Schneider Electric : 2021 Universal Registration Document

Enabling a sustainable future

2021 Universal Registration Document

Financial and Sustainable Development Report

Strategic Report

Integrated report

Our purpose and mission 2

At a glance 4

A statement from Chairman and CEO, Jean-Pascal Tricoire 6

An interview with Chief Financial Officer, Hilary Maxson 8

2021 Financial Performance Highlights 9

Key Achievements of 2021 10

Proud of 2021's Sustainability Achievements 12

Market trends - All electric, all digital 14

What we do 15

Our Business Model 20

A future worth investing in 22

A changemaker for sustainability 24

2022 outlook and target 26

2022-2024 targets and long-term ambitions 27

Governance 28

Our Stakeholders 32

Chapter 1 - Group strategy & sustainability

1.1 Trends and opportunities 44

1.2 Schneider Electric's unique operating model 46

1.3 Schneider Electric's priorities for sustainable growth 50

1.4 Customer focus 56

Chapter 2 - Sustainable development

An introduction by Chief Strategy & Sustainability Officer, Olivier Blum 60

2.1 Sustainability at the heart of our strategy 61

2.2 Driving responsible business with Trust 92

2.3 Acting for a Climate positive world 126

2.4 Being efficient with Resources 144

2.5 Great People making Schneider Electric a great company 164

2.6 Delivering Social Impact for a just transition 188

2.7 Methodology and audit of indicators 206

2.8 Indicators 226

Chapter 3 - How we manage risk at Schneider Electric

3.1 Definition and objectives of internal control and risk management 244

3.2 Organization and management 244

3.3 Risk management mechanism 249

3.4 Key risks 254

3.5 Insurance 265

Corporate Governance Report

Chapter 4 - Corporate governance report RFA

4.1 Governance Report 268

4.2 Compensation Report 311

Financial Statements

Chapter 5 - Consolidated financial statements RFA

5.1 Consolidated statement of income 344

5.2 Consolidated statement of cash flows 346

5.3 Consolidated balance sheet 347

5.4 Consolidated statement of changes in equity 349

5.5 Notes to the consolidated financial statements 350

5.6 Statutory Auditors' report on the consolidated financial statements 397

5.7 Extract of the management report for the year ended

December 31, 2021 402

RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.

Chapter 6 - Parent company financial statements RFA

6.1 Balance sheet 412

6.2 Statement of income 414

6.3 Notes to the financial statements 415

6.4 Statutory auditors' report on the annual financial statements 424

6.5 List of securities held at December 31, 2021 427

6.6 Subsidiaries and affiliates 428

6.7 The company's financial results over the last 5 years 430

6.8 Extract of the management report for the year ended

December 31, 2021 431

Shareholder Information

Chapter 7 - Information on the Company and its capital

7.1 Shareholding 434

7.2 Capital 436

7.3 General information on the Company 439

7.4 Shareholders' rights and obligations 440

7.5 Stock market data 443

7.6 Investor relations 445

Chapter 8 - Annual Shareholders' Meeting RFA

8.1

Explanatory comments & draft resolutions submitted

to the Annual Shareholders' Meeting 448

8.2 Statutory Auditors' special reports 468

Chapter 9 - Persons responsible for the Universal Registration Document and audit of the financial statements

Persons responsible for the Universal Registration Document 474

Persons responsible for the audit of the financial statements 475

Universal Registration Document cross-reference table 476

Annual Financial Report cross-reference table 479 Cross-reference table referring to the elements of the

Management Report 480 Cross-reference table referring to the elements of the

Corporate Governance Report 481

Cross-reference table pursuant to Articles L. 225-102-1, L. 22-10-36 and R. 225-105 (disclosure on extra-financial performance), and

Article L. 225-102-4 (vigilance plan) of the French Commercial Code 482

The Universal Registration Document was filed on March 29, 2022 with the Autorité des Marchés Financiers (AMF), as the competent authority under Commission regulation 1129/2017/EU, 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 free translation into English of the official version of the Universal Registration Document which has been prepared in French and in ESEF format (European Single Electronic Format) and which includes the Annual Financial Report for the fiscal year ended December 31, 2021 and is available on the AMF's website (www.amf-france.org) and on the Company's website (www.se.com).

Integrated report

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

At Schneider, we call this

Our mission is to be your digital partner for Sustainability and Efficiency.