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SCHNEIDER ELECTRIC : Rebound of sustainable development performance of Schneider Electric in Q3 2013

Rueil-Malmaison (France), 7 November, 2013. Schneider Electric announced today its extra-financial results for the third quarter of 2013. Thanks to the Planet & Society Barometer, Schneider Electric measures its sustainable development ambitious commitments for the next three years through 14 quartely-reported. With a rating of 6.38/10, the Barometer is above target for the third quarter 2013 and will exceed the end-of-year target of 5.5/10.
Michel Crochon, Executive Vice-President, Strategy, Schneider Electric, commented: "The progress of our Planet & Society Barometer for the third quarter is encouraging, although it must not hide some constrasting results. This global performance reflects different realities of which results will be seen on mid or long term. This is the case of our employees's engagement indicator we highlight this quarter. The "Employee Engagement Index" underlines the link between a company's performance and its employees' commitment, and the importance to measure their engagement regularly and in details."
In the third quarter 2013, six indicators have improved significantly, or have remained at excellent levels.
• The Access to Energy program: in terms of solutions and business model, 124,000 extra people have been connected to energy in the last 3 months thanks to Schneider Electric solutions; Base of the Pyramid training in energy management has progressed strongly up to 28,420 people trained since the start of 2012;
• Three major ethical financial indices have listed Schneider Electric, the only French company of the CAC 40 to be listed in both CDP indices, the CPLI and the CDLI. Schneider Electric is also a leader in its industry in the Dow Jones Sustainability Index World and Europe;
• CO2 savings on transportation have dipped from 29% to 27.2% but remain largely above the 2014 target of 10%.
• The "Schneider Electric Teachers" NGO completed its 100th project in the field at the start of the summer, and has carried out 168 missions in total since 2012.
• There has been a 7.3% increase in energy efficiency at the Group's main sites since 2011;
• The MIR (Medical Incident Rate) indicator, which monitors employees' safety, has shown an increase of two points compared to the second quarter, a 45% reduction in incidents at work since January 2012.
Three indicators require particular attention for reaching their annual targets:
• The one day annual training for each employee has risen to 33% of Group's employees trained, +14 points compared to the second quarter, although this is still below the fixed annual target;
• The performance of the EcoXperts indicator (1.47 points of growth below Group's one);
• The "Suppliers" indicator, which measures the percentage of our recommended suppliers embracing ISO 26000 guidelines, has a value of 14.8% (+2.4 points compared to Q2).
> For more information, please refer to the "Detailed Results per indicator category".

Focus on partner training
To measure employees' engagement, Schneider Electric sets up since 2010 a unique methodology which was sharpened in 2012. Fourteen questions are sent to all 140,000 employees worldwide twice a year. This survey, "One Voice", which ensures anonymity, enables the Group to track four dimensions:
- the level of commitment of employees through the Employee Engagement Index, designed by the consulting firm Aon Hewitt, and used in many companies. This index is made up of six questions aiming at evaluating employees' opinion on the Group, as well as their willingness to stay and strive for the company;
- the Schneider Electric' six engagement drivers : vision, empowerment, development, inclusion, collaboration and work-life balance;
- how collaborators promote the Group toward their relatives;
- the part of collaborators aware of action plans related to engagement in their entity
Results are released twice a year, simultaneously to the general management and to all the employees. Moreover, the 2,500 managers that have more than 20 people in their teams receive a dedicated report. This survey enables to manage employees' engagement through dialogue between teams. The regular measure also allows a better reflection of the frequent changes in work environment. Dynamic and recognised engagement
• Schneider Electric has once again shown its support for the Solar Decathlon, an international competition which asks students to design and build the most energy efficient house possible, powered by solar panels. The Group provides the competition teams with automation, connection, and engineering supplies. This quarter saw the first Chinese event which took place in Datong from 2 to 11 August. Schneider Electric was one of three international partners for the first Solar Decathlon China event, which was attended by 600 students, 56% of whom were from Chinese universities. The Group also supported the competition's three winning teams: the University of Wollongong, Australia (1st place), the South China University of Technology, China (2nd place), and Chalmers University of Technology, Sweden (3rd place). This year, the Group also sponsored the U.S. event which took place in Irvine (California) from 3 to 13 October 2013. Schneider Electric supported ten of the twenty participating teams by providing them with energy management solutions designed specifically for buildings. The Group also provided the necessary engineering equipment to implement a micro-network operational solution.
• On 20 September, Schneider Electric took 12th place in the PAP50 2013 ranking. This study, which is carried out every three years by NGOs WWF and Riposte Verte, evaluates the paper policy of the fifty largest French companies. After earning 33rd place in 2010, this improvement is a reflection of the change in the Group's choices and policies. Schneider Electric is already working on new projects to make its paper consumption even more responsible.
• At the Design Strategies Awards on 2 October 2013, Schneider Electric received the "Product Design" award for its portable solar LED lamp, the Mobiya TS 120, in the Light Products category. This lamp was developed as part of the Innovation aspect of the BipBop program which aims at designing and distributing sustainable and economical energy access solutions and models specifically adapted to the needs of particular populations at the base of the pyramid. This new LED solar lamp shows up in addition to the current range of lighting products, and combines both lighting and mobile phone charging via USB port, at any time or place. The Mobiya TS120 uses photovoltaic panels to recharge and its robust design suits perfectly for populations who do not have access to reliable, affordable, and clean energy.
• On 25 October, Schneider Electric participated in the 7th World Forum in Lille. This annual event took place over three days and brought together major players around "responsible business". During this event was unveiled Jeremy Rifkin's vision of a "Third Industrial Revolution", based on his recent book of the same name. Guy Dufraisse, President of Schneider Electric France, took part in the debate on the acute need for energy efficiency.
• From 1 to 20 October, the Schneider Electric Foundation organised the visit to France of sixteen South African students from underprivileged backgrounds to study at the F'SASEC training centre. Since 2011, Schneider Electric South Africa and the Schneider Electric Foundation have funded this training centre in partnership with the French Ministry of Education. During their stay, students were given the opportunity to visit the Group's Rueil-Malmaison headquarters as well as sites at Grenoble, Valence, and Tournon.
• The impact-investing fund Schneider Electric Energy Access has confirmed three new investments in the third quarter or this year, reinforcing its support of sustainable development of energy access in Africa.
o One Degree Solar is a company which designs, produces, and distributes solar products which improve access to energy as well as communication and information in off-grid African communities. Their "BrightBox" is an easy-to-use solar kit which can power lamps, phones, radios, and other USB devices;
o Fenix International is a social enterprise which develops access to energy solutions. Its product, the "ReadySet", is a comprehensive individual solution aimed at micro entrepreneurs in areas which have unreliable electric grid access;
o Nova Lumos designs remote solar electricity production systems. In partnership with telecoms operators, Nova Lumos has developed a user telephone subscription prepayment system for energy related services.