Code of Conduct

Supplier
Code of Conduct

At Schneider Electric, Sustainability is at the center of everything we do. By Sustainability we mean:

energy role on climate change, access to energy, planet resources preservation, awareness of all our
stakeholders and associated risks.

We then hold Sustainability as a driver for business performance, reputation, attraction and retention of
employees, and corporate citizenship.

In Purchasing, we share the same Planet & Society agenda and we strongly contribute by setting the
same expectations within our teams and with our Suppliers: highest level of ethics, best value, social
equity and environmental protection are at the core of Schneider Electric’s Purchasing principles.

Sustainability encompasses 3 dimensions with you as a Supplier of

Schneider Electric:
People: citizens, employees, communities (social responsibility, employee wellbeing, health & safety,
licence to operate, etc.)
Profit: The business you do and the way you do it (ethics and responsibility, green business)
Planet: your footprint on the environment (eco-design, eco-production, energy consumption, pollutions,
etc.)
Every supplier is committed to put in place, maintain and comply with adequate procedures to support
the requirements within this Code of Conduct. Suppliers, by mutual agreement, will allow Schneider
Electric to audit their supporting policies and compliance to this Code of Conduct. Schneider Electric
requires suppliers to fully comply with local regulations wherever suppliers operate. Suppliers commit to
answer questions of, and promptly report any observed, suspected or known violations of local laws,
regulatory rules or this Code of Conduct.

This Schneider Electric Supplier Code of Conduct, is part of our Purchasing Terms and Conditions, and we
therefore expect you to follow each of its principles and guidelines. Thank you for your commitment to
this important work.

Regards,

D.K. Singh
Chief Purchasing Officer

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Contents

Preamble ............................................................................................................ 4

Environment ....................................................................................................... 5

Human Rights ..................................................................................................... 5

Labour Practices ................................................................................................. 6

Fair Business Practices ........................................................................................ 7

Sustainable Procurement .................................................................................... 8

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Code of Conduct

Schneider Electric
Supplier Code of Conduct

This document summarizes the most fundamental expectations from Schneider Electric towards its
Suppliers.

We expect them to be applied by all suppliers delivering goods or services to Schneider Electric. This
implies that a strong management system is implemented, applied and maintained to ensure
compliance with this code of conduct, mitigate the risk of deviation and guarantee continuous
improvement.

Preamble
Schneider Electric is a responsible actor and aims to be a Best-in-Class of our industry.
Schneider Electric’s strategy & Offer Value consists in actively supporting Customer’s efforts with
performing solutions for a Safe, Efficient, and Reliable Energy management:
- in particular to reduce Green House Gas emissions and be a leading contributor to Climate
Change prevention initiatives
- to develop Offers that are highly compliant to the most stringent safety and environmental
standards
- Beyond regulations, to continuously improve their environmental footprint.

Schneider Electric’s Sustainable Development agenda is clearly visible in our Planet & Society program
encompassing all dimensions of Corporate Social Responsibility. It implies fundamental expectations
towards its Suppliers and these expectations are listed within this ‘Code of Conduct’ that is also part of
our Purchasing Terms & Conditions.
To proceed with those expectations, we recommend to all our Suppliers to leverage the ISO26000
guidance document with minimal rating requirements, and it is a prerequisite for our ‘Recommended’
Suppliers

Schneider Electric employees are individually committed to follow and align on ‘Principles of
Responsibility’ (PoR). These ‘PoRs’ include drastic conditions and behaviours in the context of
relationships with 3rd parties and relevant members.
Purchasing activities are especially conducted in accordance with those principles. As a Supplier, if you
are requested by a Schneider-Electric employee to engage in any action that is not compliant with the
present Code of Conduct, we kindly ask you to inform us through our Responsibility & Ethics Dynamics
process here.

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Environment
Schneider Electric is committed to protecting the environment, and environmental responsibility is at
the core of how we operate. Suppliers shall develop, implement, and maintain environmentally
responsible business practices. Suppliers shall conduct routine monitoring of the environmental
performance e.g.: ISO14001

 Environmental Hazards
Suppliers shall identify, manage, reduce and control risk of environmental hazards from their
operations like Air Emissions, Water Pollution and use of hazardous substances.
 Pollution prevention
Suppliers shall obtain all required environmental permits (e.g. discharge monitoring), approvals
and registrations. These must be maintained and kept current. Suppliers shall implement a
systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid
waste
 Energy consumption and Green House Gas (GHG) emissions
Suppliers are to look for cost-effective methods to improve energy efficiency and to minimize
their energy consumption and greenhouse gas emissions

Human Rights
Suppliers are committed to uphold the human rights of workers, and to treat them with dignity and
respect as understood by the international community. This applies to all workers including temporary,
migrant, student, contract, direct employees, and any other type of worker.

 Child Labour
Suppliers shall only employ workers and school interns who meet the applicable
minimum legal age requirement as per local laws. Suppliers shall also comply with all
other applicable child labour laws according to local regulations.

 student rights
Suppliers shall provide appropriate support and training to all student workers. In the
absence of local law, the wage rate for student workers, interns and apprentices shall be

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at least the same wage rate as other entry-level workers performing equal or similar
tasks.
 Non-Discrimination and Diversity promotion
Suppliers should be committed to a workforce free of harassment and unlawful
discrimination. Suppliers shall not engage in discrimination based on race, colour, age,
gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation,
union membership or marital status in hiring and employment practices such as
promotions, rewards and access to training.
Suppliers are encouraged to actively promote and develop diversity , in particular
gender diversity and equitable access to responsibilities and management positions.
 Conflict Minerals
Suppliers shall ensure that the products provided to Schneider Electric are in compliance with
requirements covered under the scope of Conflict Minerals regulation. Suppliers shall exercise
due diligence on the source and chain of custody of these minerals and make their due diligence
measures available to Schneider Electric upon request within a reasonable timeframe

Labour Practices
Schneider Electric believes all workers in our supply chain deserve a fair and ethical workplace.

 Freely chosen Employment

Forced, bonded (including debt bondage), involuntary prison labor, slavery or trafficking of
persons shall not be used.
 Compliance to Labour Regulations
Suppliers shall comply with all applicable labour laws according to local regulations.
International Labour Organization (ILO) recommendations should be leveraged whenever
possible in particular in terms of minimum age workers
 Working Conditions
Suppliers shall apply employee relations practices. Working hours, wages, benefits must be
consistent with local laws and industry standards, including those pertaining to minimum wages,
overtime, other elements of compensation and legally mandated benefits.
 Health & Safety
Workers health and safety well-being is important to Schneider Electric. Suppliers shall provide
and maintain a safe work environment and integrate sound health and safety management
practices into their business. Workers shall have the right to refuse unsafe work and to report
unhealthy working conditions. Suppliers shall provide workers with appropriate personal
protective equipment where hazards cannot be adequately controlled by other means and
properly maintain physical guards, interlocks and barriers where machinery presents an injury

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hazard to workers. Suppliers shall commit to have no deviation to health and safety local
regulations. Physically demanding work is to be identified, evaluated and controlled.
On site training on workplace Health and Safety must be done in their primary language. Ready
access to potable water, sanitary food preparation and clean toilets are also to be provided
When provided by the Suppliers, housing and food should be maintained in decent conditions
Recognized management systems such as OHSAS 18001 and ILO Guidelines on Occupational
Safety and Health can be used as a reference system for Supplier
 Freedom of Association
In conformance with local laws, participants shall respect the right of all workers to form and
join trade unions of their own choosing, to bargain collectively and to engage in peaceful
assembly as well as respect the right of workers to refrain from such activities

Fair Business Practices

Schneider Electric expects from its employees and its suppliers the highest standards of fair business
practices and ethical conduct in all of endeavours. Schneider Electric expects from suppliers

 Business Ethics
Suppliers shall conduct their business in an ethical manner and act with integrity. Suppliers shall
always be ethical in every aspect of their business, including relationships, practices, purchasing,
and operations. All forms of bribery, corruption, extortion and embezzlement shall be clearly
prohibited. Suppliers shall report to Schneider Electric any Business misconduct from a
Schneider employee.
 Transparency in doing business and reporting
Information regarding Suppliers’ labor, health and safety, environmental practices, business
activities, structure, financial situation and performance is to be disclosed in accordance with
applicable regulations and prevailing industry practices.
 Intellectual Property
Intellectual property rights are to be respected; transfer of technology and know-how is to be
done in a manner that protects intellectual property rights; and, customer information is to be
safeguarded. In particular, Suppliers should be aware of counterfeiting risks and to all extent
possible, protect Schneider from receiving counterfeit products or sub components.
 Protection of Identity and Non-Retaliation
Programs that ensure the confidentiality, anonymity and protection of Suppliers and employee
whistleblowers are to be maintained, unless prohibited by law. Participants should have a
communicated process for their personnel to be able to raise any concerns without fear of
retaliation.

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 Partnering to Global Initiative

Schneider Electric strongly encourages suppliers to engage in global initiatives, in particular
ISO26000, Global Compact and EICC.

Sustainable Procurement
Suppliers shall engage socially and economically different categories of suppliers through inclusive
sourcing processes that promote equal opportunities.

Suppliers shall communicate this code of conduct to their own suppliers and shall monitor their
suppliers’ compliance. Schneider Electric reserves the right to organize jointly with the Supplier an audit
of a tier 2 supplier.

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