUR 250 million)
362
–
(90)
272
From Jan. 15, 2019 over 9 years (EUR 500 million)
811
–
(201)
610
From Sep. 9, 2019 over 5 years (EUR 200 million)
95
–
(95)
–
From Mar. 11, 2020 over 9 years (EUR 800 million)
1,402
–
(271)
1,131
From Apr. 9, 2020 over 7 years (EUR 500 million)
724
–
(222)
502
From Nov. 24, 2020 over 6 years (EUR 650 million)
2,346
–
(2,346)
–
From Nov. 9, 2022 over 5 years (EUR 500 million)
1,077
–
(144)
933
From Nov. 9, 2022 over 10 years (EUR 600 million)
1,709
74
–
1,783
From Jan. 13, 2023 over 6 years (EUR 600 million)
1,683
–
(291)
1,392
From Jan. 13, 2023 over 11 years (EUR 600 million)
2,075
–
(220)
1,855
From Apr. 6, 2023 over 2 years (EUR 750 million)
1,316
–
(1,043)
273
From Jun. 12, 2023 over 5 years (EUR 500 million)
1,120
–
(90)
1,030
From Jun. 12, 2023 over 10 years (EUR 500 million)
1,093
383
–
1,476
From Nov. 27, 2023 over 7 years (EUR 650 million)
4,341
–
(624)
3,717
From Jan. 10, 2024 over 7 years (EUR 600 million)
–
1,659
(231)
1,428
From Jan. 10, 2024 over 11 years (EUR 700 million)
–
2,288
(190)
2,098
From Sep. 3, 2024 over 6 years (EUR 750 million)
–
2,324
(126)
2,198
From Jun. 28, 2024 over 7 years (EUR 750 million)
–
6,203
(451)
5,752
From Sep. 3, 2024 over 12 years (EUR 750 million)
–
2,961
(80)
2,881
TOTAL
22,865
15,892
(8,046)
30,711
6.3 – Call premiums
(in thousands of euros)
Call premiums
12/31/2023
Increase
Decrease
12/31/2024
From Mar. 11, 2015 over 10 years (EUR 750 million)
1,102
–
(925)
177
From Dec. 15, 2015 over 10 years (EUR 100 million)
(280)
157
–
(123)
From Sep. 9, 2016 over 8 years (EUR 800 million)
815
–
(815)
–
From Dec. 13, 2017 over 9 years (EUR 750 million)
1,822
–
(693)
1,129
From Jun. 21, 2018 over 9 years (EUR 750 million)
2,914
–
(918)
1,996
From Jan. 15, 2019 over 9 years (EUR 500 million)
56
–
(14)
42
From Jan. 15, 2019 over 9 years (EUR 250 million)
(6,036)
1,543
–
(4,493)
From Jul. 10, 2019 over 5 years (EUR 200 million)
(406)
406
–
–
From Mar. 11, 2020 over 9 years (EUR 800 million)
3,335
–
(730)
2,605
From Apr. 9, 2020 over 7 years (EUR 500 million)
1,457
–
(521)
936
From Nov. 24, 2020 over 6 years (EUR 650 million)
(22,264)
22,264
–
–
From Nov. 9, 2022 over 5 years (EUR 500 million)
210
–
(42)
168
From Nov. 9, 2022 over 10 years (EUR 600 million)
3,692
–
(529)
3,163
From Jan. 13, 2023 over 6 years (EUR 600 million)
4,238
–
(824)
3,414
From Jan. 13, 2023 over 11 years (EUR 600 million)
7,382
–
(817)
6,565
From Apr. 6, 2023 over 2 years (EUR 750 million)
592
–
(469)
123
From Jun. 12, 2023 over 5 years (EUR 500 million)
2,567
–
(662)
1,905
From Jun. 12, 2023 over 10 years (EUR 500 million)
3,604
–
(285)
3,319
From Jan. 10, 2024 over 7 years (EUR 600 million)
–
2,202
(307)
1,895
From Jan. 10, 2024 over 11 years (EUR 700 million)
–
8,374
(695)
7,679
From Sep. 3, 2024 over 6 years (EUR 750 million)
–
3,811
(207)
3,604
From Sep. 3, 2024 over 12 years (EUR 750 million)
–
3,713
(101)
3,612
TOTAL
4,800
42,470
(9,554)
37,716
Of Assets
33,786
18,100
(9,554)
42,333
Of Liabilities
(28,987)
24,370
–
(4,617)
6.3 Notes to the financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
Note 7 Shareholders’ equity and retained earnings
(in millions of euros)
Share capital
Additional paid-in
capital
Reserves and
retained earnings
Net income for the
financial year
Regulated
provisions
Total
December 31, 2022 before allocation of
net income for the year
2,284
2,616
567
1,744
–
7,211
Change in share capital
7
212
–
–
–
219
Allocation of net income
–
–
1,744
(1,744)
–
–
2022 dividend
–
–
(1,767)
–
–
(1,767)
2023 net income
–
–
–
2,560
–
2,560
Withholdings
–
–
(29)
–
–
(29)
December 31, 2023 before allocation of
net income for the year
2,291
2,828
516
2,560
–
8,196
Change in share capital
6
246
–
–
–
252
OCEANE conversion
6
237
–
–
–
243
Allocation of net income
–
–
2,560
(2,560)
–
–
2023 dividend
–
–
(1,963)
–
–
(1,963)
2024 net income
–
–
–
545
–
545
DECEMBER 31, 2024 BEFORE
ALLOCATION OF NET INCOME FOR
THE YEAR
2,303
3,312
1,113
545
–
7,273
7.1 – Capital
Share capital
The company’s share capital at December 31, 2024 amounted to EUR 2,302,526,704 composed of 575,631,676 shares with a par value of
EUR 4, all fully paid up.
Changes in share capital
The increase in share capital of EUR 11,183,168 recorded over the year corresponding to a:
(i) The conversion of the OCEANEs into shares amounted to EUR 5,544,388.
(ii) EUR 5,638,780 capital increase through the issue of shares reserved for Group employees under shareholding or employee savings
programs (i.e. 1,409,695 shares distributed in France and abroad at a subscription price of EUR 179.19).
Own shares
At the reporting date, the total number of own shares held, and not allocated to performance share distribution plans, is 11,049,154 for a
total net value of EUR 1,651,700,697.
7.2 – Additional paid-in capital
Additional paid-in capital increased by EUR 483 million over the financial year as a result of capital increases:
(i) An additional paid-in capital of EUR 237 million relating to the conversion of OCEANE bonds into shares.
(ii) An additional paid-in capital of EUR 247 million associated with the capital increase in the context of WESOP as a result of the difference
between the subscription price and the nominal price.
7.3 – Allocation of prior year net income
Pursuant to the 3rd resolution of the Ordinary and Extraordinary Shareholders’ Meeting of May 23, 2024, the 2023 gain of EUR 2,560 million
was allocated to retained earnings. In addition, EUR 1,963 million was distributed in the form of dividends.
Note 8 Provisions for contingencies and expenses
(in thousands of euros)
Provisions for contignencies
12/31/2023
Increases
Decreases
12/31/2024
Provision for fees on own shares distribution
279,654
68,428
(99,358)
248,724
Other
6,948
–
(984)
5,964
TOTAL
286,602
68,428
(100,342)
254,688
Management is confident that overall, the balance sheet provisions for disputes of which it is currently aware and in which the company is
involved, should be sufficient to ensure that these disputes do not have a material impact on its financial position or income.
A provision for risk of EUR 249 million was booked to cover the Group’s decision to fund bonus share plans with existing shares.
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Chapter 6 – Parent company financial statements
Note 9 Bonds
(in thousands of euros)
Share capital
12/31/2024
12/31/2023
Interest rate
Maturity
Schneider Electric SE 2019
94,325
94,325
Euribor + 0.60% TV
07/25/2026
Schneider Electric SE 2023
29,177
29,177
Euribor + 0.60% TV
07/25/2026
Schneider Electric SE 2024
–
800,000
0.25% TF
09/09/2024
Schneider Electric SE 2024
–
200,000
0.25% TF
09/09/2024
Schneider Electric SE 2025
750,000
750,000
0.875% TF
03/11/2025
Schneider Electric SE 2025
750,000
750,000
3.375% TF
04/06/2025
Schneider Electric SE 2025
200,000
200,000
1.841% TF
10/13/2025
Schneider Electric SE 2025
100,000
100,000
1.841% TF
12/15/2025
Schneider Electric SE 2026
750,000
750,000
0.875% TF
12/13/2026
Schneider Electric SE 2027
500,000
500,000
1% TF
04/09/2027
Schneider Electric SE 2027
750,000
750,000
1.375% TF
06/21/2027
Schneider Electric SE 2027
500,000
500,000
3.25% TF
11/09/2027
Schneider Electric SE 2028
500,000
500,000
1.5% TF
01/15/2028
Schneider Electric SE 2028
250,000
250,000
1.5% TF
01/15/2028
Schneider Electric SE 2028
500,000
500,000
3.25% TF
06/12/2028
Schneider Electric SE 2029
800,000
800,000
0.25% TF
03/11/2029
Schneider Electric SE 2029
600,000
600,000
3.125% TF
10/13/2029
Schneider Electric SE 2030
750,000
–
3.00% TF
09/03/2030
Schneider Electric SE 2031
600,000
–
3.00% TF
01/10/2031
Schneider Electric SE 2032
600,000
600,000
3.5% TF
11/09/2032
Schneider Electric SE 2033
500,000
500,000
3.5% TF
06/12/2033
Schneider Electric SE 2034
600,000
600,000
3.375% TF
04/13/2034
Schneider Electric SE 2035
700,000
–
3.250% TF
10/10/2035
Schneider Electric SE 2035
750,000
–
3.375% TF
09/03/2036
TOTAL
11,573,502
9,773,502
TF: fixed rate.
TV: floating rate.
Schneider Electric SE has issued bonds during previous financial years as part of its Euro Medium-Term Notes (EMTN) program, for which
bonds are traded on the Paris stock exchange.
At December 31, 2024, the remaining bonds are as follows:
• EUR 94 million worth of Euribor 0.60% bonds renewed in June 2024 and maturing on July 25, 2026;
• EUR 29 million worth of Euribor 0.60% bonds renewed in June 2024 and maturing on July 25, 2026;
• EUR 750 million worth of 0.875% bonds issued in March 2015 and maturing on March 11, 2025;
• EUR 750 million worth of 3.38% bonds issued in April 2023 and maturing on April 6, 2025;
• EUR 200 million worth of 1.841% bonds issued in October 2015 and maturing on October 13, 2025;
• EUR 100 million worth of 1.841% bonds issued in December 2015 and maturing on December 15, 2025;
• EUR 750 million worth of 0.875% bonds issued in December 2017 and maturing on December 13, 2026;
• EUR 500 million worth of 1% bonds issued in April 2020 and maturing on April 9, 2027;
• EUR 750 million worth of 1.375% bonds issued in June 2018 and maturing on June 21, 2027;
• EUR 500 million worth of 3.25% bonds issued in November 2022 and maturing on November 9, 2027;
• EUR 500 million worth of 1.5% bonds issued in January 2019 and maturing on January 15, 2028;
• EUR 250 million worth of 1.5% bonds issued in January 2019 and maturing on January 15, 2028;
• EUR 500 million worth of 3.25% bonds issued in June 2023 and maturing on June 12, 2028;
• EUR 800 million worth of 0.25% bonds issued in March 2020 and maturing on March 11, 2029;
• EUR 600 million worth of 3.13% bonds issued in January 2023 and maturing on October 13, 2029;
• EUR 750 million worth of 3.00% bonds issued in September 2024 and maturing on September 3, 2030;
• EUR 600 million worth of 3.00% bonds issued in January 2024 and maturing on January 10, 2031;
• EUR 600 million worth of 3.5% bonds issued in November 2022 and maturing on November 9, 2032;
• EUR 500 million worth of 3.50% bonds issued in June 2023 and maturing on June 12, 2033;
• EUR 600 million worth of 3.38% bonds issued in January 2023 and maturing on April 13, 2034;
• EUR 700 million worth of 3.250% bonds issued in January 2024 and maturing on October 10, 2035;
• EUR 750 million worth of 3.375% bonds issued in September 2024 and maturing on September 3, 2036.
The issue premiums and issuance fees are amortized on a straight-line basis.
Convertible bonds (OCEANE)
(in thousands of euros)
Share capital
12/31/2024
12/31/2023
Interest rate
Maturity
Schneider Electric SE 2026
650,000
0%
06/15/2026
Schneider Electric SE 2030
650,000
650,000
1.97% TF
11/27/2030
Schneider Electric SE 2031
750,000
–
1.63% TF
06/28/2031
TOTAL
1,400,000
1,300,000
6.3 Notes to the financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
OCEANE bond due in 2026
In November 2020, Schneider Electric SE issued sustainable bonds that are convertible into or exchangeable for new or existing shares
(OCEANEs), for a nominal value of around EUR 650 million at a rate of 0.00%, maturing in June 2026. On June 25, 2024, the Group launched
an offer to buy back its OCEANEs in circulation that are due to mature in 2026 by means of a reverse book building process. The final
purchase price was set at EUR 230.81 per OCEANE 2026, representing a total consideration of approximately EUR 532.7 million,
amounting, in principle, to a total of approximately EUR 407.2 million for roughly 97% of the OCEANEs 2026 still in circulation. The OCEANEs
2026 accepted in the context of the buyback have been canceled in accordance with their terms and conditions. The settlement of the
buyback took place in July 2024 and generated a financial expense of EUR 125 million. The remaining outstanding OCEANEs due in June
2026 were early repaid on December 13, 2024, at par value, i.e. EUR 176.44 per 2026 OCEANE.
OCEANE bond due in 2030
In 2023, Schneider Electric SE carried out an OCEANE issue for a nominal value of EUR 650 million at a rate of 1.97%, maturing in
November 2030. The initial conversion and/or exchange ratio of the bonds was 426.66 shares per bond with a nominal value of
EUR 100,000 which corresponds to EUR 234.38 per share. This was adjusted to 433.06 shares per bond in May 2024.
OCEANE bond due in 2031
Concurrently with the repurchase of the OCEANE due 2026, the Group issued on June 25, 2024, bonds convertible into new shares and/or
exchangeable for existing shares (OCEANEs) for EUR 750 million at a rate of 1.625%, maturing in June 2031. The initial conversion and/or
exchange ratio of the Bonds was 321.48 shares per bond with a nominal value set at EUR 100,000 corresponding to EUR 311.07 per share.
Note 10 Other borrowings
At December 31, 2024, other borrowings included drawdowns on credit lines and accrued interest on bonds. In total, EUR 1,700 million was
drawn on credit lines and the accrued interest amounted to EUR 142 million.
The amount drawn was EUR 1,700 million at Euribor plus a margin of 0.525%.
Note 11 Debts related to investments
Debts related to investments correspond to an intercompany loan of EUR 42 million with the Luxembourgish entity, Industrielle de
Réassurance S.A.
Note 12 Borrowings and financial liabilities
(in thousands of euros)
Borrowings and financial liabilities
12/31/2023
Increase
Decrease
12/31/2024
Commercial paper
1,018,000
-
(948,000)
70,000
NET
1,018,000
-
(948,000)
70,000
Note 13 Maturities of receivables and payables
(in thousands of euros)
Total
Due within 1 year
Due in 1 to 5 years
Due beyond 5 years
NON–CURRENT ASSETS
Advances to subsidiaries and affiliates
2,529,051
2,529,051
–
–
CURRENT ASSETS
Accounts receivable – trade
440,272
440,272
–
–
Other receivables
242,996
242,996
–
–
Marketable securities
248,693
248,693
–
–
Prepaid expenses
861
861
–
–
DEBT
Bonds including convertible bonds
12,973,502
1,800,000
5,273,502
5,900,000
Debts related to investments
42,000
42,000
Other borrowings
1,857,254
1,857,254
–
–
Commercial paper
70,000
70,000
–
–
Accounts payable – trade
84,565
84,565
–
–
Accrued taxes and payroll costs
244,470
244,470
–
–
Other liabilities
9,202
9,202
–
–
Deferred revenue
–
–
–
–
Invoices received and issued during the period have not been subject to late payment.
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Chapter 6 – Parent company financial statements
Note 14 Related-party transactions (minimum 10% stake)
(in thousands of euros)
Gross amount
Net amount
Shares in subsidiaries and affiliates
5,377,098
5,357,631
Advances to subsidiaries and affiliates
2,529,051
2,529,051
Accounts receivable
440,272
440,272
Cash and cash equivalents
12,164,373
12,164,373
Revenues:
– rebilled performance shares
45,886
– interest
583,000
It should be noted that Boissiere Finance is included in this table of related companies because it is held through Schneider Electric
Industries SAS, although its direct interest is less than 10%.
Note 15 Other operating revenue
The majority of this item relates to brand royalties billed to Group companies in the amount of EUR 530 million. Invoicing is carried out on the
basis of a percentage of the turnover of each company, under the Schneider Electric brand name or under associated brands.
Note 16 Other purchases and external expenses
This item mainly includes expenses inherent in the management of the Schneider Electric brand.
Note 17 Net financial income/(loss)
(in thousands of euros)
12/31/2024
12/31/2023
Dividends
2,479
2,002,364
Net interest income (expense)
110,957
208,799
Other
(6,834)
(578)
NET FINANCIAL INCOME/(LOSS)
106,602
2,210,585
At December 31, 2023, dividends received amounted to EUR 2 billion composed largely of dividends paid by Schneider Electric Industries.
The latter did not pay any dividends in 2024.
Note 18 Net non-recurring income/(loss)
(in thousands of euros)
12/31//2024
12/31/2023
Net gains/(losses) on fixed assets disposals
10
39
Provisions net of reversals
30,930
32,355
Other non-recurring income/(expense)
(73,482)
(70,498)
NET NON-RECURRING INCOME/(LOSS)
(42,542)
(38,104)
Exceptional items mainly comprise income from the re-invoicing of performance shares and related exceptional expenses.
Note 19 Net income tax benefit
The “Net income tax benefit” line item in the statement of income mainly consists of the Group tax relief recorded by the tax group headed
by Schneider Electric SE, net of income tax due, for EUR 63 million.
Schneider Electric SE is the parent company of the tax group comprising all French subsidiaries that are over 95%-owned. Tax loss carry
forwards available to the company in this capacity totaled EUR 1,601 million at December 31, 2024.
Note 20 Pension benefit commitment
The company had made commitments toward its executives, active managers and retirees. In 2015, the company closed the top-hat
executive pension plans. Since the end of 2015, there have been no more active beneficiaries. The company has outsourced to AXA France
VIE its commitments to the retired beneficiaries of top-hat executive pension plans.
6.3 Notes to the financial statements
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F I N A N C I A L S T A T E M E N T S
I R
C H 1
C H 2
C H 6 – P A R E N T C O M P A N Y
F I N A N C I A L S T A T E M E N T S
C H 3
C H 4
C H 5
C H 7
C H 8
C H 9
Note 21 Off-balance sheet commitments
21.1 – Partnership obligations
The share of liabilities of “SC” non-trading companies attributable to Schneider Electric SE as partner is not material. The share of liabilities
of “SNC” flow-through entities attributable to Schneider Electric SE as partner is not material.
21.2 – Guarantees given and received
Commitments given
Counter-guarantees of bank guarantees: None
Other guarantees given: EUR 2,132 million, mainly to Group companies
Commitments received
Bank counter-guarantees: None
Credit lines: EUR 2,950 million
21.3 – Financial instruments
Schneider Electric Group hedging transactions, exchange guarantees, and the establishment of financial instruments are carried out by the
manager of the Group cash pool, Boissiere Finance, a wholly owned subsidiary of Schneider Electric Industries SAS, which in turn is wholly
owned by Schneider Electric SE.
On December 31, 2024, Schneider Electric SE held interest rate swaps for a total of EUR 1,050 million as a derivative instrument to partially
hedge its exposure to interest rates.
Note 22 Contingencies
As previously disclosed, investigations were conducted in September 2018 by the French judicial authority and French Competition
Authority (Autorité de la concurrence) at Schneider Electric’s head office and other premises concerning the sale of electrical products
through commercial distribution activities in France.
– After 6 years of procedure, the French Competition Authority issued on October 29, 2024, a decision to sanction several companies
concerning the electrical distribution activities in France, including several Schneider Electric Group companies for a EUR 207 million
penalty considering that the pricing autonomy of some distributors in the French market had been limited by Schneider Electric, in
breach of competition rules. This fine will be paid in 2025 by the company Schneider Electric France. Schneider Electric strongly
disagrees with the conclusion of the French Competition Authority and has appealed the decision in front of the Paris Appeal Court.
– Concurrently on October 7, 2022, Schneider Electric was indicted by an investigating judge who required Schneider Electric to provide a
bank guarantee of EUR 20 million (which validity has now expired) and a cash guarantee of EUR 80 million. Schneider Electric officially
contested the indictment decision and raised numerous arguments in law and fact. Procedure is ongoing.
Schneider Electric rejects any allegation that its distribution practices are not compliant with competition rules. Schneider Electric
commercial policy is designed to comply with all regulations. Schneider Electric has always cooperated with the authorities and intends to
continue to do so.
Note 23 Other Information
23.1 – Workforce
The average number of employees over the financial year is four.
23.2 – Compensation for the administration and management bodies
In 2024, Schneider Electric SE granted EUR 2.7 million in attendance fees to the members of its Board of directors.
The aggregate amount of direct and indirect compensation accounted by the French and foreign affiliates of Schneider Electric SE, for all
executive officers of Schneider Electric as of December 31 and for the salaried members of the Board of Directors, is detailed below.
Gross compensation, including benefits in kind, allocated in 2024 by Group companies to the chairman, totaled EUR 1.0 million.
Gross compensation, including benefits in kind, allocated by Group companies in 2024 to the Corporate Officer, amounted to EUR 6.2
million, including EUR 1.4 million in variable compensation and EUR 3.4 million severance indemnity allocated in the 2024 fiscal year.
Gross compensation, including benefits in kind, allocated by Group companies in 2024 to the members of Group Senior Management other
than the Corporate Officer, amounted to EUR 39.7 million, including EUR 11.1 million in variable compensation allocated in the 2024 fiscal
year.
During the last three financial years, 560,487 Performance shares have been allocated to key management personnel (Chairman, Corporate
officer and Other Members of Group Senior Management). In 2024, Performance shares were allocated under the 2024 Long-term incentive
plans 44, 45 and 44bis.
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Chapter 6 – Parent company financial statements
23.3 – Performance share plans
Schneider Electric SE grants performance shares to senior executives and certain employees of the Group.
Rules governing the performance shares plans are as follows:
– to receive the shares, the grantee must generally be an employee or corporate officer of the Group. Vesting is also conditional on the
achievement of performance criteria,
– the vesting period is three to four years,
– the lock-up period is zero or one year.
Performance criteria are the following:
– Adjusted Earnings per Share (EPS) improvement rate,
– Schneider Sustainability External and Relative Index} (“SSERI”) (until 2023),
– Carbon Emissions Reduction Targets (since 2024).
The main characteristics of these plans were as follows at December 31, 2024:
LTIP 2021
LTIP 2022
LTIP 2023
LTIP 2024
Plan no.
38 & 39
39bis
39ter
40 & 41
41bis
41ter
42
42bis & 43
42ter
42quater
44 & 45
45bis
44bis & 45ter
Date of Annual Shareholders' Meeting
Apr. 25, 2018
Apr. 25, 2018
Apr. 25, 2018
Apr. 25, 2019
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
May 5, 2022
Date of the grant by the Board
Mar. 25, 2021
July 29, 2021
Oct. 26, 2021
Mar. 24, 2022
July 27, 2022
Oct. 26, 2022
Mar. 28, 2023
May 4, 2023
July 26, 2023
Oct. 25, 2023
Mar. 26, 2024
July 30, 2024
Nov 7, 2024
Vesting date
Mar. 25, 2024
July 29, 2024
Oct. 26, 2024
Mar. 24, 2025
July 27, 2025
Oct. 26, 2025
Mar. 28, 2026
May 4, 2026
July 26, 2026
Oct. 25, 2026
Mar. 26, 2027
July 30, 2027
Nov 7, 2027
End of holding period
Mar. 25, 2025
for Plan 38
Mar. 24, 2026
for Plan 40
May 4, 2027
for Plan 43
March 26, 2028
for Plan 44
Nov 7, 2028
for Plan 44bis
Number of performance shares
TOTAL
Outstanding as of Dec. 31, 2023
1,402,255
1,334,015
1,488,930
–
4,225,200
Granted in 2024
–
–
–
1,059,113
1,059,113
Delivered in 2024
(1,196,364)
–
(96)
–
(1,196,460)
Canceled in 2024
(205,891)
(48,026)
(61,812)
(21,437)
(337,166)
Outstanding as of Dec. 31, 2024
–
1,285,989
1,427,022
1,037,676
3,750,687
Schneider Electric SE has not created shares in 2024 to deliver vested plans but used existing treasury shares.
23.4 – Consolidated financial statements
Schneider Electric SE is the parent company of the Group and accordingly publishes the consolidated financial statements of the Schneider
Electric Group.
23.5 – Subsequent events
None.
6.3 Notes to the financial statements
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6.4 Statutory auditors’ report on the
annual financial statements
For the year ended December 31, 2024
To the annual general meeting of Schneider Electric S.E.
Opinion
In compliance with the engagement entrusted to us by your annual general meeting, we have audited the accompanying financial
statements of Schneider Electric S.E. for the year ended December 31, 2024, as attached to this report.
In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company as at
December 31, 2024 and of the results of its operations for the year then ended in accordance with French accounting principles.
The audit opinion expressed above is consistent with our report to the Audit and Risks Committee.
Basis for Opinion
Audit Framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report.
Independence
We conducted our audit engagement in compliance with independence requirements of the French Commercial Code (code de commerce)
and the French Code of Ethics (code de déontologie) for statutory auditors, for the period from January 1st 2024 to the date of our report
and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014.
Justification of Assessments - Key Audit Matters
In accordance with the requirements of Articles L.821-53 and R.821-180 of the French Commercial Code (code de commerce) relating to
the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional
judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks.
These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we
do not provide a separate opinion on specific items of the financial statements.
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Chapter 6 – Parent company financial statements
Measurement of investments in subsidiaries and affiliates and related loans and advances
“Shares in subsidiaries and affiliates” paragraph of the “Accounting principles” section and Note 2 “Investments” to the financial statements
Description of risk
At December 31, 2024, shares in subsidiaries and affiliates and related loans and advances recorded in the
Company’s balance sheet amounted to €5,358 million and €2,529 million respectively.
As described in the “Shares in subsidiaries and affiliates” paragraph in the “Accounting policies” section of the
notes to the financial statements, shares in subsidiaries and affiliates are recorded at their acquisition cost and
written down when their estimated value in use at the reporting date is less than their carrying amount. The
estimated value in use of shares in subsidiaries and affiliates is determined primarily by reference to the
accounting net assets of the investments and by taking into account the profitability of the investments and the
outlook for the economic environment. For listed securities, the average share price for the last month of the
financial year is taken into account.
Due to the judgment required from management in making these estimates, particularly when they are based on
forward-looking information, we considered that the valuation of shares in subsidiaries and affiliates, and by
extension the related loans and advances, is a key audit matter.
How our audit
addressed this risk
We examined the methodology employed by the Company to estimate the value in use of shares in subsidiaries
and affiliates. Our audit work consisted in:
• comparing the share in accounting net assets used to determine the value in use of shares in subsidiaries
and affiliates with the financial statements of those subsidiaries and affiliates that have been audited or
subject to analytical procedures;
• assessing, when values in use have been determined on the basis of forecasts, the appropriateness of the
valuation method on which the estimation is based;
• assessing the main assumptions used in estimating values in use, in particular the long-term growth rate and
the discount rate, with the help of our valuation experts, where appropriate;
• verifying the arithmetical accuracy of the value in use calculations used by your Company.
We also assessed the recoverability of the related receivables in light of the impairment tests performed on the
shares in subsidiaries and affiliates.
Specific verifications
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and
regulations.
Information given in the management report and in the other documents with respect to the financial position and the financial
statements provided to Shareholders
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the
management report of the Board of Directors and in the other documents with respect to the financial position and the financial statements
provided to Shareholders.
We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned
in Article D.441-6 of the French Commercial Code (code de commerce).
Report on corporate governance
We attest that the Board of Directors’ report on corporate governance sets out the information required by Articles L.225-37-4, L.22-10-10
and L.22-10-9] of the French Commercial Code (code de commerce).
Concerning the information given in accordance with the requirements of Article L.22-10-9 of the French Commercial Code (code de
commerce) relating to remunerations and benefits received by or allocated to the directors and any other commitments made in their favour,
we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements
and, where applicable, with the information obtained by your company from controlled companies which are included in the scope of
consolidation. Based on these procedures, we attest the accuracy and fair presentation of this information.
With respect to the information relating to items that your company considered likely to have an impact in the event of a takeover bid or
exchange offer, provided pursuant to Article L.22-10-11 of the French Commercial Code (code de commerce), we have agreed this
information to the source documents communicated to us. Based on these procedures, we have no observations to make on this
information.
6.4 Statutory auditors’ report on the annual financial statements
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Other information
In accordance with French law, we have verified that the required information concerning the purchase of investments and controlling
interests and the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.
Report on Other Legal and Regulatory Requirements
Format of presentation of the financial statements intended to be included in the annual financial report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by the
statutory auditor relating to the annual and consolidated financial statements presented in the European single electronic format, that the
presentation of the financial statements intended to be included in the annual financial report mentioned in Article L.451-1-2, I of the French
Monetary and Financial Code (code monétaire et financier), prepared under the responsibility of the Chief Executive Officer, complies with
the single electronic format defined in the European Delegated Regulation No 2019/815 of 17 December 2018.
Based on the work we have performed, we conclude that the presentation of the financial statements intended to be included in the annual
financial report complies, in all material respects, with the European single electronic format.
We have no responsibility to verify that the financial statements that will ultimately be included by your company in the annual financial
report filed with the AMF are in agreement with those on which we have performed our work.
Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Schneider Electric S.E. by the Annual General Meetings held on May 6, 2004 for Forvis SA
(formerly Mazars) and on May 5, 2022 for PricewaterhouseCoopers Audit.
At December 31, 2023, Forvis SA was in the twenty-first consecutive year of their engagement and PricewaterhouseCoopers in their third
year.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting
principles and for such internal control as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to
liquidate the Company or to cease operations.
The Audit and Risks Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and
risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.
The financial statements were approved by the Board of Directors.
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Chapter 6 – Parent company financial statements
Statutory Auditors’ Responsibilities for the Audit of the Financial Statements
Objectives and audit approach
Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As specified in Article L.821-55 of the French Commercial Code (code de commerce), our statutory audit does not include assurance on the
viability of the Company or the quality of management of the affairs of the Company.
As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional
judgment throughout the audit and furthermore:
• Identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs and
performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide
a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management in the financial statements.
• Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future
events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material
uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if
such disclosures are not provided or inadequate, to modify the opinion expressed therein.
• Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Report to the Audit and Risks Committee
We submit a report to the Audit and Risks Committee, which includes in particular a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the
accounting and financial reporting procedures that we have identified.
Our report to the Audit and Risks Committee includes the risks of material misstatement that, in our professional judgment, were of most
significance in the audit of the financial statements of the current period and which are therefore the key audit matters that we are required
to describe in this report.
We also provide the Audit and Risks Committee with the declaration provided for in Article 6 of Regulation (EU) N° 537/2014, confirming our
independence within the meaning of the rules applicable in France such as they are set in particular by Articles L.821-27 to L.821-34 of the
French Commercial Code (code de commerce) and in the French Code of Ethics (code de déontologie) for statutory auditors. Where
appropriate, we discuss with the Audit and Risks Committee the risks that may reasonably be thought to bear on our independence, and the
related safeguards.
The statutory auditors
Forvis Mazars
Paris La Défense on March 12, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 12, 2025
Juliette Decoux Guillemot
Associée
Mathieu Mougard
Associé
Jean-Christophe Georghiou
Associé
Séverine Scheer
Associée
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C H 7
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C H 9
6.5 List of securities held at December 31,
2024
Number of securities
(in thousands of euros)
Company
Carrying amount
A. MAJOR INVESTMENTS
(Carrying amounts over EUR 5 million)
58,018,657
Schneider Electric Industries SAS
5,343,544
2,497
Muller SAS
8,038
11,049,154
Schneider Electric SE own shares
1,651,701
7,003,283
B. OTHER INVESTMENTS
(Carrying amounts under EUR 5 million)
–
C. INVESTMENTS IN REAL ESTATE COMPANIES
–
D. INVESTMENTS IN FOREIGN COMPANIES
6,049
Total
7,009,332
MARKETABLE SECURITIES
3,609,779
Schneider Electric SE own shares
248,693
TOTAL
7,258,025
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Chapter 6 – Parent company financial statements
6.6 Subsidiaries and affiliates
Company
(in thousands of euros)
Capital
Reserves and
retained earnings
prior to allocation
of net income*
I. DETAILED INFORMATION ON SUBSIDIARIES AND AFFILIATES WITH A CARRYING AMOUNT OF
OVER 1% OF THE SHARE CAPITAL OF SCHNEIDER ELECTRIC SE
A. Subsidiaries (at least 50% owned)
Schneider Electric Industries SAS 35, rue Joseph-Monier 92500 Rueil-Malmaison
928,299
8,031,971
B. Affiliates (10 to 50%-owned)
II. GENERAL INFORMATION ON OTHER SUBSIDIARIES AND AFFILIATES
A. Subsidiaries not included in section I: (+50%)
a) French subsidiaries (aggregate)
38
7,422
b) Foreign subsidiaries (aggregate)
–
–
B. Affiliates not included in section I: (0-50%)
a) French companies (aggregate)
–
–
b) Foreign companies (aggregate)*
613
158,000
*
Including income or loss in prior financial years.
*
The amounts in foreign currency have been converted into euros at the rate of December 31, 2024.
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Share interest
held (%)
Gross value
Net value
Loans and advances
provided by the
company and still
outstanding
Amount of
guarantees given
by the company
2024 revenues
(ex VAT)
2024 Profit or Loss
(-)
Dividends received
by the company
during financial
year 2024
100.00
5,343,544
5,343,544
2,529,051
4,351,978
1,784,418
99.84
12,306
8,038
–
–
278
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4.81
21,249
6,048
–
92,171
31,871
2,479
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Chapter 6 – Parent company financial statements
6.7 The company’s financial results over
the last 5 years
Description
2024
2023
2022
2021
2020
FINANCIAL POSITION AT DECEMBER 31
Share capital (in thousands of euros)
2,302,527
2,291,344
2,284,372
2,276,134
2,268,274
Number of shares in issue
575,631,676
572,835,884
571,092,921
569,033,442
567,068,555
Number of convertible bonds in issue
14,000
3,701,523
3,695,023
3,683,972
3,683,972
Maximum number of shares to be created:
– through conversion of bonds
–
–
–
–
–
– through exercise of rights
–
–
–
–
–
RESULTS OF OPERATIONS
(in thousands of euros)
Sales (ex. VAT)
0
1
79
–
450
Investment revenue, interest income and other revenue
2,479
2,002,364
1,500,580
1,500,362
1,553
Earnings before tax, depreciation, amortization and
provisions
446,929
2,555,672
1,690,046
1,392,930
(201,902)
Income tax
74,759
42,907
18,623
52,342
32,287
Earnings after tax, depreciation, amortization and provisions
544,809
2,560,475
1,744,408
1,498,235
(31,273)
Dividends paid(1) excluding tax credit and withholdings
544,809(1)
2,002,363
1,650,197
1,650,197
1,474,378
RESULTS OF OPERATIONS PER SHARE
(in euros)
Earnings before depreciation, amortization and provisions
0.91
4.42
2.99
2.54
(0.30)
Earnings after tax, depreciation, amortization and provisions
0.95
4.48
3.05
2.63
(0.06)
Net dividend per share
3.90(2)
3.50
3.15
2.90
2.60
EMPLOYEES
Average number of employees during the financial year
4
4
2.5
1
1
Total payroll for the financial year (in thousands of euros)
6,415
13,505
1,496
1,130
1,961
Total of employee benefits paid over the financial year
(Social security, other benefits, etc.) (in thousands of
euros)
5,407
1,102
871
795
916
(1) For 2024, estimate based on existing shares at December 31, 2024, including own shares.
(2) Pending approval by the Annual Shareholders’ Meeting of 2025.
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6.8 Extract of the management report for
the year ended December 31, 2024
In 2024, Schneider Electric SE reported an operating gain of EUR 406 million compared with a gain of EUR 345 million the previous year.
Interest income net of interest expense amounted to EUR 111 million versus EUR 209 million the previous year.
Income from ordinary activities before tax stood at EUR 513 million in 2024 compared with an income of EUR 2,556 million in 2023. The
variance is mainly explained by a decrease of EUR 2,000 million in dividends income from Schneider Electric Industries SAS that have not
been distributed in 2024 and by an increase in financial expenses of EUR 150 million partially offset by a positive variation of interest income
of EUR 46 million and by an increase in royalty revenues of the Schneider Electric brand of EUR 43 million.
The net income stood at EUR 545 million in 2024 compared with EUR 2,560 million in 2023. Net equity amounted to EUR 7,273 million at
December 31, 2024 compared with EUR 8,197 million at the previous year-end, after taking into account 2024 profit and dividend payments
of EUR 1,963 million.
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Chapter 7 – Information on the Company and its capital
7.1 Shareholding
602
7.1.1
Ownership structure
602
7.1.2
Employee shareholding
603
7.2 Capital
604
7.2.1
Share capital and voting rights
604
7.2.2 Potential capital
604
7.2.3 Authorizations to issue and cancel shares
604
7.2.4 Three-year summary of changes in capital
610
7.2.5 Share buybacks
610
7.2.6 Pledge
611
7.3 General information on the Company
612
7.4 Shareholders’ rights and obligations
612
7.4.1
Annual Shareholders’ Meetings
(Article 19 of the Articles of Association)
612
7.4.2 Voting rights
613
7.4.3 Allocation of income (Article 22 of the Articles of Association)
613
7.4.4 Holding of shares
(Article 7 Paragraph 1 of the Articles of Association)
614
7.4.5 Disclosure thresholds
(Article 7 Paragraph 2 of the Articles of Association)
614
7.4.6 Identifiable holders of bearer shares
(Article 7 Paragraph 3 of the Articles of Association)
614
7.4.7 Disposal of shares
(Article 8 of the Articles of Association)
614
7.4.8 Publication of information of Article L. 22-10-11 of the
French Commercial Code
614
7.5 Stock market data
615
7.6 Investor relations
616
7.6.1
Person responsible for financial information
616
7.6.2 Contacts
616
7.6.3 Shareholders’ Advisory Committee
616
7.6.4 Publicly available documents and regulated information
616
Information on the
Company and its capital
7
601
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C H 8
C H 9
S H A R E H O L D E R I N F O R M A T I O N
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7.1 Shareholding
7.1.1 Ownership structure
Major shareholders at December 31, 2024(1)
45.3%
29.0%
6.1%
3.2%
2.5%
13.5%
0.4%
Western Europe
North America
Asia Pacific
Rest of World
Employee holdings
Treasury shares
Other (mainly individual
shareholders)
8.0%
86.3%
2.5%
3.2%
BlackRock, Inc.
Employees
Treasury shares
Public
(1) Charts list ownership stakes to the best of the Company’s knowledge.
Three-year summary of changes in capital(1)
At December 31, 2024, the share capital of Schneider Electric was EUR 2,302,526,704, divided into 575,631,676 common shares, to which
602,144,867 theoretical voting rights are attached. The following table presents, to the best of the Company’s knowledge, changes in the
distribution of the Company’s share capital and voting rights over the last three years.
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Capital
%
Number of
shares
Voting rights
%(3)
Number of
voting rights
Capital
%
Voting rights
%(3)
Capital
%
Voting rights
%(3)
BlackRock, Inc.
8.0
46,118,381
7.9
46,118,381
7.8
7.6
7.3
7.0
Sun Life Financial, Inc.
–
–
–
–
5.7
5.6
6.8
6.6
Employees(2)
3.2
18,519,741
5.8
34,208,505
3.7
6.4
3.8
6.6
Treasury shares
2.5
14,659,991
–
–
2.5
–
2.1
–
Public
86.3
496,333,563
86.3
507,157,990
80.3
80.4
80.0
79.8
TOTAL
100.0
575,631,676
100.0
587,484,876(3)
100.0
100.0
100.0
100.0
(1) Table lists ownership stakes that have breached the 5% ownership voting rights threshold in the previous three years, to the best of the Company’s knowledge.
(2) The total number of shares held by employees include:
– 7,214,146 shares held by the FCPE Schneider Actionnariat (France), corresponding to 1.3% of capital and 2.4% of voting rights,
– 5,472,225 shares held by the FCPE Schneider Actionnariat Mondial (International), corresponding to 1.0% of capital and 1.8% of voting rights, and
– 5,833,370 shares held directly by employees, corresponding to 1.0% of capital and 1.6% of voting rights.
(3) Number or percentage of voting rights excluding shares deprived of voting rights.
Disclosure thresholds
To the best of the Company’s knowledge, no shareholder other than BlackRock Inc., listed above, hold, either directly or indirectly, more
than 5% of Schneider Electric’s capital or voting rights.
Changes in holdings (for stake equal to or greater than 5%)
On July 5, 2024, Sun Life Financial, Inc. felt below the 5% threshold and notified the Company that, following this threshold crossing, it held
23,772,169 shares representing 4.14% of its share capital and 3.96% of voting rights. These shares are mainly held by funds managed by
MFS Investment Management which is part of Sun Life Financial, Inc.
To the best of the Company’s knowledge, no additional shareholders have made a change in holding during 2024 that crosses the 5%
threshold for either capital or voting rights.
Chapter 7 – Information on the Company and its capital
603
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S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 7 – C O M P A N Y
I N F O R M A T I O N
C H 3
C H 4
C H 5
C H 6
C H 8
C H 9
Control of the Company
At December 31, 2024, to the best of its knowledge, the Company was not controlled and has not been subject to any agreement binding on
one or more shareholders or any other individual or legal entity, acting alone or in concert, concerning the direct or indirect holding of its
capital or its control, or for which the implementation thereof might subsequently involve a change in the Company’s control.
Shareholder pacts or agreements involving Schneider Electric shares
The Company has no knowledge of shareholder pacts or agreements, nor of shareholders acting in concert with regard to the shares
comprising its share capital.
7.1.2 Employee shareholding
7.1.2.1 Profit-sharing plans
Most of the Group’s French companies have profit-sharing and other profit-based incentive plans. The amounts paid by the Group’s French
entities over the last five years were:
(in millions of euros)
2024
2023
2022
2021
2020
Profit-based incentive plans and profit-sharing plans
83.3
53.0
61.7
65.8
57.0
In 2024, 59% of the total from incentives and profit-sharing was invested in the Schneider Electric shareholder fund and 14% was received
by employees in cash.
7.1.2.2 The Schneider Electric employee shareholding
The Worldwide Employee Share Ownership Plan (WESOP) is one of the Group’s recurring key annual reward programs, offering employees
across the world an opportunity to become owners of the Company, at preferred conditions.
Through the WESOP, Schneider Electric shares Company value creation with employees, thus aligning both Company and employees’
interests. In countries where regulations permit, Schneider Electric offers its employees the opportunity to invest during share capital
increases reserved for its employees.
On December 31, 2024, Group employees held a total of 18.5 million Schneider Electric SE shares either directly, through the corporate
mutual funds (FCPE), or through Performance Share plans, representing 3.2% of the share capital and 5.8% of the voting rights, considering
double voting rights.
Voting rights attached to shares held by corporate mutual funds are exercised by the supervisory boards of these corporate mutual funds.
The Group’s employee shareholders are spread across over 50 countries, as follows: 21% in France, 16% in India, 13% in China, 7% in the
United States, and 43% elsewhere. Approximately 54% of all employees are shareholders of the Group.
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7.2 Capital
7.2.1 Share capital and voting rights
At December 31, 2024, the share capital amounted to EUR 2,302,526,704 divided into 575,631,676 shares with a par value of EUR 4 fully
paid up. 602,144,867 voting rights were attached to the 575,631,676 issued shares as at December 31, 2024.
7.2.2 Potential capital
At December 31, 2024, the potential capital consisted of:
• 140,908 Performance Shares, part of which remains subject to the achievement of performance conditions (plans 42bis, 42ter, 42quater,
43, 44, 44bis, 45bis, and 45ter, delivery of which, either in existing shares or shares to be issued, has not yet been determined by the
Board). If all Performance Shares were vested, this would lead to the issuance of 140,908 shares. Schneider Electric SE capital would be
composed of 575,772,584 ordinary shares, i.e. a 0.02% increase of the number of shares as of December 31, 2024; and
• 14,000 OCEANEs (out of which 6,500 OCEANEs issued in November 2023, and 7,500 issued in June 2024). If all OCEANEs were
exercised, this would lead to the issuance of 5,225,960 shares (out of which 2,814,893 shares(1) under the OCEANEs issued in 2023, and
2,411,067 shares(2) under the OCEANEs issued in 2024). Schneider Electric SE capital would be composed of 580,857,636 ordinary
shares, i.e. a 0.91% increase of the number of shares as of December 31, 2024.
(1) The initial conversion and/or exchange ratio was set at 426.6601 shares per OCEANE subject to standard adjustments including dividend protection. As the result of
the dividend distribution of EUR 3.50 per share on May 30, 2024, the conversion and/or exchange ratio has been adjusted and increased from 426.6601 to
433.0606 shares per OCEANE.
(2) The initial conversion and/or exchange ratio was set at 321.4756 shares per OCEANE subject to standard adjustments including dividend protection.
7.2.3 Authorizations to issue and cancel shares
7.2.3.1 Table summarizing the outstanding delegations relating to share capital increases
and decreases granted by the Annual Shareholders’ Meeting
Maximum par
value of
authorized capital
increases
(in euros)
Number of shares
Authorization date/
authorization
expiration date
Use of
the resolution
(number of
shares whose
issuance has
been authorized)
Amount available
(in number of
shares)
Issues with preferential subscription rights
Issuance of ordinary shares or other securities giving
access to share capital of the Company
(19th resolution of the AGM of May 4, 2023)
800 million(1) 200,000,000
May 4, 2023/
Jul. 3, 2025
None
194,815,643(8)
Capitalizing additional paid-in capital,
reserves, earnings, or other
(24th resolution of the AGM of May 4, 2023)
800 million(1) 200,000,000
May 4, 2023/
Jul. 3, 2025
None
200,000,000
Issues without preferential subscription rights
Issuance, in cash or in compensation, of listed
securities, shares, or other securities giving access
immediately or in the future to the capital
(20th resolution of the AGM of May 4, 2023)
224 million(1)(2)
56,000,000
May 4, 2023/
Jul. 3, 2025
None
50,815,642(3)(8)
Issuance of shares and other securities through
an offer referred to in Article L. 411-2 1° of
the French Monetary and Financial Code
(21st resolution of the AGM of May 4, 2023)
120 million(1)
30,000,000
May 4, 2023/
Jul. 3, 2025
5,184,358(8)
24,815,642
Issuance of shares and other securities as
consideration for unlisted securities
(23rd resolution of the AGM of May 4, 2023)
224 million(1)(2)
56,000,000
May 4, 2023/
Jul. 3, 2025
None
56,000,000
Overall limits on issuance made
under the above resolutions
800 million(1) 200,000,000
May 4, 2023/
Jul. 3, 2025
5,184,358
194,815,642(3)(8)
Chapter 7 – Information on the Company and its capital
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Life Is On | Schneider Electric
S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 7 – C O M P A N Y
I N F O R M A T I O N
C H 3
C H 4
C H 5
C H 6
C H 8
C H 9
Maximum par
value of
authorized capital
increases
(in euros)
Number of shares
Authorization date/
authorization
expiration date
Use of
the resolution
(number of
shares whose
issuance has
been authorized)
Amount available
(in number of
shares)
Employee share issues
Company Savings Plan
(19th resolution of the AGM of May 23, 2024)
46 million(6)
11,500,000
May 3, 2024/
Jul. 22, 2026
7,800,000(3)
Share issues to promote share ownership among
employees in foreign companies of the Group
(20th resolution of the AGM of May 23, 2024)
23 million(4)(6)
5,750,000
May 23, 2024/
Nov. 22, 2025
2,050,000(3)
Free shares or Performance Shares
(15th resolution of the AGM of May 5, 2022)
45.5 million(7)
11,375,000
May 5, 2022/
May 4, 2025
2,661,989
8,713,011(5)
Maximum amount of the
authorized cancellation
(in euros)
Number of shares
Authorization
date /
authorization
expiration date
Amount
available (in
number of shares)
Reduction in capital through cancellation of shares
Cancellation of own shares
(27th resolution of the AGM of May 4, 2023)
224 million per
24-month period
56,000,000
May 4, 2023/
May 3, 2025
56,000,000
(1) The overall ceiling for issues is capped at EUR 800 million in aggregate.
(2) All issuances made without preference right (20th, 21st, and 23rd resolutions) are globally limited to EUR 224 million.
(3) Using the authorization of the 25th resolution of the Annual General Meeting (AGM) held on May 4, 2023, and the delegation of the Board of Directors granted on
December 13, 2023, 409,439 shares were issued in 2024 for French employees participating in a company savings plan. At its meeting of December 17, 2024, the
Board of Directors authorized capital increases within a limit of 3.7 million shares, i.e. 0.64% of the capital.
(4) Issuances of shares reserved for employees in non-French subsidiaries will be deducted from the ceiling for capital increases reserved for employees participating in
a company savings plan.
(5) At the Board of Directors’ meeting of July 27, and October 26, 2022, 67,590 and 25,090 shares were respectively granted under the 2022 Long-term incentive plan. At
the Board of Directors’ meeting of March 28, May 4, July 26, and October 25, 2023, 1,414,309, 17,559, 47,528, and 30,605 shares were respectively granted under the
2023 Long-term incentive plan. At the Board of Directors’ meeting of March 26, July 30, and November 7, 2024, 1,009,829, 32,818 and 16,661 shares were
respectively granted under the 2024 Long-term incentive plan.
(6) On the date of the 2024 Annual Shareholders’ Meeting, the share capital was EUR 2,291 million.
(7) On the date of the 2022 Annual Shareholders’ Meeting, the share capital was EUR 2,276 million.
(8) At its meeting of August 28, 29, and 30, 2023, and of December 13, 2023, the Board of Directors decided to use the powers granted to it by the General Meeting of
May 4, 2023, in its 21st resolution and grant full powers to the Chief Executive Officer to carry out the issuance of the OCEANEs within certain limits. On
November 20, 2023, and then on June 25, 2024, the CEO decided the issuance by the Company of respectively 6,500, and 7,500 OCEANEs, in the context of an
offering referred to in Article L. 411-2, 1° of the French Monetary and Financial Code to qualified investors in France and outside France without the shareholders’
preferential subscription right, each OCEANE giving right to conversion or exchange into new and/or existing shares of the Company (excluding any adjustments to
preserve the rights of holders of OCEANEs).
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7.2.3.2 Use of authorizations granted by the Annual Shareholders’ Meeting: issuance of
OCEANEs
7.2.3.2.1 Additional report by the Board of Directors of July 30, 2024 - Issue of bonds convertible and/or
exchangeable for new and/or existing shares (OCEANEs)
Madam, Sir,
We present to you the additional report referred to in Articles L. 225-129-5 and R. 225-116 of the French Commercial Code on the use by the
Board of Directors of the authorization granted to it under the twenty-first resolution of the combined general meeting of shareholders of May
4, 2023.
1. Legal framework of the issuance of the OCEANEs
Combined general meeting of shareholders of May 4, 2023
The Shareholders’ Meeting of Schneider Electric SE (the “Company”) held on May 4 2023 (the “Shareholders’ Meeting”) has, pursuant to
its twenty-first resolution and acting in accordance with the quorum and majority requirements for extraordinary shareholders’ meetings, in
accordance with the provisions of the French Commercial Code, in particular in Articles L. 225-129 to L. 225-129-6, L. 225-135, L. 225-136,
L. 228-91 to L. 228-93, L. 22-10-49, L. 22-10-52, and L. 411-2 1° of the French Monetary and Financial Code delegated to the Board of
Directors, with the power to subdelegate, in compliance with applicable laws and regulations, the authority to decide through an offer
referred to in Article L. 411-2 1° of the French Monetary and Financial Code, on one or more occasions, in the proportion and at the times it
deems appropriate, in France and/or abroad, in euros or in any other currency or unit of account set by reference to several currencies, the
capital increase without the shareholders’ preferential subscription right, through the issue of ordinary shares and/or securities, governed
by Articles L. 228-91 et seq. of the French Commercial Code granting access by any means, immediately and/or in the future, to ordinary
shares of the Company or of a company in which it directly or indirectly owns more than half of the share capital, it being specified that
(a) the subscription of shares and other securities may be performed either in cash or by offsetting debts, and (b) the shares to be issued
will grant the same rights as the existing shares; it being specified that the issuance of any shares or securities giving access to preferred
shares is excluded. The Shareholders’ Meeting set the validity period of this delegation at 26 months granted within a maximum nominal
amount of capital increase of EUR 120 million being deducted from the capital increase ceiling of EUR 224 million provided for in the
twentieth resolution and from the capital increase ceiling of EUR 800 million provided for in the nineteenth resolution of said Shareholders’
Meeting.
Board of Directors of December 13, 2023
At its meeting of December 13, 2023, the Board of Directors, informed that, as of this date, the authorization referred to in the twenty-first
resolution adopted by the Shareholder’s Meeting held on May 4, 2023 has been used on November 20, 2023 for the issuance of 6,500
OCEANEs with a conversion/exchange ratio set at 426.6601 shares per bond, i.e. 2,773,291 shares leading to a number of shares available
for issuance under this resolution of 27,226,709 shares, decided:
• to use the powers granted to it by the Shareholders’ Meeting in its twenty-first resolution referred to above, and to approve the principle
of an issuance, by the Company, in one or more transactions, either in euros or in any other currency, of securities giving access to the
share capital, represented by OCEANEs, in the context of a public offering referred to in Article L. 411-2, 1° of the French Monetary and
Financial Code to qualified investors in France and outside France (as the case may be, except in the United States, Canada, Japan,
and/or Australia), without the shareholders’ preferential subscription right;
• that (i) the total nominal amount of such issuance(s) of OCEANEs may not exceed EUR 750 million and (ii) the corresponding capital
increase(s) resulting from the potential conversion of the OCEANEs into new ordinary shares may not exceed a maximum total nominal
amount of EUR 30 million (excluding any adjustments to preserve the rights of holders of OCEANEs);
• to subdelegate until December 13, 2024 to the Chief Executive Officer all powers to carry out the issuance of OCEANEs and to set its
conditions.
Decision by the Chief Executive Officer of June 25, 2024
The Chief Executive Officer, using this subdelegation, decided on June 25, 2024 to issue 7,500 OCEANEs with a nominal value of
EUR 100,000 and a per-unit issue price of EUR 100,000.
Chapter 7 – Information on the Company and its capital
7.2 Capital
607
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Life Is On | Schneider Electric
S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 7 – C O M P A N Y
I N F O R M A T I O N
C H 3
C H 4
C H 5
C H 6
C H 8
C H 9
2. Terms and conditions of the issue of the OCEANEs
In pursuance of the above-mentioned Board’s decision, OCEANEs have been issued under the main terms and conditions as follows:
Date of announcement and
launching of the issue
June 25, 2024
Nominal amount of the issue
EUR 750,000,000
Nature of the bonds
Bonds convertible and/or exchangeable into new and/or existing shares (OCEANEs)
Number and nominal value per unit
7,500 OCEANEs with a nominal value of EUR 100,000
Interest rate
Rate of 1.625% per annum, payable semi-annually in arrears on December 28 and June 28 of each
year (or on the following business day if this date is not a business day), and for the first time on
December 28, 2024
Initial conversion/exchange
premium
37.5% above the Company’s reference share price on the regulated market of Euronext in Paris. The
conversion premium of 37.5% was set at the end of a procedure known as “book building” and in
view of the Schneider Electric SE share price at EUR 229.2 on June 21, 2024, increasing 26% since
January 1, 2024, and the duration of the transaction. Over 7 years, this premium corresponds to a
compound annual growth rate composed of the share price of 4.7% to reach the conversion price.
This premium was set in consideration of the coupon and the market practices observed for the
recent issuance of convertible bonds. In accordance with the provisions of Article R. 22-10-32 of the
French Commercial Code, the price of the shares to be issued is at least equal to the weighted
average of the prices of the last three trading sessions preceding the start of the offer, possibly
reduced by a maximum discount of 10%
Settlement-delivery
June 28, 2024
Maturity
June 28, 2031
Conditions for redemption
Redemption at nominal value, i.e. EUR 100,000
Conditions for early redemption
Early full redemption possible at par plus any accrued interest at the Company’s option at any time
from July 19, 2029 (inclusive), subject to a prior notice of at least 30 (but not more than 60) calendar
days, if the arithmetic average, calculated over a period of 10 consecutive trading days chosen by
the Company from among the 20 consecutive trading days preceding the day of the publication of
the early redemption notice, of the daily products on each of such 10 consecutive trading days of the
volume weighted average price of the Company’s shares on Euronext Paris and the applicable
conversion/exchange ratio on each such trading day, exceeds 150% of the nominal value of each
bond
Right to convert or exchange
Bondholders are granted the right to convert or exchange the bonds into new and/or existing shares
of the Company
Exercise of the right to convert or
exchange
From August 7, 2024 up to the 7th business day (inclusive) preceding the maturity date or, as the
case may be, the relevant early redemption date
Initial conversion/exchange ratio
321.4756 shares of the Company per bond (including anti-dilution and dividend protections)
Framework of placement
Placement to qualified investors only (within the meaning of Regulation (EU) 2017/1129 in France and
outside of France (excluding, in particular, the United States, Australia, Japan, Canada, or South
Africa)
3. Impact of the issue of the OCEANEs and the exercise of the conversion or exchange right on existing holders of
Company shares and securities granting access to Company share capital
Impact of the issue on the Company equity per share for shareholders and holders of securities granting access
to Company share capital
The table below, provided for information purposes only, shows the impact that the issue of new ordinary shares would have on equity per
share if the conversion or exchange right was exercised for all bonds, assuming that the Company opted to grant only new ordinary shares.
This impact was calculated based on the following:
(i) equity as reported in the statutory financial statements as of December 31, 2023, approved by the Board of Directors on February 14,
2024 and certified by the statutory auditors;
(ii) number of shares making up the share capital of the Company as of December 31, 2023, i.e. 572,835,884 shares on a non-diluted basis;
and
(iii) an assumption of a conversion/exchange ratio of 321.4756 Company shares per bond.
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Before issue
After issue
Company equity
EUR 8,196,596,512.65
EUR 8,946,596,512.65
Number of shares on a non-diluted basis
572,835,884
575,246,951
Number of shares on a diluted basis(*)
579,433,247
581,844,314
Company equity per share on a non-diluted basis
EUR 14.31
EUR 15.55
Company equity per share on a diluted basis(*)
EUR 14.15
EUR 15.38
(*) In the event that all Performance Shares not yet qualified are delivered from shares to be issued (i.e. as of December 31, 2023: 129,050 new shares to be issued) and if
the conversion or exchange right is exercised for all bonds issued in November 2020 and 2023, assuming that the Company opted to grant only new ordinary shares
(i.e. as of December 31, 2023: 2,773,290 shares).
Impact of the issue on the shareholders’ situation and holders of securities granting access to Company share
capital
The table below, provided for information purposes only, shows the impact of the issue of new ordinary shares on the ownership interest of a
shareholder holding 1% of the Company’s share capital as of December 31, 2023 if the conversion or exchange right was exercised for all
bonds, assuming that the Company opted to grant only new ordinary shares.
This impact was calculated based on the following:
(i) number of shares making up the share capital of the Company as of December 31, 2023, i.e. 572,835,884 shares on a non-diluted basis;
and
(ii) an assumption of a conversion/exchange ratio of 321.4756 Company shares per bond.
Shareholder’s ownership interest
Before issue
After issue
Non-diluted basis
1%
0.9958%
Diluted basis(*)
0.9886
0.9845%
(*) In the event that all Performance Shares not yet qualified are delivered from shares to be issued (i.e. as of December 31, 2023: 129,050 new shares to be issued) and if
the conversion or exchange right is exercised for all bonds issued in November 2020 and 2023, assuming that the Company opted to grant only new ordinary shares
(i.e. as of December 31, 2023: 2,773,290 shares).
Theoretical impact of the issue on the current market value of the Schneider Electric SE share
The theoretical impact of the issuance on the current market value of the Schneider Electric share is 0.42%.
This theoretical impact was calculated based on the following:
(i) number of shares making up the share capital as of December 31, 2023, i.e. 572,835,884 shares on a non-diluted basis;
(ii) a price of EUR 227.4216 per Schneider Electric SE share, corresponding to the average of the opening Schneider Electric SE share
prices over the 20 trading days preceding the date on which the issue was launched (June 25, 2024); and
(iii) the issue of 7,500 bonds with a par value of EUR 100,000 per bond, which could potentially be converted into an aggregate 2,411,067
ordinary Schneider Electric SE shares (at a ratio of 321.4756 ordinary shares to 1 bond).
Average value of the twenty trading sessions preceding the issue
EUR 227.4216
Number of shares making up the share capital as of December 31, 2023
572,835,884 shares
Theoretical market capitalization before the issuance of OCEANEs calculated on the basis of the average
value of the twenty trading sessions preceding the issue
EUR 130,275,253,276.69
Potential number of shares to be issued in case of exercise of the right to convert or exchange the bonds
into shares of the Company
2,411,067 shares
Number of shares making up the share capital after conversion or exchange of all the OCEANEs into
Company shares
575,246,951 shares
Theoretical share price after conversion or exchange of all the OCEANEs into Company shares
EUR 226.47
Theoretical impact of the issuance on the current market value of the Company share
0.42%
Chapter 7 – Information on the Company and its capital
7.2 Capital
609
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Life Is On | Schneider Electric
S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 7 – C O M P A N Y
I N F O R M A T I O N
C H 3
C H 4
C H 5
C H 6
C H 8
C H 9
7.2.3.2.2 Statutory Auditors’ additional report on the issue of bonds convertible into and/or exchangeable
for new and/or existing shares (OCEANEs) with cancellation of pre-emptive subscription rights
Meetings of the Board of Directors of December 13, 2023 and July 30, 2024 and decisions of the Chief Executive
Officer of June 25 2024 by subdelegation of the Board of Directors
To the shareholders of Schneider Electric SE,
In our capacity as Statutory Auditors of your Company (the “Company”) and in accordance with the requirements of article R. 225-116 of the
French Commercial Code (Code de commerce), and further to our report of March 20, 2023, we hereby report to you on the issue, with the
cancellation of pre-emptive subscription rights, through an offer referred to in Paragraph II of Article L. 411-2-1° of the French Monetary and
Financial Code, of (i) ordinary shares of the Company, (ii) securities governed by articles L. 228-91 et seq. of the French Commercial Code
which are equity securities of the Company, giving access to other equity securities of the Company and/or giving entitlement to the
allotment of debt securities of the Company and/or (iii) debt securities governed or not by articles L. 228-91 et seq. of the French
Commercial Code, giving or likely to give access to equity securities to be issued by the Company, and which may also give access to
existing equity securities and/or debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving
access to existing equity securities or to equity securities to be issued by, and/or to debt securities of, companies in which the Company
holds directly or indirectly, at the time of issue, more than half of the share capital, and/or (v) debt securities governed or not by articles
L.228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity securities to be issued by companies in
which the Company directly or indirectly holds, at the time of issue, more than half of the share capital, such securities also being able,
where applicable, to give access to existing equity securities and/or debt securities of said companies, as authorized by the Extraordinary
Shareholders’ Meeting of May 4, 2023.
This Extraordinary Shareholders’ Meeting delegated to the Board of Directors, with the option of sub-delegation under the conditions laid
down by law, the authority to decide on such issuance within a period of 26 months and up to a maximum nominal amount of capital
increase of €120 million being deducted from the capital increase ceiling of €224 million provided for in the 20th resolution and to the capital
increase ceiling of €800 million provided for in the nineteenth resolution of the said Extraordinary Shareholders’ Meeting.
Your Board of Directors informs you that to date, this delegation has been partially used on November 20, 2023 to issue 6,500 OCEANE
bonds with a conversion/exchange ratio set at 426.6601 shares per bond, i.e. 2,773,291 shares, resulting in an available number of shares
to be issued under this resolution of 27,226,709 shares.
Using, once again, this authorization, the Board of Directors decided at its meeting of December 13, 2023, to approve the principle of an
issuance of securities giving access to the Company’s capital, represented by bonds convertible into or exchangeable for new or existing
shares in the Company (“OCEANEs”), in the context of a public offering referred to in Article L.411-2, 1° of the French Monetary and
Financial Code to qualified investors in France and outside France (as the case may be, except in the United States of America, Canada,
Japan and/or Australia), without shareholders’ preferential subscription rights. The Board of Directors has decided that (i) the total nominal
amount of such issuance of OCEANEs may not exceed €750 million and (ii) the maximum total nominal amount of the corresponding capital
increase(s) resulting from the potential conversion of the OCEANEs into new ordinary shares may not exceed €30 million euros (excluding
any adjustments to preserve the rights of OCEANE holders).
The Board of Directors sub-delegated to the Chief Executive Officer, for a period of 12 months from the date of the meeting, all powers to
decide the issuance of OCEANEs and to set its conditions.
Using this sub-delegation, the Chief Executive Officer decided on June 25, 2024 to issue 7,500 OCEANEs bonds with a nominal value of
100,000 euros at a unit price of €100,000.
At its meeting on July 30, 2024, the Board of Directors placed on record the completion of this issuance.
It is the responsibility of the Board of Directors to prepare an additional report in accordance with Articles R. 225-115 et seq. as well as the
article R.22-10-31 of the French Commercial Code. Our role is to report on the fairness of the financial statements information, on the
cancellation of pre-emptive subscription rights and on certain other disclosures relating to the issue, contained in this report.
We performed the procedures that we deemed necessary in accordance with the professional guidance issued by the French national
auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures mainly consisted in
verifying:
• the fairness of the financial information taken from the financial statements prepared under the responsibility of the Board of Directors.
We have audited these financial statements in accordance with professional standards applicable in France.
• the compliance of the terms and conditions of the issue with the delegation of authority granted by the Extraordinary Shareholders’
Meeting;
• the information provided in the Board of Directors’ additional report on the choice of constituent elements used to determine the issue
price and on its final amount.
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We have no matter to report as to :
• the fairness of the financial information taken from the financial statements and included in the Board of Directors’ additional report;
• the compliance of the terms and conditions of the issue with the delegation of authority granted by the combined Shareholders’ Meeting
of May 4, 2023 and the information provided to shareholders;
• the choice of constituent elements used to determine the issue price of equity securities and its final amount;
• the presentation of the impact of the issue on the situation of the holders of shares and securities carrying rights to share, as expressed
in relation to shareholders’ equity and on the company’s share price;
• the proposed cancellation of pre-emptive subscription rights, upon which you have voted.
Courbevoie and Neuilly-sur-Seine, July 30, 2024
Statutory Auditors
Forvis Mazars SA
Juliette Decoux-Guillemot
Mathieu Mougard
PricewaterhouseCoopers Audit
Jean-Christophe Georghiou
Séverine Scheer
7.2.4 Three-year summary of changes in capital
The following table shows changes in Schneider Electric SE’s share capital and additional paid-in capital since December 31, 2021, through
capital increases/decreases:
Number of shares issued
or canceled
Cumulative number
of shares
Total amount
of the capital (in euros)
Capital as of Dec. 31, 2021(1)
569,033,442
2,276,133,768
IGE+XAO merger share issue
284,308
Employee share issue
1,775,171
Performance Shares issued
–
Capital as of Dec. 31, 2022(2)
571,092,921
2,284,371,684
Employee share issue
1,742,963
Performance Shares issued
–
Capital as of Dec. 31, 2023(3)
572,835,884
2,291,343,536
Share issue following the conversion of OCEANEs
1,386,097
Employee share issue
1,409,695
Performance Shares issued
–
CAPITAL AS OF DEC. 31, 2024(4)
575,631,676
2,302,526,704
(1) Increase in share capital (EUR 7.86 million) and in additional paid-in capital (EUR 208.6 million).
(2) Increase in share capital (EUR 8.2 million) and in additional paid-in capital (EUR 204.5 million).
(3) Increase in share capital (EUR 7 million) and in additional paid-in capital (EUR 212.0 million).
(4) Increase in share capital (EUR 11.2 million) and in additional paid-in capital (EUR 483 million).
7.2.5 Share buybacks
7.2.5.1 Current authorization to buy back shares
The Annual Shareholders’ Meeting of May 4, 2023 authorized the Company to buy back shares. This authorization was renewed by the
Annual Shareholders’ Meeting of May 23, 2024.
In 2024, a total EUR 322,210,573 of share buyback corresponding to 1,337,391 shares bought back by the Company had been completed
pursuant to the authorizations granted.
These buybacks are part of a policy to neutralize the dilution resulting from capital increases reserved for employees or from Long-Term
Incentive Plans. All the shares acquired by the Company as part of the share buyback program are held to cover Long-Term Incentive
Plans.
Chapter 7 – Information on the Company and its capital
7.2 Capital
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7.2.5.2 Share buyback authorization to be submitted to the Annual Shareholders’ Meeting
of May 7, 2025
Details of this share buyback program are as follows:
Number of shares and percentage of share capital held
directly and indirectly by Schneider Electric SE*
• Own shares: 14,658,840 shares, i.e. 2.55% of share capital
• Treasury shares: 1,058 shares
• Total: 14,659,898 shares, i.e. 2.55% of share capital
Overview of purposes for which shares have been held*
• For all own shares* held: coverage of long-term inventive plans for
employees or Corporate Officers
Share buyback program objectives
• Allotment to employees or Corporate Officers as a long-term
compensation tool
• Delivery as a result of the exercise of rights attached to securities
giving access to the Company’s capital
• Cancellation
• Delivery in connection with external growth operations
• Disposal in the course of a share management agreement
Maximum number of shares that may be acquired
• 10% of the issued share capital at any moment:
– On the basis of the issued share capital*: 57,563,168
Schneider Electric SE shares with a nominal value of EUR 4
− Taking into account treasury stock and own shares*:
42,903,270 shares or 7.45%
Maximum purchase price and maximum aggregate amount
of share purchases
• The maximum purchase price is set at EUR 350 per share,
i.e. EUR 20,147,108,660
Duration of the buyback program
• 18 months maximum, expiring on November 6, 2026
Transactions carried out pursuant to the program authorized by
the Annual Shareholders’ Meeting 2024 between May 24,
2024, and February 19, 2025
• Number of shares acquired: 1,337,391
• Average purchase price: EUR 240.92
• Number of shares transferred: 1,196,052
• Average transfer price: EUR 64.22
* As of January 31, 2025.
7.2.6 Pledge
Pledges on Schneider Electric SE shares
371,814 shares are pledged.
Pledges on subsidiaries’ shares
Schneider Electric SE has not pledged any shares in significant subsidiaries.
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7.3 General information on the Company
As a European Company (Societas Europaea) with a Board of Directors (since June 18, 2014), domiciled in France, Schneider Electric SE is
governed by European Council Regulation (EC) No. 2157/2001 of October 8, 2001, governing the status of European Companies (“SE
Regulation”). Issues not covered by the SE Regulation are governed by the provisions of the French Commercial Code (Code de commerce)
applicable to limited-liability companies (société anonyme), as well as by their Articles of Association. The provisions of the French
Commercial Code regarding the management and governance of limited-liability companies are applicable to the European Company.
As of December 31, 2024, the Company’s share capital was EUR 2,302,526,704. Its head office is located at 35, rue Joseph Monier,
92500 Rueil-Malmaison, France.
Schneider Electric SE is registered with the commercial court registry of Nanterre under No. 542 048 574, APE code (principal activity code)
7010Z, Legal Entity Identifier (LEI) 969500A1YF1XUYYXS284.
The Company was incorporated in 1871. It is due to expire on July 1, 2031. It was first called Spie Batignolles, then changed its name to
Schneider SA when it merged with Schneider SA in 1995, and then to Schneider Electric SA in May 1999, before becoming Schneider
Electric SE in 2014.
As stated in Article 2 of its Articles of Association, the Company has the following corporate purpose, directly or indirectly, in any form, in
France and in all other countries:
(i) the design, development, and sale of products, equipment, and solutions related to the metering, management, and use of energy in all
its forms and delivering reliability, efficiency, and productivity, in particular through engaging in, whether by creating, acquiring, or
otherwise, all activities related to:
– electrical equipment manufacturing, electrical distribution, and secured power supply,
– building control, automation, and safety,
– industrial control and automation, including software,
– management of all types of data centers, networks, equipment, and other infrastructure;
(ii) the acquisition, purchase, sale, and use of any intellectual and/or industrial property rights relative to these industries; and
(iii) involvement, in any way, in any enterprise, company, or consortium, whatever the type, undertaking activities related to the Company’s
business or such as to encourage its industry and commerce, and, more generally, all industrial, commercial, and financial, asset and
real estate operations related directly or indirectly in any way to the above objective.
The Company may enter into any transactions that fall within the scope of its objectives either alone for its own account or on behalf of third
parties, either by having an interest in, or by the purchase, subscription, contribution, or exchange of company shares, partnership shares and
the purchase of any company, irrespective of type, in pursuance of a similar or related purpose, or that promote its expansion or development.
7.4 Shareholders’ rights and obligations
7.4.1 Annual Shareholders’ Meetings (Article 19 of the
Articles of Association)
Annual Shareholders’ Meetings are called and run in accordance with the conditions prescribed by law.
The meetings are held at the head office or any other address provided in the call to meeting. The Board may decide, when each meeting is
called, to organize the public transmission of all or part of the meeting by video conference and/or using teletransmission techniques.
All shareholders may attend meetings, in person or by proxy, after providing proof of identity and share ownership in accordance with applicable
laws and regulations.
When the decision is made to call an Annual Shareholders’ Meeting, the Board of Directors may also decide to allow shareholders to participate
or vote at Annual Shareholders’ Meetings using video conferencing facilities and/or any other telecommunication medium allowed under
applicable legislation.
Remote voting procedures are governed by the applicable laws and regulations. In particular, shareholders may send proxy and mail ballot
forms before Annual Shareholders’ Meetings either in paper form or, if approved by the Board of Directors and stated in the meeting
announcement and/or notice, electronically.
When the decision is made to call an Annual Shareholders’ Meeting, the Board of Directors may authorize shareholders to fill out and sign these
forms electronically through a secure site set up by the Annual Shareholders’ Meeting organizer using a process that complies with applicable
laws and regulations (Paragraph 2 of Article 1367 of the French Civil Code) and consisting of a username and password.
Proxies or votes so submitted electronically before the Annual Shareholders’ Meeting, as well as the related acknowledgments of receipt, will be
considered irrevocable and binding documents. However, in the event that shares are sold before the applicable record date (midnight Paris
time two business days before the meeting date), the Company will cancel or amend, as appropriate, any related proxy or electronic votes
submitted before the Annual Shareholders’ Meeting.
Meetings shall be chaired by the Chairman of the Board of Directors or in his absence by the Vice-Chairman, or in his absence by a
Chapter 7 – Information on the Company and its capital
7.3 General information on the Company
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member of the Board of Directors specially appointed for that purpose by the Board of Directors. In the event that no chairman has been
selected, the Annual Shareholders’ Meeting elects its chairman.
The two shareholders present who hold the largest number of votes and who accept shall act as scrutineers. The Board appoints a
secretary, who is not required to be a shareholder.
As required by law, a register of attendance is kept.
Copies or extracts of the meeting’s minutes are certified either by the Chairman or Vice-Chairman of the Board of Directors, or the Annual
Shareholders’ Meeting’s secretary.
7.4.2 Voting rights
7.4.2.1 Double voting rights (Article 20 of the Articles of Association)
Voting rights attached to shares are proportionate to the equity in the capital they represent, assuming that they all have the same nominal
value. Each capital share or dividend share confers the right to one vote except where compulsory legal provisions limit the number of votes
a shareholder may have. Notwithstanding the foregoing, double voting rights are attributed to fully paid-up shares registered in the name of
the same holder for at least two years prior to the end of the calendar year preceding that in which the Annual Shareholders’ Meeting takes
place, subject to compliance with the provisions of the law. In the case of a bonus share issue paid up by capitalizing reserves, earnings, or
additional issue premiums, each bonus share allotted in respect of shares carrying double voting rights will also have double voting rights.
The shares are stripped of their double voting rights if they are converted into bearer shares or transferred, except in the case of the transfer
from one registered holder to another as part of an inheritance or family gift.
Double voting rights may also be stripped by a decision of the Extraordinary Annual Shareholders’ Meeting after ratification by a Special
Shareholders’ Meeting of beneficiaries benefiting from double voting rights.
The minimum holding period to qualify for double voting rights was reduced from four to two years by decision of the Ordinary and
Extraordinary Shareholders’ Meeting of June 27, 1995.
7.4.2.2 Ceiling on voting rights (Article 20 of the Articles of Association)
At the Annual Shareholders’ Meeting, no shareholder may exercise, either in person or through a proxy, by virtue of single voting rights
conferred by the shares they hold directly and indirectly and by virtue of the proxy votes entrusted to them, more than 10% of the total
number of the voting rights conferred by shares in the Company. However, if a shareholder also holds double voting rights directly or
indirectly and/or as proxy, the limit set may be exceeded taking into consideration only the resulting additional voting rights, without the total
voting rights thereby held exceeding 15% of the total number of the voting rights conferred by the shares in the Company.
To apply these provisions:
• The total number of voting rights allowed are calculated as of the date of the Annual Shareholders’ Meeting and announced to the
shareholders at the beginning of such Annual Shareholders’ Meeting;
• The number of voting rights held directly and indirectly are understood to include those conferred by shares held personally by a shareholder,
those conferred by shares held by a legal entity controlled by a shareholder as defined by Article L. 233-3 of the French Commercial Code,
and those shares that are assimilated to the shares owned, as defined by the provisions of Articles L. 233-7 et seq. of the Code; and
• Shareholders’ proxies returned to the Company that do not appoint a representative are subject to the above ceilings. However, these
ceilings do not apply to the meeting chairman voting on behalf of such proxies.
The above ceilings will no longer apply, without it being necessary to put the matter to the vote again by the Extraordinary Shareholders’
Meeting, if any individual or legal entity, acting alone or jointly with one or other individuals or legal entities, acquires or increases its stake to
at least two-thirds of the Company’s capital through a public tender offer for all the Company’s shares. The Board of Directors takes note of
this nullity and undertakes the formalities necessary to amend the Articles of Association. The ceiling on voting rights was approved by the
Ordinary and Extraordinary Shareholders’ Meetings of June 27, 1995.
In accordance with Article L. 225-96, Paragraph 1 of the French Commercial Code, any amendment to the Articles of Association must be
approved by the Extraordinary Shareholders’ Meeting, by a majority of at least two-thirds of the voting rights represented by shareholders in
attendance or participating by proxy.
7.4.3 Allocation of income (Article 22 of the Articles
of Association)
Net income for the year less any losses brought forward from prior years is appropriated in the following order:
• 5% to the legal reserve (this appropriation is no longer required once the legal reserve represents one-tenth of the capital, provided that
further appropriations are made in the case of a capital increase);
• To discretionary reserves, if appropriate, and to retained earnings; and
• To the payment of the balance in the form of a dividend.
The Shareholders’ Meeting may decide to offer shareholders the opportunity to receive the dividend in cash or in the form of new shares.
Dividends not claimed within five years from the date of payment are forfeited and paid to the government, in accordance with the law.
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Chapter 7 – Information on the Company and its capital
7.4 Shareholders’ rights and obligations
7.4.4 Holding of shares (Article 7 Paragraph 1 of the
Articles of Association)
Shareholders may elect to hold their shares in registered or bearer form. To establish proof of ownership, the shares must be recorded in the
shareholder’s account in accordance with the procedures and conditions defined by current legislation and regulations.
7.4.5 Disclosure thresholds (Article 7 Paragraph 2
of the Articles of Association)
The Articles of Association stipulate that any individual or legal entity that owns or controls (as these terms are defined in Article L. 233-9 of
the French Commercial Code) directly or indirectly, shares or voting rights representing at least 1% of the total number of shares or voting
rights outstanding, or a multiple thereof, is required to disclose the total number of shares, voting rights, and share equivalents held directly,
indirectly, or in concert to the Company by registered letter with return receipt requested, within five trading days of the disclosure threshold
being crossed. In addition, effective November 1, 2009, the shareholder must notify the Company, in the disclosure letter, of the number of
existing shares it is entitled to acquire by virtue of agreements or financial instruments referred to in point b) of the third paragraph of Article
L. 233-7 of the French Commercial Code and of the number of existing shares covered by any agreement or financial instrument referred to
in point c) of said paragraph. Shareholders are also required to notify the Company if the number of shares or voting rights held falls below
one of the thresholds defined above. In the case of failure to comply with these disclosure obligations, the shares in excess of the disclosure
threshold will be stripped of voting rights at the request of one or several shareholders owning at least 2.5% of the share capital, subject to
compliance with the relevant provisions of the law. These provisions are from the Ordinary and Extraordinary Shareholders’ Meetings of
June 27, 1995, May 5, 2000, and April 23, 2009.
7.4.6 Identifiable holders of bearer shares (Article 7
Paragraph 3 of the Articles of Association)
The Company may at any time request Euroclear to identify holders of bearer securities conferring immediate or future voting rights. This
provision was adopted by the Ordinary and Extraordinary Shareholders’ Meetings of June 30, 1988 and May 5, 2000.
7.4.7 Disposal of shares (Article 8 of the Articles
of Association)
Shares in the Company are freely negotiable and transferable.
7.4.8 Publication of information of Article L. 22-10-11
of the French Commercial Code
Items that could have an impact in the event of a public tender offer include:
• Agreements calling for payments to the Corporate Officers (see section 4.2.3.1 of this Universal Registration Document) or to employees
if they resign or are terminated without real cause or if their employment ends due to a public tender offer;
• Certain financing arrangements with conditional provisions of anticipated reimbursement or cancellation in the event of change of
control. Under these provisions, the debt holders may request for repayment or cancellation if a shareholder or shareholders acting
together hold more than 50% of the Company’s shares. As of December 31, 2024, back-up facilities with this type of condition amounted
EUR 2.9 billion, fully undrawn. It also applied to the Term Loan set up for the funding of the minority interest of AVEVA which amounts
EUR 1.7 billion as of December 31, 2024, fully drawn. Bonds include such a change of control event if the change of control triggers a
down grading of the Company’s rating. As of December 31, 2024, EUR 12.7 billion of bonds were subject to this type of conditions; and
• Statutory restrictions in the Articles of Association on the exercise of voting rights (see section 7.4.2 of this Universal Registration
Document) relating to the non-application of the ceiling on voting rights when a public tender offer is successfully completed.
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7.5 Stock market data
In France, Schneider Electric is listed on Euronext Paris (sub-fund A), where it is traded on a per-share basis under ISIN code
FR0000121972. Schneider Electric SE shares are included on the CAC 40 index established by Euronext.
18-month trading data in Paris
Year
Month
Number of
securities traded
(in thousands
of shares)
Value
(in millions of
euros)
High(1)
Low(1)
Number of
trading sessions
2023
August
16,190
2,569
163.00
152.74
23
September
16,777
2,619
159.38
151.40
21
October
17,759
2,625
158.70
134.38
22
November
19,693
3,172
169.16
144.00
22
December
14,416
2,545
182.94
168.06
19
2024
January
13,946
2,482
185.80
171.10
22
February
16,536
3,295
210.50
182.34
21
March
15,358
3,262
218.50
205.55
20
April
17,167
3,605
218.85
203.80
21
May
15,934
3,631
239.00
212.50
22
June
15,475
3,509
237.20
219.50
20
July
16,315
3,664
235.60
211.50
23
August
15,563
3,345
231.05
190.00
22
September
13,944
3,220
247.55
214.30
21
October
14,370
3,451
249.00
231.40
23
November
17,227
4,145
249.15
231.75
21
December
14,655
3,582
253.80
236.30
20
Total 2024
186,490
41,191
253.80
171.10
256
2025
January
21,586
5,369
273.00
226.70
22
(1) Data corresponds to trading volumes on NYSE Euronext.
Five-year trading summary
2024
2023
2022
2021
2020
Average daily trading volume on the Paris stock exchanges
(NYSE Euronext):
• number of shares (in thousands)
728.47
810.99
1,001.51
890.06
1,426.11
• in millions of euros
160.90
126.82
135.05
123.40
134.90
High and low share prices (in euros)
• high
253.80
182.94
178.78
173.78
121.80
• low
171.10
131.72
110.02
119.10
61.72
Year-end closing price (in euros)
240.90
181.78
130.72
172.46
118.30
Yield (%)
1.62
1.93
2.41
1.68
2.20
The Schneider Electric SE share results vs. the CAC 40 index (rebased) over five years
MONEP
Schneider Electric SE shares have been traded on the MONEP market since December 20, 1996.
60
80
100
120
140
160
180
200
220
240
260
280
Jan 2020
Jan 2022
Jan 2021
Jan 2023
Jan 2024
Dec 2024
Schneider Electric SE
CAC 40
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Chapter 7 – Information on the Company and its capital
7.5 Stock market data
Ordinary bonds
The information is disclosed in note 9 of the Company financial statements (pages 586 and 587).
7.6 Investor relations
7.6.1 Person responsible for financial information
Hilary Maxson
Chief Financial Officer
35, rue Joseph Monier – CS 30323
92506 Rueil-Malmaison Cedex (France)
Tel: +33 (0)1 41 29 71 34
7.6.2 Contacts
Any information or document may be requested from:
Amit Bhalla – Head of Investor Relations
For institutional investors and financial analysts:
Tel: +44 (0)20 4557 1328
For individual investors:
Tel: 0 805 651 650
Email: actionnaires@se.com or via the contact form available on the institutional website at www.se.com.
7.6.3 Shareholders’ Advisory Committee
The Committee is the voice of Schneider Electric’s individual shareholders. The Committee consists of eight to ten independent volunteers
appointed by Schneider Electric.
The Shareholders’ Advisory Committee meets three to four times a year to discuss various topics with a strong emphasis on the Company’s
strategy towards individual shareholders (enhancing communication material and defining dedicated events). The Committee also plays a
role in the Annual Shareholders’ Meeting as one of its members opens the Q&A session with the Chief Executive Officer.
7.6.4 Publicly available documents and regulated
information
The Company provides its shareholders with newsletters upon request, and videos and presentations are available in a dedicated section
on the corporate website at www.se.com.
The Articles of Association, minutes of Annual Shareholders’ Meetings, statutory auditors’ reports, and other legal documents concerning
the Company are available for consultation at the Company’s head office (office of the Secretary to the Board of Directors) located at 35,
rue Joseph Monier, 92500 Rueil-Malmaison, France.
The Articles of Association, press releases, regulated information within the meaning of the Autorité des Marchés Financiers (AMF),
registration and universal registration documents, sustainable development reports, notice of the Shareholders’ Meeting, and other
documents are also available on the Company’s website at www.se.com.
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S H A R E H O L D E R I N F O R M A T I O N
Annual Shareholders’ Meeting
8
8.1 Explanatory comments & draft
resolutions submitted to the
Annual Shareholders’ Meeting
620
8.1.1
Ordinary Shareholders’ Meeting
622
8.1.2 Extraordinary Shareholders’ Meeting
635
8.2 Statutory auditors’ special reports
655
8.2.1 Statutory auditors’ report on the issuance of shares and various
securities with and/or without preferential subscription rights
655
8.2.2 Statutory auditors’ report on the authorization to grant
free shares existing or to be issued
658
8.2.3 Statutory auditors’ report on the issuance of shares
or securities giving access to capital reserved for
members of a company savings plan
659
8.2.4 Statutory auditors’ report on the issuance of shares
or securities reserved for a category of beneficiaries
660
8.2.5 Statutory auditors’ report on the reduction of capital
661
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Chapter 8 – Annual Shareholders’ Meeting
8.1 Explanatory comments & draft
resolutions submitted to the Annual
Shareholders’ Meeting
This section presents the draft resolutions that will be submitted to the Annual Shareholders’ Meeting of
the Company that will be convened on May 7, 2025, and the report of the Board of Directors (explanatory
comments) for those resolutions. The Board of Directors’ report and the draft resolutions are those
approved by the Board of Directors in its meeting of February 19, 2025. They may be subject to further
amendments in the final Notice of Meeting to be published in the BALO official journal, where necessary,
in order to take into account subsequent decisions of the Board of Directors.
Agenda
Item on the agenda: Company Climate strategy (without a resolution subject to shareholder approval)
ORDINARY SHAREHOLDERS’ MEETING:
Resolution 1
Approval of statutory financial statements for the 2024 fiscal year
Resolution 2
Approval of consolidated financial statements for the 2024 fiscal
year
Resolution 3
Appropriation of profit for the fiscal year and setting the dividend
Resolution 4
Approval of regulated agreements governed by Article L. 225-38 et
seq. of the French Commercial Code
Resolution 5
Approval of the information on the Directors’ and the Corporate
Officers’ compensation paid or granted for the fiscal year ending
December 31, 2024 mentioned in Article L. 22-10-9 of the French
Commercial Code
Resolution 6
Approval of the components of the total compensation and benefits
of all types paid during the 2024 fiscal year or awarded in respect
of the said fiscal year to Mr. Olivier Blum in his capacity as Chief
Executive Officer (from November 1 to December 31, 2024)
Resolution 7
Approval of the components of the total compensation and benefits
of all types paid during the 2024 fiscal year or awarded in respect
of the said fiscal year to Mr. Peter Herweck in his capacity as Chief
Executive Officer (from January 1 to November 1, 2024)
Resolution 8
Approval of the components of the total compensation and benefits
of all types paid during the 2024 fiscal year or awarded in respect
of the said fiscal year to Mr. Jean-Pascal Tricoire in his capacity as
Chairman of the Board of Directors
Resolution 9
Approval of the compensation policy for the Chief Executive Officer
Resolution 10
Approval of the compensation policy for the Chairman of the Board
of Directors
Resolution 11
Approval of the Directors’ compensation policy
Resolution 12
Renewal of the term of office of Mr. Jean-Pascal Tricoire
Resolution 13
Renewal of the term of office of Mrs. Anna Ohlsson-Leijon
Resolution 14
Ratification of the co-optation of Mrs. Clotilde Delbos as a Director
Resolution 15
Appointment of Mrs. Xiaohong (Laura) Ding as Director
representing the employee shareholders
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Resolution A
Appointment of Mr. Alban de Beaulaincourt as Director
representing the employee shareholders
Resolution B
Appointment of Mr. François Durif as Director representing the
employee shareholders
Resolution C
Appointment of Mr. Venkat Garimella as Director representing the
employee shareholders
Resolution D
Appointment of Mr. Gérard Le Gouefflec as Director representing
the employee shareholders
Resolution E
Appointment of Mrs. Amandine Petitdemange as Director
representing the employee shareholders
Resolution 16
Authorization granted to the Board of Directors to buy back
Company shares
EXTRAORDINARY SHAREHOLDERS’ MEETING:
Resolution 17
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company with shareholders’ preferential
subscription right
Resolution 18
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company without shareholders’ preferential
subscription right through a public offering other than those
referred to in Article L. 411-2 1° of the French Monetary and
Financial Code
Resolution 19
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company without shareholders’ preferential
subscription right through an offering in accordance with Article
L. 411-2 1° of the French Monetary and Financial Code
Resolution 20
Delegation of authority to the Board of Directors to increase the
number of shares to be issued in the event of a capital increase
with or without shareholders’ preferential subscription right
Resolution 21
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company without shareholders’ preferential
subscription right in consideration for contributions in kind to the
Company
Resolution 22
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company without shareholders’ preferential
subscription right reserved for a category of persons
Resolution 23
Delegation of authority to the Board of Directors to increase the
capital by issuing ordinary shares or securities giving access to
share capital of the Company without shareholders’ preferential
subscription right reserved for one or more named person
Resolution 24
Delegation of authority to the Board of Directors to increase the
capital by capitalizing additional paid-in capital, reserves,
earnings, or other
Resolution 25
Authorization granted to the Board of Directors to freely allocate
shares to the employees or to a category of employees and/or the
Corporate Officers of the Company or of companies affiliated
therewith as part of the Long-Term Incentive Plan up to a limit of 2%
of the share capital
Resolution 26
Delegation of authority to the Board of Directors to undertake
capital increases reserved for participants in a company savings
plan without shareholders’ preferential subscription right
Resolution 27
Delegation of authority to the Board of Directors to undertake
capital increases reserved for employees of certain non-French
subsidiaries of the Group, directly or via entities acting to offer
those employees benefits comparable to those offered to
participants in a company savings plan without shareholders’
preferential subscription right
Resolution 28
Authorization to the Board of Directors to cancel shares of the
Company bought back by the Company under the share buyback
programs
Resolution 29
Amendment of Article 11.3 of the Articles of Association relating to
the procedures for replacing the director representing employee
shareholders
Resolution 30
Amendment of Article 14.3 of the Articles of Association relating to
the procedures for the deliberation of the Board of Directors
Resolution 31
Powers for formalities
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Chapter 8 – Annual Shareholders’ Meeting
8.1.1 Ordinary Shareholders’ Meeting
1st to 3rd resolutions: Approval of annual financial statements and setting the dividend
Explanatory statement
Under the 1st and 2nd resolutions, shareholders are invited to approve:
• the statutory financial statements of Schneider Electric SE for the year 2024 which show a profit of EUR 544,809,233.36; and
• the consolidated financial statements for the year 2024 which show a net income (Group share) of EUR 4,269 million.
The activity and the results for the 2024 fiscal year are presented in the 2024 Universal Registration Document as well as in the Notice of
meeting available on the Company’s website.
Under the 3rd resolution, we recommend a distribution of EUR 3.90 per share, representing a distribution rate of 47% of the Group’s
Adjusted Net Income and an estimated total distribution of EUR 2,187,793,697.70(1) (based on the number of shares ranking for dividends
at December 31, 2024). No distribution will be paid on treasury shares held by the Company on the payment date. The distributable
earnings at the close of the 2024 financial year being an amount lower than the amount distributed due to the absence of distribution
made by Schneider Electric Industries SAS for the benefit of the Company during said financial year, this absence of distribution being
explained by internal reorganization operations in progress at the close of the financial year requiring a high level of equity to be
maintained at the level of Schneider Electric Industries SAS, this distribution would be paid out of the distributable earnings up to
EUR 1,416,635,711.37, and the issue premiums for the balance up to EUR 771,157,986.33. The proposed distribution is an integral part
of Schneider Electric’s policy to reward shareholders over the long term. It represents an increase of 11% compared to last year.
The distribution will be paid according to the following schedule:
• Dividend ex-date:
May 13, 2025
• Record date:
May 14, 2025
• Distribution payment date:
May 15, 2025
From a tax perspective, it is specified that the distribution of EUR 3.90 per share is subject to two separate tax regimes:
• up to EUR 2.53, the distribution constitutes a dividend.
−Tax treatment of dividends paid to beneficiaries who are French tax residents
For individual beneficiaries who are tax residents in France, the dividend is subject upon payment to a social security tax of 17.2%
and, in principle, to a mandatory non-definitive levy of 12.8%. These taxes are levied at source and are computed on the gross
amount of the dividend. For its taxation in 2025, this dividend will fully be eligible for the 40% tax rebate referred to in Article
158.3.2° of the French Tax Code where an express, global, and irrevocable election is made for taxation of its income from
movable capital under the progressive scale of personal income tax. Where this option is not made, the dividend will be taxed at
a final flat-rate income 12.8% and will not be eligible for this 40% rebate. In both cases, the levy of 12.8% borne at the time of the
payment of the dividend is deducted from the individual income tax due.
−Tax treatment of dividends paid to non-resident beneficiaries
Dividends distributed from company profits to non-resident beneficiaries are subject to the following withholding taxes:
° 12.8% for natural persons,
° 25% for legal entities.
These withholding taxes may, however, be reduced or eliminated by international provisions, and in particular double taxation
treaties which may exist between France and the country whose tax laws apply to the effective beneficiary of the dividend.
The beneficiary of the dividend is invited to check with his tax advisor (i) whether such a double taxation treaty exists, (ii) the
terms of this treaty and (iii) if the tax rate provided for in said treaty is lower than the rate applicable by default, the procedure for
obtaining a refund of the overpayment and/or a tax credit.
• up to EUR 1.37, the distribution constitutes a reimbursement of contribution in accordance with Article 112-1° of the French Tax Code
since the profits and reserves other than the legal reserve have been previously distributed. As such, it is non-taxable under income
tax for beneficiaries who are French tax residents, and is not subject to any withholding tax in France for non-resident beneficiaries.
For any additional clarification regarding the applicable tax regime, shareholders are invited to contact their usual advisors.
(1) This amount is calculated based on the number of shares ranking for dividends at December 31, 2024 and could therefore change if this number varies between
January 1, 2025 and the ex-dividend date.
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Text of the first resolution
(Approval of statutory financial statements for the 2024 fiscal year)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report and the statutory auditors’ report, approves the statutory financial statements for the 2024 fiscal year as presented, as well
as the transactions reflected in these statements or summarized in these reports showing a net profit of EUR 544,809,233.36.
In addition, pursuant to Article 223 quater of the French Tax Code (Code général des impôts), the Shareholders’ Meeting approves the value
of expenses and charges non-deductible from taxable result liable to corporate income tax and amounting to EUR 7,042 as well as the
theoretical tax borne as a result of these charges amounting to EUR 1,819.
Text of the second resolution
(Approval of consolidated financial statements for the 2024 fiscal year)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report and the statutory auditors’ report, approves the consolidated financial statements for the 2024 fiscal year as presented, as
well as the transactions reflected in these statements or summarized in these reports.
Text of the third resolution
(Appropriation of profit for the financial year and setting the dividend)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, notices that the
Company’s fiscal year ending December 31, 2024 closed with a net profit of EUR 544,809,233.36 and, considering the retained earnings
amounted to EUR 871,826,478.01, that the distributable earnings amounted to EUR 1,416,635,711.37.
Upon proposal of the Board of Directors, the Annual Shareholders’ Meeting decides the distribution to the shareholders of EUR 3.90 per
share, i.e., EUR 2,187,793,697.70(1) on the basis of the number of shares ranking for dividends at December 31, 2024, paid from the
distributable earnings up to EUR 1,416,635,711.37, and from the issue premiums for the balance up to EUR 771,157,986.33.
The ex-dividend date will be May 13, 2025 and the distribution will be payable from May 15, 2025. If, at the time of payment of the
distribution, the number of treasury shares held by the Company has changed compared to that held on December 31, 2024, the fraction of
the dividend relating to this variation will either increase or reduce issue premiums.
From a tax perspective, it is specified that the distributed amount of 3.90 euros per share breaks down as follows:
• up to EUR 2.53, the distribution constitutes a dividend. For individual beneficiaries who are tax residents in France, this dividend is
subject upon payment to a social security tax of 17.2% and, in principle, to a mandatory non-definitive levy of 12.8%. These taxes are
levied at source and are computed on the gross amount of the dividend. For its taxation in 2025, this dividend will fully be eligible for the
40% tax rebate referred to in Article 158.3.2° of the French Tax Code where an express, global, and irrevocable election is made for
taxation of its income from movable capital under the progressive scale of personal income tax. Where this option is not made, the
dividend will be taxed at a final flat-rate income 12.8% and will not be eligible for this 40% rebate. In both cases, the levy of 12.8% borne
at the time of the payment of the dividend is deducted from the individual income tax due;
• up to EUR 1.37, paid out from issue premiums, the distribution constitutes a reimbursement of contribution in accordance with Article
112-1° of the French Tax Code since the profits and reserves other than the legal reserve have been previously distributed. As such, it is
non-taxable for beneficiaries who are French tax residents.
Dividends/coupons paid by Schneider Electric SE for the three most recent fiscal years are as follows:
2021
2022
2023
Net dividend paid per share (in euros)
2.90
3.15
3.50
(1) This amount is calculated based on the number of shares ranking for dividends at December 31, 2024 and could therefore change if this number varies between
January 1, 2025 and the ex-dividend date.
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Chapter 8 – Annual Shareholders’ Meeting
4th resolution: Regulated agreements
Explanatory statement
In the 4th resolution, you are invited to take due note of the absence of any new regulated agreement concluded during the fiscal year
ending December 31, 2024.
Text of the fourth resolution
(Approval of regulated agreements governed by Article L. 225-38 et seq. of the French Commercial Code)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, and having considered
the statutory auditors’ special report on related party agreements referred to in Article L. 225-38 of the French Commercial Code, approves
this report in all its provisions and notes that no new agreement has been concluded during the fiscal year ending December 31, 2024.
5th to 8th resolutions: Approval of the information on the Directors’ and the Corporate
Officers’ compensation paid or granted for 2024 (Say on pay ex-post)
Explanatory statement
Under the 5th resolution, in pursuance of Article L. 22-10-34 I of the French Commercial Code, you are invited to approve the
information listed in Article L. 22-10-9 of the French Commercial Code relating to the compensation of Directors and the Corporate
Officers that are presented to you in the corporate governance report referred to in Article L. 225-37 of the French Commercial Code.
You will find all this information set out in detail in section 4.2.2 of Chapter 4 of the 2024 Universal Registration Document and in section
4.2 of the Notice of meeting.
Under the 6th resolution, in pursuance of Article L. 22-10-34 II of the French Commercial Code, you are asked to approve fixed,
variable, and exceptional components of the total compensation and benefits of all types paid during the last fiscal year or awarded in
respect of the said year, to the Chief Executive Officer, Mr. Olivier Blum, from November 1 to December 31, 2024. They have been paid
or awarded in accordance with the compensation policy approved by the Annual Shareholders’ Meeting of May 23, 2024. These
components are detailed in section 4.2.2.2.1 of Chapter 4 of the 2024 Universal Registration Document and in section 4.2.1 of the Notice
of meeting.
Under the 7th resolution, in pursuance of Article L. 22-10-34 II of the French Commercial Code, you are asked to approve fixed,
variable, and exceptional components of the total compensation and benefits of all types paid during the last fiscal year or awarded in
respect of the said year, to the Chief Executive Officer, Mr. Peter Herweck, from January 1 to November 1, 2024. They have been paid or
awarded in accordance with the compensation policy approved by the Annual Shareholders’ Meeting of May 23, 2024. These
components are detailed in section 4.2.2.2.2 of Chapter 4 of the 2024 Universal Registration Document and in section 4.2.1 of the Notice
of meeting.
Under the 8th resolution, in pursuance of Article L. 22-10-34 II of the French Commercial Code, you are asked to approve fixed,
variable, and exceptional components of the total compensation and benefits of all types paid during the last fiscal year or awarded in
respect of the said year, to the Chairman of the Board of Directors, Mr. Jean-Pascal Tricoire. They have been paid or awarded in
accordance with the compensation policy approved by the Annual Shareholders’ Meeting of May 23, 2024. These components are
detailed in section 4.2.2.2.3 of Chapter 4 of the 2024 Universal Registration Document and in section 4.2.3 of the Notice of meeting.
Text of the fifth resolution
(Approval of the information on the Directors’ and the Corporate Officers’ compensation paid or granted
for the fiscal year ending December 31, 2024 mentioned in Article L. 22-10-9 of the French Commercial
Code)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the
corporate governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-34 I
of the said Code, the information mentioned in Article L. 22-10-9 I of the French Commercial Code as stated in the 2024 Universal
Registration Document, Chapter 4, section 4.2.2.
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Text of the sixth resolution
(Approval of the components of the total compensation and benefits of all types paid during the 2024
fiscal year or awarded in respect of the said fiscal year to Mr. Olivier Blum in his capacity as Chief
Executive Officer (from November 1 to December 31, 2024))
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the
corporate governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-34 II
of the said Code, the fixed, variable, and exceptional components of the total compensation and benefits of all types paid during the 2024
financial year or awarded in respect of the 2024 fiscal year to the Chief Executive Officer, Mr. Olivier Blum, from November 1 to December
31, 2024, as stated in the 2024 Universal Registration Document, Chapter 4, section 4.2.2.2.1.
Text of the seventh resolution
(Approval of the components of the total compensation and benefits of all types paid during the 2024
fiscal year or awarded in respect of the said fiscal year to Mr. Peter Herweck in his capacity as Chief
Executive Officer (from January 1 to November 1, 2024))
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the
corporate governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-34 II
of the said Code, the fixed, variable, and exceptional components of the total compensation and benefits of all types paid during the 2024
financial year or awarded in respect of the 2024 fiscal year to the Chief Executive Officer, Mr. Peter Herweck, from January 1 to
November 1, 2024, as stated in the 2024 Universal Registration Document, Chapter 4, section 4.2.2.2.2.
Text of the eighth resolution
(Approval of the components of the total compensation and benefits of all types paid during the 2024
fiscal year or awarded in respect of the said fiscal year to Mr. Jean-Pascal Tricoire in his capacity as
Chairman of the Board of Directors
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the
corporate governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-34 II
of the said Code, the fixed, variable, and exceptional components of the total compensation and benefits of all types paid during the 2024
financial year or awarded in respect of the 2024 fiscal year to the Chairman of the Board of Directors, Mr. Jean-Pascal Tricoire, as stated in
the 2024 Universal Registration Document, Chapter 4, section 4.2.2.2.3.
9th to 11th resolutions: Approval of the 2025 compensation policy applicable to the
Corporate Officers and the Directors (Say on pay ex-ante)
Explanatory statement
Under the 9th and 10th resolutions, in pursuance of Article L. 22-10-8 II of the French Commercial Code, shareholders are invited to
approve the compensation policy for the Corporate Officers, i.e. the Chief Executive Officer and the Chairman of the Board of Directors.
These policies as well as the manner in which they serve the corporate interest, support the Company strategy, and contribute to the
sustainability of the Company are presented in section 4.2.3.1 of Chapter 4 of the 2024 Universal Registration Document and in section
4.3.1 of the Notice of meeting. Shareholders are called to approve separately:
• the compensation policy for the Chief Executive Officer as presented in detail in section 4.2.3.1.2 of Chapter 4 of the 2024 Universal
Registration Document and in section 4.3.1.1 of the Notice of meeting. This policy would apply to Mr. Olivier Blum (9th resolution);
and
• the compensation policy for the Chairman of the Board of Directors as presented in detail in section 4.2.3.1.3 of Chapter 4 of the 2024
Universal Registration Document and in section 4.3.1.2 of the Notice of meeting. This policy would apply to Mr. Jean-Pascal Tricoire
(10th resolution).
Under the 11th resolution, we ask you, in accordance with Article L. 22-10-8 II of the French Commercial Code, to approve the
compensation policy of the Directors which means, firstly, the maximum amount that is proposed to be allocated to the Board members
annually and, secondly, the allocation rules of this amount as presented in detail in section 4.2.3.2 of Chapter 4 of the 2024 Universal
Registration Document and in section 4.3.2 of the Notice of meeting.
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Chapter 8 – Annual Shareholders’ Meeting
Text of the ninth resolution
(Approval of the compensation policy for the Chief Executive Officer)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the corporate
governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-8 II of the said Code,
the compensation policy of the Chief Executive Officer as stated in the 2024 Universal Registration Document, Chapter 4, section 4.2.3.1.2.
Text of the tenth resolution
(Approval of the compensation policy for the Chairman of the Board of Directors)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the corporate
governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-8 II of the said Code,
the compensation policy of the Chairman of the Board of Directors as stated in the 2024 Universal Registration Document, Chapter 4, section
4.2.3.1.3.
Text of the eleventh resolution
(Approval of the Directors’ compensation policy)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings and reviewed the corporate
governance report referred to in Article L. 225-37 of the French Commercial Code, approves, in pursuance of Article L. 22-10-8 II of the said Code,
the compensation policy of the Directors as stated in the 2024 Universal Registration Document, Chapter 4, section 4.2.3.2.
12th to 14th resolutions: Renewal of the mandates of Mr. Jean-Pascal Tricoire and
Mrs. Anna Ohlsson-Leijon, and ratification of the co-optation of Mrs. Clotilde Delbos
Explanatory statement
As of March 26, 2025, the Board of Directors is composed of seventeen members, including twelve who are deemed independent
within the meaning of the AFEP-MEDEF Corporate Governance Code, two Directors representing the employees, and one Director
representing the employee shareholders.
Each year, the Board of Directors conducts a review to ensure that there is an appropriate balance in its composition and that of its
committees. In particular, the Board seeks to ensure gender balance and broad diversity in terms of skills, experience, nationality, and
age, as described in its diversity policy (see section 4.1.1.4 of Chapter 4 of the Universal Registration Document). The Board investigates
and evaluates not only potential candidates, but also whether existing Directors should seek reappointment based on their individual
performance assessment and contribution. The Board seeks above all to ensure that its composition is consistent with the strategic
needs of the Company and reflects the values that are essential to its proper functioning: independence of mind, richness of
perspective, competence, commitment, and complementarity of experience and people.
Mr. Léo Apotheker, member of the Board of Directors for sixteen years, and former Vice-Chairman & Lead Independent Director, has
decided not to seek the renewal of his term of office which expires at the closing of this Shareholders’ Meeting. The Board of Directors
expressed its gratitude to Mr. Léo Apotheker’s dedication to the Board of Directors’ work and to his long-term commitment.
As part of the Board’s continuous review of its composition, the Board of Directors asked the Governance, Nominations & Sustainability
Committee to make a recommendation on the renewal of Mr. Jean-Pascal Tricoire and Mrs. Anna Ohlsson-Leijon, as well as search for
complementary profile in line with the skill set highlighted by its Board skills matrix and the challenges of the Company (see section
4.1.1.4 of Chapter 4 of the Universal Registration Document describing the director recruitment process).
In that respect, the Committee has analyzed Mr. Jean-Pascal Tricoire’s and Mrs. Anna Ohlsson-Leijon’s situation with regards to their
contribution and performance, their time commitment and availability to fulfill their duties, as well as the value added by each of them to
the work of the Board.
• Mr. Jean-Pascal Tricoire, Chairman of the Board of Directors, brings to the Board the benefit of his experience as former Chairman &
Chief Executive Officer of Schneider Electric SE as well as his skills in corporate finance and digital, and his knowledge of
international markets, Schneider Electric’s industry, and sustainability matters. He holds only one other position in a listed company
(Director of Qualcomm, Inc.), and his attendance rate at the meetings of the Board and the committees in which he participates in
2024 is 100%. In line with the time commitment policy dedicated to the Group, the Board concluded he has the necessary availability
to fulfil his role. The Committee recommended to the Board that Mr. Jean-Pascal Tricoire continues to participate in the work of the
Board as Chairman, which leads the Board to propose to you the renewal of his mandate for a four-year term. The Board also asked
him to continue to fulfill his additional missions so that Schneider Electric can benefit from his experience.
• Mrs. Anna Ohlsson-Leijon brings to the Board of Directors her experience as Executive Vice-President of AB Electrolux and CEO of
Business Area Europe & APACMEA. The Board is benefiting from her skills in corporate finance, accounting, risks, and audit, and
her knowledge of international markets and ethics and compliance matters. She holds only one other position in a listed company
(Director of Atlas Copco AB) and her attendance rate at the meetings of the Board and the committees in which she participates in
2024 is 100%. Upon the recommendation of the Governance, Nominations & Sustainability Committee, the Board proposes to you
the renewal of her mandate for a four-year term.
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Explanatory statement continued
The Governance, Nominations & Sustainability Committee also identified the skills that would be useful to diversify and strengthen the
Board composition and hired an external recruitment firm (Heidrick & Struggles) to search for suitable candidates, identified as being a
female candidate in order to strengthen the Board gender ratio, Chief Financial Officer or recently retired Chief Financial Officer, with a
technology or industry background and international exposure. Among these candidates, the Governance, Nominations & Sustainability
Committee preselected a short list and the members of the Committee interviewed them. Following these interviews, the Committee
recommended one candidate to the Board of Directors, Mrs. Clotilde Delbos, who was co-opted as a Director on November 1, 2024 by
the Board in replacement of Mrs. Cécile Cabanis, resigning further to her joining LVMH as Deputy Chief Financial Officer, for the
remaining term of office of her predecessor, and whose co-optation is submitted to the ratification by the shareholders to the 2025
Annual Shareholders’ Meeting.
Mrs. Clotilde Delbos, a French citizen based in Paris, is the former Chief Financial Officer, Interim Chief Executive Officer, and Deputy
Chief Executive Officer of Renault. She is currently Director of Alstom, AXA, and Sanofi, and she brings to the Board her expertise in
finance and industry, as well as her experience in transformations. Her attendance rate at the meetings of the Board and the committee
in which she participates in 2024 is 100%. She qualifies as an independent Director with regard to all the criteria set by Article 10.5 of
the AFEP-MEDEF Corporate Governance Code, and joined the Audit & Risks Committee.
Acting upon recommendation of the Governance, Nominations & Sustainability Committee, the Board of Directors proposes to
shareholders:
• in the 12th resolution, to renew the term of office of Mr. Jean-Pascal Tricoire for a four-year (4) term;
• in the 13th resolution, to renew the term of office of Mrs. Anna Ohlsson-Leijon for a four-year (4) term; and
• in the 14th resolution, to ratify the co-optation of Mrs. Clotilde Delbos as a Director for a three-year (3) term.
Mr. Jean-Pascal Tricoire’s, Mrs. Anna Ohlsson-Leijon’s, and Mrs. Clotilde Delbos’ biographies are provided in section 4.1.1.2 of
Chapter 4 of the 2024 Universal Registration Document and section 2.1.3 of the Notice of meeting and.
Text of the twelfth resolution
(Renewal of the term of office of Mr. Jean-Pascal Tricoire)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, takes note that the term of office of Mr. Jean-Pascal Tricoire as a Director expires at the closing of this Shareholders’
Meeting and decides to renew it for a four-year (4) term expiring at the closing of the Annual Shareholders’ Meeting to be held in 2029 to
approve the financial statements for the 2028 fiscal year.
Text of the thirteenth resolution
(Renewal of the term of office of Mrs. Anna Ohlsson-Leijon)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, takes note that the term of office of Mrs. Anna Ohlsson-Leijon as a Director expires at the closing of this Shareholders’
Meeting and decides to renew it for a four-year (4) term expiring at the closing of the Annual Shareholders’ Meeting to be held in 2029 to
approve the financial statements for the 2028 fiscal year.
Text of the fourteenth resolution
(Ratification of the co-optation of Mrs. Clotilde Delbos as a Director)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to ratify the co-optation of Mrs. Clotilde Delbos as a Director, in replacement of Mrs. Cécile Cabanis, resigning, for
the remaining term of office of her predecessor, i.e. for a three-year (3) term expiring at the closing of the Annual Shareholders’ Meeting to
be held in 2028 to approve the financial statements for the 2027 fiscal year.
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Chapter 8 – Annual Shareholders’ Meeting
15th resolution and resolutions A to E: Appointment of the employee shareholders
Director
Explanatory statement
We remind you that Ms. Xiaoyun Ma was appointed Director to represent employee shareholders pursuant to Article 11-3 of the Articles
of Association and her term of office expires at the close of this Shareholders’ Meeting. As a consequence, her successor must be
appointed according to the procedure described in this Article which provides that when employee shareholders hold more than 3% of
the capital at the close of a given financial year, their representative must be elected by the Annual Shareholders’ Meeting from the
candidates appointed by the supervisory boards of the corporate mutual funds (FCPEs) invested in company shares and by the
employee shareholders directly when their shares are held directly and not via FCPEs.
The candidates designated by this procedure are:
• Mr. François Durif (resolution B) and Mr. Gérard Le Gouefflec (resolution D) on the proposal of the FCPE Schneider Actionnariat
(French FCPE);
• Mrs. Laura Ding (15th resolution) and Mr. Venkat Garimella (resolution C) on the proposal of the FCPE Schneider Actionnariat Mondial
(International FCPE); and
• Mr. Alban de Beaulaincourt (resolution A) and Mrs. Amandine Petitdemange (resolution E) for the employee shareholders holding
their shares directly.
You will find their biographies below.
In accordance with Article 11-3 of the Articles of Association, the candidate for the position of director representing employee
shareholders who receives the highest number of votes from the shareholders present or represented at this Shareholders’ Meeting will
be designated as the Director representing employee shareholders.
The Board of Directors, upon the report from the Governance, Nominations & Sustainability Committee, decided to support the
15th resolution providing for the appointment of Xiaohong (Laura) Ding as member of the Board of Directors representing employee
shareholders and not to support resolutions A to E. Her detailed knowledge of the Industrial Automation business, AVEVA business,
digital transformation as well as her insight on the China market were considered by the Board as most relevant to complete the existing
skills set of the Board.
As a result, the Board of Directors invites you:
• to vote only in favor of the 15th resolution; and
• to vote against on resolutions A, B, C, D, and E.
Should these resolutions be approved, the Board of Directors would consist of 16 members (including one Director representing the
employee shareholders and two Directors representing the employees), with an independence rate of 92% and 46% of women
(excluding the three Directors who are also employees), and 81% being of non-French origin or nationalities.
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Alban de
Beaulaincourt
Vice-President Finance for
Industrial Control & Drives
of Schneider Electric
Age: 46 years
Nationality: French
Business address:
Schneider Electric, 35,
rue Joseph Monier, 92500
Rueil-Malmaison, France
Experience and qualifications
Alban de Beaulaincourt is currently the Vice-President of Finance for Industrial Control & Drives of
Schneider Electric. He began his career at PricewaterhouseCoopers where he held various auditing
and advising companies roles in various sectors (from 2003 to 2009). In 2009, he joined Areva T&D,
where he actively played a role in Vendor Due Diligence. Following the acquisition of Areva T&D by
Schneider Electric in 2010, Alban de Beaulaincourt was responsible for integrating the Group’s
acquisitions from 2010 to 2014. From 2012 to 2014, he was also a council member of the Employee
Schneider Electric Fund (FCPE - company-nominated representative). He has served in a range of key
positions in finance with international exposure, notably in China. More recently, Alban de Beaulaincourt
was Director within Investor Relations in charge of ESG topics (from 2020 to 2022).
In September 2022, he was promoted to Vice-President Finance for Industrial Control & Drives.
Additionally, he has attended various corporate programs, including one at INSEAD, “Transforming
Schneider Leadership” (2019). Alban de Beaulaincourt graduated from Neoma Business School
(France).
Term of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
None.
Other directorships or functions outside
Schneider Electric Group:
None.
Previous directorships
Previous directorships held in the past five years:
None.
Xiaohong (Laura)
Ding
Senior Vice-President,
Industrial Automation China,
Schneider Electric China
and East Asia Operations
Age: 44 years
Nationality: Chinese
Business address:
8F Changfeng Int’l Building,
89 East Yunling Road,
Shanghai, China
Experience and qualifications
Xiaohong (Laura) Ding is currently Senior Vice-President of Industrial Automation China at Schneider
Electric China and East Asia Operations. She started her career as a project execution engineer in
Emerson process management with certification on system configuration and batch implementation.
She joined Schneider Electric in 2010. During 15 years within Schneider Electric, she has worked on a
multitude of diverse functions and roles: Customer Service & Quality Manager, Senior Offer
Management & Strategy Manager, Digital/AVEVA Competency Center & Business Development
Director, and Vice-President of Process Automation & Digital, and gained a wealth of experiences in
business development and digital transformation with strong technical background. Laura Ding earned
a master degree major in control engineering.
Term of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
Chairwoman of Proface China International
Trading (Shanghai) Co., Ltd. (China), Beijing
Leader Harvest Electric Technologies Co., Ltd.
(China), and Shanghai Foxboro Co., Ltd. (China);
Director of Shanghai Invensys Process System
Co., Ltd. (China), and ProLeiT Automation Systems
(Shanghai) Co., Ltd. (China).
Other directorships or functions outside
Schneider Electric Group:
None.
Previous directorships
Previous directorships held in the past five years:
None.
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François Durif
Finance Project Leader,
Energy Management
Business of Schneider
Electric
Age: 60 years
Nationality: French
Business address:
Schneider Electric, 31,
rue Pierre Mendès-France,
38320 Eybens, France
Experience and qualifications
François Durif is currently Finance Project Leader for the Energy Management Business of Schneider
Electric. He began his career as a finance professional at Hewlett Packard where he worked for 16
years, ending up as the finance head of the Information Storage Business for EMEA region. After a spell
as Chief Financial Officer for Southern Europe at Novar plc, he joined Schneider Electric in 2005 as the
Chief Financial Officer of the Africa region. Since then, he has held a variety of Controller and Chief
Financial Officer positions, including front office, R&D, manufacturing and supply chain on local (Italy)
or global perimeters in Schneider Electric’s two businesses, Energy Management and Industrial
Automation. In this capacity, he has served as a director of various Group’s subsidiaries. François Durif
is a graduate of EM Lyon Business School (France).
Term of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
Member of the Advisory and Supervisory Board of
Schneider Electric Energy Access SAS (France).
Other directorships or functions outside
Schneider Electric Group:
Chairman of the Board of Directors of Mutuelle
d’Entreprises Schneider Electric (France); Director
of VyV Partenariat (France); Director of Synergie
Mutuelles (France).
Previous directorships
Previous directorships held in the past five years:
None.
Venkat Garimella
Vice-President Sustainability
of Greater India Zone of
Schneider Electric
Age: 54 years
Nationality: Indian
Business address:
Schneider Electric India,
Avinya Campus, Bagmane,
Solarium city, Kundalahalli
Colony, Brookefield,
Bangalore, Karnataka,
560037, India
Experience and qualifications
Venkat Garimella is currently Vice-President Sustainability of Greater India Zone of Schneider Electric.
He has more than 29 years of experience as a business leader in running and managing businesses
across domains and customer segments. He joined Schneider Electric India more than 21 years ago
during which he led key functions such as Zone Strategy, Offer Marketing, Sustainability, CSR, Sales
excellence & success, incubated & transformed businesses. He is currently leading Sustainability
Consulting practice for Schneider Electric India with a mission to scale it multi-fold. Venkat Garimella is
an electrical engineer holding a Master’s Degree in business administration and post-graduation in
energy management & climate action.
Term of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
Board member of IGE+XAO India Pvt. Ltd. (India);
Trustee at Schneider Electric India Foundation
(India).
Other directorships or functions outside
Schneider Electric Group:
Chairperson of the Executive Council at Alliance
for an Energy Efficient Economy - AEEE (India).
Previous directorships
Previous directorships held in the past five years:
National Executive Council member of India
Electrical & Electronics Manufacturers Association
(2019 – 2020) (India).
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Gérard Le Gouefflec
Green Glass Strategic
Initiative Project Consultant
of Schneider Electric
Age: 58 years
Nationality: French
Business address:
Schneider Electric, 35
rue Joseph Monier, 92500
Rueil-Malmaison, France
Experience and qualifications
Gérard Le Gouefflec is currently Project Consultant for Green Glass (decarbonization of the glass
industry) Strategic Initiative in Heavy Industries global segment of Schneider Electric. He has
experienced different business model companies (EPC Stein Heurtey, Utilities Air Liquide, MV/HV
Systems AREVA T&D, Energy solutions Schneider), in multiple positions (Engineering supervisor, R&D,
Business Development, Regional or Global Sales & Marketing, Strategic Projects), in various countries
& zones (France, Taiwan, China, Indonesia, pan-East-Asia, pan-Europe, Global). Along these
experiences, he has demonstrated advanced competencies and innovation capabilities in energy &
heavy industry applications, including hydrogen, combustion, metals, and glass. Lately, involved in
Complex Solution Sales and Social Dialogue, he also focuses his attention on organization efficiency
and workforce consistency and therefore their transformations, and business profitability. Gérard Le
Gouefflec is a graduate of Paris School of Mines (France).
Terms of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
Member of the Supervisory Board of France
Enterprise Personal Savings & Retirement Mutual
Funds Plans.
Other directorships or functions outside
Schneider Electric Group:
None.
Previous directorships
Previous directorships held in the past five years:
Member of the Supervisory Board of Major Health
Risk Contingency Fund (France).
Amandine
Petitdemange
Vice-President, Business
Finance Center of
Excellence of Schneider
Electric
Age: 40 years
Nationality: French
Business address:
Schneider Electric, 35,
rue Joseph Monier, 92500
Rueil-Malmaison, France
Experience and qualifications
Amandine Petitdemange currently serves as the leader of the Business Finance Center of Excellence of
Schneider Electric, overseeing Group financial planning and analysis, as well as the governance and
standards of business finance data. She began her career joining Schneider Electric in 2007. Over her
tenure, she has held various financial roles encompassing manufacturing, supply chain, commercial
operations, and investor relations, with a focus on ESG and governance initiatives. She has developed a
comprehensive understanding of the organization’s structure, strategy, and culture, enriched by her
international experience gained through global roles and her assignments in Europe and the Asia-
Pacific regions. Amandine Petitdemange is graduated from HEC Paris Business School (France).
Term of office
Candidate for election as a Director representing
the employee shareholders: May 2025
Current external appointments
Other directorships or functions at listed companies:
None.
Other directorships within Schneider Electric Group:
None.
Other directorships or functions outside
Schneider Electric Group:
None.
Previous directorships
Previous directorships held in the past five years:
Director of Schneider Electric Asia Pte Ltd.
(Singapore).
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Chapter 8 – Annual Shareholders’ Meeting
Text of the fifteenth resolution
(Appointment of Mrs. Xiaohong (Laura) Ding as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mrs. Xiaohong (Laura) Ding as Director representing the employee shareholders for a four-year (4) term
expiring at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
Text of the resolution A
(Appointment of Mr. Alban de Beaulaincourt as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mr. Alban de Beaulaincourt as Director representing the employee shareholders for a four-year (4) term
expiring at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
Text of the resolution B
Appointment of Mr. François Durif as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mr. François Durif as Director representing the employee shareholders for a four-year (4) term expiring
at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
Text of the resolution C
(Appointment of Mr. Venkat Garimella as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mr. Venkat Garimella as Director representing the employee shareholders for a four-year (4) term
expiring at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
Text of the resolution D
(Appointment of Mr. Gérard Le Gouefflec as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mr. Gérard Le Gouefflec as Director representing the employee shareholders for a four-year (4) term
expiring at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
Text of the resolution E
(Appointment of Mrs. Amandine Petitdemange as Director representing the employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, decides to appoint Mrs. Amandine Petitdemange as Director representing the employee shareholders for a four-year (4)
term expiring at the close of the Annual Shareholders’ Meeting to be held in 2029 to approve the financial statements for the 2028 fiscal year.
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16th resolution: Share buybacks
Explanatory statement
As the pre-existing authorization comes to its term in November 2025, it is hereby proposed, in the 16th resolution submitted to the
Annual Shareholders’ Meeting, to reconduct, for a new eighteen-month period starting after the present Annual Shareholders’ Meeting,
the authorization given to the Board of Directors to purchase the Company’s shares as part of a share buyback program pursuant to the
provisions of Article L. 22-10-62 of the French Commercial Code and European Regulation (EU) no. 596/2014 of April 16, 2014 on
market abuse.
In 2024, a total EUR 322,210,573 of share buyback corresponding to 1,337,391 shares bought back by the Company had been
completed pursuant to the authorizations granted.
All the 14,658,933 treasury shares held on December 31, 2024 (representing 2.55% of the share capital) are allocated to cover
Long-Term Incentive Plans for employees or Corporate Officers.
The authorization that you would give to the Board would allow to proceed to purchase shares for the purposes, amongst others, of:
• their allotment to employees or Corporate Officers as a long-term compensation tool;
• their delivery as a result of the exercise of rights attached to securities giving access to the Company’s capital;
• their cancellation;
• their delivery in connection with external growth operations; and
• their disposal in the course of a share management agreement.
Shares bought back may be canceled subject to the authorization adopted by this Annual Shareholders’ Meeting (28th resolution).
The number of shares thus purchased, and the number of shares held may not exceed 10% of the share capital at any time (for
reference purposes, based on the issued capital on December 31, 2024: 57,563,168 shares). The maximum purchase price of the
shares would be set at EUR 350, and the total amount allocated to the share repurchase program would not exceed EUR 20.1 billion. As
for previous years, the resolution prevents that the authorization be used during a public offering on the Company’s shares.
Further information on the Company’s share buyback programs can be found in section 7.2.5 of Chapter 7 of the 2024 Universal
Registration Document.
Text of the sixteenth resolution
(Authorization granted to the Board of Directors to buy back Company shares)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary meetings, having heard the Board of
Directors’ report, hereby authorizes the Board of Directors, pursuant to the provisions of Article L. 22-10-62 of the French Commercial Code,
Regulation (EU) no. 596/2014 of April 16, 2014 on market abuse, and its delegated regulations, and the French Financial Market Authority’s
General rules, to buyback or arrange for the buyback of the Company’s shares for the purpose of:
• the allotment or transfer of shares to employees or Corporate Officers of the Company, and/or of current or future related companies, for
the purposes of implementing any stock option or Performance Share plan, or any other grant, allocation, or disposal to employees and
Corporate Officers of the Company;
• the delivery of shares as a result of the exercise of rights attached to securities giving access to the Company’s capital by redemption,
conversion, exchange, presentation of a warrant, or by any other mean;
• the cancellation by way of share capital decrease of all or part of these repurchased shares;
• the delivery of shares (for exchange, payment, or otherwise) in connection with external growth operations (up to a limit of 5% of the
share capital);
• their provision for the purposes of a share management agreement entered into with an investment services provider in order notably to
maintain a liquid market; or
• the implementation of any market practice which would be allowed by the French Financial Market Authority.
This authorization also allows the Company to trade in its shares for any other purposes authorized or that may be authorized by law or
regulation. In such a case, the Company would inform its shareholders through a public release.
Shares acquired may also be canceled, subject to compliance with the provisions of Articles L. 225-204 and L. 225-205 of the French
Commercial Code and subject to the adoption of the 28th resolution of this Annual Shareholders’ Meeting.
The number of shares that may be purchased shall be subject to following limits:
(i) the number of shares that the Company may purchase during the term of the buyback program should not exceed 10% of the
Company’s share capital at any time (i.e. for information purposes, 57,563,168 shares, on the basis of the share capital as of December
31, 2024), it being specified that the number of shares acquired in view of their retention and their future delivery for the purpose of an
external growth operation cannot exceed 5% of the Company’s share capital; and
(ii) the number of shares that the Company can hold at any time may not exceed 10% of the Company’s share capital.
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The maximum share purchase price is set at EUR 350 per share (excluding acquisition costs) without exceeding the maximum price set by
applicable laws and regulations. The total amount allocated to the share repurchase program will not exceed EUR 20.1 billion (excluding
acquisition costs).
The purchase, exchange, disposal, or transfer of shares can be decided by the Board of Directors on one or more occasions, at any time
except during takeover bid involving the Company’s shares, and by any means, provided that laws and regulations in force are complied
with, on or off the stock market, over the counter, in whole or in part in blocks of shares, by takeover bid in cash or in shares, by using
options or derivatives, either directly or indirectly through the intermediation of an investment services provider, or in any other way.
The Annual Shareholders’ Meeting grants authority to the Board of Directors, which may further delegate as permitted by law, to adjust the
price set forth above in the event of transactions on the Company’s share capital, and in particular an increase in capital through the
capitalization of reserves, the allocation of free shares, a stock split or reverse stock split, the distribution of reserves or any other assets,
impairment of share capital or any other transaction involving share capital or shareholders’ equity, to take into account the impact of these
transactions on the stock value.
The Annual Shareholders’ Meeting gives full powers to the Board of Directors with powers to subdelegate under the conditions set out by
law, to use this authorization, in particular to give any and all orders, enter into any and all agreements, allocate or reallocate the shares
acquired to the objectives pursued under the applicable legal and regulatory conditions, set the terms and conditions under which the
rights of holders of securities giving access to the share capital or other rights giving access to the share capital will be preserved, if
applicable, in accordance with legal and regulatory provisions and, if applicable, contractual provisions providing for other cases of
adjustment, prepare all documents and press releases, carry out any and all formalities and make all appropriate declarations to the
authorities, and in general take all necessary measures.
This authorization supersedes, for the unused portion, the authorization given to the Board of Directors by the Shareholders’ Meeting of May
23, 2024 in its 18th resolution and is granted for an eighteen (18)-month period as from this Annual Shareholders’ Meeting.
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8.1.2 Extraordinary Shareholders’ Meeting
17th to 24th resolutions: Delegations of authority to the Board of Directors to increase the
share capital with or without shareholders’ preferential subscription rights
Explanatory statement
As it is the case every two years, you are requested to approve a set of resolutions, giving the Board of Directors authority to increase or
reduce the share capital, immediately or in the future, with preferential subscription rights or without, through the issuance of shares
and/or equity-linked securities, for a limited period.
These resolutions involve financial delegations that will give the Board of Directors the authority to select, at any moment and from
among a broad range of securities providing access to the share capital, the transaction most suited to Schneider Electric’s needs and
growth, based on market characteristics at the time.
Under the 17th resolution, you are requested to delegate to the Board of Directors the authority to issue, in France and abroad, with
shareholders’ preferential subscription rights, ordinary shares and/or equity-linked securities. The maximum nominal amount of the
capital increases that may be carried under this resolution shall not exceed EUR 800 million in aggregate, i.e. 200 million shares
representing 34.7% of the capital as of December 31, 2024. The capital increases that may be realized in accordance with the
18th, 19th, 20th, 21st, 22nd, 23rd, and 24th resolutions shall be counted against this aggregate ceiling.
For the 18th and 19th resolutions, you are requested to cancel the preferential subscription rights to shares. Indeed, depending on
market conditions, the types of investors involved and the type of securities issued, it may be preferable, or even necessary, to cancel
the preferential subscription rights in order to carry out a securities placement under optimal conditions, particularly when the speed of
transactions is a prerequisite to success, or when the issuances are carried out on overseas financial markets. The cancellation of the
preferential subscription rights can facilitate the Company’s access to capital due to more favorable issuance conditions. Capital
increases without preferential subscription rights may take the form of a public offering (other than those referred to in Article L. 411-2 1°
of the French Monetary Code in which case a priority period for shareholders can be established (18th resolution) or of an offering in
accordance with Article L. 411-2 1° of the French Monetary and Financial Code (19th resolution). For both resolutions:
• the maximum nominal amount of the capital increases that may be carried shall not exceed EUR 224 million, i.e. 56 million shares
representing 9.73% of the capital as of December 31, 2024;
• a maximum discount of 10% could be applied to the reference price of the shares issued under these delegations determined on the
basis of the stock market price.
In the 20th resolution, we are asking you to authorize the Board of Directors to increase the number of securities to be issued under the
17th, 18th, and 19th resolutions in the event of an over-subscription (greenshoe). An additional capital increase could thus be carried out
within the timeframe and limits provided for by the legislation applicable as of the date of issue (currently, within 30 days of the closing of
the subscription period and up to 15% of the initial issuance).
The 21st resolution concerns the issuance of share and/or securities giving immediate or deferred access to the Company’s capital
with a view to remunerate contributions in kind granted to the Company. This resolution allows the Board of Directors to carry out
external growth operations with a consideration in shares within a limit of EUR 224 million, i.e. 56 million shares representing 9.73% of
the capital as of December 31, 2024.
If granted, these delegations would be valid for 26 months. The Board of Directors may not use this delegation from the date of filing of a
takeover bid for the shares of the Company by a third party and for the duration of the bid period.
The 22nd resolution concerns the issuance of share and/or securities giving immediate or deferred access to the Company’s capital,
reserved for a category of persons. The 23rd resolution concerns the issuance of share and/or securities giving immediate or deferred
access to the Company’s capital, reserved for a named person. For both resolutions:
• the maximum nominal amount of the capital increases that may be carried shall not exceed EUR 224 million, i.e. 56 million shares
representing 9.73% of the capital as of December 31, 2024;
• a maximum discount of 10% could be applied to the reference price of the shares issued under these delegations determined on the
basis of the stock market price;
• the authorization would be valid for 18 months.
Under the 24th resolution, we are asking you to authorize the Board of Directors to increase the share capital by incorporating
premiums, reserves, or profits. The rights of shareholders would not be affected by this transaction, which results in free shares
allotment, increase in the nominal value of the existing shares, or a combination of both. This transaction does not change the
Company’s shareholders’ equity.
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Summary of the proposed financial authorizations and delegations
Individual ceiling
Global ceiling
Resolution
number
Financial delegations
Duration and
expiration
Possibility of
use during a
takeover period
Maximum
nominal
amount
for equity-
linked
securities
Maximum ceiling
in euros or as % of
the share capital
Issuance with shareholders’ preferential subscription right
17th
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company with shareholders’
preferential subscription right
26 months
(July 2027)
No
€7B
€800M
(200M
shares)
i.e. 34.74%
of the share
capital
Issuance
of shares:
€800M
(200M shares)
i.e. 34.74%
of the share
capital
Equity-linked
securities:
€7B
24th
Delegation of authority to the Board
of Directors to increase the capital by
capitalizing additional paid-in capital,
reserves, earnings, or other
26 months
(July 2027)
Yes
€800M
(200M
shares)
i.e. 34.74%
of the share
capital
Issuance without shareholders’ preferential subscription right
18th
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company without shareholders’
preferential subscription right
through a public offering other than
those referred to in Article L. 411-2 1° of
the French Monetary and Financial Code
26 months
(July 2027)
No
€7B
€224M
(56M
shares)
i.e. 9.73%
of the share
capital
Issuance
of shares:
€224M
(56M shares)
i.e. 9.73%
of the share
capital
Equity-linked
securities:
€7B
19th
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company without shareholders’
preferential subscription right through
an offering in accordance with Article
L. 411-2 1° of the French Monetary and
Financial Code (private placement)
26 months
(July 2027)
No
€7B
€224M
(56M
shares)
i.e. 9.73%
of the share
capital
21st
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company without shareholders’
preferential subscription in
consideration for contributions
in kind to the Company
26 months
(July 2027)
No
€7B
€224M
(56M
shares)
i.e. 9.73%
of the share
capital
22nd
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company without shareholders’
preferential subscription reserved
for a category of persons
18 months
(November
2026)
No
€7B
€224M
(56M
shares)
i.e. 9.73%
of the share
capital
23rd
Delegation of authority to the Board
of Directors to increase the capital by
issuing ordinary shares or securities
giving access to share capital of the
Company without shareholders’
preferential subscription reserved
for a named person
18 months
(November
2026)
No
€7B
€224M
(56M
shares)
i.e. 9.73%
of the share
capital
8.1 Explanatory comments & draft resolutions
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C H 8 – A N N U A L
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C H 4
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C H 6
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Individual ceiling
Global ceiling
Resolution
number
Financial delegations
Duration and
expiration
Possibility of
use during a
takeover period
Maximum
nominal
amount
for equity-
linked
securities
Maximum ceiling
in euros or as % of
the share capital
In the event of an over-subscription
20th
Delegation of authority to the Board of
Directors to increase the number of
shares to be issued in the event of a
capital increase with or without
shareholders’ preferential subscription
right (greenshoe)
26 months
(July 2027)
No
€7B
+15%
Issuance
of shares
€800M
(200M
shares)
i.e. 34.74%
of the share
capital
Equity-linked
securities:
€7B
Issuances reserved for employees / Allocations to employees and/or Corporate Officers
26th
Delegation of authority to the Board of
Directors to undertake capital
increases reserved for participants
in a company savings plan without
shareholders’ preferential subscription
right
26 months
(July 2027)
No
€46M
(11.5M
shares)
i.e. 2.00%
of the share
capital
€46M
(11.5M
shares)
i.e. 2.00%
of the share
capital
27th
Delegation of authority to the Board of
Directors to undertake capital
increases reserved for employees of
certain non-French subsidiaries
(outside of a group savings plan)
without shareholders’ preferential
subscription right
18 months
(November
2026)
No
€24M
(6M
shares)
i.e. 1.04%
of the share
capital
25th
Delegation of authority to the Board of
Directors to freely allocate shares to
the employees or to a category of
employees and/or the Corporate
Officers of the Company or of
companies affiliated therewith as part
of the Long-Term Incentive Plan
36 months
(May 2028)
–
€46M
(11.5M
shares)
i.e. 2.00%
of the share
capital
Cancellation of shares bought back by the Company under the share buyback programs
28th
Authorization to the Board of Directors
to cancel shares of the Company
bought back by the Company under
the share buyback programs
24 months
(May 2027)
Yes
€224M
(56M shares)
i.e. 9.73%
of the share
capital
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Chapter 8 – Annual Shareholders’ Meeting
Text of the seventeenth resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company with shareholders’ preferential subscription
right)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129,
L. 225-129-2 to L. 225-129-6, L. 225-130, L. 225-132, L. 225-134, L. 228-91 to L. 228-93, L. 22-10-49, and L. 22-10-50 of the French
Commercial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate in accordance with applicable law and regulations, to
decide one or several capital increases through the issue, in the proportions and at the times it deems appropriate, in France and/or
abroad, either in euros or in any other currency or unit of account set by reference to several currencies, of (i) ordinary shares of the
Company, (ii) securities governed by Article L. 228-91 et seq. of the French Commercial Code, which are equity securities of the
Company, giving access to other equity securities of the Company and/or giving the right to the allocation of debt securities of the
Company, and/or (iii) debt securities governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely
to give access to equity securities to be issued by the Company, which securities may, where applicable, also give access to existing
equity securities and/or debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving access
to existing equity securities or securities to be issued by, and/or to debt securities of companies in which the Company holds directly or
indirectly, at the time of issue, more than half of the share capital, and/or (v) securities representing debt securities governed or not by
Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity securities to be issued by
companies in which the Company holds directly or indirectly, at the time of issue, more than half of the share capital, and which may also
give access to existing equity securities and/or debt securities of said companies; it is specified that (i) the subscription of shares and
other securities may be carried out either in cash or by offsetting debts, and (ii) the shares to be issued shall confer the same rights as
the existing shares; it being specified that the issue of any shares or securities giving access to preference shares is excluded;
2. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 800 million representing on an indicative basis 34.74% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital, and
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 18th, 19th, 20th, 21st, 22nd, 23rd, and 24th resolutions of this Annual Shareholders’ Meeting, is set at EUR 800 million;
3. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 18th, 19th, 20th, 21st, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
4. should the Board of Directors make use of this delegation:
a. decides that the issuance(s) of shares shall be reserved in priority to shareholders who may subscribe as of right (à titre irréductible)
under the conditions provided by law,
b. grants to the Board of Directors the power to provide shareholders with a prorata subscription right (à titre réductible) for the number
of shares in excess of those to which they could subscribe as a matter of right, in proportion to the number of shares to which they
have the right to subscribe and, in any case, up to the number of shares requested,
c. decides that, if the subscriptions as of right (à titre irréductible) and, as the case may be, on a prorata basis (à titre réductible), do not
absorb the entirety of the share issuance, the Board of Directors may use, under the conditions set by law and in such order as it shall
determine, either one of the options provided under Article L. 225-134 of the French Commercial Code, listed below: (i) limit the
capital increase to the amount of the subscriptions, provided that they reach at least three-quarters of the initially approved increase,
(ii) freely distribute all or part of the issued and unsubscribed securities among persons it may choose, or (iii) offer to the public, on
the French market or the international market, all or part of the issued and unsubscribed shares,
d. decides that any issuance of share subscription warrants of the Company may be carried out either pursuant to a subscription offer
under the conditions described above, or by granting free shares to owners of existing shares, and
e. takes note and decides, as necessary, that this delegation of authority automatically entails by operation of law, in favor of holders of
equity-linked securities issued pursuant to this delegation giving access or which may give access to shares of capital of the
Company, the express waiver by the Company’s shareholders’ of their preferential subscription rights to the shares to be issued to
which such issued securities shall give right;
5. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order, in particular, to:
a. set the terms and conditions of the capital increase(s) and/or the issuance(s) of shares or securities,
b. determine the number of shares and/or securities to be issued, the issue price and the premium payment, of which, as the case may
be, may be requested upon issuance,
c. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which may be subordinated or
unsubordinated securities, with or without a specific maturity date, and, in particular, with respect to issuances of debt equity linked
securities, their interest rate, maturity, their fixed or variable redemption price, with or without premium, and the conditions for
redemption,
d. decide how shares and/or securities are to be paid for,
e. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other terms and
conditions for completing the issuance(s),
8.1 Explanatory comments & draft resolutions
submitted to the Annual Shareholders’ Meeting
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f. set the terms and conditions under which the Company would have the right, as the case may be, to purchase or exchange, at any
time or during fixed periods, securities issued or to be issued,
g. provide the ability to suspend the exercise of rights attached to such securities,
h. establish, as required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, applicable contractual provisions,
i. off-set the costs, fees, and expenses of the capital increase(s) against the amount of the premium related thereto and, where
applicable, deduct from this amount the amounts required to bring the legal reserve to one-tenth of the new share capital after each
capital increase, and
j. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
6. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation (i) supersedes, for the portion not yet used, the previous delegation given to the Board of Directors by the General
Shareholders’ Meeting of May 4, 2023 in its 19th resolution and (ii) is granted for a twenty-six (26)-month period as from this Shareholders’
Meeting.
Text of the eighteenth resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company without shareholders’ preferential subscription
right through a public offering other than those referred to in Article L. 411-2 1° of the French Monetary
Code)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129,
L. 225-129-2 to L. 225-129-6, L. 225-135, L. 225-136, L. 228-91 to L. 228-93, L. 22-10-49, L. 22-10-51, L. 22-10-52, and L. 22-10-54 of the
French Commercial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate, in compliance with applicable laws and regulations, to
decide, by public offer with the exception of offering provided for by Article L. 411-2 1° of the French Monetary Code, one or several
capital increases through the issue, in the proportions and at the times it deems appropriate, in France and/or abroad, either in euros or
in any other currency or unit of account set by reference to several currencies, of (i) ordinary shares of the Company, (ii) securities
governed by Article L. 228-91 et seq. of the French Commercial Code, which are equity securities of the Company, giving access to
other equity securities of the Company and/or giving the right to the allocation of debt securities of the Company, and/or (iii) debt
securities governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity
securities to be issued by the Company, which securities may, where applicable, also give access to existing equity securities and/or
debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving access to existing equity
securities or securities to be issued by, and/or to debt securities of companies in which the Company holds directly or indirectly, at the
time of issue, more than half of the share capital, and/or (v) securities representing debt securities governed or not by Article L. 228-91 et
seq. of the French Commercial Code, giving access or likely to give access to equity securities to be issued by companies in which the
Company holds directly or indirectly, at the time of issue, more than half of the share capital, and which may also give access to existing
equity securities and/or debt securities of said companies; it is specified that (i) the subscription of shares and other securities may be
carried out either in cash or by offsetting debts, and (ii) the shares to be issued shall confer the same rights as the existing shares; it
being specified that the issue of any shares or securities giving access to preference shares is excluded and that shares and/or
securities giving access to the Company’s share capital could be issued in consideration for shares which may be tendered to the
Company as part of public exchange offers initiated by the Company in compliance with the conditions set forth in Article L. 22-10-54 of
the French Commercial Code;
2. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 224 million representing on an indicative basis 9.73% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital,
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 17th, 19th, 20th, 21st, 22nd, 23rd, and 24th resolutions of this Annual Shareholders’ Meeting is set at EUR 800 million,
and
c. the maximum aggregate nominal amount of capital increases that may be undertaken immediately and/or in the future on the basis of
this resolution and the 19th, 21st, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting is set at EUR 224 million;
3. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 17th, 19th, 20th, 21st, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
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4. decides to cancel the shareholders’ preferential subscription rights to the Company’s shares and/or other equity-linked securities to be
issued pursuant to this resolution, and to offer such shares or securities in the framework of a public offering with the exception of
offering provided for by Article L. 411-2 1° of the French Monetary Code, while allowing the Board of Directors, under the terms of Article
L. 22-10-51 of the French Commercial Code, sole discretion to grant the shareholders, for a period of time and under the terms to be
determined by the Board of Directors in accordance with applicable laws and regulations and for some or all of the issuance, a priority
subscription period which does not constitute a negotiable right and which must be exercised in proportion to the number of shares held
by each shareholder and which may be supplemented by an application to subscribe for shares on a prorata basis (à titre réductible); it
being specified that securities which are not subscribed by virtue of this right shall form the object of a public placement in France and/
or abroad, and/or on the international market;
5. decides that, should the Board of Directors make use of this delegation, if the subscriptions to the capital increase, including, if any,
those of the shareholders, have not absorbed the aggregate capital increase, the Board of Directors may use, as permitted by law and in
such order as it may determine, either one of the options described by Article L. 225-134 of the French Commercial Code, listed below:
a. limit the capital increase to the amount of the subscriptions, provided that they reach at least three-quarters of the initially approved
increase, and/or
b. freely distribute all or part of the unsubscribed securities among persons it may choose;
6. acknowledges and decides, if applicable, that any decision taken by virtue of this delegation of authority will automatically entail, in favor
of the holders of equity-linked securities giving access to the Company’s share capital or may give access to Company’s shares to be
issued, express waiver by shareholders of their preferential subscription rights to securities to be issued to which equity-linked securities
entitle their holders;
7. decides to delegate, in accordance with Article L. 22-10-52 of the French Commercial Code, to the Board of Directors the powers to set
the issue price of the shares issued directly or of the equity-linked securities, it being specified that:
a. a maximum discount of 10% after correction, if any, to take into account the difference dates of entitlement to dividend of the shares,
will be applied to the reference price of the shares as determined by the Board of Directors,
b. the issue price of the equity-linked securities will be such that the cash amount received immediately by the Company plus any cash
amount to be received subsequently by the Company will, for each ordinary share issued as a consequence of the issuance of such
securities, be not less than the reference issue price defined in the previous paragraph;
8. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order in particular to:
a. set the conditions of the capital increase(s) and/or of the issuance(s) of shares or securities,
b. determine the number of shares and/or securities to be issued, their issuance price as well as the amount of the premium that may be
requested upon issuance, if any,
c. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which could be subordinated
or unsubordinated securities and may or not have a specific maturity date, and in particular, for issuances of debt equity-linked
securities, their interest rate, their maturity, their fixed or variable redemption price, with or without premium, and the redemption
methods,
d. decide how shares and/or securities are to be paid for,
e. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other conditions and
specifics of implementing the issuance(s),
f. set the terms and conditions under which the Company would have the right to purchase or exchange, at any time or during fixed
periods, securities issued or to be issued immediately or in the future,
g. provide an option to suspend the exercise of rights attached to such securities,
h. establish, if required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, relevant contractual provisions,
i. offset the costs, fees, and expenses of the capital increase(s) against the amount of the premium related thereto, and, where
applicable, deduct from this amount the amounts required to bring the legal reserve to one-tenth of the new share capital after each
capital increase, and
j. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
9. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation (i) supersedes, for the portion not yet used, the previous delegation given to the Board of Directors by the General
Shareholders’ Meeting of May 4, 2023 in its 20th resolution and (ii) is granted for a twenty-six (26)-month period as from this Shareholders’
Meeting.
8.1 Explanatory comments & draft resolutions
submitted to the Annual Shareholders’ Meeting
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Text of the nineteenth resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company without shareholders’ preferential subscription
right through an offering in accordance with Article L. 411-2 1° of the French Monetary and Financial
Code)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129,
L.225-129-2 to L. 225-129-6, L. 225-135, L. 225-136, L. 228-91 to L. 228-93, L. 22-10-49, and L. 22-10-52 of the French Commercial Code
and Article L. 411-2 1°of the French Monetary and Financial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate, in compliance with applicable laws and regulations, to
decide, through an offer in accordance with Article L. 411-2 1° of the French Monetary and Financial Code, on one or more occasions, in
the proportions and at the times it deems appropriate, in France and/or abroad, either in euros or in any other currency or unit of account
set by reference to several currencies, to increase the share capital by issuing (i) ordinary shares of the Company, (ii) securities
governed by Article L. 228-91 et seq. of the French Commercial Code, which are equity securities of the Company, giving access to
other equity securities of the Company and/or giving the right to the allocation of debt securities of the Company, and/or (iii) debt
securities governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity
securities to be issued by the Company, which securities may, where applicable, also give access to existing equity securities and/or
debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving access to existing equity
securities or securities to be issued by, and/or debt securities of, companies of which the Company holds directly or indirectly, at the time
of issue, more than half of the share capital, and/or (v) securities representing debt securities governed or not by Article L. 228-91 et seq.
of the French Commercial Code, giving access or likely to give access to equity securities to be issued by companies in which the
Company holds directly or indirectly, at the time of issue, more than half of the share capital, and which may, where applicable, also give
access to existing equity securities and/or debt securities of said companies; it is specified that (i) the subscription of shares and other
securities may be carried out either in cash or by offsetting debts, and (ii) the shares to be issued shall confer the same rights as the
existing shares; it being specified that the issue of any shares or securities giving access to preference shares is excluded;
2. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 224 million representing on an indicative basis 9.73% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital,
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 17th, 18th, 20th, 21st, 22nd, 23rd, and 24th resolutions of this Annual Shareholders’ Meeting is set at EUR 800 million,
and
c. the maximum aggregate nominal amount of capital increases that may be undertaken immediately and/or in the future on the basis of
this resolution and the 18th, 21st, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting is set at EUR 224 million;
3. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 17th, 18th, 20th, 21st, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
4. decides to cancel the shareholders’ preferential subscription rights to the Company’s shares and/or other equity-linked securities to be
issued pursuant to this resolution, and to offer such shares or securities by way of an offering provided for in Article L. 411-2 1° of the
French Monetary and Financial Code in accordance with applicable laws and regulations;
5. decides that, should the Board of Directors make use of this delegation, if the subscriptions to the capital increase, including, if any,
those of the shareholders, have not absorbed the aggregate capital increase, the Board of Directors may use, as permitted by law and in
such order as it may determine, either one of the options described by Article L. 225-134 of the French Commercial Code, listed below:
a. limit the capital increase to the amount of the subscriptions, provided that they reach at least three-quarters of the initially approved
increase, and/or
b. freely distribute all or part of the unsubscribed securities among persons it may choose;
6. acknowledges and decides, if applicable, that any decision taken by virtue of this delegation of authority will automatically entail, in favor
of the holders of equity-linked securities giving access to the Company’s share capital or may give access to Company’s shares to be
issued, express waiver by shareholders of their preferential subscription rights to securities to be issued to which equity-linked securities
entitle their holders;
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7. decides to delegate, in accordance with Article L. 22-10-52 of the French Commercial Code, to the Board of Directors the powers to set
the issue price of the shares issued directly or of the equity-linked securities; it being specified that:
a. a maximum discount of 10% after correction, if any, to take into account the difference dates of entitlement to dividend of the shares,
will be applied to the reference price of the shares as determined by the Board of Directors, and
b. the issue price of the equity-linked securities will be such that the cash amount received immediately by the Company plus any cash
amount to be received subsequently by the Company will, for each ordinary share issued as a consequence of the issuance of such
securities, be not less than the reference issue price defined in the previous paragraph;
8. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order in particular to:
a. set the conditions of the capital increase(s) and/or of the issuance(s) of shares or securities,
b. determine the number of shares and/or securities to be issued, their issuance price as well as the amount of the premium that may be
requested upon issuance, if any,
c. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which could be subordinated
or unsubordinated securities and may or not have a specific maturity date, and in particular, for issuances of debt equity-linked
securities, their interest rate, their maturity, their fixed or variable redemption price, with or without premium, and the redemption
methods,
d. decide how shares and/or securities are to be paid for,
e. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other conditions and
specifics of implementing the issuance,
f. set the terms and conditions under which the Company would have the right to purchase or exchange, at any time or during fixed
periods, securities issued or to be issued immediately or in the future,
g. provide an option to suspend the exercise of rights attached to such securities,
h. establish, if required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, relevant contractual provisions,
i. offset the costs, fees, and expenses of the capital increase(s) against the amount of the premium related thereto, and, where
applicable, deduct from this amount the amounts required to bring the legal reserve to one-tenth of the new share capital after each
capital increase, and
j. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
9. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation (i) supersedes, for the portion not yet used, the previous delegation given to the Board of Directors by the General
Shareholders’ Meeting of May 4, 2023 in its 21st resolution and (ii) is granted for a twenty-six (26)-month period as from this Shareholders’
Meeting.
Text of the twentieth resolution
(Delegation of authority to the Board of Directors to increase the number of shares to be issued in the
event of a capital increase with or without shareholders’ preferential subscription right)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Article L. 225-135-1
of the French Commercial Code:
1. delegates to the Board of Directors, with the power to subdelegate under the conditions provided by law, should it notice an
oversubscription when issuing shares or equity-linked securities giving access to the capital, with or without preferential subscription
rights pursuant to the 17th, 18th, and 19th resolutions, its capacity to decide to increase the number of securities to be issued at the same
price as that used for the initial issuance, within the deadlines and limits specified in the applicable regulations as of the date of the
issuance (as of the date hereof, within thirty (30) days following the closure of subscriptions and up to 15% of the initial issuance), with a
view to grant an over-allotment option in accordance with market practices;
2. decides that in the event of an issuance, immediately and in the future, of ordinary shares, the nominal amount of capital increases
decided upon pursuant to this resolution will be charged on the ceiling applicable to the initial issuance stipulated in the relevant
resolution of this Shareholders’ Meeting;
3. acknowledges that, in accordance with Article L. 225-135-1 of the French Commercial Code, the limit of three-quarters of the issuance
provided by Article L. 225-134 I 1° of the French Commercial Code will be increased in the same proportions if the Board of Directors
decides, pursuant to this resolution, to increase the number of shares to be issued;
4. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation (i) supersedes, for the portion not yet used, the previous delegation given to the Board of Directors by the Combined
Shareholders’ Meeting of May 4, 2023 in its 22nd resolution and (ii) is granted for a period of twenty-six (26) months as from this
Shareholders’ Meeting.
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Text of the twenty-first resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company without shareholders’ preferential subscription
right in consideration for contributions in kind to the Company)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-147,
L. 228-91 to L. 228-93, and L. 22-10-53 of the French Commercial Code:
1. delegates to the Board of Directors authority, on one or more occasions, both in France and abroad, either in euros or in any other
currency or unit of account set by reference to several currencies, to remunerate contributions in kind granted to the Company and
consisting of equity securities or securities giving immediate or future access to the capital of third-party companies, when the provisions
of Article L. 22-10-54 of the French Commercial Code are not applicable, to issue (i) ordinary shares of the Company, (ii) securities
governed by Article 228-91 et seq. of the French Commercial Code, which are equity securities of the Company, giving access to other
equity securities of the Company and/or giving the right to the allocation of debt securities of the Company, and/or (iii) debt securities
governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity securities to
be issued by the Company, which securities may, where applicable, also give access to existing equity securities and/or debt securities
of the Company, and/or (iv) securities which are equity securities of the Company giving access to existing equity securities or securities
to be issued by, and/or debt securities of, companies of which the Company holds directly or indirectly, at the time of issue, more than
half of the share capital;
2. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 224 million representing on an indicative basis 9.73% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital,
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 17th, 18th, 19th, 20th, 22nd, 23rd, and 24th resolutions of this Annual Shareholders’ Meeting is set at EUR 800 million,
and
c. the maximum aggregate nominal amount of capital increases that may be undertaken immediately and/or in the future on the basis of
this resolution and the 18th, 19th, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting is set at EUR 224 million;
3. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 17th, 18th, 19th, 20th, 22nd, and 23rd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
4. acknowledges that this delegation of authority entails, by operation of law, (i) the waiver by shareholders in favor of the holders of
securities, in respect of which the contributions in kind are made, of the preferential subscription rights to the shares and/or securities
giving access to the share capital that will be issued pursuant to this delegation and (ii) the waiver by shareholders of their preferential
subscription rights to Company shares to be issued, to which the equity-linked securities that may be issued pursuant to this delegation
may give right, for the benefit of holders of securities giving access to the share capital or that may give access to shares issued by the
Company pursuant to this delegation;
5. specifies that, in accordance with applicable law, the Board of Directors is to approve the statutory auditors’ report, referred to in Articles
L. 225-147 and L. 22-10-53 of the French Commercial Code;
6. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order and in particular to:
a. set the conditions of the capital increase(s) and/or of the issuance(s),
b. determine the number of shares and/or equity securities to be issued, their issue price and the amount of the premium,
c. approve appraisals of the contributions and their consideration and acknowledge the completion of said contributions,
d. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which could be subordinated
or unsubordinated securities and may or not have a specific maturity date, and in particular, for issuances of debt equity-linked
securities, their interest rate, their maturity, their fixed or variable redemption price, with or without premium, and the redemption
methods,
e. decide how shares and/or securities are to be paid for,
f. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other conditions and
specifics of implementing the issuance(s),
g. set the terms and conditions under which the Company would have the right to purchase or exchange, at any time or during fixed
periods, securities issued or to be issued immediately or in the future,
h. provide the ability to suspend the exercise of rights attached to such securities,
i. off-set all costs, fees, and expenses against the premium account, the balance of which will be allocated by the Board of Directors at
its discretion,
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j. establish, if required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, relevant contractual provisions,
k. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
7. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation of authority (i) supersedes, for the portion not yet used, the delegation granted to the Board of Directors by the Combined
Shareholders’ Meeting of May 4, 2023 in its 23rd resolution and (ii) is granted for a period of twenty-six (26) months as from this
Shareholders’ Meeting.
Text of the twenty-second resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company without shareholders’ preferential subscription
right reserved for a category of persons)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129 et
seq., L. 225-129-2, L. 225-135, L. 225-138, L. 228-91, and L. 22-10-49 et seq. of the French Commercial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate, in compliance with applicable laws and regulations, to
decide one or several capital increases through the issue, in the proportions and at the times it deems appropriate, in France and/or
abroad, either in euros or in any other currency or unit of account set by reference to several currencies, of (i) ordinary shares of the
Company, (ii) securities governed by Article L. 228-91 et seq. of the French Commercial Code, which are equity securities of the
Company, giving access to other equity securities of the Company and/or giving the right to the allocation of debt securities of the
Company, and/or (iii) debt securities governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely
to give access to equity securities to be issued by the Company, which securities may, where applicable, also give access to existing
equity securities and/or debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving access
to existing equity securities or securities to be issued by, and/or to debt securities of companies in which the Company holds directly or
indirectly, at the time of issue, more than half of the share capital, and/or (v) securities representing debt securities governed or not by
Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity securities to be issued by
companies in which the Company holds directly or indirectly, at the time of issue, more than half of the share capital, and which may also
give access to existing equity securities and/or debt securities of said companies; it is specified that (i) the subscription of shares and
other securities may be carried out either in cash or by offsetting debts, and (ii) the shares to be issued shall confer the same rights as
the existing shares; it being specified that the issue of any shares or securities giving access to preference shares is excluded;
2. decides to cancel the shareholders’ preferential subscription rights to the Company’s shares and/or other equity-linked securities to be
issued pursuant to this resolution, and to offer such shares or securities to the category of beneficiaries meeting the following features: all
credit institutions authorized to provide the investment services mentioned in paragraphs 3, 6-1 and 7 of Article L. 321-1 of the French
Monetary and Financial Code and accordingly authorized to carry out proprietary trading, underwriting and placement activities in the
equity securities of companies listed on the Euronext regulated market in Paris; it being specified that the Board of Directors will draw up
the list of beneficiaries within this category, that it may, where appropriate, choose a single service provider and that the beneficiary(ies)
will not be entitled to retain the new shares or securities following completion of the issue;
3. decides that:
a. the issue price of the ordinary shares under this authorization shall be at least equal to the volume-weighted average of the average
prices of the Company’s shares on the regulated market of Euronext in Paris during a period of three consecutive trading days
preceding the setting of the issue price less a maximum discount of 10% after correction, if any, to take into account the difference
dates of entitlement to dividend of the shares,
b. the issue price of the equity-linked securities will be such that the cash amount received immediately by the Company plus any cash
amount to be received subsequently by the Company will, for each ordinary share issued as a consequence of the issuance of such
securities, be not less than the minimum issue price defined in the previous paragraph;
4. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 224 million representing on an indicative basis 9.73% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital,
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 17th, 18th, 19th, 20th, 21st, 23rd, and 24th resolutions of this Annual Shareholders’ Meeting is set at EUR 800 million, and
c. the maximum aggregate nominal amount of capital increases that may be undertaken immediately and/or in the future on the basis of
this resolution and the 18th, 19th, 21st, and 23rd resolutions of this Annual Shareholders’ Meeting is set at EUR 224 million;
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5. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 17th, 18th, 19th, 20th, 21st, and 23rd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
6. decides that, in the event that the beneficiary(ies) defined in the second paragraph above have not subscribed to the entire capital
increase within the time limit, the increase in capital shall be carried out only up to the amount of the shares subscribed, the
unsubscribed shares being able to be offered again to the said beneficiary(ies) in the context of a subsequent issue;
7. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order and in particular to:
a. set the conditions of the capital increase(s) and/or of the issuance(s) of shares or securities,
b. determine the number of shares and/or securities to be issued, their issuance price as well as the amount of the premium that may be
requested upon issuance, if any,
c. decide on the list of beneficiaries within the category of persons defined in the second paragraph above and the number of shares
and/or securities to be allocated to each of them,
d. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which could be subordinated
or unsubordinated securities and may or not have a specific maturity date, and in particular, for issuances of debt equity-linked
securities, their interest rate, their maturity, their fixed or variable redemption price, with or without premium, and the redemption
methods,
e. decide how shares and/or securities are to be paid for,
f. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other conditions and
specifics of implementing the issuance(s),
g. set the terms and conditions under which the Company would have the right to purchase or exchange, at any time or during fixed
periods, securities issued or to be issued immediately or in the future,
h. provide an option to suspend the exercise of rights attached to such securities,
i. establish, if required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, relevant contractual provisions,
j. offset the costs, fees, and expenses of the capital increase(s) against the amount of the premium related thereto, and, where
applicable, deduct from this amount the amounts required to bring the legal reserve to one-tenth of the new share capital after each
capital increase, and
k. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
8. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation of authority (i) supersedes, for the portion not yet used, any previous delegation having the same purpose and (ii) is granted
for a period of eighteen (18) months as from this Shareholders’ Meeting.
Text of the twenty-third resolution
(Delegation of authority to the Board of Directors to increase the capital by issuing ordinary shares or
securities giving access to share capital of the Company without shareholders’ preferential subscription
right reserved for one or more named person)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129 et
seq., L. 225-129-2, L. 225-135, L. 225-138, L. 228-91, and L. 22-10-52-1 et seq. of the French Commercial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate, in compliance with applicable laws and regulations, to
decide one or several capital increases through the issue, in the proportions and at the times it deems appropriate, in France and/or
abroad, either in euros or in any other currency or unit of account set by reference to several currencies, of (i) ordinary shares of the
Company, (ii) securities governed by Article L. 228-91 et seq. of the French Commercial Code, which are equity securities of the
Company, giving access to other equity securities of the Company and/or giving the right to the allocation of debt securities of the
Company, and/or (iii) debt securities governed or not by Article L. 228-91 et seq. of the French Commercial Code, giving access or likely
to give access to equity securities to be issued by the Company, which securities may, where applicable, also give access to existing
equity securities and/or debt securities of the Company, and/or (iv) securities which are equity securities of the Company giving access
to existing equity securities or securities to be issued by, and/or to debt securities of companies in which the Company holds directly or
indirectly, at the time of issue, more than half of the share capital, and/or (v) securities representing debt securities governed or not by
Article L. 228-91 et seq. of the French Commercial Code, giving access or likely to give access to equity securities to be issued by
companies in which the Company holds directly or indirectly, at the time of issue, more than half of the share capital, and which may also
give access to existing equity securities and/or debt securities of said companies; it is specified that (i) the subscription of shares and
other securities may be carried out either in cash or by offsetting debts, and (ii) the shares to be issued shall confer the same rights as
the existing shares; it being specified that the issue of any shares or securities giving access to preference shares is excluded;
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2. decides to cancel the shareholders’ preferential subscription rights to the Company’s shares and/or other equity-linked securities to be
issued pursuant to this resolution, and to offer such shares or securities to one or more persons designated by name, it being specified
that the Board of Directors will have full powers to designate the person or persons for whom the issue is reserved;
3. decides that, in accordance with the provisions of Article L. 22‑10‑52‑1 of the French Commercial Code:
a. the issue price of the ordinary shares issued under this authorization will be set by the Board of Directors in accordance with the
regulatory provisions applicable on the date this authorization is used; it being specified that, in any event, the Board of Directors may
not apply a discount of more than 10% (after correction, if any, to take into account the difference dates of entitlement to dividend of
the shares) to the reference price as provided by the regulatory provisions,
b. the issue price of the equity-linked securities will be such that the cash amount received immediately by the Company plus any cash
amount to be received subsequently by the Company will, for each ordinary share issued as a consequence of the issuance of such
securities, be in accordance with the price set in the previous paragraph;
4. decides that the nominal amount of the capital increases which may be undertaken immediately and/or in the future on the basis of this
resolution may not exceed EUR 224 million representing on an indicative basis 9.73% of the capital as of December 31, 2024, it being
specified that:
a. this amount would be increased by the nominal amount of the capital increase resulting from the issuance of shares to be carried out
as the case may be, in accordance with legal and regulatory provisions, and, where applicable, relevant contractual provisions
providing for other adjustments, in order to preserve the rights of holders of securities giving access to the share capital,
b. the maximum aggregate nominal amount of capital increases that may be undertaken immediately or in the future on the basis of this
resolution and the 17th, 18th, 19th, 20th, 21st, 22nd, and 24th resolutions of this Annual Shareholders’ Meeting is set at EUR 800 million, and
c. the maximum aggregate nominal amount of capital increases that may be undertaken immediately and/or in the future on the basis of
this resolution and the 18th, 19th, 21st, and 22nd resolutions of this Annual Shareholders’ Meeting is set at EUR 224 million;
5. decides that the maximum nominal amount of issuances of debt equity-linked securities which could be carried out pursuant to this
delegation, shall not exceed a nominal amount of EUR 7 billion (or the equivalent in any other currency or monetary unit), it being
specified that the maximum aggregate nominal amount of debt equity-linked securities that may be issued on the basis of this resolution
and the 18th, 19th, 21st, and 22nd resolutions of this Annual Shareholders’ Meeting, is set at EUR 7 billion;
6. decides that, in the event that the designated person(s) referred to in the second paragraph above have not subscribed to the entire
capital increase within the time limit, the increase in capital shall be carried out only up to the amount of the shares subscribed, the
unsubscribed shares being able to be offered again to the said person(s) in the context of a subsequent issue;
7. decides that the Board of Directors shall have all powers, with the power to subdelegate under the conditions provided by law, to
implement this delegation, in order and in particular to:
a. set the conditions of the capital increase(s) and/or of the issuance(s) of shares or securities,
b. determine the number of shares and/or securities to be issued, their issuance price as well as the amount of the premium that may be
requested upon issuance, if any,
c. designate the person or persons for whom the issue is reserved and the number of shares and/or securities to be allocated to each of
them,
d. determine the dates and conditions of the issuance, the nature and form of the securities to be issued, which could be subordinated
or unsubordinated securities and may or not have a specific maturity date, and in particular, for issuances of debt equity-linked
securities, their interest rate, their maturity, their fixed or variable redemption price, with or without premium, and the redemption
methods,
e. decide how shares and/or securities are to be paid for,
f. set, if necessary, the terms of the exercise of the rights attached to the shares or securities issued or to be issued and, in particular,
set the date, even if retroactive, from which the new shares to be issued would bear dividend rights, as well as all other conditions and
specifics of implementing the issuance,
g. set the terms and conditions under which the Company would have the right to purchase or exchange, at any time or during fixed
periods, securities issued or to be issued immediately or in the future,
h. provide an option to suspend the exercise of rights attached to such securities,
i. establish, if required, the conditions for preserving the rights of holders of equity-linked securities with future rights to shares of the
Company, in accordance with applicable laws and regulations, and, where applicable, relevant contractual provisions,
j. offset the costs, fees, and expenses of the capital increase(s) against the amount of the premium related thereto, and, where
applicable, deduct from this amount the amounts required to bring the legal reserve to one-tenth of the new share capital after each
capital increase, and
k. generally, enter into any agreement, in particular to ensure the successful completion of the contemplated issuance(s), take all
measures and carry out all formalities necessary for the financial servicing of the securities issued pursuant to this delegation as well
as the exercise of rights attached thereto, to acknowledge the completion of each capital increase and modify the Articles of
Association accordingly;
8. decides that the Board of Directors may not use this delegation from the filing of a takeover bid by a third party and for the duration of the
offer period.
This delegation of authority (i) supersedes, for the portion not yet used, any previous delegation having the same purpose and (ii) is granted
for a period of eighteen (18) months as from this Shareholders’ Meeting.
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Text of the twenty-fourth resolution
(Delegation of authority to the Board of Directors to increase the capital by capitalizing additional paid-in
capital, reserves, earnings, or other)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for ordinary shareholders’ meetings, having
heard the Board of Directors’ report and in accordance with the provisions of Articles L.225-129-2, L.225-135, L.225-138, L.228-91 et seq.,
and L.22-10-49 et seq. of the French Commercial Code:
1. delegates to the Board of Directors its capacity to carry out, in such proportions and for such periods as it may deem appropriate, one or
more capital increases by successive or simultaneous incorporation into the capital of premiums, reserves, profits, or other amounts for
which capitalization is legally and statutorily possible, in the form of raising the nominal amount of existing shares or assigning free new
shares or by the joint use of these two procedures, said shares having the same rights as the old shares subject to the date of their
entitlement to dividends;
2. decides that the maximum nominal amount of the capital increases that may be carried out pursuant to this delegation may not exceed
EUR 800 million, it being specified that this amount would be increased by the nominal amount of the capital increase resulting from the
issuance of shares that may be carried out, where applicable, in accordance with the legal and regulatory provisions;
3. decides, in accordance with the provisions of Article L. 225-130 of the French Commercial Code that in case where the Board of
Directors makes use of this delegation, the rights forming fractional amounts will not be negotiable or transferable and that the
corresponding Company’s shares will be sold; the amounts arising from the sale will be allocated to the holders of rights within the
deadline specified by the regulations;
4. decides that the Board of Directors will have full powers, with the power to subdelegate, to implement this delegation, and more
generally, to take all measures and carry out all formalities required for the successful completion of each capital increase, to
acknowledge the completion of each capital increase and modify the Articles of Association accordingly.
This delegation of authority (i) supersedes, for the portion not yet used, the delegation granted to the Board of Directors by the Combined
Shareholders’ Meeting of May 4, 2023 in its 24th resolution and (ii) is granted for a period of twenty-six (26) months as from this Shareholders’
Meeting.
25th resolution: Authorization granted to the Board of Directors to freely allocate shares
to the employees or to a category of employees and/or the Corporate Officers of the
Company or of companies affiliated therewith as part of the Long-Term Incentive Plan
up to a limit of 2% of the share capital
Explanatory statement
Under the 25thresolution, you are asked to give authority to the Board of Directors, pursuant to the provisions of Articles L. 225-129 et
seq., L. 229-197-1 to L. 229-197-5, and L. 22-10-59 of the French Commercial Code (Code de commerce), to proceed, on one or more
occasions, with the allocation of shares, issued or to be issued, to the benefit of employees and Corporate Officers of the Group. The
Board of Directors, upon recommendation of the Human Capital & Remunerations Committee, has determined the following guidelines
for granting free shares under this resolution.
Context of the request for authorization
The Company wishes to mobilize its management in order to carry out its strategic plan upon which the development of the Group
relies. In this context, the requested authorization would make it possible for the Board of Directors to put in place plans for the grant of
shares, to the benefit of Corporate Officers and employees of the Group, both in France and abroad, and to involve the employees in
the Group’s performance and development as part of the strategic plan. These plans would also allow to ensure the competitiveness of
the compensation offered by the Group, in dynamic and competitive international markets, and in sectors where the ability to attract
talents is a key factor to success.
Nature of the authorization
You are being asked to authorize the Board of Directors to proceed, on one or more occasions, with the grant of shares of the Company,
issued or to be issued, to the benefit of employees and the Chief Executive Officer of the Group.
As part of the long-term compensation plans of the Company, two different types of grant would be made:
• a maximum of 30% of the shares granted would be subject only to a presence condition, without performance condition (the
“Restricted Shares”); and
• all other shares granted would be subject to a presence condition and to performance conditions (the “Performance Shares”).
The Chief Executive Officer and members of the Executive Committee would be entitled to receive only Performance Shares.
It is envisaged that the number of persons benefiting from such grants will be around 4,500 to 4,800 people per year.
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Explanatory statement continued
Besides, the Board of Directors could decide the grant of Restricted Shares as part of the shareholding plans of the Company, in
addition to the shares subscribed.
Term of the authorization
The authorization would be valid for a duration of 36 months, as from the date of this Shareholders’ Meeting.
Maximum amount of the authorization
The grants of shares carried out pursuant to this authorization should not involve a number of shares, issued or to be issued, exceeding
2% of the Company’s share capital on the date of this Annual Shareholders’ Meeting.
The Board of Directors reminds you that the Group’s policy regarding grant of stock options, share purchase, and free and performance
shares is to have a limited impact over time in terms of dilution of the share capital. For information purposes, we remind you that, as of
December 31, 2024, a total of 3,750,687 shares (i.e., 0.65% of the share capital) could be vested to employees and Corporate Officers
subject to performance conditions set under the Performance Share plans (for details of these plans, see section 4.2.5 of Chapter 4 of
the Universal Registration Document).
If all shares in the plans were delivered, this would lead to the issuance of 140,908 shares (other plans are already qualified and will be
delivered from existing shares) and Schneider Electric’s share capital would be composed of 575,772,584 ordinary shares, i.e., a 0.02%
increase in the number of shares from December 31, 2024.
Under the Long-Term Incentive Plan, Performance Shares allocated to the Corporate Officer could not exceed each year 0.03% of the
total share capital and allocation to the members of the Executive Committee would not represent more than 20% of the grant. In
addition, the Corporate Officer’s compensation policy provides that the long-term instruments, valued in accordance with IFRS
standards, should not represent a disproportionate percentage of his overall compensation, i.e. 300% of the fixed compensation (vs.
150% of the combined fixed and target annual variable compensation previously) at the date of grant.
Vesting period
The grant of shares to their beneficiaries would become final at the end of a vesting period, the duration of which would be set by the
Board of Directors, it being understood that such duration will be of no less than three (3) years.
The Board of Directors would submit the Chief Executive Officer to an obligation of retaining a significant number of their shares. He
would have to retain at least 50% of the Performance Shares granted to him until he holds a number of shares representing five (5) years
of base salary.
Presence condition in the Group
The vesting of Restricted and Performance Shares would be subject to achievement of a presence condition in the Group. Restricted
and Performance Shares granted to a beneficiary who would leave the Group before the expiry of the vesting period would be forfeited,
except in case of death, retirement or other customary exceptions decided upon by the Board of Directors. For the Corporate Officer,
the case of retention of unvested Performance Share awards would be determined by the Compensation policy applicable to him at the
date of his departure.
Performance conditions
The final vesting of Performance Shares would be subject to performance conditions set by the Board of Directors. For the Chief
Executive Officer and members of the Executive Committee, the performance conditions would be those approved by the shareholders
in the Compensation policy applicable at the time of the grant. For 2025, those performance conditions are described in section
4.2.3.1.2 of Chapter 4 of the Universal Registration Document. The Board considered shareholder feedback and proposes to implement
the following changes in the 2025 compensation policy to strengthen the performance conditions of the Long-Term Incentive Plan
(LTIP): (i) to stop the existing offsetting mechanism between Earnings Per Share (EPS) criteria and Total Shareholder Return (TSR)
criteria and implement instead an overperformance mechanism for the financial criteria leading to a total maximum vesting at 115%, and
(ii) for the TSR criteria that compares Schneider Electric to the index performance, to replace the CAC 40 by Stoxx Europe 50, a
European index for broader, more global comparison beyond France.
Best practices
The Board of Directors shall inform Shareholders every year of the number of shares granted or/and vested pursuant to the Long-Term
Incentive Plan. The grant of Performance Shares would also be consistent with the principles and best practices applied by the Board,
including, in particular:
• involvement at each stage (allocation, review of the satisfaction of performance conditions, etc.) of the Human Capital &
Remunerations Committee;
• demanding performance conditions in line with the Company’s financial communication which provide incentive, for 100% of the
shares granted to the Corporate Officer and members of the Executive Committee; and
• demanding rules of business ethics, including, a prohibition for beneficiaries who are members of the Executive Committee to use
hedging instruments for the Performance Shares.
All these elements, taken together, demonstrate that the Group has aligned itself with best market practices regarding Performance
Shares and responds to the expectations of its shareholders.
8.1 Explanatory comments & draft resolutions
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Text of the twenty-fifth resolution
(Authorization granted to the Board of Directors to freely allocate shares to the employees or to a
category of employees and/or the Corporate Officers of the Company or of companies affiliated therewith
as part of the Long-Term Incentive Plan up to a limit of 2% of the share capital)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report:
1. authorizes the Board of Directors, pursuant to the provisions of Articles L. 225-197-1 to L. 225-197-5 and L. 22-10-59 of the French
Commercial Code, on one or several occasions, to allocate free shares, existing or to be created (other than preferred shares), to the
beneficiaries that it shall determine among the employees of the Company or the Corporate Officers of the Company or of companies
that are related to the Company under the conditions provided for in Article L. 225-197-2 of said Code under in the conditions defined
hereinafter;
2. resolves that the number of shares already existing or to be issued by this authorization cannot represent more than 2% of the share
capital existing on the date of this Shareholders’ Meeting, the number of shares allocated to the Corporate Officers cannot exceed
annually 0.03% of the total share capital existing, further specified that (i) this ceiling is set without taking into account any adjustments of
the shares that could be allocated in case of Company’s equity operations and, that (ii) the total number of shares allocated cannot
exceed 15% of the share capital on the date of the Board of Director’s decision to allocate them;
3. resolves that the entirety of the final vesting of the shares allocated to the Corporate Officers and to members of the Executive Committee
of the Company will be subject to the attainment of the performance conditions determined by the Board of Directors;
4. resolves that the grant of shares to their beneficiaries could be subject to the holding of Company’s shares;
5. resolves that the allocation of the shares to their beneficiaries will be final at the term of a vesting period, the duration of which will be set
by the Board of Directors, with the understanding that this duration cannot be less than one year and that the Board of Directors will have
the power to set a holding period, it being specified that, in accordance with applicable law, the cumulative vesting and, where
applicable, holding periods may not be less than two years;
6. resolves that in the case of the death or disability of a beneficiary corresponding to a classification in the second or third of the
categories specified in Article L. 341-4 of the French Social Security Code, the shares will be definitively allocated to them prior to the
end of the vesting period (in this case, said shares may be freely disposed starting from their delivery);
7. grants full powers to the Board of Directors to implement this authorization and, in particular, to:
a. determine the identity of the beneficiaries of the allocation of the shares among the employees of the Company or companies or
above-mentioned groups, as well as the number of shares allocated to each of them,
b. determine whether the allocated free shares are shares that already exist or that will be issued,
c. set the conditions of performance and/or the criteria for allocation of the shares, in particular the vesting period and the minimum
holding period required for each beneficiary,
d. for the issuance of new shares, as the case may be, charge against any reserves, profits, or issue premiums, the amounts necessary
to release said shares,
e. register the free allocated shares on a registered share account in the name of their owner, stating the vesting period and its duration,
f. carry out, if it deems necessary, to adjustments of the number of free allocated shares to preserve the rights of the beneficiaries
depending on the potential Company’s equity operations occurred during the vesting period as specified in Article L. 225-181
paragraph 2 of the French Commercial Code, under the conditions that it will set, and
g. more generally, set the dates of entitlement to dividends from the new shares, record the completion of the capital increase, amend
the by-laws as necessary, to carry out any procedures necessary for the issuance, listing and any financial service related to the
securities issued by virtue of this resolution and do everything useful and necessary pursuant to all applicable laws and regulations;
8. acknowledges that, in the event that the Board of Directors makes use of this authorization, it will inform the Ordinary Shareholders
Meeting, each year, of the transactions thus made pursuant to the requirements of Article L. 225-197-4 of the French Commercial Code;
9. acknowledges that this delegation of authority legally implies, for the beneficiaries of the free shares, waiver of preferential subscription
rights in the case of the issuance of new shares.
This authorization (i) supersedes, for the portion not yet used, the authorization granted by the Combined Shareholders’ Meeting of May 5,
2022 in its 15th resolution and (ii) is granted for a period of thirty-six (36) months from the Shareholders’ Meeting.
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26th and 27th resolutions: Capital increases reserved for employees
Explanatory statement
Schneider Electric is convinced of the importance of developing the Company’s employee shareholder base in order to align employee
interests with those of shareholders and also stabilize the Company’s share capital. The Board of Directors wishes to continue making
the Company’s share capital accessible to a large number of employees, in particular through employee share ownership plans
(WESOP). As of December 31, 2024, employees held 3.2% of the capital either directly or through the corporate mutual funds (FCPEs).
The Company carried out capital increases reserved for Group employees in 2024 (WESOP 2024) proposed in 45 countries
representing 78% of the Group’s employees. These transactions are presented in section 7.1.2.2 of Chapter 7 of the 2024 Universal
Registration Document.
As part its offer policy to Group employees on an annual basis, the Board decided that there will be a new employee share ownership
plan implemented in 2025. As part of the 19th and 20th resolutions of the Annual Shareholders’ Meeting of May 23, 2024, the Board of
Directors, at its meeting of December 17, 2024, decided to renew the annual employee shareholder plan in 2025, within a limit of 3.7
million shares (approximately 0.64% of the capital). This plan does not include a leveraged offer. The shares are offered with a discount
of 15% on the share price to all subscribers and a maximum employer contribution around EUR 1,400 per subscriber.
To allow for the implementation of a new global employee share ownership plan in 2026, you are requested to approve:
• the 26thresolution which will grant the Board of Directors the authority to carry out capital increases reserved for employees
participating in a company savings plan within the limit of 2% of the Company’s capital, with the provision that the maximum discount
at which the shares could be offered is set at 30% (it will be valid for a period of twenty-six (26) months; the authority in force as
voted by the Annual Shareholders’ Meeting of May 23, 2024 in its 19th resolution shall cease to be effective as from November 4,
2025(1)); and
• the 27th resolution which will grant the Board of Directors the authority to carry out capital increases reserved for employees and
Corporate Officers of non-French Group companies or to entities acting on their behalf; this authorization will not exceed 1% of the
capital and will be deducted from the ceiling of 2% of the capital set for the issuance of shares to employees who are members of a
company savings plan (this authorization will be valid for a period of eighteen (18) months and may only be used on or after
November 4, 2025(2)).
Text of the twenty-sixth resolution
(Delegation of authority to the Board of Directors to undertake capital increases reserved for participants
in a company savings plan without shareholders’ preferential subscription right)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Article L. 3332-1 et
seq. of the French Labor Code and Articles L. 225-129 to L. 225-129-6, L. 22-10-49, L. 225-138-1, and L. 228-91 et seq. of the French
Commercial Code:
1. delegates to the Board of Directors the authority, with the power to subdelegate, for a period of twenty-six (26) months from the date of
this Annual Shareholders’ Meeting, to undertake a capital increase on one or more occasions at its discretion by issuing ordinary shares
or securities providing access through any means, immediately and/or in the future, to ordinary shares of the Company, under the terms
and conditions set forth in Article L. 225-180 of the French Commercial Code and Article L. 3344-1 of the French Labor Code, reserved
for participants in a company savings plan and French or non-French companies affiliated with the Company in a maximum nominal
amount of 2% of the share capital on the date of this Shareholders’ Meeting, with the possibility to issue shares against cash or by
capitalizing reserves, profits, or premium in case of grants of free shares or of securities granting access to share capital on account for
the discount and/or the matching contribution, it being specified that this authorization may be used only from and after November 4,
2025;
2. set the maximum discount to be offered in connection with the company savings plan at 30% of an average of the trading price of the
Company’s shares on Euronext Paris during the twenty (20) trading sessions preceding the date of the decision of the Board of Directors
or of its authorized representative setting the date to begin taking subscriptions, it being specified that the Board of Directors may
reduce the aforementioned discount within applicable legal and regulatory requirements, or not to grant one, in particular so as to take
into account the laws and regulations applicable in countries where such offering may be implemented;
3. authorizes the Board of Directors, in application of Article L. 3332-21 of the French Labor Code, to make grants of free ordinary shares or
other securities granting immediate or differed access to ordinary share capital under all or part of the discount and/or, as the case may
be, for the matching contribution, provided that the value of the benefit resulting from this grant on account for the discount and/or the
matching contribution, shall not exceed the limits imposed by applicable law and regulations;
4. decides to waive, in favor of the above-mentioned beneficiaries, the shareholders’ preferential subscription rights with respect to the
shares or equity-linked securities that are the subject of this delegation which entails waiver of the shareholders’ preferential subscription
right to shares to which securities that may be issued under this resolution would give right;
(1) The maximum amount of subscription applicable to the employee share ownership operations carried out before November 3, 2025 will be the ceiling applicable to the
19th resolution of the Annual Shareholders’ Meeting of May 23, 2024.
(2) The maximum amount of subscription applicable to the employee share ownership operations carried out before November 3, 2025 will be the ceiling applicable to the
20th resolution of the Annual Shareholders’ Meeting of May 23, 2024.
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5. decides that the Board of Directors shall have full powers to use this delegation, with the power to subdelegate as permitted by law,
within the limits and subject to the conditions specified above in order to, and in particular:
a. set in accordance with applicable laws and regulations the scope of companies whose above mentioned beneficiaries may subscribe
to the shares or equity-linked securities issued hereby and benefit, as the case may be, from shares or equity-linked securities,
b. decide that the subscriptions may be made directly or through Company mutual funds (fonds commun de placement d’entreprise) or
other structures or entities as permitted by applicable laws and regulations,
c. determine the conditions, in particular those relating to seniority, which shall have to be met by the beneficiaries of the capital
increases,
d. set the opening and closing dates of the subscription periods,
e. set the amounts of the issuances to be undertaken pursuant to this authorization and determine, in particular, the issuance prices,
dates, time-periods, terms, and conditions for the subscription, payment, settlement, and dividend rights of the securities (which may
be retroactive) as well as the other terms and conditions of the issuances, in accordance with applicable laws and regulations,
f. when granting free shares or equity-linked securities, set the number of shares or equity-linked securities to be issued, the number to
be granted to each beneficiary, and determine the dates, time periods, terms, and conditions of granting such shares or equity-linked
securities in accordance with applicable laws and regulations and, in particular, choose either to fully or partially substitute the
granting of such shares or equity-linked securities for the discount to the reference price provided for above, or to allocate the value
of such shares, or equity-linked securities to the total amount of the employer contribution, or to combine these two possibilities,
g. acknowledge the completion of capital increases in the amount of the shares that are subscribed (after possible reduction in the
event of over-subscription), and
h. as the case may be, allocate the expenses of capital increases to the amount of premiums related thereto and deduct from this
amount the sums necessary to increase the legal reserve to one-tenth of the new share capital resulting from such capital increases,
enter into any agreements, carry out directly or indirectly through an agent all transactions and terms, including any formalities
following the capital increases and subsequent modifications to the Company’s Articles of Association, generally, enter into any
agreement in order to successfully complete the contemplated issuances, take all measures and decisions and carry out all
formalities necessary for the completion of the issuance, listing, and financial servicing of the securities issued pursuant to this
authorization as well as the exercise of rights attached thereto or subsequent to the completed capital increases.
This delegation (i) cancels, effective November 4, 2025, the authorization given by the Annual Shareholders’ Meeting of May 23, 2024 in its
19th resolution, for its amounts unused by the Board of Directors and (ii) is granted for a period of twenty-six (26) months as from this
Shareholders’ Meeting.
Text of the twenty-seventh resolution
(Delegation of authority to the Board of Directors to undertake capital increases reserved for employees
of certain non-French subsidiaries of the Group, directly or via entities acting to offer those employees
benefits comparable to those offered to participants in a company savings plan without shareholders’
preferential subscription right)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Articles L. 225-129 to
L. 225-129-6, L. 22-10-49, L. 225-138, and L. 228-91 et seq. of the French Commercial Code:
1. delegates to the Board of Directors, with the power to subdelegate, in compliance with applicable laws and regulations, the necessary
powers to decide one or several capital increases through the issue, in the proportions and at the times it deems appropriate up to a
maximum of 1% of the share capital on the date of this Shareholders’ Meeting, by issuing ordinary shares or securities providing access
through any means, immediately and/or in the future, to ordinary shares of the Company, such issue to be reserved for persons meeting
the characteristics of the class defined below; it being specified that (i) such limit shall be charged against the limits set forth in the 26th
resolution of this Annual Shareholders’ Meeting, and (ii) this delegation may be used only from and after November 4,2025;
2. decides to waive the shareholders’ preferential right to subscribe for shares or other securities granting access to the share capital
pursuant to this resolution and to reserve the right to subscribe to one and/or another class of beneficiaries or recipients having the
following characteristics: (i) employees and officers of companies of Schneider Electric Group affiliated with the Company under the
terms and conditions set forth in Article L. 225-180 of the French Commercial Code and Article L. 3344-1 of the French Labor Code and
the head office of which is located outside France; and/or (ii) Collective Investment Undertaking or other entities, with or without legal
personality, of employee shareholders invested in equity securities of the Company, the unit holders or shareholders of which consist of
persons described in (i) of this paragraph; and/or (iii) any banking institution or affiliate or subsidiary of such institution acting at the
Company’s request for purposes of implementing and giving effect to a shareholder incentive or investment or savings plan for the
benefit of the persons described in (i) of this paragraph, to the extent that subscription of the person authorized in accordance with this
resolution would make it possible for employees of subsidiaries located outside France to benefit from and take advantage of forms of
shareholder incentive or investment or savings plans equivalent in terms of economic benefit to those from which the other employees of
the Group benefit;
3. takes note that this authorization shall constitute automatically and by law an express waiver by the shareholders, in favor of the holders
of securities granting access to Company capital, of their preferential right to subscribe for ordinary shares of the Company which such
securities carry the right to acquire;
4. decides that the amount payable to the Company for all shares issued, or to be issued, and pursuant to this resolution shall be set by the
Board of Directors on the basis of the trading price of the Company’s shares on Euronext Paris; the issue conditions shall be determined
at the discretion of the Board of Directors on the basis of either (i) the first or last quoted trading price of the Company’s shares at the
trading session on the date of the decision by the Board of Directors or the authorized representative thereof setting the issue conditions,
or (ii) of an average of the quoted prices for the Company’s shares during the twenty (20) trading sessions preceding the date of the
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decision by the Board of Directors or the authorized representative thereof setting the issue conditions under this resolution or setting the
issue price under the 26th resolution of this Annual Shareholders’ Meeting; the Board of Directors may set the issue price by applying a
maximum discount of 30% of the trading price of the Company’s shares determined in accordance with either of the two methods set
forth in clauses (i) and (ii) of this paragraph; the percentage of such discount applied to the trading price of the Company’s shares shall
be determined by the Board of Directors taking into consideration, among other things, legal, tax, and regulatory provisions of foreign law
applicable, as the case may be, to the persons benefiting from the issue;
5. decides that the Board of Directors may provide for the allocation, to the beneficiaries indicated in point 2 above, free of charge or at an
additional discount, of shares to be issued or already issued, by way of a matching and/or a discount, provided that the taking into
account of their pecuniary countervalue, evaluated at the subscription price, does not have the effect of exceeding the ceiling provided
for in this resolution;
6. hereby resolves that the Board of Directors shall have full authority, under the terms and conditions provided by law and within the limits
set forth hereinabove, to implement and give effect to this authorization and determine the list of the beneficiaries and recipients within
the classes described in this resolution and the number of securities to be offered to each thereof, provided that the Board of Directors
may decide that the capital increase shall be completed for the amounts subscribed, on the condition that a minimum of 75% of the
shares or other offered securities providing access to capital have been subscribed, as well as, among other things:
− to determine the characteristics of the securities to be issued, to decide on the issue price, dates, time periods, terms and conditions
of subscribing, payment, delivery and effectiveness of the shares and equity securities, the lock-up, and early release period, within
applicable limits of the law and regulations,
− to record and determine the capital increase, to undertake the issuance of the shares and other securities providing access to the
share capital of the Company, and to amend the Articles of Association accordingly, and
− as a general rule, to enter into any agreement, in particular to ensure the due and proper completion of the contemplated issuances,
take all steps and complete any required formalities in connection with the issue, the listing and financial servicing of the securities
issued under and this authorization, as well as the exercise of the rights attaching thereto, and, more generally, to do whatever may be
necessary.
This delegation (i) cancels, effective November 4, 2025, the authorization given by the Annual Shareholders’ Meeting of May 23, 2024 in its
20th resolution, for its amounts unused by the Board of Directors and (ii) is granted for a period of eighteen (18) months as from this
Shareholders’ Meeting.
28th resolution: Cancellation of treasury shares
Explanatory statement
• Under the 28th resolution, shareholders are invited to grant the Board of Directors authority to undertake share cancellations up to a
limit of 10% of the capital, over a period of 24 months from the date of the Annual Shareholders’ Meeting, to reduce the dilutive effect
of capital increases undertaken or to be undertaken due mainly to capital increases reserved for employees and Long-Term
Incentive Plans, and to put in place, where applicable, share buyback programs for own shares with the aim of reducing the capital.
Text of the twenty-eighth resolution
(Authorization to the Board of Directors to cancel shares of the Company bought back by the Company
under the share buyback programs)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report and the statutory auditors’ special report, and in accordance with the provisions of Article L. 22-10-62 of
the French Commercial Code:
1. authorizes the Board of Directors, in accordance with Article L. 22-10-62 of the French Commercial Code, to cancel, on one or more
occasions, up to 10% of the total amount of the shares comprising the Company’s share capital on the date of the transaction, within a
twenty-four (24)-month period, some or all the shares that the Company holds or could hold, to reduce its share capital accordingly and
charge the difference between the purchase price of the canceled shares and their par value against premiums and reserves, including
the legal reserve up to a maximum of 10% of the canceled capital;
2. grants all powers to the Board of Directors, which may further delegate as permitted by law, to implement this authorization, carry out all
actions, formalities, and declarations, including amending the Articles of Association, and, in general, do whatever is necessary.
This authorization supersedes the previous delegation given to the Board of Directors by the General Shareholders’ Meeting of May 4, 2023
in its 27th resolution and is granted for a period of twenty-four (24) months as from this Shareholders’ Meeting.
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29th and 30th resolutions: Amendment of Articles 11.3 (procedures for replacing the
director representing the employee shareholders) and 14.3 of the Articles of Association
(terms and conditions for the Board of Directors’ deliberations)
Explanatory statement
Under the 29th resolution, you are invited to approve the amendment of Article 11.3 of the Company’s Articles of Association in order to
provide for specific replacement procedures for employee shareholder representatives in the event of a vacancy in the said director, in
compliance with obligations of gender diversity.
Law No. 2024-537 on increasing the financing of companies and the attractiveness of France (the “Attractiveness” law), applicable as of
September 14, 2024, extends the scope of the written consultation of directors for the Board of Directors’ decision-making. The Articles
of Association may now authorize the use of this method of deliberation for all or only some of the decisions of the Board of Directors,
subject to the recognition of the right of each director to oppose it.
Under the 30th resolution, you are invited to approve the amendment to Article 14.3 of the Company’s Articles of Association aiming at
providing for the use of written consultation of the directors for the taking of any decision of the Board of Directors with the exception of
(i) the approval of the statutory and consolidated annual financial statements and (ii) the appointment or dismissal of the Chairperson of
the Board of Directors or the Chief Executive Officer, and establish a right of opposition for each director to this decision-making
method.
Text of the twenty-ninth resolution
(Amendment of Article 11.3 of the Articles of Association relating to the procedures for replacing the
director representing employee shareholders)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report, decides to amend Article 11.3 of the Company’s Articles of Association as follows:
“3. The Board of Directors shall include one member representing employee shareholders, who shall be elected by the shareholders in the
General Meeting according to a process determined by the Board of Directors.
If, however, employees of the company and of related companies (within the meaning of article L. 225-180 of the Commercial Code) hold
over 3% of the company’s capital - as evidenced by the disclosures made in the annual report in application of article L. 225-102 of the
Commercial Code - such member shall be elected for a four-year term by the Ordinary General Shareholders Meeting voting on a motion
tabled by the shareholders referred to in article L. 225-102 of the Commercial Code on the basis defined in paragraphs (i) to (iii) below.
The Board of Directors may decide that such a director will be appointed while the level of shareholding by the company’s employees is
slightly less than 3%, and/or consider the shares held by the company’s personnel as extended manner, taking into account the structure
of its employee shareholding plans.
(i) The member of the Board of Directors representing employee shareholders shall take up his/her seat on the Board of Directors on the
date of his/her election by the general meeting. Where applicable, he/she shall replace the incumbent member elected based on the
conditions set by the Board of Directors, whose term shall be considered as having expired. His/her term shall end at the close of the
shareholders’ Ordinary General Shareholders Meeting called during the final year of the period for which he/she was elected.
However, his/her term shall end ipso jure and he/she will be considered as having resigned if he/she is no longer i) an employee of the
company or a related company within the meaning of article L. 225-180 of the Commercial Code, ii) a shareholder or a holder of units
in a mutual fund invested in the company’s shares, iii) a member of the supervisory board of the company mutual fund that proposed
him or her as a candidate.
Besides, if employees of the company and of related companies within the meaning of article L. 225-180 of the Commercial Code
hold less than 3% of the company’s capital as evidenced by the disclosures made in the annual report prepared by the Board of
Directors in accordance with article L. 225-102 of the Commercial Code, the Board of Directors may decide that his/her mandate
ends at the end of the General Meeting where the said report will be presented.
(ii) The General Shareholders Meeting shall vote on the list of candidates presented by employee shareholders, selected as follows:
a) When the voting rights attached to shares held by the employees and former employees referred to in article L. 225-102 of the
Commercial Code are exercised by the supervisory boards of mutual funds invested in the company’s shares, each of these
supervisory boards shall designate a maximum of two candidates, selected at their discretion. The company’s Chief Executive
Officer may, however, decide to require two or more supervisory boards to consult together and to jointly designate a maximum of
two candidates.
b) When the voting rights attached to shares held directly by employees or indirectly by employees or former employees through
mutual funds invested in the company’s shares, are exercised directly by such employees or former employees, the candidates
shall be designated through a written consultation process initiated by the Chief Executive Officer. Only candidates endorsed by a
group of employee shareholders together representing at least 5% of the shares held by employees who exercise their voting
rights directly shall be eligible for election.
c) Candidates for election to become a representative of employee shareholders on the Board of Directors must be employed under
an employment contract that qualifies them to sit for a four-year term and must hold at least 25 Company shares or an equivalent
number of units in a mutual fund invested in the Company’s shares.
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d) The conditions and procedures for the designation of candidates not specified by the applicable laws and regulations and these
articles of association shall be determined by the Chief Executive Officer, particularly as regards the timeline for the selection of
candidates.
e) The list of duly designated candidates shall be drawn up by the Chief Executive Officer and appended to the notice of meeting for
the General Meeting during which the member of the Board of Directors representing employee shareholders is to be elected.
(iii) The candidate who receives the greatest number of votes cast by the shareholders present and represented at the general meeting
shall be elected.
If the seat on the Board of Directors reserved for a representative of employee shareholders becomes vacant, in order to ensure the
continuity of the representation of employee shareholders until the end of the latter’s mandate, the Board of Directors may replace him/her,
in compliance with the obligation of gender balance in the composition of the board of directors, for the duration of the remaining term of
office (a) by way of co-optation among the members of the body which initially presented his/her candidacy to the General Meeting, in
which case the ratification of the co-optation will be submitted to the next General Meeting or (b) under the conditions defined in paragraphs
(i) to (iii) above at the latest before the next General Meeting or, if this is held within less than five (5) months following the vacancy, at
following General Meeting.
Until the date of replacement of this member of the Board of Directors, the Board of Directors may meet and deliberate validly. It is specified
that in the absence of ratification by the General Meeting of the Director co-opted by the Board of Directors, the deliberations taken and the
acts previously carried out by the said Board remain valid.”
Text of the thirtieth resolution
(Amendment of Article 14.3 of the Articles of Association relating to the procedures for the deliberation of
the Board of Directors)
The Annual Shareholders’ Meeting, having satisfied the quorum and majority requirements for extraordinary shareholders’ meetings, having
heard the Board of Directors’ report, decides to amend Article 14.3 of the Company’s Articles of Association by adding three paragraphs
after the first one worded as follows:
“With the exception of (i) the approval of the statutory and consolidated annual financial statements and (ii) the appointment or dismissal of
the Chairperson of the Board of Directors or the Chief Executive Officer, the decisions of the Board of Directors may be taken by written
consultation, including by electronic means.
A proposal for a decision accompanied by the background necessary to understand the subject will be sent by the Chairman to all the
Directors in writing, including by electronic means. This proposal should allow each Director to respond “for”, “against”, to abstain or to
make any observations. The deadline for the Directors’ response may not exceed two (2) working days or any other shorter period set by the
Chairman if the context and nature of the decision so require.
Any Director may object to this decision-making method, within the period indicated in the sending of the above-mentioned proposal.”
31st resolution: Power for formalities
Explanatory statement
Finally, under the 31st resolution, we request that you grant us the powers necessary to carry out the formalities.
Text of the thirty-first resolution
(Powers for formalities)
The Annual Shareholders’ Meeting confers full powers upon the bearer of a copy or excerpts of the minutes confirming these resolutions for
the purposes of carrying out all legal and administrative formalities.8.2 Statutory auditors’ special reports
8.1 Explanatory comments & draft resolutions
submitted to the Annual Shareholders’ Meeting
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8.2.1 Statutory auditors’ report on the issuance of
shares and various securities with and/or without
preferential subscription rights
Shareholders’ meeting as of May 7, 2025 - resolutions n°17, 18, 19, 20, 21, 22 and 23
To the Shareholders of the company Schneider Electric SE,
In our capacity as statutory auditors of your company and in compliance with articles L. 228-92 and L. 225-135 of the French Commercial
Code (Code de commerce), we hereby report on the proposed authorizations allowing your Board of Directors to decide on whether to
proceed with various issues of shares and/or marketable securities, operations upon which you are called to vote.
Your Board of Directors proposes, on the basis of its report, that:
• it be delegated, with the right of subdelegation, for a period of 26 months, to decide on whether to proceed with the following operations
and to determine the final conditions of these issues and proposes, where applicable, to cancel your preferential subscription rights:
−issue, without cancellation of preferential subscription rights (17th resolution), of (i) ordinary shares of the Company, (ii) securities
governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce) which are equity securities of the
Company, giving access to other equity securities of the Company and/or giving the right to the allocation of debt securities of the
Company, and/or (iii) debt securities governed or not by articles L. 228-91 et seq. of the French Commercial Code (Code de
commerce), giving or likely to give access to equity securities to be issued by the Company, which securities may also give access to
existing equity securities and/or debt securities of the Company;
° it being specified that, in accordance with Article L. 228-93 paragraph 1 of the French Commercial Code (Code de commerce) ,
the securities to be issued may give access to equity securities to be issued by any company in which the Company directly or
indirectly owns more than half of the share capital;
° it being specified that, in accordance with Article L. 228-93 paragraph 3 of the French Commercial Code (Code de commerce), the
securities which are equity securities of the Company may give access to other existing equity securities or give the right to the
allocation of debt securities of any company of which the Company directly or indirectly owns more than half of the share capital;
−issue, with cancellation of preferential subscription rights through a public offering other than those referred to in Article L. 411-2-1° of
the French Monetary and Financial Code (18th resolution), of (i) ordinary shares of the Company, (ii) securities governed by articles L.
228-91 et seq. of the French Commercial Code (Code de commerce) which are equity securities of the Company, giving access to
other equity securities of the Company and/or entitling their holders to the allotment of debt securities of the Company, and/or (iii) debt
securities whether or not governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce), giving access
or likely to give access to equity securities to be issued by the Company, which securities may also give access to existing equity
securities and/or debt securities of the Company, it being specified that:
° in accordance with Article L. 228-93 paragraph 1 of the French Commercial Code (Code de commerce), the securities to be
issued may give access to equity securities to be issued by any company in which the Company directly or indirectly owns more
than half of the share capital ;
° in accordance with Article L. 228-93 paragraph 3 of the French Commercial Code (Code de commerce), the securities which are
equity securities of the Company may give access to other existing equity securities or give the right to the allocation of debt
securities of any company of which the Company directly or indirectly owns more than half of the share capital ;
° these securities may be issued as consideration for securities contributed to the company in connection with a public exchange
offer for securities meeting the conditions set out in Article L. 22-10-54 of the French Commercial Code (Code de commerce);
° in accordance with Article L. 22-10-52 paragraph 1 of the French Commercial Code (Code de commerce), the Board of Directors
proposes that you authorize it to set the issue price of the shares under the terms of the 18th resolution at its discretion;
−issue, with cancellation of preferential subscription rights through a public offering referred to in Article L. 411-2-1° of the French
Monetary and Financial Code, subject to the legal limit of 30% of the share capital per year (19th resolution), of (i) ordinary shares of
the Company, (ii) securities governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce) which are
equity securities of the Company, giving access to other equity securities of the Company and/or giving the right to the allocation of
debt securities of the Company, and/or (iii) debt securities governed by articles L. 228-91 et seq. of the French Commercial Code
(Code de commerce), giving access or likely to give access to equity securities to be issued by the Company, which securities may
also give access to existing equity securities and/or debt securities of the Company, it being specified that:
° in accordance with Article L. 228-93 paragraph 1 of the French Commercial Code (Code de commerce), the securities to be
issued may give access to equity securities to be issued by any company in which the Company directly or indirectly owns more
than half of the capital;
° in accordance with Article L. 228-93 paragraph 3 of the French Commercial Code (Code de commerce) , the securities which are
equity securities of the company may give access to other existing equity securities or give the right to the allocation of debt
securities of any company in which the Company directly or indirectly owns more than half of the capital;
° in accordance with Article L. 22-10-52 paragraph 1 of the French Commercial Code(Code de commerce), the Board of irectors
proposes that you authorize it to set the issue price of the shares under the terms of the 19th resolution at its discretion;
• it be delegated, with the right of subdelegation, for a period of 26 months, the powers necessary to issue (i) ordinary shares of the Company,
(ii) securities governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce) which are equity securities of the
Company, giving access to other equity securities of the Company and/or giving the right to the allocation of debt securities of the Company,
and/or (iii) debt securities governed or not by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce), giving access
or likely to give access to equity securities to be issued by the Company, which securities may also give access to existing equity securities
and/or debt securities of the Company and/or (iv) securities which are equity securities of the Company giving access to existing equity
securities or to securities to be issued by, and/or debt securities, of companies in which the Company holds directly or indirectly, at the time of
issue, more than half of the share capital, with a view to remunerating contributions in kind granted to the Company and consisting of equity
securities or securities giving access to the capital (21st resolution), up to a legal limit of 20% of the capital.
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• It be delegated, with the right of subdelegation, for a period of 18 months, the authority to decide on the issue of (i) ordinary shares in the
Company, (ii) securities governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce) which are equity
securities of the Company, giving access to other equity securities of the Company and/or entitling holders to the allotment of debt
securities of the Company and/or, (iii) debt securities, whether or not governed by articles L. 228-91 et seq. of the French Commercial
Code (Code de commerce), giving or likely to give access to equity securities to be issued by the Company, which securities may, where
applicable, also give access to existing equity securities and/or debt securities of the Company, and/or (iv) securities which are equity
securities of the Company giving access to existing equity securities or securities to be issued by, and/or to debt securities of companies
in which the Company directly or indirectly holds more than half of the share capital at the time of issue, and/or (v) debt securities
governed or not by Articles L. 228-91 et seq. of the French Commercial Code (Code de commerce), giving or likely to give access to
equity securities to be issued by companies in which the Company holds directly or indirectly, at the time of issue, more than half of the
share capital, such securities also being able, where applicable, to give access to existing equity securities and/or debt securities of
said companies (22nd resolution), with cancellation of preferential subscription rights in favour of a category of beneficiaries meeting the
following characteristics: any credit institution authorized to provide the investment services referred to in paragraphs 3, 6-1 and 7 of
Article L. 321-1 of the French Monetary and Financial Code and, consequently, authorized to engage in proprietary trading, underwriting
and placement of equity securities of companies listed on the regulated market of Euronext Paris;
• It be delegated, with the right of subdelegation, for a period of 18 months, the authority to decide on the issue of (i) ordinary shares in the
Company, (ii) securities governed by articles L. 228-91 et seq. of the French Commercial Code (Code de commerce) that are equity
securities of the Company, giving access to other equity securities of the Company and/or entitling holders to the allotment of debt
securities of the Company and/or iii) debt securities governed or not by articles L. 228-91 et seq. of the French Commercial Code (Code
de commerce) , giving or likely to give access to equity securities to be issued by the Company, which securities may, where applicable,
also give access to existing equity securities and/or debt securities of the Company, and/or (iv) securities which are equity securities of
the Company giving access to existing equity securities or securities to be issued by, and/or to debt securities of companies in which the
Company directly or indirectly holds more than half of the share capital at the time of issue, and/or (v) debt securities governed or not by
Articles L. 228-91 et seq. of the French Commercial Code (Code de commerce), giving access or likely to give access to equity
securities to be issued by companies in which the Company holds directly or indirectly, at the time of issue, more than half of the share
capital, these securities may, where applicable, also give access to existing equity securities and/or debt securities of the said
companies, with cancellation of preferential subscription rights in favour of persons designated by name (23rd resolution) and to delegate
to him the designation of these persons in accordance with Article L. 22-10-52-1 of the French Commercial Code (Code de commerce),
within the limit of 30% of the share capital per year.
The overall nominal amount of increases in capital that can be implemented immediately or at a later date may not exceed, in accordance
with the 17th resolution, M€ 800 in respect of the 17th, 18th, 19th, 21th, 22nd, 23rd and 24th resolutions, it being specified that:
• the overall nominal amount of the increases in capital may not exceed M€ 224 in respect of the 18th, 19th, 21st, 22nd and 23rd resolutions;
The overall nominal amount of debt securities that can be issued may not exceed Bn€ 7 in respect of the 17th, 18th, 19th, 20th, 21st, 22nd and
23rd resolutions.
These ceilings reflect the additional number of securities to be created as part of the implementation of the delegations referred to in the
17th, 18th and 19th resolutions of this General Meeting, in accordance with article L. 225-135-1 of the French Commercial Code (Code de
commerce), if you adopt the 20th resolution.
It is the responsibility of the Board of Directors to prepare a report in accordance with articles R. 225-113 et seq. of the French Commercial
Code (Code de commerce). Our role is to report on the fairness of the financial information taken from the accounts, on the proposed
cancellation of preferential subscription rights and on other information relating to these operations provided in this report.
We have performed those procedures which we considered necessary to comply with the professional guidance issued by the French
national auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures consisted in
verifying the information provided in the Board of Directors’ report relating to these operations and the methods used to determine the issue
price of the equity securities to be issued.
We have the following observations to make on the board of directors’ report:
• your Board of Directors proposes that you authorize it to set the issue price of equity securities freely under the 18th and 19th resolutions,
in accordance with the new provisions of Article L. 22-10-52 paragraph 1 of the French Commercial Code (Code de commerce) resulting
from Act no. 2024-537 of June 13, 2024, known as the “loi d’attractivité”, effective September 14, 2024, and specifies that “a maximum
discount of 10%, after correction, if necessary, to take account of the difference in dividend entitlement dates of the shares, shall be
applied to the issue price of the shares will be applied to the reference price of the shares as determined by the Board of Directors”. The
articles of the regulatory section of the French Commercial Code (Code de commerce), in particular Article R. 225-114 of the French
Commercial Code (Code de commerce), which stipulates that the Board of Directors’ report must indicate the issue price or the methods
used to determine it, together with the reasons for doing so, have not been amended as a result of the aforementioned law.
We are therefore unable to assure you that this report presents information in compliance with legal and regulatory requirements;
• this report does not include a justification of the methods used to determine the issue price of the equity securities to be issued under
the 22nd resolution, as required by the applicable laws and regulations. Consequently, we are unable to report on the methods used for
calculating the issue price.
8.2 Statutory auditors’ special reports
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In addition, in its report, concerning the terms and conditions for setting the issue price of the equity securities to be issued in connection
with the implementation of the 23rd resolution, your Board of Directors informs you that “in accordance with the provisions of article L.
22-10-52-1 of the French Commercial Code :
(a) the issue price of the ordinary shares issued under this authorization will be set by the Board of Directors in accordance with the
regulatory provisions applicable on the date this authorization is used; it being specified that, in any event, the Board of Directors may
not apply a discount of more than 10% (after correction, if any, to take into account the difference dates of entitlement to dividend of the
shares) to the reference price as provided by the regulatory provisions ».
In the absence of publication, as of the date of this report, of the implementing decree referred to in paragraph 3 of Article L.22-10-52-1 of
the French Commercial Code (Code de commerce), we are unable to express an opinion on the methods for determining the issue price, as
applied by the Board of Directors in accordance with the regulatory provisions in force.
Lastly, as the methods used to determine the issue price of the equity securities to be issued in accordance with the 17th and 21st resolutions
are not specified in that report, we cannot report on the choice of constituent elements used to determine the issue price.
As the final conditions in which the issues would be performed have not yet been determined, we cannot report on these conditions and,
consequently, on the proposed cancellation of preferential subscription rights for the 18th, 19th, 22nd and 23rd resolutions.
In accordance with article R. 225-116 of the French Commercial Code (Code de commerce), we will issue a supplementary report, if
necessary, when your Board of Directors has exercised these authorizations in case of the issue of marketable securities that are equity
securities giving access to other equity securities or giving entitlement to the allotment of debt securities, in case of the issue of marketable
securities giving access to equity securities to be issued and in case of the issue of shares with cancellation of preferential subscription
rights.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 24, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 24, 2025
Juliette Decoux Guillemot
Mathieu Mougard
Jean-Christophe Georghiou
Séverine Scheer
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8.2.2 Statutory auditors’ report on the authorization
to grant free shares existing or to be issued
Shareholders’ meeting as of May 7, 2025 - resolution n°25
To the Shareholders of the company Schneider Electric SE,
In our capacity as statutory auditors of your company and in compliance with Article L. 225-197-1 of the French Commercial Code (Code de
commerce), we hereby report on the proposed authorization to grant free shares, existing or to be issued, to the beneficiaries that the board
of directors shall determine among the employees or the corporate officers of the Company or of companies that are related to the
Company under the conditions provided for in Article L. 225-197-2 of the French Commercial Code (Code de commerce), an operation upon
which you are called to vote.
The number of shares already existing or to be issued that may be granted cannot represent more than 2% of the share capital existing on
the date of this shareholders’ meeting, with the number of shares that may be granted to the corporate officers not exceeding annually
0.03% of the existing total share capital, it being specified that the total number of shares allocated cannot exceed 15% of the share capital
on the date of the board of director’s decision to allocate them.
Your board of directors proposes that, on the basis of its report, it be authorized, for a period of thirty-six months from the date of this
shareholders’ meeting, to grant free shares existing or to be issued.
It is the responsibility of the board of directors to prepare a report on this operation with which it wishes to proceed. It is our responsibility to
give you our comments, if any, on the information that you have been provided about the proposed operation.
We have performed those procedures which we considered necessary to comply with the professional guidance issued by the French
national auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures consisted in
particular in verifying that the methods planned and set out in the board of directors’ report comply with the provisions of the law.
We have no comments to make on the information set out in the board of director’s report on the proposed authorization to grant free
shares.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 24, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 24, 2025
Juliette Decoux Guillemot
Mathieu Mougard
Jean-Christophe Georghiou
Séverine Scheer
8.2 Statutory auditors’ special reports
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8.2.3 Statutory auditors’ report on the issuance of
shares or securities giving access to capital reserved
for members of a company savings plan
Shareholders’ meeting as of May 7, 2025 - resolution n°26
To the Shareholders of the company Schneider Electric SE,
In our capacity as statutory auditors of your company and in compliance with Articles L. 228-92 and L. 225-135 et seq. of the French
Commercial Code (Code de commerce), we hereby report on the proposal to authorize your board of directors to decide whether to
proceed with an issue of shares or securities giving access to the share capital of your company with cancellation of preferential
subscription rights, reserved for participants in a company savings plan of the company and of the French or non-French companies
affiliated with it, in accordance with article L. 225-180 of the French Commercial Code (Code de commerce) and the article L. 3344-1 of the
French Labor code (Code du travail), an operation upon which you are called to vote.
The maximum nominal amount of the increase in capital that may result from this issue is 2% of the share capital on the date of this
shareholders’ meeting.
This operation is submitted for your approval in accordance with articles L. 225-129-6 of the French Commercial code (Code de commerce)
and L. 3332-18 et seq. of the French Labor code (Code du travail).
Your board of directors proposes that, on the basis of its report, it be authorized, with the right of sub-delegation, for a period of 26 months,
to decide on whether to proceed with issues and proposes to cancel your preferential subscription rights to the shares and securities to be
issued. If applicable, it shall determine the final conditions of these issues.
This delegation cancels, effective November 4, 2025, the authorization given by the annual shareholders’ meeting of May 23, 2024 in its 19th
resolution for its amounts unused by the board of directors.
It is the responsibility of the board of directors to prepare a report in accordance with articles R. 225-113 et seq. of the French Commercial
code (Code de commerce). Our role is to report on the fairness of the financial information taken from the accounts, on the proposed
cancellation of preferential subscription rights, and on other information relating to these issues provided in this report.
We have performed those procedures which we considered necessary to comply with the professional guidance issued by the French
national auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures consisted in
verifying the information provided in the board of director’s report relating to this operation and the methods used to determine the issue
price of the equity securities to be issued.
Subject to a subsequent examination of the conditions for the issues that would be decided, we have no matters to report as to the methods
used to determine the issue price of the equity securities to be issued provided in the board of director’s report.
As the final conditions for the issues have not yet been determined, we cannot report on these conditions and, consequently, on the
proposed cancellation of preferential subscription rights.
In accordance with article R. 225-116 of the French Commercial Code (Code de commerce), we will issue a supplementary report, if
necessary, when your board of directors has exercised this authorization, in the event of the issue of shares or securities giving access to
other equity securities and of the issue of securities giving access to equity securities to be issued.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 24, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 24, 2025
Juliette Decoux Guillemot
Partner
Mathieu Mougard
Partner
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
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8.2.4 Statutory auditors’ report on the issuance of
shares or securities reserved for a category of
beneficiaries
Shareholders’ meeting as of May 7, 2025 - resolution n°27
To the Shareholders of the company Schneider Electric SE,
In our capacity as Statutory auditors of your company and in compliance with articles L. 228-92 and L. 225-135 et seq. of the French
Commercial Code (Code de commerce), we hereby report on the proposal to delegate to the Board of Directors the competence to decide
on the issue of ordinary shares or securities giving access to the share capital of your company, with cancellation of preferential
subscription right, an operation upon which you are called to vote.
This resolution is reserved to the following classes of beneficiaries:
(i)
employees and officers of companies of Schneider Electric Group affiliated with the company under the terms and conditions set forth
in Article L. 225-180 of the French Commercial Code and Article L. 3344-1 of the French Labour Code (Code du travail) and the head
office of which is located outside France;
(ii) and/or OPC mutual investment funds or other entities, with or without legal personality, of employee shareholders invested in equity
securities of the company, the unit holders or shareholders of which consist of persons described in (i) of this paragraph;
(iii) and/or any banking institution or affiliate or subsidiary of such institution acting at the company’s request for purposes of implementing
and giving effect to a shareholder incentive or investment or savings plan for the benefit of the persons described in (i) of this
paragraph, to the extent that subscription of the person authorized in accordance with this resolution would make it possible for
employees of subsidiaries located outside France to benefit from and take advantage of forms of shareholder incentive or investment or
savings plans equivalent in terms of economic benefit to those from which the other employees of the group benefit.
The maximum nominal amount of the increases in capital that may result from this issue is 1% of the share capital on the date of this annual
shareholders’ meeting, it being specified that this amount shall be deducted from the overall ceiling set out in the 26th resolution of 2% of the
share capital on the date of this annual shareholders’ meeting.
Your board of directors proposes that, on the basis of its report, it be authorized, with the right of sub-delegation, for a period of eighteen
months from the date of this Shareholders’ meeting, to decide on whether to proceed with increases in capital and to cancel your
preferential subscription rights to securities to be issued. If applicable, it shall determine the final conditions of this operation.
This delegation cancels, effective November 4, 2025, the authorization given by the annual shareholders’ meeting of May 23, 2024 in its 20th
resolution for its amounts unused by the board of directors.
It is the responsibility of the board of directors to prepare a report in accordance with articles R. 225-113 et seq. of the French Commercial
code (Code de commerce). Our role is to report on the fairness of the financial information taken from the accounts, on the proposed
cancellation of preferential subscription rights, and on other information relating to the share issue provided in this report.
We have performed those procedures which we considered necessary to comply with the professional guidance issued by the French
national auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures consisted in
verifying the information provided in the board of director’s report relating to this operation and the methods used to determine the issue
price of the equity securities to be issued.
Subject to a subsequent examination of the conditions for the issues that would be decided, we have no matters to report as to the methods
used to determine the issue price of the equity securities to be issued provided in the board of director’s report.
As the final conditions for the issues have not yet been determined, we cannot report on these conditions and, consequently, on the
proposed cancellation of preferential subscription rights.
In accordance with article R. 225-116 of the French Commercial Code (Code de commerce), we will issue a supplementary report, if
necessary, when your board of directors has exercised this authorization, in the event of the issue of ordinary shares with cancellation of
preferential subscription right or securities giving access to other equity securities and of the issue of securities giving access to equity
securities to be issued.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 24, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 24, 2025
Juliette Decoux Guillemot
Partner
Mathieu Mougard
Partner
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
8.2 Statutory auditors’ special reports
661
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C H 8 – A N N U A L
S H A R E H O L D E R S ’ M E E T I N G
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 9
S H A R E H O L D E R I N F O R M A T I O N
8.2.5 Statutory auditors’ report on the reduction
of capital
Shareholders’ meeting as of May 7, 2025 - resolution n°28
To the Shareholders of the company Schneider Electric SE,
In our capacity as statutory auditors of your company and in compliance with article L. 22-10-62 of the French Commercial Code (Code de
commerce) in the event of a capital reduction by cancellation of acquired shares, we have prepared this report in order to inform you of our
opinion on the causes for and the terms and conditions of the proposed capital reduction.
Your board of directors proposes that you delegate to the board, for a period of 24 months from the date of this Shareholders’ meeting, all
powers to cancel, up to 10% of company capital on the date of the transaction, per twenty-four months period, the shares purchased under
the implementation of an authorization of purchase by your company of its own shares under the provisions of the aforesaid article.
We have performed those procedures which we considered necessary to comply with the professional guidance issued by the French
national auditing body (Compagnie Nationale des Commissaires aux Comptes) for this type of engagement. These procedures consisted in
examining whether the causes for and the terms and conditions of the proposed capital reduction, which is not likely to adversely affect the
equality of shareholders, are in order.
We have no comment to make on the causes for and the terms and conditions of the proposed capital reduction.
The Statutory Auditors
Forvis Mazars SA
Paris La Défense on March 24, 2025
PricewaterhouseCoopers Audit
Neuilly-sur-Seine on March 24, 2025
Juliette Decoux Guillemot
Partner
Mathieu Mougard
Partner
Jean-Christophe Georghiou
Partner
Séverine Scheer
Partner
662
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S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
C H 9 – P E R S O N S R E S P O N S I B L E
F O R T H E U R D & A U D I T
Life Is On | Schneider Electric
Persons responsible for
the Universal Registration
Document and audit of
the financial statements
9
Persons responsible for the
Universal Registration Document
664
Persons responsible for the
audit of the financial statements
664
Universal Registration Document
cross-reference table
665
Annual Financial Report
cross-reference table
668
Cross-reference table referring to the elements
of the Management Report
669
Cross-reference table referring
to the elements of the Corporate
Governance Report
670
Glossary
671
664
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Persons responsible for the
Universal Registration Document
Statement
I declare that the information contained in this Universal Registration Document is, to the best of my knowledge, in accordance with the
facts and contains no omission likely to affect its import.
I declare, to the best of my knowledge, that the annual accounts and consolidated accounts are drawn up in accordance with the
applicable body of accounting standards and give a faithful and honest picture of the assets and liabilities, the financial situation and the
profits or losses of the issuer and of all the companies included in the consolidation, and that the report on the management of the Group
contained in this Universal Registration Document presents a faithful picture of the evolution and results of the company and the financial
situation of the issuer and of all the companies included in the consolidation, as well as a description of the main risks and uncertainties they
face and that it has been prepared in accordance with the applicable sustainability reporting standards.
March 26, 2025
CEO of Schneider Electric SE
Olivier Blum
Pursuant to Article 19 of Regulation (EU) 2017/1129 of the European Parliament and of the Council, the following information is
incorporated by reference in the present Universal Registration Document:
• the consolidated financial statements and corresponding auditors’ reports provided in Chapter 5 of the Universal Registration
Document for the year ended December 31, 2022, registered with the AMF under number D.23-0158 on March 28, 2023;
• the consolidated financial statements and corresponding auditors’ reports provided in Chapter 5 of the Universal Registration
Document for the year ended December 31, 2023, registered with the AMF under number D.24-0201 on March 28, 2024;
• the parent company financial statements and corresponding auditors’ reports provided in Chapter 6 of the Universal Registration
Document for the year ended December 31, 2022, registered with the AMF under number D.23-0158 on March 28, 2023;
• the parent company financial statements and corresponding auditors’ reports provided in Chapter 6 of the Universal Registration
Document for the year ended December 31, 2023, registered with the AMF under number D.24-0201 on March 28, 2024;
• the management report provided in the Universal Registration Document for the year ended December 31, 2022, registered with the
AMF under number D.23-0158 on March 28, 2023;
• the management report provided in the Universal Registration Document for the year ended December 31, 2023, registered with the
AMF under number D.24-0201 on March 28, 2024;
• Passages not incorporated in these documents are either irrelevant for the investor or covered in another section of the Universal
Registration Document.
Persons responsible for the
audit of the financial statements
Date
appointed
Appointment
expires
Statutory auditors
PricewaterhouseCoopers Audit – 63 rue de Villiers – 92200 Neuilly-sur-Seine
Represented by Séverine Scheer and Jean-Christophe Georghiou
2022
2028
Forvis Mazars Tour Exaltis – 61, rue Henri-Regnault – 92400 Courbevoie
Represented by Juliette Decoux-Guillemot and Mathieu Mougard
2004
2028
PricewaterhouseCoopers Audit and Forvis Mazars are members of the Auditors’ Regional Company of “Versailles et du Centre”.
Chapter 9 – Persons responsible for the Universal Registration Document and audit of the financial statements
665
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S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 9 – P E R S O N S R E S P O N S I B L E
F O R T H E U R D & A U D I T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
Universal Registration Document
cross-reference table
To facilitate the reading of the Annual Report, filed as Universal Registration Document, the following table allows the identification of the
main headings required by Regulation (EU) 2017/1129 of the European Parliament and of the Council.
Information required under Appendix 1 and 2 of Commission Delegated Regulation (EU) 2019/980
Corresponding sections and chapters of
the Universal Registration Document
Page no.
1.
PERSONS RESPONSIBLE, THIRD PARTY INFORMATION, EXPERTS’
REPORTS AND COMPETENT AUTHORITY APPROVAL
1.1
Identity of the persons responsible for the information
Chapter 9
664
1.2
Declaration by the persons responsible
Chapter 9
664
1.3
Statement of experts and declaration of interest
N/A
N/A
1.4
Certification on information provided by third parties
N/A
N/A
1.5
Declaration of deposit to the competent authority
Inside front cover
N/A
2.
STATUTORY AUDITORS
2.1
Names and addresses
Chapter 9
664
2.2
Resignation or departure of statutory auditors
N/A
N/A
3.
RISK FACTORS
Chapter 3, section 3.4
371–394
4.
INFORMATION ABOUT THE ISSUER
4.1
Legal and business name
Chapter 7, section 7.3
612
4.2
Place of registration and registration number
Chapter 7, section 7.3
612
4.3
Issuer’s incorporation date and length of life
Chapter 7, section 7.3
612
4.4
Domicile, legal form, applicable legislation, country of incorporation, registered
office’s address, and telephone number
Chapter 7, section 7.3
612
5.
BUSINESS OVERVIEW
5.1
Principal activities
5.1.1
Nature of transactions made by the Company and its principal activities
Integrated Report
6–9, 23–27
5.1.2
New products/services launched on the market
Integrated Report
20–21
5.2
Principal markets
Integrated Report
23–27
5.3
Exceptional events
N/A
N/A
5.4
Strategy and objectives
Integrated Report
Chapter 1, section 1.1
Chapter 1, section 1.4
Chapter 1, section 1.5
2–9
50
59–60
61–64
5.5
Dependence on patents, licenses, contracts, or new manufacturing processes
Chapter 3, section 3.4
374–375, 384
5.6
Competitive position
N/A
N/A
5.7
Investments
5.7.1
Principle investments realized during each year of the period covered by the
historical financial information until the date of the Universal Registration Document
Chapter 5, section 5.7
567
5.7.2
Major investments planned by the issuer and for which the management bodies
have already taken a firm commitment
N/A
N/A
5.7.3
Information on significant shareholdings in companies
Chapter 5, section 5.5
555–561
5.7.4
Environmental issues potentially affecting the use of the tangible fixed assets
N/A
N/A
6.
ORGANIZATIONAL STRUCTURE
6.1
Brief description of the Group
Chapter 7, section 7.3
612
6.2
List of main subsidiaries
Chapter 5, section 5.5
555–561
666
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Information required under Appendix 1 and 2 of Commission Delegated Regulation (EU) 2019/980
Corresponding sections and chapters of
the Universal Registration Document
Page no.
7.
OPERATING AND FINANCIAL REVIEW
7.1
Financial condition
7.1.1
Evolution and result of activities
Chapter 5, section 5.7
567–573
7.1.2
Future expected development of the activities and R&D activities
Integrated Report
19
7.2
Operating results
7.2.1
Significant factors affecting the income from operations
Integrated Report
Chapter 5, section 5.7
13–18
567–573
7.2.2
Reasons for material changes in net sales or revenues
Integrated Report
Chapter 5, section 5.7
13–14
568–569
8.
CASH AND CAPITAL
8.1
Information concerning capital resources (short and long term)
Chapter 5, section 5.4
Chapter 5, section 5.5
509
537–540
8.2
Sources, amounts, and description of cash flows
Chapter 5, section 5.2
Chapter 5, section 5.7
506
572–573
8.3
Information on borrowing conditions and financing structure
Chapter 5, section 5.5
Chapter 6, section 6.3
544–551
586–587
8.4
Restrictions on use of capital resources that have materially affected, or could
materially affect, directly or indirectly, the operations
Chapter 3, section 3.4
379–380
8.5
Expected sources of financing
Integrated Report
12, 19
9.
REGULATORY ENVIRONMENT
N/A
N/A
10.
TREND INFORMATION
10.1
Main trends in production, sales, and inventory, and in costs and selling prices,
since the end of the last fiscal year to the date of the Universal Registration
Document
Integrated Report
19
10.2
Known trends, uncertainties, demands, commitments, or events that might have a
material effect on prospects for the current fiscal year
Integrated Report
19
11.
PROFIT FORECASTS OR ESTIMATES
N/A
N/A
12.
ADMINISTRATIVE, MANAGEMENT, AND SUPERVISORY BODIES AND
SENIOR MANAGEMENT
12.1
Information concerning members of the administrative and management bodies
(list of mandates performed during the last five years)
Integrated Report
Chapter 4, section 4.1
34–35
400–412
12.2
Conflicts of interest in administrative and management bodies
Chapter 4, section 4.1
421
13.
REMUNERATION AND BENEFITS
13.1
Remuneration paid and benefits in kind
Chapter 4, section 4.2
452–501
13.2
Amounts of provisions booked or otherwise recognized for the payment of
pensions, retirement annuities, or other benefits
Chapter 4, section 4.2
461, 462, 474
14.
BOARD PRACTICES
14.1
Expiry date of current terms of office
Chapter 4, section 4.1
402, 403–412
14.2
Service contracts with members of administrative bodies
Chapter 4, section 4.1
421
14.3
Information about the Audit Committee and the Remunerations Committee
Chapter 4, section 4.1
431–433
435
14.4
Declaration – corporate governance applicable in the home country of the issuer
Chapter 4
399
14.5
Potential material impacts on corporate governance
Chapter 4
399
15.
EMPLOYEES
15.1
Number of employees
Chapter 2, section 2.2
Chapter 2, section 2.4
Chapter 5, section 5.5
213
349–356
552
15.2
Profit sharing and stock options
Chapter 4, section 4.2
Chapter 7, section 7.1
496–500
603
15.3
Agreements for employees’ equity stake in the capital of the issuer
Chapter 7, section 7.1
602–603
Chapter 9 – Persons responsible for the Universal Registration Document and audit of the financial statements
Universal Registration Document cross-reference table
667
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S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 9 – P E R S O N S R E S P O N S I B L E
F O R T H E U R D & A U D I T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
Information required under Appendix 1 and 2 of Commission Delegated Regulation (EU) 2019/980
Corresponding sections and chapters of
the Universal Registration Document
Page no.
16.
MAJOR SHAREHOLDERS
16.1
Shareholders owning more than 5% of the share capital or voting rights
Chapter 7, section 7.1
602
16.2
Existence of specific voting rights
Chapter 7, section 7.4
613
16.3
Control of the Company
Chapter 7, section 7.1
602
16.4
Agreement known to the Company which could lead to a change in control if
implemented
Chapter 7, section 7.1
602–603
17.
RELATED PARTY TRANSACTIONS
Chapter 5, section 5.5
552
18.
FINANCIAL INFORMATION CONCERNING THE ISSUER’S ASSETS AND
LIABILITIES, FINANCIAL POSITION, AND PROFITS AND LOSSES
18.1
Historical financial information
Chapter 6, section 6.7
598
18.2
Interim financial information
N/A
N/A
18.3
Auditing of historical annual financial information
18.3.1
Statement of audit of historical financial information
Chapter 5, section 5.6
Chapter 6, section 6.4
562–566
591–594
18.3.2 Other information contained in the Universal Registration Document that has been
audited by the auditors
Chapter 2, section 2.4
Chapter 4, section 4.1
Chapter 8, section 8.2
330–341
449
655–661
18.3.3 Financial data contained in the Universal Registration Document and not extracted
from the issuer’s audited financial statement
N/A
N/A
18.4
Pro forma financial information
N/A
N/A
18.5
Dividend policy
18.5.1
Dividend distribution policy
Integrated Report
Chapter 8, section 8.1
3, 12, 16
622–623
18.5.2 Dividend amount per share for each year of the fiscal year covered by the
historical financial information
Chapter 5, section 5.5
Chapter 6, section 6.7
538
598
18.6
Legal and arbitration proceedings
Chapter 3, section 3.4
Chapter 5, section 5.5
Chapter 6, section 6.3
376
553
589
18.7
Significant change in the financial or business situation
N/A
N/A
19.
ADDITIONAL INFORMATION
19.1
Share capital
19.1.1
Amount of issued capital
Chapter 7, section 7.2
604
19.1.2
Shares not representing capital
Chapter 7, section 7.2
604
19.1.3
Treasury shares
Chapter 5, section 5.5
Chapter 6, section 6.3
Chapter 6, section 6.5
539
585
595
19.1.4
Convertible securities, exchangeable securities, or securities with warrants
Chapter 5, section 5.5
Chapter 6, section 6.3
538, 545–546
586–587
19.1.5
Terms of any acquisition right and/or commitment in respect of authorized but
non-issued capital
Chapter 4, section 4.2
496–499
19.1.6
Information about the capital of any group member which is under option or
agreed conditionally or unconditionally to be put under option
N/A
N/A
19.1.7
History of the share capital
Chapter 7, section 7.1
Chapter 7, section 7.2
602
610
19.2
Articles of incorporation and bylaws
19.2.1
Corporate purpose
Integrated Report
Chapter 7, section 7.3
2
612
19.2.2 Rights, privileges, and restrictions attached to shares
Chapter 7, section 7.4
612–614
19.2.3 Actions necessary to change the rights of shareholders
Chapter 7, section 7.4
612
20.
MATERIAL CONTRACTS
N/A
N/A
21.
DOCUMENTS AVAILABLE
Chapter 7, section 7.6
616
668
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Annual Financial Report cross-reference
table
This Universal Registration Document includes all the information of the Annual Financial Report as mentioned in Articles L. 451-1-2 of the
French Commercial Code and 222-3 of the AMF’s General Regulations.
Annual Financial Report
Corresponding sections and chapters
of the Universal Registration Document
Page no.
STATEMENT OF THE PERSON RESPONSIBLE FOR
THE UNIVERSAL REGISTRATION DOCUMENT
Chapter 9
664
MANAGEMENT REPORT
Analysis of results, financial conditions, key performance indicators (financial and non-
financial), parent company and consolidated Group risks, information on essential intangible
resources of the Company (Articles L. 232-1 and L. 22-10-35 of the French Commercial
Code)
Integrated Report
Chapter 3, section 3.3
Chapter 3, section 3.4
Chapter 5, section 5.7
3, 13–18, 32
366–370
371–394
567–573
Information about share buybacks (Article L. 225-211, paragraph 2 of the French
Commercial Code)
Chapter 7, section 7.2
610–611
FINANCIAL STATEMENTS
Statutory financial statements
Chapter 6
576–590
Statutory auditors’ report on the statutory financial statements
Chapter 6, section 6.4
591–594
Consolidated financial statements
Chapter 5
504–561
Statutory auditors’ report on the consolidated financial statements
Chapter 5, section 5.6
565–566
CERTIFICATION REPORT ON SUSTAINABILITY INFORMATION
Chapter 2, section 2.4
330–341
GOVERNANCE REPORT
Chapter 4
397–501
Chapter 9 – Persons responsible for the Universal Registration Document and audit of the financial statements
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S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 9 – P E R S O N S R E S P O N S I B L E
F O R T H E U R D & A U D I T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
Cross-reference table referring to the
elements of the Management Report
This Universal Registration Document includes all the information of the Management Report required by Articles L. 225-100 et seq.,
L. 232-1, II, and R. 225-102 et seq. of the French Commercial Code.
Information in the Management Report
Corresponding sections and Chapters
of the Universal Registration Document
Page No.
Objective and exhaustive analysis of the business, results trend, and financial situation
including the debt situation of the Group during the fiscal year (Articles L. 232-1 and
L. 233-6 of the French Commercial Code)
Integrated Report
2–18
Report on the subsidiaries’ activity and results (Article L. 233-6, paragraph 2 of the
French Commercial Code)
Integrated Report
Chapter 5, section 5.5
Chapter 6, section 6.6
2–18
555–561
596–597
Analysis of the Company’s situation during the last fiscal year, its expected development,
and the important events occurred since the closing date (Article L. 232-1-II of the French
Commercial Code)
Integrated Report
Chapter 5, section 5.5
Chapter 6, section 6.3
19
553
589
Activities in research and development (Article L. 233-26 and L. 232-1-II of the
French Commercial Code)
Integrated Report
Chapter 1, section 1.5
Chapter 5, section 5.5
12, 20–27
61
514–515, 526
List of existing branches (Article L. 232-1-II of the French Commercial Code)
Chapter 5, section 5.5
555–561
Financial key performance indicators (Article L. 232-1 of the French Commercial Code)
Integrated Report
2–18
Impact of the Company’s activities on the fight against tax evasion (Article L. 22-10-35 of the
French Commercial Code)
Chapter 2 section 2.3
308–309
Actions implemented to promote the link between the Nation and the Army and support
commitment to the reserves (Article L. 22-10-35 of the French Commercial Code)
N/A
N/A
Main risks and uncertainties (Article L. 232-1 of the French Commercial Code)
Chapter 3, section 3.4
371–394
Information on essential intangible resources of the Company (Article L. 232-1 of the French
Commercial
Integrated Report
8–9
Information on the risks in the event of interest rate fluctuation, exchange rate fluctuation and
market price fluctuation (Article L. 232-1 of the French Commercial Code)
Chapter 3, section 3.4
380
Transactions executed by the Executive Officers on the shares of the Company
(Article L. 621-18-2 of the Monetary and Financial Code)
Chapter 4, section 4.1.1
422
Shares held by employees (Article L. 225-102 of the French Commercial Code)
Chapter 7, section 7.1
602
Items of calculation and results of adjustment in case of an issuance of securities giving
access to capital (Article L. 225-181, paragraph 2 of the French Commercial Code)
Chapter 7, section 7.2
604
Distribution of share capital and information on the crossing thresholds declared to the
Company (Article L. 233-13 of the French Commercial Code)
Chapter 7 sections 7.1.1–7.4.5
602–614
Amount of dividends and distribution for the last three fiscal years (Article 243 bis of the
French Tax Code)
Chapter 8, section 8.1
622–623
Parent company’s results over the last five fiscal years (Article R. 225-102 of the
French Commercial Code) and comments on the results
Chapter 6, section 6.7
598
Information on payment terms (Article L. 441-14 of the French Commercial Code)
Chapter 6, section 6.3
587–588
Amount of inter-company loans made by the Company and statutory
auditors’ declaration (Article L. 511-6 and R. 511-2-1-3 of the Monetary and Financial Code)
N/A
N/A
Information on the number of treasury shares on transactions executed during the fiscal
year (Article L. 225-211, paragraph 2 of the French Commercial Code)
Chapter 7, section 7.1.1
602
Information on participations acquired in the share capital of French companies
(Article L. 233-6 of the French Commercial Code)
N/A
N/A
Information on disposal of shares to settle cross-shareholdings (Article R. 233-19 of the
French Commercial Code)
N/A
N/A
List of main consolidated subsidiaries
Chapter 5, section 5.5
555–561
Additional tax information (Articles 39-4 and 223 quater and quinquies of the French Tax Code)
Chapter 8, section 8.1.1
622–623
Vigilance plan (Article L. 225-102-1 of the French Commercial Code)
Chapter 2, section 2.2
109–114
670
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Cross-reference table referring to the
elements of the Corporate Governance Report
This Universal Registration Document includes all the information of the Corporate Governance Report required by Articles L. 225-37
et seq. and L. 22-10-8 et seq. of the French Commercial Code.
Information in the Corporate Governance Report
Corresponding sections and chapters
of the Universal Registration Document
Page no.
Remuneration policy for Corporate Officers (Article L. 22-10-8, I, paragraph 2 of the
French Commercial Code)
Chapter 4, section 4.2
452
Directors’ compensation of any kind (Article L. 22-10-9, I, 1° of the French Commercial Code)
Chapter 4, section 4.2.2.3
476
Relative proportion of fixed and variable compensation (Article L. 22-10-9, I, 2° of the
French Commercial Code)
Chapter 4, section 4.2.2.1
454
Use of the possibility of claiming back variable remuneration (Article L. 22-10-9, I, 3° of the
French Commercial Code)
Chapter 4, section 4.2.3
480
Directors’ commitments of any kind (Article L. 22-10-9, I, 4° of the French Commercial Code)
Chapter 4, sections 4.1.1.5,
4.1.6
419–449
Remuneration paid or granted by an undertaking included in the scope of consolidation
(Article L. 22-10-9, I, 5° of the French Commercial Code)
Chapter 4, section 4.2.2
454
Ratios between executive compensation and the compensation of employees other than Corporate
Officers (Article L. 22-10-9, I, 6° of the French Commercial Code)
Chapter 4, section 4.2.2.4
477
Evolution of compensation, Company performance, average compensation of non-executive
employees and ratios referred to above (Article L. 22-10-9, I, 7° of the French Commercial Code)
Chapter 4, section 4.2.2.4
477
Explanation of the way in which the total compensation complies with the adopted compensation
policy (Article L. 22-10-9, I, 8° of the French Commercial Code)
Chapter 4, section 4.2
452
Manner in which the vote of the last general shareholders’ meeting provided for in Article
L. 225-100 of the French Commercial Code has been taken into account (Article L. 22-10-9, I, 9°
of the French Commercial Code)
Chapter 4, section 4.2.2
454
Any deviation from the procedure for implementing the remuneration policy and any waiver applied
(Article L. 22-10-9, I, 10° of the French Commercial Code)
Chapter 4, section 4.2.2
454
Application of the provisions of the second paragraph of Article L. 225-45 of the French Commercial
Code relating to the suspension of the remuneration of the Board of Directors in the event of
non-compliance with the parity rules (Article L. 22-10-9, I, 11° of the French Commercial Code)
Chapter 4, section 4.2.2.3
476
Attribution and retention of stock options by Directors and Corporate Officers
(Articles L. 225-185, L. 22-10-57, and L. 22-10-58 of the French Commercial Code)
N/A
N/A
Attribution and retention of free share grants to Corporate Officers
(Articles L. 225-197-1, L. 22-10-59, and L. 22-10-60 of the French Commercial Code)
Chapter 4, sections 4.2.3.1.2–
4.2.5
483–496
List of directorships or functions performed by each Director during the last fiscal year
(Articles L. 225-37-4, 1° and L. 22-10-10 of the French Commercial Code)
Chapter 4, section 4.1.1.2
403–412
Regulated agreements (Articles L. 225-37-4, 2° and L. 22-10-10 of the French Commercial Code)
Chapter 4, section 4.1.6
449
Table of the delegations granted to the Board of Directors by the shareholders’ meetings and the use
of those delegations (Articles L. 225-37-4, 3° and L. 22-10-10 of the French Commercial Code)
Chapter 7, section 7.2.3
604–605
Distinction made or not between the Chief Executive Officer and the Chairman of the Board
of Directors (Articles L. 225-37-4, 4° and L. 22-10-10 of the French Commercial Code)
Chapter 4
399
Board of Directors’ composition, condition for preparing and organizing the work of the Board
(Article L. 22-10-10, 1° of the French Commercial Code)
Chapter 4, sections 4.1.1–4.1.2
400–423
Application of the balanced representation of women and men at the Board of Directors level
(Article L. 22-10-10, 2° of the French Commercial Code)
Chapter 4, section 4.1.1.4
415
Limits to the powers of the Chief Executive Officer (Article L. 22-10-10, 3° of the French Commercial
Code)
Chapter 4, section 4.1.2.1.4
425
Corporate Governance Code to which the Company adheres, including comply or explain detail
(Article L. 22-10-10, 4° of the French Commercial Code)
Chapter 4
399
Participation in Shareholders’ meeting by shareholders (Article L. 22-10-10, 5° of the
French Commercial Code)
Chapter 7, section 7.4.1
612
Assessment process of regulated agreements (Article L. 22-10-10, 6° of the French Commercial
Code)
Chapter 4, section 4.1.6
449
Main features of the internal control and risk management systems as part of the financial reporting
process (Article L. 22-10-10, 7° of the French Commercial Code)
Chapter 3, sections 3.2–3.3
362–366
Factors likely to affect the outcome of a takeover bid (Article L. 22-10-11 of the French Commercial
Code)
Chapter 7, section 7.4.8
614
Chapter 9 – Persons responsible for the Universal Registration Document and audit of the financial statements
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Life Is On | Schneider Electric
S H A R E H O L D E R I N F O R M A T I O N
I R
C H 1
C H 2
C H 9 – P E R S O N S R E S P O N S I B L E
F O R T H E U R D & A U D I T
C H 3
C H 4
C H 5
C H 6
C H 7
C H 8
Glossary
Adjusted EBITA Adjusted EBITA (Earnings Before Interest, Taxes,
Amortization of Purchase Accounting Intangibles). Adjusted EBITA
corresponds to the operating income before amortization and
impairment of purchase accounting intangible assets, before
goodwill impairment, other operating income and expenses, and
restructuring costs.
AFEP-MEDEF Code Corporate Governance Code of listed
corporations developed by the French Association of Private
Enterprises – Association française des entreprises privées (AFEP),
and the Movement of the Enterprises of France – Mouvement des
entreprises de France (MEDEF).
AGM Annual General Meeting. The annual meeting of Schneider
Electric shareholders. The next meeting will be held on May 7,
2025.
AI Artificial Intelligence
AMF French Financial Market Authority – Autorité des Marchés
Financiers
CapEx Capital Expenditure: company expenditure on major,
long-term assets such as buildings, machinery, and vehicles.
Carbon neutral A state in which the greenhouse gas (GHG)
emissions released into the atmosphere have been reduced or
avoided and the remaining ones are compensated with carbon
credits. To achieve carbon neutrality, carbon credits from projects
that reduce, avoid, or temporarily capture GHGs are accepted.
Circular Certified Schneider Electric label to give products a
second life (unsold or obsolete stock, commercial returns).
CSR Corporate Social Responsibility
CSRD Corporate Sustainability Reporting Directive
Digital Twin A near-real-time digital image of a physical object or
process that helps optimise business performance.
EcoDesign Way™ Schneider Electric embraces circular principles
all along the lifecycle of products and offers. The keystone of
circularity is EcoDesign Way™, a process that is applied to the
development of all new products.
EcoStruxure™ EcoStruxure™ is Schneider Electric’s IoT-enabled,
plug-and-play, open, interoperable architecture and platform, used
in homes, buildings, data centers, infrastructure, and industries.
EcoStruxure™ enables enhanced safety, reliability, efficiency,
sustainability, and connectivity with “Innovation at Every Level”
from connected products to edge control, and apps, analytics,
& services.
EHS Environment, Health, and Safety
Energy transition The energy transition replacing fossil fuels with
low-carbon energy sources.
EPS Earnings Per Share
ESG Environment, Social, and Governance
ESRS European Sustainability Reporting Standards
GHG Green House Gas
Green Premium™ Our Green Premium™ label was created to
provide our customers with more sustainable products and
transparency with environmental information. In 2023, more than
80% of Schneider’s product sales came from Green Premium™
products.
IEC International Electrotechnical Commission
Impact Company Schneider Electric aims to champion
environmental, social, and ethical issues across its entire value
chain and stakeholders, while delivering solutions to its customers
for sustainability and efficiency. We call this dual approach “Impact
Company”.
Impact revenues Schneider Impact revenues are offers that bring
energy, climate, or resource efficiency to customers while not
generating any significant harmful impact to the environment.
Industry 4.0 Refers to the fourth industrial revolution; combining
physical production and operations with smart digital technology
such as cloud computing, Internet of Things (IoT), Artificial
Intelligence (AI), and machine learning to create a bigger impact
and greater productivity.
IPCC Intergovernmental Panel on Climate Change
IRO Impacts, Risks, and Opportunities
KPI Key Performance Indicator
Living wage Schneider Electric believes earning a living wage is a
basic human right and a key element to decent work. Schneider
Electric is committed to paying all employees at or above the living
wage to meet their families’ basic needs. By basic needs, the
Group considers food, housing, sanitation, education, healthcare,
plus discretionary income for a given local standard of living.
LTIP Long Term Incentive Plan
Microgrid Local, self-contained electrical network which allows to
generate electricity on-site and use it when needed.
Multi-hub Four hubs now serve the Group’s different markets
(Europe, North America, India, and China). Each hub has its own
capabilities, while operating and contributing together toward the
same Group objectives.
Net-Zero As per the SBTi’s “Corporate Net Zero Standard”, it
means reducing emissions at a pace that is in line with the latest
climate science and balancing any remaining essential residual
emissions through carbon removal credits (rather than carbon
credits).
OEM Original Equipment Manufacturer
OpEx Operational Expenditure: costs which are incurred through a
company’s day-to-day business operations (like salaries, rent,
energy costs etc.)
R&D Research & Development
REACH Regulation on Registration, Evaluation, Authorization and
Restriction of Chemicals.
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RoHS Restriction of Hazardous Substances
SaaS Software as a Service
SBTi Science Based Targets initiative
SCADA Supervisory control and data acquisition
SDG United Nations’ Sustainable Development Goals
SF6 Sulfur hexafluoride; one of most potent greenhouse gases.
Schneider Electric launched SF6-free green and digital MV
switchgear with GM AirSeT™ in 2020.
SSE Schneider Sustainability Essentials has been created to
maintain a high level of commitment and transparency in the
actions taken by the Group. This new tool brings balance between
the innovative transformation plans of the Schneider Sustainability
Impact (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 SSE will track annual progress
with 25 quantitative KPIs, as well as additional qualitative programs.
SSERI Schneider Sustainability External & Relative Index;
measures the long-term sustainability performance of the Group in
terms of relative performance, through a combination of external
indices (including DJSI World, Euronext Vigeo, Ecovadis, and CDP
Climate Change).
SSI Schneider Sustainability Impact is the translation of our six
long-term commitments (climate, equal, resources, generations,
trust, and local) into a selection of 11 highly transformative and
innovative sustainability programs. It’s the Group’s five-year (2021
– 2025) plan with progress tracked and published quarterly, as well
as audited annually.
STIP Short Term Incentive Plan
The Next Frontier The next milestone of Schneider Electric
revenues, profitability and Free Cash Flow journey supported by
five megatrends that reinforce our strategic vision – creating
unprecedented opportunities in our end-markets through the cycle.
Trust Charter The Trust Charter acts as the Group’s Code of
Conduct, demonstrating its commitment to ethics, safety,
sustainability, quality, and cybersecurity.
TZCP The Zero Carbon Project: Actions to reduce the greenhouse
gas emissions from Schneider’s suppliers. The ambition of TZCP is
to collaborate with 1,000 suppliers and reduce their operational
greenhouse gas (GHG) emissions by 50% by 2025 (SSI #3).
UPS Uninterruptable Power Supply
VOC Volatile Organic Compounds – Organic substance which can
be vaporized by small changes in temperature or pressure. VOCs
are a category of air pollutant mainly from industrial processes and
automobiles. Schneider Electric does everything to reduce them as
much as possible.
VolunteerIn Schneider Electric’s VolunteerIn programme was
created in 2012 to organize volunteer missions benefiting the
Schneider Electric Foundation’s partners. Wherever the Company
is based, VolunteerIn empowers people to be actors and
ambassadors of societal commitments in the fields of education,
access to energy, and the fight against energy poverty.
WEEE Waste Electrical and Electronic Equipment
WESOP Worldwide Employee Share Ownership Plan
Chapter 9 – Persons responsible for the Universal Registration Document and audit of the financial statements
Glossary
Financial Calendar
Investor Relations
May 7, 2025
Annual Shareholders’ Meeting
Financial Releases
February 20, 2025
2024 Annual Results
April 28, 2025
Q1 2025 Revenues
July 31, 2025
2025 Half Year Results
October 30, 2025
Q3 2025 Revenues
YouTube
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SchneiderElectric
Investor Relations
Amit Bhalla
Tel.: +44 (0) 20 7592 8216
Corporate Communications
Anthime Caprioli
Tel.: +33 6 45 636 835
se.com
Schneider Electric SE
Headquarters:
35, rue Joseph Monier – CS 30323
F-92506 Rueil-Malmaison Cedex (France)
Tel.: +33 (0) 4 76 57 60 60
European Company,
governed by a Board of directors with a
share capital of EUR 2,302,526,704
Registered in Nanterre, R.C.S. 542 048 574
Siret no.; 542 048 574 01791
© 2025 Schneider Electric. All Rights Reserved. Life Is On Schneider Electric is a trademark and property of Schneider Electric
SE, its subsidiaries and affiliated companies. All other trademarks are the property of their respective owners. 998–23701464