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1、Schneider Electric Universal Registration Document 2022Digital and Electric:for a sustainable and resilient future2022 Universal Registration DocumentFINANCIAL AND SUSTAINABLE DEVELOPMENT REPORTThe Universal Registration Document was filed on March 28,2023 with the Autorit des Marchs Financiers(AMF)
2、,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 comp
3、leted 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 Uni
4、versal 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 31,2022 and is available on the AMFs website(www.amf-france.org)and on the Companys website().1Life Is
5、 On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TS T R A T E G I C R E P O R TIntegrated reportOur purpose 2About Schneider 4Statement from the Chairman&CEO,Jean-Pascal Tricoire 10An interview with Chief
6、Financial Officer,Hilary Maxson 12Financial Performance Highlights 13Accelerating our digital journey 18Key Achievements of 2022 20Business:Market trends All Digital,All Electric 22What we do 24Sustainability strategy:A changemaker for sustainability 30Proud of 2022s sustainability achievements 3220
7、23 outlook and target 3420222024 targets and long-term ambitions as announced in 2021 Capital Markets Day 34Governance 35Our Stakeholders 40Chapter 1 Group strategy and sustainability1.1 Trends and opportunities 521.2 Schneider Electrics unique operating model 541.3 Schneider Electrics priorities fo
8、r sustainable growth 591.4 End-customer focus 69Chapter 2 Sustainable developmentAn introduction by Chief Strategy&Sustainability Officer,Gwenaelle Avice-Huet 742.1 Sustainability for all 752.2 Driving responsible business with Trust 1082.3 Leading on decarbonization 1482.4 Being efficient with reso
9、urces 1742.5 Great people make Schneider Electric a great company 1982.6 Delivering social impact for a just transition 2242.7 Methodology and audit of indicators 2422.8 Indicators 274Chapter 3 How we manage risk at Schneider Electric RFAAn introduction by Chief Governance Officer&Secretary General,
10、Herv Coureil 2943.1 Risk management scope 2953.2 Organization and management 2953.3 Risk management mechanisms 2993.4 Key risks and opportunities 3043.5 Insurance 319C O R P O R A T E G O V E R N A N C E R E P O R TChapter 4 Corporate governance report RFAVice-Chairman&Lead Independent Directors int
11、roduction 322 4.1 Governance Report 3244.2 Compensation Report 376F I N A N C I A L S T A T E M E N T SChapter 5 Consolidated financial statements at December 31,2022 RFA5.1 Consolidated statement of income 4205.2 Consolidated statement of cash flows 4225.3 Consolidated balance sheet 4235.4 Consolid
12、ated statement of changes in equity 4255.5 Notes to the consolidated financial statements 4265.6 Statutory Auditors report on the consolidated financial statements 4835.7 Extract of the management report for the year ended December 31,2022 488Chapter 6 Parent company financial statements RFA 6.1 Bal
13、ance Sheet 4986.2 Statement of income 5006.3 Notes to the financial statements 5016.4 Statutory auditors report on the annual financial statements 5126.5 List of securities held at December 31,2022 5156.6 Subsidiaries and affiliates 5166.7 The companys financial results over the last 5 years 5186.8
14、Extract of the management report for the year ended December 31,2022 519S H A R E H O L D E R I N F O R M A T I O NChapter 7 Information on the Company and its capital7.1 Shareholding 5227.2 Capital 5247.3 General information on the Company 5277.4 Shareholders rights and obligations 5287.5 Stock mar
15、ket data 5317.6 Investor relations 533Chapter 8 Annual Shareholders Meeting RFA 8.1 Explanatory comments&draft resolutions submitted to the Annual Shareholders Meeting 5368.2 Statutory Auditors special reports 561Chapter 9 Persons responsible for the Universal Registration Document and audit of the
16、financial statementsPersons responsible for the Universal Registration Document 568Persons responsible for the audit of the financial statements 569Universal Registration Document cross-reference table 570Annual Financial Report cross-reference table 573Cross-reference table referring to the element
17、s of the Management Report 574Cross-reference table referring to the elements of the Corporate Governance Report 575Cross-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 Commerci
18、al Code 576Glossary 578RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.2Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TOur purpose To empower all to make the most of our energy and resource
19、s bridging progress and sustainability for all.Our performance2022 was a year of strong performance against a complex economic and geopolitical backdrop.We navigated the challenges faced with agility,taking the next step on our sustainable growth journey.Financial KPIsRevenues 34.2B+12.2%organicAdju
20、sted EBITA margin17.6%+40bps organicNet Income(Group share)3.5B+9%Free Cash Flow 3.3B96%conversion rateAdjusted Earnings per Share7.11+16%Proposed Dividend per Share3.15+9%3Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T
21、E G R A T E D R E P O R TAt Schneider we call thisOur Impact72%Impact Revenues(+1pt vs 2021)4.91/10Schneider Sustainability Impact score,outperforming 2022 4.70/10 target440MTonnes of saved and avoided CO2 emissions to our customers since 20189.7%Reduction in suppliers CO2 emissions+9.7MPeople have
22、access to green electricity since 2020 397,864People trained in energy management since 20094Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TAbout SchneiderOur mission is to be your digital partner for Sustainability and Efficiency.What we offerW
23、e drive digital transformation by integrating world-leading process and energy technologies,end-point to cloud connecting products,controls,software and services,across the entire lifecycle,enabling integrated company management,for homes,buildings,data centers,infrastructure and industries.Why we d
24、o itWe believe access to energy and digital is a basic human right.Our generation is facing a tectonic shift in energy transition and industrial revolution catalysed by amore electric world.Electricity is the most efficient and best vector for decarbonization;combined with circular economy approach
25、solutions,we will achieve climate-positive impactas part of the United Nations Sustainable Development Goals.Our four hubs See page 24 to find out more about what we offer.E U R O P EI N D I AC H I N AN O R T H A M E R I C A5Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R
26、TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R T135,000+employees100+countriesWhere we operateWe 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 custome
27、rs and suppliers.We are an impact companyThis means sustainability is at the core of everything we do,in line with our purpose.IMPACTCompanyNorth AmericaWestern EuropeAsia PacificRest of the WorldOur businessEmployees26%32%27%25%34%30%13%13%Revenue34.2BRevenue by geography in 2022135KTotal employees
28、 by geography in 2022 See page 30 to find out more about our Sustainability strategy.See page 54 to find out more about our quintuple integration.6Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TA future worth investing inOur position in accelera
29、ting marketsSchneider Electrics positioning for a sustainable future focuses on an All-Digital,All-Electric world,deploying its technologies into accelerating markets,to answer customer needs of sustainability and resiliency.The world is at an inflection point.Supported by all stakeholders,including
30、 governments,businesses,investors,customers and civil society,we are opening the way to a radically different future.Our unique operating modelWe leverage our unique operating model to deliver on our mission.The Integrated CompanyIt allows us to provide our customers with a complete plug and play an
31、d seamless integrated solution.Read more about our operating model in Chapter 1 on page 54.DIGITALfor efficiencyEliminate waste,drive efficiency and optimize from plant to plugELECTRIFICATIONfor decarbonizationMost efficient energy and the best vector of decarbonizationSUSTAINABLE WORLDgreener and s
32、marter+=Multi-hubMulti-hub is a key element to offer improved resiliency,agility,proximity with our customers and suppliers.The Impact CompanySustainability is at the core of everything we do,in line with our purpose.OpenWe are advocates of open standards and partnership ecosystems.Harnessing one da
33、ta platform for the next level of EcoStruxure openness.About SchneiderL3L1L2FSSoftware and Digital ServicesConnectable ProductsEdge ControlField ServicesGrowing proportion of natively connected products through R&D,replacing non-digital offersLeveraging installed base,servicing of Assets under Manag
34、ementAmbition for Software,Sustainability and Services revenues to increase towards 23%of Group revenues by 2025Leading toMoving towards 60%of Group revenues by 20257Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A
35、 T E D R E P O R TOur growth driversOur strategic focus on More Products,More Software,More Services and More Sustainability is set to drive incremental growth in the coming years as we continue our transition to a hybrid digital company.More Sustainable Products80%of product sales in 2022 are with
36、Green Premium label.More Services2x Group growth,peace of mind to customers on mission critical assets.More SoftwareComplete lifecycle solutions for efficiency and sustainability,through open and agnostic software solutions leveraging one data hub.A fast track to the enterprise metaverse.More Sustai
37、nabilitySupporting customers in defining and implementing their net-zero roadmap,to drive double-digit growth.8Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TAbout SchneiderOur business modelOur advantages and resourcesWe are advocates of open s
38、tandards and partnership ecosystems that are passionate about our shared Meaningful Purpose,Inclusive and Empowered values.Our expertiseOur integrated approach allows us to provide our customers with a complete plug and play integrated solution.PeopleEnvironment135k+employees worldwide,in 100+countr
39、iesPartners and suppliersFinancial strengthInnovation1,000+patent applications filed globally in 202277Number of zero-CO2 sites650k+service provider and partner ecosystemA-/A3strong investment grade credit ratingEnd marketsBuildingsData CentersEnergy ManagementEnergy Transition9Life Is On|Schneider
40、Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TCreating valueCreating value for all our stakeholders.440Mtonnes of CO2 saved and avoided since 201810%performance of the Zero Carbon Project39.6Mpeople provided access
41、to green electricity since 200962%of eligible employees benefitting from 2022 share plan+54%3-year Total Shareholder ReturnInfrastructureIndustryFor our customersFor our partners and suppliersFor the planet&local communitiesFor our employeesFor our shareholdersIndustrial AutomationIndustry 4.010Schn
42、eider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TWe develop solutions for a world that is more digital,more electric,and more sustainable.”Jean-Pascal Tricoire,Chairman and CEO“Statement from the Chairman&CEO,Jean-Pascal TricoireIt goes without saying
43、:2022 was another hugely challenging year for the world.On top of the lingering effects of the pandemic,supply chain disruptions,and electronic and resource shortages of the preceding years,2022 brought war,sanctions,soaring interest rates,inflation,and an energy and cost-of-living crisis that cause
44、d hardship for millions of people and weighed on economies around the world.And not to forget some of the worst climate-related events on record.Against this backdrop,we,at Schneider Electric,deployed our people and resources across our geographic footprint to make a meaningful impact both supportin
45、g the communities impacted by the immediate crises,and helping all our stakeholders to improve their efficiency,reach for their sustainability goals,digitize to be fit for the future and bolster their long-term resilience against future economic and environmental shocks.It was another year in which
46、we were true to our purpose:to empower all to make the most of our energy and resources,bridging progress and sustainability for all.The inflection point:the new energy future is about to materialize While theres a lot to reflect on,its best to focus on what this means for the future.The root cause
47、of both the climate crisis and the energy crisis is the same:an unsustainable energy model that relies heavily on carbon-dense energy sources like gas,coal and oil.In 2022,we saw the consequences of having put insufficient investment towards remodeling our energy system.Energy prices,aggravated by t
48、he war in Ukraine,soared to a point that choked the economy.What all this means is that were at an inflection point.The twin crises of climate and energy has created a potential turning point in the way we generate,manage,and consume energy.The medium-term aspiration of reaching carbon neutrality to
49、 fight climate change now fully aligns with the short-term objective of ensuring energy security and shielding economies from the volatility and pressure of energy prices.Accelerating the energy transition has never made more sense.A year that reinforced our focus on digitization,electrification,and
50、 sustainability The best way to make the energy transition a reality is to decarbonize the demand side of the energy equation how we use and consume energy.Think about it:Net-zero buildings,homes or cities,cars powered by electricity,ultra-efficient industries.All these are less severely impacted by
51、 rising energy costs and energy supply constraints.And they contribute less to climate change.Too often,the debate focuses purely on how to shift energy supply away from fossil fuels and towards renewables.This is forgetting the most important part:energy transitions happen when we transition the de
52、mand side.So we must transition demand for technologies that benefit users,and the supply will follow.We have the opportunity,today,to create a more energy-efficient world by combining:1.Digitization that can save energy in homes,commercial and other buildings,infrastructure,data centers,and industr
53、y.2.Greater electrification,on both the production and the consumption side.Electricity is much more efficient than the combustion of fossil fuels.Electric cars and heat pumps are clear examples of this.We dont appreciate enough that 60%of fossil fuels today are wasted in the process of conversion.3
54、.Decentralization of some of our energy production,via microgrids using on-site renewables.4.Flexibility of energy supply and demand,via smart grids that allow us to optimize how we use or store energy.At Schneider Electric weve spent the last 20 years building our expertise and portfolio in exactly
55、 those areas.We develop solutions for a world that is more digital,more electric,and more sustainable,helping our customers at every stage of their journey towards greater efficiency and resilience,wherever they are.EcoStruxure,our full IoT,plug-and-play,open,interoperable architecture and platform,
56、covers everything from Connected Products to Edge Control,and Apps,Analytics and Services to meet the needs of customers.Our agnostic software and data portfolio provides the toolbox for customers to digitize their enterprise.By bringing together all of their data into an industrial format,we can bu
57、ild a full digital twin of their operations.This enables them to immerse their people in a comprehensive metaverse of their enterprise,deliver greater efficiency and costs savings,and increase safety,resilience and circularity.The recent acquisition of AVEVA allows us to bring these possibilities to
58、 our customers faster.Our services offer supports our customers across the lifecycle of their assets,from initial consultation to end-of-life and circularity.Our sustainability business supports customers with a full-service consultancy offering,from strategy right through to digitization and decarb
59、onization.It starts with measuring their carbon and energy footprint,then helping to reduce this footprint and bolster their energy resilience,including through sourcing the cheapest and greenest energy for their use.While the majority of our activity is focused on the demand side,we also provide so
60、lutions to decarbonize and improve the safety of the fossil fuel industry.Realistically,fossil fuels will remain a significant part of the energy mix for many years.At Schneider Electric,we therefore assist this industry in their journey to minimizing their carbon and methane footprint,and the impac
61、t on environment and society.Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R T11Life Is On|Schneider Electric|S T R A T E G I C R E P O R TA year that reinforced our strategy of having ESG at the core of everything we doBusines
62、s drivers and performance are one side of the story.The other is non-financial performance:we dont see positive environmental,social and governance(ESG)performance as something that comes at the price of business performance.Since the early 2000s,weve put ESG principles at the heart of everything we
63、 do.Back then,we set ourselves ambitious goals around decarbonization,diversity and inclusion,social responsibility,among others.Since then,weve consistently dialed up those goals and commitments.Theyve helped us to expand into promising new markets,to innovate,to reduce waste and costs,recycle and
64、save resources,and to attract and retain talent.Today,we are an“Impact Company”,striving to make a long-term positive impact across multiple dimensions on the planet and societies around us.The logic is simple:if you want to do well as a company,you must also do good and vice versa.And we must bring
65、 everyone along on this journey.Over the course of 2022,we delivered some great achievements and received numerous awards and recognitions that attest to our performance on these fronts.For more detail on all this,please read the overview that Gwenaelle Avice-Huet,our Chief Strategy and Sustainabili
66、ty Officer,provides later on in this report.A year that underlined the value of our unique multi-hub model and cultureThroughout the turmoil of the past few years and in 2022 in particular our multi-hub set-up has stood us in good stead.Having four regional hubs-in North America,Europe,China and Ind
67、ia has provided us with greater resilience amid constant change.Our teams are empowered to make decisions in light of the local situation,adapting and responding quickly to market opportunities and local circumstances.They do this while staying close to our customers,business partners and other stak
68、eholders,and locating our factories and warehouses close to the points of sale,thus limiting the carbon footprint of our supply chains.A year that highlighted that Great People really make Schneider a Great Company Crises or not,our colleagues in more than 100 countries around the world work with pu
69、rpose,passion and commitment to support our customers,our communities,our business,and each other.Im proud to say thats long been the case,as the numerous awards and recognitions we receive every year confirm.But 2022 truly highlighted this dedication.Our supply chain,sales and customer service team
70、s navigated difficulties and worked hard to try to find solutions to the resource and delivery challenges that still haunted the world for much of 2022.Our factory workers in some countries volunteered to spend weeks inside their sites to ensure that mission-critical operations continued throughout
71、the local lockdowns.And together,our people and company raised over 2 million for the Tomorrow Rising Ukraine Fund,which we set up to support Ukrainians at this very difficult time,and donated a range of electrical equipment,to help restore energy in the country.A year of challenges and of opportuni
72、tyYes,2022 was another year full of challenges for economies,companies and households the world over.But those very challenges are now coalescing to accelerate the transition we so urgently need.We have the opportunity to create a new energy landscape-one that is connected,smart,efficient,clean,sust
73、ainable,and more resilient to external shocks.And one that makes access to safe and reliable energy a reality for everyone.Schneider Electric is positioned right at the heart of these changes:our products,systems,services and software;our portfolio,people,and multi-hub set-up;and our commitments to
74、making a positive impact on the planet and society.All these combine to make us a trusted partner and advisor for our customers as they navigate this journey towards the new energy future.At our 2022 Fiscal results,I made the announcement that as of May 4 2023,Peter Herweck will become Chief Executi
75、ve Officer of Schneider Electric and I will continue on as Chairman of the Board.After thirty-six years at Schneider,of which twenty were spent as Chief Executive or Operating Officer,I leave the role of CEO just as passionate about the business,people and customers as when I first began my career a
76、t this company.Under Peters leadership,a new chapter of Schneider Electric begins,building on the solid foundation that many have contributed to and created together these past two decades.I look forward to continuing this journey with Schneider as Chairman.Jean-Pascal Tricoire,Chairman and CEO Read
77、 more about our strategy on page 22.Integrated ReportS T R A T E G I C R E P O R T12Schneider Electric Universal Registration Document 2022|A record year,positioning us well for ongoing sustainable growth.”An interview with Chief Financial Officer,Hilary MaxsonWhat were the highlights of Schneider E
78、lectrics 2022 financial performance?We delivered a strong operational performance in 2022 with a focus on execution,enabling us to reach record levels of revenues,adjusted EBITA and net income.We made good progress on our strategic initiatives of more products,more software and services and more sus
79、tainability which contributed to us recording+12.2%organic growth and reaching an all-time high EUR 34.2 billion in revenue.We improved our adjusted EBITA margin by+40 bps organic,reaching 17.6%,another record and representing more than EUR 6 billion in value.Net Income of EUR 3.5 billion increased
80、by+9%from 2021 and was also an all-time high,despite losses of 300M associated with our exit from Russia.The Group saw good volume expansion year-on-year,with price actions also contributing strongly to growth.Supply chain pressures were evident throughout the year,with progressive easing through th
81、e second half,though some tightness related to the supply of electronic components remains.We faced significant inflationary headwinds in the year,from raw materials,freight and electronics,and labor costs,which we were able to offset through strong pricing.We continued to deliver on our structural
82、savings and cost efficiency plan with savings of 203 million in 2022,taking us to a cumulative EUR 1 billion over a three-year period.We also prepared for the future,with an additional 547 million invested on our strategic priorities in 2022.We delivered Free Cash Flow of EUR 3.3 billion,reflecting
83、record operational cash flow EUR 5.3 billion,but working capital requirements continued to impact the free cash flow for the year,despite strong recovery in the second half,as the Group prioritized securing supply and delivery to customers in an overall strong demand environment.In 2022,we also made
84、 good progress on our digital journey,with our Digital Flywheel now representing 53%of Group revenue,showing good progress towards a target of around 60%by 2025.Software&Services represented 18%of Group revenues in 2022,impacted by our transition to subscription at AVEVA and supply constraints in Se
85、rvices,but with acceleration expected in the next years as we drive our transformation to a hybrid-digital company.Within Software&Services,around 36%of related revenues were classed as recurring,showing strong progress towards a target of around 45%by 2025.2022 was a year of portfolio change,tell u
86、s more about it?We are happy to have completed the transaction to acquire the entire share capital of AVEVA this year,which will allow us to accelerate on our software strategy and towards our ambition of a consistent“Company of 25”(1).We also completed our portfolio optimization program,disposing 1
87、.7 billion of revenues since the start of the program,in 2019.Over the past four years weve made good progress on our portfolio evolution and are well positioned for the future.What is the outlook for Schneider Electric in 2023?Our priority for 2023 is to continue to deliver sustainable growth,targe
88、ting organic growth in our adjusted EBITA within the range of between+12%to+16%.To deliver this strong performance,the Group will use two levers:firstly,organic topline growth where the Group targets between+9%and+11%and,secondly,organic adjusted EBITA margin expansion of+50bps to+80bps.How do you i
89、ntend to drive shareholder returns in the next years?The themes set out in our 2021 CMD are today more relevant than ever,and we are well positioned to benefit in the coming years from long-term secular trends set to drive growth across the end-markets we serve.Our objective is to continue to genera
90、te strong earnings growth through a combination of top line growth and margin expansion supported by these long-term secular trends and accelerated by our strategy of more products,more software and services and more sustainability.We retain a strong focus on shareholder returns,and we continue our
91、track-record of proposing a progressive dividend for a 13th consecutive year,increasing our proposed dividend by+9%to EUR 3.15 per share.I am confident,as CFO,that we have the portfolio,the technologies and the great people required to enable sustainable growth for years to come,elements which combi
92、ne to allow us to offer attractive returns to our shareholders.Hilary Maxson,Chief Financial Officer(1)sum of organic revenue growth%and adj.EBITA margin%.“13Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R
93、 E P O R T34%24%13%29%26%27%14%33%34.228.925.227.225.7200212022Financial Performance Highlights2022 was a year of strong performance against a complex economic and geopolitical backdrop.We navigated the challenges faced with agility,taking the next step on our sustainable growth journey.S
94、trong and dynamic market demand across most end-markets and segments enabled the Group set new record highs in Revenues,Adjusted EBITA and Net Income,while there was a strong recovery on Free Cash Flow in the second half of the year,supported by progressive easing in global supply chains.Revenue Per
95、formanceConsolidated revenue totaled EUR 34,176 million for the period ended December 31,2022,up+12.2%organic and up+18.2%on a reported basis.Organic growth was driven by a continuation of strong and dynamic market demand in the majority of end-markets and segments served by the Group,supported by a
96、ccelerating energy transition trends and recovery in late-cycle segments.Consumer-linked segments saw softness in some geographies in the second half of the year.The Group saw good volume expansion year-on-year,with price actions also contributing strongly to growth.Supply chain pressures were evide
97、nt throughout the year,with progressive easing through the second half,though some tightness related to the supply of electronic components remains.Growth was impacted by the Groups withdrawal from Russia and the effects of COVID-19 infections and related lockdowns in China.FX impact was+5.7%primari
98、ly due to the strengthening of the USD against the EUR,while there was a net negative impact of-0.2%from acquisitions and disposals.Energy Management generated revenues of EUR 26,442 million,equivalent to 77%of the Groups revenues and was up+12.9%organically.North America grew+18%organic with strong
99、 demand across all end-markets,including residential buildings.Western Europe was up+13%organic with double-digit growth in each of the five main economies of the region with continued good traction in Data Center&non-residential Buildings,though residential markets were impacted by pressures on con
100、sumer-spending.Asia-Pacific grew+9%organic impacted by the resurgence of COVID-19 and softer residential markets in China,but with strong growth across the rest of the region,notably in India.Rest of the World was up+10%organic with strong project execution in resource driven economies and despite h
101、eadwinds from Russia prior to the Groups exit.Industrial Automation generated revenues of EUR 7,734 million,equivalent to 23%of the Groups revenues and was up+9.5%organically.Growth was led by Discrete automation markets while sales into Process&Hybrid markets grew strongly,benefiting from recovery
102、in resource driven economies.North America grew+10%organic led by performance in Discrete automation markets,while strong growth in Process&Hybrid markets was supported by execution on a project in Mexico.Western Europe was up+14%organic,with strong growth in Discrete automation markets,particularly
103、 in Italy,Spain and France.Asia Pacific was up+7%organic,impacted by the resurgence of COVID-19 in China,but with strong growth across the rest of the region,including in India and Japan.Rest of the World was up+8%organic despite headwinds from Russia prior to the Groups exit.Revenue(billions)34.2BE
104、nergy ManagementIndustrial Automation North America 8,994 M(+17.8%org.)Western Europe 6,223 M(+13.1%org.)Asia Pacific 7,773 M(+9.0%org.)Rest of the World 3,452 M(+10.0%org.)North America 1,992 M(+10.5%org.)Western Europe 2,081 M(+13.6%org.)Asia Pacific 2,568 M(+6.5%org.)Rest of the World 1,093 M(+7.
105、7%org.)14Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R T17.617.315.615.615.2020212022Adjusted EBITA margin17.6%Summarised Financial Results million2021 FY 2022 FYReported changeOrganic changeRevenues28,90534,176+18.2%+12.2%Gross Profi
106、t11,84313,876+17.2%+10.8%Gross profit margin41.0%40.6%-40bps-50bpsSupport Function Costs(6,856)(7,859)+14.6%+8.2%SFC ratio(%of revenues)23.7%23.0%+70bps+90bpsAdjusted EBITA4,9876,017+20.7%+14.4%Adjusted EBITA margin17.3%17.6%+30bps+40bpsRestructuring costs(225)(227)Other operating income&expenses(21
107、)(433)EBITA4,7415,357+13%Amortization&impairment of purchase accounting intangibles(410)(424)Net Income(Group share)3,2043,477+9%Adjusted Net Income(Group share)13,4093,968+16%+13.5%Adjusted EPS1()6.137.11+16%+13.1%Free Cash Flow2,7993,330+19%Adjusted EBITA margin at 17.6%,up+40 bps organic due to b
108、etter volumes,pricing actions and delivery of the Groups cost savings program.Gross profit was up+10.8%organic with Gross margin down-50bps organic,reaching 40.6%in 2022.The decline in margin was mainly driven by lower productivity due to inflationary pressures in the supply chain.2022 Adjusted EBIT
109、A reached 6,017 million,increasing organically by+14.4%and the Adjusted EBITA margin expanded by+40bps organic to 17.6%as a consequence of strong pricing,good cost control and improving SFC/Sales ratio.The key drivers contributing to the earnings change were the following:Volume impact was positive,
110、+761 million.The Groups industrial productivity level was-457 million.Underlying industrial productivity was+148 million,before the headwind from higher costs of freight,electronic components and other inflationary items in the supply chain which totaled-605 million.Over a three-year period(2020-202
111、2)the Group has delivered underlying industrial productivity in excess of 700 million(before the impacts of freight and electronics)with 2022 in particular impacted by tightness in global supply chains.The net price2 impact was positive at+1,348 million in 2022.Gross pricing on products was positive
112、 at+1,818 million due to pricing actions taken throughout the year.In total,RMI was a headwind at-470 million.Net price after taking into account freight,electronic components and other inflationary items in the supply chain was+743 million.Cost of Goods Sold inflation was-197 million in 2022,of whi
113、ch the production labor cost and other cost inflation was-123 million,and an increase in R&D in Cost of Goods Sold was-74 million.The overall investment in R&D,including in support function costs continued to increase as expected and represented 5%of 2022 revenue.Support function costs increased org
114、anically by-581 million,or+8.2%organic in 2022 but the Group was able to reduce the overall SFC to Sales ratio from 23.7%to 23.0%,improving by 90bps organic.The Group continued to deliver on its structural savings and cost efficiency plan with savings of 203 million in 2022.The Group invested an add
115、itional 547 million on its strategic priorities in 2022 including R&D,digital and commercial footprint to support future growth.Additionally,the Group faced a significant headwind from inflation,which totaled 254 million in 2022.Cumulatively in the period 2020-2022,the Group met its objective in del
116、ivering 1 billion of structural savings.The impact of foreign currency increased the adjusted EBITA by+333 million in 2022,including an IFRS technical adjustment for hyperinflation impact in Turkey and Argentina.2022 performance resulted in a favorable mix effect of+49 million due to a strong improv
117、ement of Gross Margin in the Systems business(mainly coming from pricing)more than offsetting impacts from the relatively faster growth of Systems volumes compared to Products and lower growth at AVEVA.The impact from scope&others was-226 million in 2022,with net Scope impacts representing a small n
118、egative amount mainly associated with Russia,which is treated as a scope item in Q4.Financial Performance Highlights(1)Organic change of adj.Net Income and adj.EPS is calculated after removal of impacts from Russia operations in both 2021 and 2022.(2)Price on products and raw material impact.15Life
119、Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R T3,4773,2042,1262,4132,3342002120227.116.134.725.324.642002120223.152.902.602.552.35200212022Energy Management20.4%Adjust
120、ed EBITA margin,up+40 bps organic.Industrial Automation18.9%Adjusted EBITA margin,up+30 bps organic.Net income up+9%Restructuring charges were-227 million in 2022,2 million higher than last year as the Group continued to implement its operational efficiency program to generate c.1 billion of structu
121、ral cost savings in the period 2020-2022.Cumulative restructuring charges over the same three-year period totaled 873 million.Other operating income and expenses had an impact of-433 million,consisting of-287 million losses in relation to the exit from Russia(mostly write-off of net book value),-180
122、 million of M&A and integration costs,-75 million impairment associated with the disposal of Transformer Plants in Poland and Turkey,partly offset by gains on other disposals made in the year.In 2021,other operating income and expenses had a small negative impact of-21 million as gains on disposals
123、mostly offset the costs of M&A and integration.The amortization and impairment of intangibles linked to acquisitions was-424 million compared to-410 million last year.The increase was mostly due to OSIsoft with a full year of amortization in 2022,compared to 9 months in 2021.Net financial expenses w
124、ere-215 million,39 million higher than in 2021.The cost of debt was up slightly year-on-year,and additionally there was a negative FX impact on currencies where hedging is not possible.Income tax amounted to-1,211 million,higher than last year by 245 million as a function of the higher profit.The ef
125、fective tax rate was 25.7%,higher due to the impact of the Russia disposal(ETR of 24.6%excluding Russia,in the expected range of 23%-25%and compared to 23.2%in 2021).Share of profit on associates decreased to+29 million,down-55 million compared to last year.Net Income from Delixi was down-29 million
126、 year-on-year,impacted by COVID-19 lockdowns in China and some softness in Residential buildings markets.The net result generated by Uplight was also down year-on-year.As a result,Net Income(Group share)was 3,477 million in 2022,up+9%from 2021.The Adjusted Net Income was 3,968 million in 2022,up+16%
127、vs.2021.Adjusted Earnings Per Share()7.11Dividend Per Share()3.15Net Income(Group share)(millions)3,477m16Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R T3,3302,7993,6733,4762,202020212022Free Cash Flow reached 3.3 billionThe Group del
128、ivered Free Cash Flow of 3,330 million,primarily due to the P&L performance driving record operating cash flow of 5,393 million.Trade working capital requirements continued to impact the free cash flow for the year,as the Group prioritized securing supply and delivery to customers in an overall stro
129、ng demand environment.The trade working capital dynamic turned positive in H2 as expected,with easing of supply chain constraints supporting backlog execution and therefore a reduction in the inventory levels held.Net capital expenditure of 1,024 million remained stable at 3%of revenue,while R&D cas
130、h costs of 1,845 million represented 5.4%of 2022 revenue.Balance Sheet Remains Strongmillions of eurosDec.31,2022Dec.31,2021Total current and non-current financial liabilities10,463 9,749-of which Bonds8,6278,234Cash and cash equivalents-3,986-2,622Net financial debt excluding purchase commitments o
131、ver non-controlling interests6,4777,127Purchase commitments over non-controlling interests4,748176Net financial debt including purchase commitments over non-controlling interests11,2257,303Schneider Electric SE issued bonds totaling 1,100 million during 2022.Schneider Electrics net debt at December
132、31,2022 amounted to 11,225 million after payment of 1.8 billion to fulfill the 2021 dividend,net acquisitions of 0.3 billion,offset by the good Free Cash Flow performance of 3.3 billion.The net debt was also impacted by a technical adjustment of 4.6 billion to reflect the commitment to purchase the
133、minority shares in AVEVA,a transaction which closed on January 18,2023.Adjusting to exclude the impact of such purchase commitments would result in a net debt of 6,477 million,comparable to the 7,127 million of the previous year end.The Group remains committed to retaining its strong investment grad
134、e credit rating.Financial StrengthA-Standard&PoorsA3MoodysFree Cash Flow(millions)3,330mFinancial Performance Highlights8%*25%*10%*10%*Full year 2022Software*+9%org.growthConnectable Products+20%org.growthEdgeControl+13%org.growthFieldServices+8%org.growth53%of 2022 Grouprevenues*Including Digital S
135、ervices*%of 2022 revenues17Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TFlywheel up+15%org.in 2022Making strong progress on our digital journeySchneider Electric continues to make progress on i
136、ts Digital Transformation Scale to create unified software,user experience,data federation and AI as set out in the 2021 Capital Markets Day.This includes tracking the evolution of its digital flywheel where strong progress has been made against the targets set out in 2021.Schneider Electric is focu
137、sed on growing recurring revenues which serve to deepen the relationship with customers across the lifecycle of their assets and installations,for the benefit of both parties over time.2021 2022Digital flywheel as%of Group revenuesSoftware&Services as%of Group revenues Recurring revenue as%of Softwa
138、re&Services revenues c.50%c.18%c.30%53%18%36%Key achievements of the year Digital innovation driving strong growth in connectable products Good growth in Software and Digital Services despite transition to subscription at AVEVA Strong traction for efforts to make software and services revenues more
139、recurring18Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TProcess Efficiency+Energy EfficiencyAgnostic Software and DataEdge ControlEnd-to-end CybersecuritySchneider Electric Exchange&Strategic AlliancesConnected ProductsAccelerating our digital
140、 journeySchneider Electric has built the toolbox for customers to digitize their enterprise and build its full digital twin,allowing them to harness insights through data to deliver greater efficiency and savings.This is achieved through EcoStruxure,our IoT enabled,plug-and-play open architecture an
141、d platform.Unparalleled portfolioOn top of EcoStruxure,we have built an agnostic software portfolio,meaning software that is not tied to any particular hardware device or technology platform,with offers across both Industrial Automation and Energy Management.EcoStruxure for IoT,Data and Software for
142、 a complete Digital TwinAn increased focus on climate change,coupled with the recent energy crisis,has forced governments and corporations to re-think their energy consumption with a renewed and urgent need for energy efficiency and electrification.Schneider Electric believes that the path to energy
143、 efficiency lies in the ability to digitize existing installations across industries with a particular focus on mission-critical and energy-intensive applications.For our customers there is a clear need for digital solutions across the lifecycle covering both the industry twin and the energy twin ac
144、ross the enterprise.We aspire to be the reference in the industrial world for contextualized asset data.We believe that customers can benefit when data from their enterprise installations feeds into a single data hub,accessible by specialized software applications for tangible efficiency gains and s
145、ustainability advancements.Holistic efficencyIn the current context,with priority on energy security and the resultant rise in energy costs,there is a clear need for greater energy efficiency.Schneider Electrics portfolio of software will allow customers to converge their enterprise data,across doma
146、ins of process,power and build,and provide contextualized data-driven insights across the lifecycle of their assets.Convergence between Power and Process DataDigital Twins of all critical elements of the enterpriseContextualized insights for Safety,Resiliency,Efficiency&SustainabilityOne Data Hub fo
147、r Operations,Assets,Energy&Carbon TrackingIndustrial SoftwareEnergy SoftwareEnd-markets:BuildingData CenterIndustryInfrastructureOne Data Hub and a fast track to the Enterprise MetaverseIoTPlug&Play ArchitectureIndustry TwinEnergy TwinData HubOne singular source for Enterprise SoftwareDigital TwinAc
148、ross the lifecycleMar.18Sep.22Nov.22Dec.22Jan.2319Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TImplications for our customersThe combination of AVEVA and Schneider Electric agnostic software pr
149、ovides customers with one data hub,and a fast track to the Enterprise Metaverse.Doing so will drive benefits for customers,creating value through:Acceleration of the transition to a subscription model and Software as a Service(SaaS)Creating one data hub,converging customers process and energy data B
150、ringing combined process and energy efficiency to industrial and infrastructure customers Providing one set of applications for the complete Enterprise Metaverse Leading to a frictionless customer experienceImplications for Schneider ElectricThe transaction will serve to accelerate Schneider Electri
151、cs software strategy,driving growth through:A simplified and co-ordinated agnostic software offering Operational flexibility and simplification Further convergence of technology through closer co-operation on R&D A co-ordinated go-to-market and greater customer coverageOur three principles of Softwa
152、re governanceSchneider Electric intends to apply its fundamental principles of business autonomy and technological agnosticity to the governance of AVEVA by ensuring three“software governance principles”,which are:1.First,to maintain AVEVAs software as fully agnostic.This means that AVEVA will conti
153、nue to rely on open architectures and interoperable standards providing the equal ability to work with or without Schneider Electric hardware.2.Second,to preserve AVEVAs business autonomy.This means that the AVEVA name and brand will continue and AVEVA will have its own,dedicated go-to-market,market
154、ing and R&D capabilities,as well as its own P&L.3.Third,to keep AVEVAs specific culture as a software company.This means that the AVEVA teams will not be merged or integrated with existing Schneider Electric hardware businesses,or country operations.Transaction timelineNovember 11,2022Schneider Elec
155、tric reaches agreement on the terms of an increased and final cash offer of 32.25 per share March 1,2018Schneider Electric acquires a c.60%share in AVEVA January 18,2023Schneider Electric announces completion of the transaction,with shares in AVEVA to be de-listed the following morningNovember 25,20
156、22AVEVA announces that the requisite majority of eligible AVEVA shareholders have voted to approve the offer and to pass a special resolution to implement the SchemeDecember 14,2022AVEVA announces that all of the regulatory conditions have now been satisfiedSeptember 21,2022Schneider Electric announ
157、ces its intention to acquire the remaining c.40%of shares in AVEVA that it does not already own,by way of a scheme of arrangement*.*The cash offer of 31 per share is recommended by the AVEVA Independent Committee and is subject to the approval of the minority shareholders and certain regulatory cond
158、itions.In 2022,Schneider Electric took the next step in the evolution of its strategy,and the acceleration of its digital journey,through the acquisition of the entire share capital of AVEVA.20Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TKey a
159、chievements of 2022JanuarySchneider Electric achieves outstanding performance in four corporate sustainability ratings underlining its long-standing sustainability leadership.11th consecutive year on CDPs Climate Change A list 11th consecutive year on the Dow Jones Sustainability World Index Top rat
160、ing from EcoVadis:in the top 1%of 85,000 corporates assessed and received the Platinum medal#1 in the Electronic Components&Equipment sector in Europe on the Vigeo Eiris indexIn addition,Schneider Electric was recognized for the 11th time in Corporate Knights Global 100 list of the most sustainable
161、corporations,ranking fourth in 2022.FebruarySchneider Electric lands on Fortunes 2022 Worlds Most Admired Companies list for the fifth year in a row.This year,Schneider Electric ranks third in the electronics industry,signifying its continuing commitment toward building a more digital,electric,and d
162、ecarbonized world.This accolade is a testament to the Companys ongoing commitments toward innovation,sustainability,diversity,and inclusion.MaySchneider Electric launched EcoStruxure Machine Expert Twin,a scalable digital twin software solution to manage the entire machine lifecycle.Using EcoStruxur
163、e Machine Expert Twin our customers can expect 60%savings in commissioning time and up to 50%faster time-to-market by revolutionizing the design and build processes.AprilSchneider Electric donated equipment worth 4 million to help restore essential energy supplies in Ukraine.The donation was facilit
164、ated by the World Economic Forum as part of ongoing efforts to identify steps its members can take to support humanitarian needs in Ukraine.In addition,the Schneider Electric Foundation supported NGO partner“SOS Attitude”in running a refugee camp in Moldavia.MarchSchneider Electrics Le Vaudreuil fac
165、tory has been recognized by the World Economic Forum as a Sustainability Lighthouse,one of only six worldwide and the second for Schneider Electric.The World Economic Forum also recognized the Companys Smart Factory in Hyderabad,India as an Advanced Lighthouse the fifth Schneider Electric factory to
166、 receive this distinction to dateJuneSchneider Electric won the 2022 Microsoft Energy&Sustainability Partner of the Year award.Schneider was honored among a global field of top Microsoft partners for its innovative EcoStruxure software solutions provided to customers that were powered by Microsoft t
167、echnology.21Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TJulySchneider Electric signed a binding agreement regarding the sale of Schneider Electric Russia to the local leadership team.The trans
168、action was completed at the end of September,with Schneider Electric Russia deconsolidated effective from the start of Q4 2022.AugustSchneider Electric ranked first in the Gartner Supply Chain Top 25:Europe Top 15,retaining its position for the third consecutive year.This recognition followed the an
169、nouncement in May that the company ranked second in the Gartner global ranking.OctoberSchneider Electric introduces advanced energy management solutions at its Innovation Summit World Tour expanding the AirSeT range with the launch of new SF6-free MV switchgear for primary distribution(GM AirSet),th
170、e EcoStruxure Energy Hub IoT SaaS solution for visibility into energy and emission profiles and Schneider Electric EcoCare,a unified IoT-enabled bundle of 24/7 expert support,that delivers deep insights on asset conditions,and expertise to unlock safety,efficiency,and sustainability improvements.Dec
171、emberSchneider Electrics Wiser Home Energy Management App received special honors at this years Consumer Electronic Show(CES)being named a 2023 Innovation Award Honoree in the Smart Home category.The award recognizes outstanding design and engineering in technology products,focusing on sophisticated
172、 monitoring and control solutions.The Wiser App simplifies home energy measurement&control to increase efficiency,saves on energy bills and allows homeowners to live more sustainably.NovemberSchneider Electric is triply recognized by the Financial Times,Refinitiv and Forbes as a global leader in wor
173、kplace diversity,equity and inclusion(DEI).These separate endorsements reflect both the depth of the companys long-standing commitment to creating a fairer and more equitable society,as well as the tangible,practical impact of the measures it has implemented to progress that ambition within its work
174、force.SeptemberSchneider Electric confirmed its firm intention to acquire the share capital of AVEVA that it does not already own.The transaction will create customer value through bringing together energy and process data,creating an unparalleled enterprise data hub augmented by a suite of speciali
175、zed software offers.The minority shareholders of AVEVA voted in November 2022 to approve the transaction,which closed in January 2023 following satisfaction of all regulatory conditions.22Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TBusinessMa
176、rket trends All Digital,All Electric At Schneider Electric,we believe an All Digital,All Electric world is key to limiting the global temperature increase to the 1.5C trajectory needed to slow climate change and enable a resilient future.The energy crisis in Europe shows that decarbonization is a st
177、rategic imperative to ensuring stability today and not limited to ensuring a resilient world in the far future.In fact,the medium-term objective of reaching carbon neutrality to fight climate change fully aligns with the short-term objective of energy security.We are at an inflection point.We need t
178、o build a more sustainable and resilient world.We need to save 3x more and 3x faster CO2 emissions by 2030Source:Schneider Electric Research Institute Scenario:Back to 2050 4 Gt*CO2 saved per yearCurrent pledged savings,post COP26,by 2030 leading to 2.7 riseMinimum required savings by 2030 to limit
179、to 1.5 rise10-15 Gt*CO2 saved per year*GigatonneSolutions to increase sustainability and resilience exist and are available today.Schneiders positioning for a sustainable future focuses on an All Digital,All Electric world.Its what we call“Electricity 4.0”:Digitization creates resilience and builds
180、a smart future:Data analytics and insights enable more agile,efficient operations and continuity,making the invisible visible.Electricity makes greener energy possible:Green energy production offers the best path for decarbonization.DIGITALFor Efficiency+ELECTRICFor Decarbonization=SUSTAINABLESmart&
181、Green 23Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TGrids of the Future100%reduction in CO2 emissionsData Centers of the FutureCO2 emissions stable during exponential data growth1Industries of
182、 the Future 84%reduction in CO2 emissionsH2H290%of power from renewables10 x faster renovation rates370%recycling rates40 65%of energy delivered as electricity2x more rail Buildings of the Future93%reduction in CO2 emissionsInfrastructure of the Future 83%reduction in CO2 emissionsSolar energy captu
183、red on every suitable rooftop70%of cars are EVs1 CO2 emissions from Schneider Electrics data center and edge global energy forecast and BNEF Carbon Intensity Projection.Data growth from worldwide IDC Global DataSphere forecast applying exponential growth projection.2 IDC Services3 BNEFPartnerships o
184、f the Future 80%2 invested in more sustainable business practices70%heat pump usage167 million households go solar3All other statistics:Schneider Electric Sustainability Research Institute(2021):“Back to 2050”decarbonization scenarios.CO2 emission reduction projections are based on the diferences be
185、tween 2050 and baseline year 2020.Megatrends highlight the shift to a world becoming All Digital,All Electric.All DigitalGrowing need to aggregate exponential amounts of data.Expansion of Internet of Things(IoT)in industrial processes driving more and more data.By 2030,the number of IoT devices will
186、 be six times that of 2020 growing from eight billion to 50 billion,resulting in an eight times increase in compute workloads(1).New business models possible with new technologies like artificial intelligence(AI),algorithms,and digital platforms.All ElectricMore renewables,with a variable capacity m
187、ix anticipated to reach up to 50%by 2040,make power generation greener.More electric vehicles(EVs)drive changes to the electrical grid and increase the level of electrification.More energy efficiency from better products and smarter use.What net zero looks like in 2050(1)Schneider Electric Sustainab
188、ility Research Institute.24Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TWhat we doWe help our customers integrate sustainability,efficiency,and responsible profitability into every step of their decision making and lead by example in our own S
189、mart Factories.Our unrivaled EcoStruxure solutions and services,built from the legacy of award-winning brands such as Modicon,Foxboro,Triconex,TeSys,Altivar,and Harmony,are complimented by AVEVA software and strategic partnerships with world-leading companies to provide end-to-end,integrated solutio
190、ns from the shop floor to the top floor and into the cloud.Innovations introduced in 2022 include:Lexium Cobot:An advanced robotic system that increases workforce empowerment and safety by performing heavy,repetitive,and complex tasks.EcoStruxure Automation Expert 22.1:The worlds first universal aut
191、omation solution now reduces engineering by almost 50%through AVEVA System Platform integration,and provides a cost-effective,high-computing-power controller with Modicon M262d integration.EcoStruxure Machine Expert Twin:A scalable digital twin of real machines allowing manufacturers to design,commi
192、ssion,and manage their lifecycle in the virtual world before impacting the real world.Motor Management:Decreases motor energy consumption and deterioration without compromising safety and reliability.EcoStruxure Motor Management Design web app easily performs energy savings analysis,and Altivar Soft
193、 Starter ATS480 reduces engineering time and costs.EcoStruxure Power and Process:Increases efficiency and sustainability by digitally unifying automation and electrical systems.Industries of the FutureWe are on a mission to make the industries of the future sustainable and resilient through open,sof
194、tware-centric automation.96%less energy and 95%less material needed for testing(Euro Machinery).50%faster changeover time and up to 40%cost savings(Livetech).25%less downtime and 40%less labor costs(Wilo Pumps Indonesia).Padania AcqueSchneider Electric worked with Italian water services provider Pad
195、ania Acque,to integrate and modernize its operations,resulting in:reduced energy consumption by at least 5%,reduced water loss by up to 10%,22%increase in EBITDA over three years.for Water&WastewaterApps,Analytics,&ServicesEcoStruxture Water Cycle Advisor Water Loss&Water SimulationAVEVA Work TasksE
196、dge ControlEcoStruxture GEO SCADA ExpertModicon PACs:M340/M580/M221Connected ProductsLV smart panelsAltivar drivesSCADAPack RTU25Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TCitycon Lippulaiva
197、Helsinki,Finland Citycon a leading owner,manager,and developer of mixed-use urban centers commissioned Europes first energy self-sufficient,sustainable,and carbon-neutral urban center.With EcoStruxure solutions,including an advanced microgrid system,Citycon became a prosumer both a producer and cons
198、umer of energy.The goals included to achieve high sustainability through net-zero emissions,improve energy management,lower energy consumption,and generate revenues by selling energy back to the local utility,and were achieved with EcoStruxure solutions.Results of this installation and strategy incl
199、ude:335 tCO2/year(direct energy savings)emissions reduction.14%reduction in energy costs.3 million investment payback within five years.Sustainable:designed and retrofitted for net-zero.With our 3-step framework Strategize,Digitize,and Decarbonizewe bridge ambition and action for decarbonization of
200、buildings,new and existing.Resilient:avoids downtime and recovers quickly.Our power digitalization and microgrid solutions enable business uptime through reliable power,predictive analytics,and conditions-based maintenance.Hyper-efficient:gathers real-time data for visualization and identification o
201、f efficiency opportunities.Through room-level monitoring,occupancy sensors,and building management software,businesses can better manage energy and space utilzation.People-centric:puts people first in the design and operation of the building for improved health,safety,comfort,and productivity.Our bu
202、ilding management and security solutions provide an optimal environment for occupants at all times.Innovations introduced in 2022 include:EcoStruxure Building Operation 2022 An open,scalable next-generation building management solution that provides a single control center for facility professionals
203、 to monitor,manage,and optimize the efficiency of systems that have been traditionally siloed.Now providing simple integration,visibility and actionable data from solar panels,EV charging stations,and renewable energy sources,as well as previously integrated HVAC,power,lighting,security,fire systems
204、,and more to create sustainable and energy-efficient buildings.SpaceLogic Insight-Sensor Anonymous,real-time people-counting technology and integration with EcoStruxure Building Operation building management system(BMS)responds dynamically to changes in room conditions and occupancy to reduce energy
205、 waste,enhancing occupant comfort.Additional sound,light,temperature,and humidity sensing delivers data required for green and WELL building standards and certifications.EcoStruxure Building Advisor Monitor your building management system and heating,ventilation,and air conditioning(HVAC)assets whil
206、e automatically detecting and diagnosing faults leading to energy waste.Dedicated dashboards indicate tailored recommendations to help prioritize maintenance tasks,based on carbon emission scores.Facility professionals can view the carbon impact of every single building,and also report on carbon foo
207、tprint reduction across the whole enterprise.EcoStruxure Energy Hub Cloud-based energy management system designed for small and medium-sized commercial and industrial buildings that simplifies energy management and achieving sustainability goals,without the IT headaches.Simply connect your smart ene
208、rgy infrastructure for a single building or multiple sites to automatically collect,store,visualize,and report on energy data.50%Approximately 50%of todays buildings will still be in use in 2050(1).37%Buildings account for 37%of the worlds annual CO2 emissions(1).(1)https:/www.iea.org/reports/energy
209、-technology-perspectives-2020Buildings of the FutureWe spend the majority of our lives in buildings.They are where we work,learn,shop,and spend time with the people who matter most.That is why it is more important than ever that buildings are:for buildingsApps,Analytics,&ServicesEcoStruxure Building
210、 AdvisorEcoStruxure Microgrid AdvisorEdge ControlEcoStruxure Building OperationEcoStruxure Power OperationConnected ProductsMasterPactMTZPowerLogic Metering26Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TMake homes more sustainableHomes are the
211、 single largest consumer of electricity and contribute up to 20%of carbon dioxide emissions.Schneider Electric provides solutions to make homes multi-energy source ready,maximizing electrification and,therefore,decarbonization(e.g.,switching from fossil fuel to electrical heating),making it easy to
212、upgrade existing installations.Make homes more resilientSchneider Electrics advanced technology helps customers secure homes against electrical hazard risks,cyber threats,and power interruption.The energy crisis and climate change is putting increased pressure on our homes electrical installation.Ou
213、r next generation of intelligent electrical switchboards,combined with battery back-ups,ensures critical appliances remain powered even during outages.Make homes more efficientHeating accounts for about 60%of the energy bill.Added to this,EV charging will increase electricity consumption by up to 40
214、%in homes(1).To mitigate increased energy bills,our Home Energy Management solutions enable consumers to decrease energy consumption,without compromising on comfort.Through real-time monitoring and control of major energy guzzlers in homes,we empower homeowners to make their home more energy efficie
215、nt.Make homes more personalSchneider Electric helps you create a comfortable home with a bespoke style and personalized living experience at every moment.Thanks to digitization and machine learning,you can take complete control of your home while Wiser learns your preferences to deliver youruniquesm
216、arthomeexperience.x2Electricity consumption in residential buildings is expected to double by 2050(2).20%Homes contribute up to 20%of CO2 emissions(3).54%Consider smart technologies like home energy management solutions as a way to reduce energy bills(4).(1)ChargeGuru study of 100 EV installations i
217、n France.(2)International Energy Outlook 2019(EIA).(3)UN Environmental Program 2020.(4)Schneider Electric consumer survey conducted across six markets 8,019 respondents in July 2021(performed by OPINIUM).Innovations introduced in 2022 include:Wiser app Home Energy Management System:The Wiser App fro
218、m Schneider Electric makes it simple for homeowners to manage their energy use,reduce bills,and prepare for a more sustainable future,all in just a handful of taps.Users can monitor power consumption in real-time,understand their spending,and set budgets with ease.Plus,Wiser now creates the most eff
219、icient schedule for charging an EV,choosing when to start charge based on the cheapest electric tariff.Merten System-M Pure Ocean:The plates of this series of switches and sockets are made from used fishing nets.Odace Sustainable:One of the best seller series of switches and sockets,produced in a ne
220、t-zero factory in Spain,is now available in a recycled material option,which would be 80%post-industrial frames.Resi9 Green:Introducing recycled content into an electrical component is not an easy task,as the new material needs to comply with high standards in terms of safety and performance,such as
221、 resisting temperatures up to 950 degrees.Our teams have been able to make it happen for our Resi9 breakers series.Resi9 Connect:Resi9 Connect ensures that all home occupants have strong internet connection,using a wired for wireless architecture wired for performance and wireless for convenience.Th
222、e solution provides internet access throughout the home via wall hotspots,providing router-quality WiFi in every room.Homes of the FutureAt Schneider Electric,our aim is to make homes more efficient and sustainable,leveraging our future-proof and scalable home energy solutions.Our cutting-edge techn
223、ologies help monitor,control,automate,and save on energy consumption,while also reducing carbon emissions at home without compromising on comfort and convenience.We design solutions to:KB Homes customer testimony“We are excited to partner with industry and academic leaders to bring advanced technolo
224、gies and energy solutions to our homeowners.The new KB homes at Oak Shade and Durango at Shadow Mountain will be the first in California to be equipped with smart technologies,a backup battery,and microgrid connectivity.These will provide a self-supporting energy system with a community battery that
225、 powers the neighborhood,”said Dan Bridleman,Senior Vice-President of Sustainability,Technology and Strategic Sourcing for KB Home.“We look forward to conducting research to measure the energy efficiency and resiliency of our all-new energy-smart connected communities.”What we do27Life Is On|Schneid
226、er Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TGridsSustainable,flexible,efficient,and resilient power grids are fundamental to accelerate the energy transition.In addition to providing innovative electrical equip
227、ment,such as switchgear that uses pure air instead of the SF6 greenhouse gas,the Group equips grid operators with data gathering,management,and analytics capabilities that unlock grids of the future.These digital grid transformations further enable the decarbonization of buildings,industry,and mobil
228、ity.Transportation infrastructureMany governments,cities,and transit authorities are pioneering mobility and infrastructure projects using end-to-end EV charging solutions,renewables,battery storage,and microgrids.Schneider Electric makes this possible through a foundation of digital,future-proof,fi
229、nancially innovative,and services-based infrastructure solutions.These solutions modernize and digitize diverse transportation infrastructure including buses,metros,railways,and airports,speeding up the transition to low-carbon mobility.Innovations introduced in 2022 include:SM AirSeT and RM AirSeT
230、are digital MV switchgear ranges using pure air technology,eliminating the need for the SF6 GHG.EcoStruxure Grid Operation is a scalable,future-proof software solution offering outage management and SCADA modules specifically tailored for small to medium-sized utilities.This modern technology that h
231、elps maximize reliability,resilience,and operational efficiency is easy to deploy and maintain while also serving as a foundation for a stepwise journey to Advanced Distribution Management Systems.AVEVA Unified Operations Center for Renewables is an enterprise visualization for creating intelligent
232、operations centers based upon a system of systems approach.ETAP Grid Code is an end-to-end solution for the design,analysis,protection,optimization,operation,and maintenance of renewable energy systems.EcoStruxure EV Advisor is a platform for building owners and EV drivers to control EV charging rem
233、otely.ETAP Train Power Simulation eTraX is software for designing,analyzing,and managing AC and DC railway infrastructure.80%of global CO2 emissions come from the production and consumption of energy(1).60%rise in CO2 emissions from transportation by 2050 in absence of mitigation measures(2).(1)OECD
234、/IEA(2020),World Energy Outlook,Climate Watch(2020),Historical GHG emissions,Schneider Electric Research.(2)Planete Energies.Infrastructure of the FutureInfrastructure is the backbone of society.Schneider Electrics technology,services,and expertise enable cities and companies to make infrastructure
235、more reliable,safer,greener,and more efficient.Brookville Smart Energy Bus DepotA first-of-its-kind“Energy as a Service”infrastructure electrification project ensuring the bus fleets continuous operation regardless of utility outages.Backed by renewables,it advances Montgomery Countys 2035 net-zero
236、carbon emissions goal.The project is set to deliver sustainable and resilient energy and charging infrastructure supporting at least 44 electric buses at Brookville Smart Energy Bus Depot.Solutions installed:solar PV,on-site generation,battery energy storage,microgrid controls,and electric bus charg
237、ers.62%carbon reduction from buses eliminating a lifetime(155,000 tons)of GHG.99.999%resilience and reliability of operations and sized to handle peak-demand.Turnkey Energy as a Service solution.for eMobilityApps,Analytics,&ServicesEcoStruxure Microgrid AdvisorEcoStruxure Power AdvisorEdge ControlEc
238、oStruxure Microgrid OperationEcoStruxure Power OperationConnected ProductsPowerLogicMasterPactMTZEnergy Control Center28Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TCritical attributes of evolving data centers:Sustainable Sustainability in dat
239、a centers involves creating direct customer benefits and accounting for emissions from the entire supply chain.Robust data is crucial for a sustainable solution for both the organization and its customers.Resilient By reducing exposure to hazards and risks to minimize unplanned downtime.Monitoring a
240、nd data analysis helps data center teams proactively avoid uptime threats and maintain business continuity.Efficient More and more data centers are incorporating human resources and cost aspects such as CapEx in total cost of ownership(TCO).Intelligent sensors and digital services will drive more ef
241、ficient operations.Adaptive Speed and precision in delivering goods and services is a new business success threshold.Data centers must adjust to changing customer demands.Agile designs enable data centers to pivot and scale quickly.Meeting these demands is crucial for business success.Innovations in
242、troduced in 2022 include:EcoStruxure IT:Schneider Electrics comprehensive data center infrastructure management(DCIM)software solution that ensures business continuity by enabling secure monitoring,management,and planning for IT infrastructure,from a single rack to hyper-scale,on-premises,in the clo
243、ud,and at the edge.APC SmartUPS Modular Ultra:The most sustainable modular UPS for distributed IT and edge computing allows for scaling power protection from 5-20 kW to meet business needs.Lithium-ion technology eliminates the need for battery replacement,allowing for more power,IT,and edge computin
244、g.APC SmartUPS Ultra:The first of its kind single-phase UPS that has a lighter and more powerful design.It uses lithium-ion technology to power distributed IT and edge computing sites to ensure uptime and resilience.Maintaining uptime means happy customers“The biggest win using EcoStruxure IT Adviso
245、r is that were now in a position where were reacting to situations before they actually become situations visible to anybody else.Were doing our best work when nobody really knows that we exist.”Christopher Perez,Advisor for Enterprise Technology,Puget Sound Energy Data Centers of the FutureData cen
246、ters are the lifeblood for the digital world,from large cloud centers to small micro ones.They must be sustainable,resilient,efficient,and adaptive to meet the changing demands of technology.What we doEcoDataCenterEcoDataCenter believes it has a responsibility to be socially and environmentally acco
247、untable when it comes to new data centers which drives its very mission statement.Located in Falun,Sweden,they operate with an emphasis on climate-positive solutions for clients,communities,and the environment.Four GalaxyTM VX UPSs operating at 99%efficiency can support 3,750kW of customer load in t
248、he data center.Connected sensor and meter monitoring allows greater facility temperature control.The data center achieves new levels of efficiency,with an EER of 132 and a PUE of 1.15 by reusing low-grade waste heat.for ITApps,Analytics,&ServicesEcoStruxure IT AdvisorEcoCareEdge ControlEcoStruxure I
249、T ExpertConnected ProductsRow Data CenterGalaxyTMUniflairTMModular Data Center APC SmartUPSTMUp to20%reduction in energy usage(1).Around15%reduction in maintenance costs(1).(1)https:/ Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9
250、I N T E G R A T E D R E P O R TInnovations introduced in 2022 include:PrismaSeT Active is the newest generation of low-voltage switchboards,natively cloud connected helping boost reliability&efficiency.Maximizing people safety with heat tag.Commissioning is made faster,before smart alarms help optim
251、ize maintenance and improve uptime.TransferPacT is the new generation transfer switch that provides best-in-class reliability with ultra-fast transfer performance.This natively connected switch can be monitored 24/7 and thanks to the modular design,its easy to upgrade with 30%space saving.TeSys Seri
252、es:The new generation of TeSys motor starters-Deca and Giga series are designed to serve the needs of the process machinery,water and wastewater,metals,minerals,and mining as well as various manufacturing and processing industries.The new generation TeSys series reduce engineering time and complexit
253、y,whilst improving machine reliability and driving down maintenance costs help provide consistent performance,enhanced safety and uptime,cost savings,and great functionality.Melbourne Cricket Ground The 100,000-seat sports stadium,considered the home of Australian sport,is a prime example of the con
254、vergence of building technology and IoT applications and advanced data to ensure power quality for fans and stakeholders;track consumption of energy,water and gas;and reduce energy costs and usage to minimize environmental impact.Thanks to Critical Power EcoXpert,AZZO and EcoStruxure Power.Building
255、a sustainable future togetherSustainability is more than a corporate social responsibility;its also,a business imperative.Companies everywhere are concerned about climate change as they feel pressure to address the issue for shareholders,customers,employees,and the younger generation.At Schneider El
256、ectric,were responding by enabling sustainable practices with solutions that are simplified,open,and digital.And were providing these solutions for,with,and through our partners worldwide.Sustainability For Partners:We support our partners in assessing their own carbon footprint and building a track
257、able and traceable plan of action.Sustainability With Partners:We certify our partners ability to assess the sustainability of their supplier and customer ecosystem with automated and easy-to-scale SaaS solutions.Sustainability Through Partners:We assess and market the impact of our solutions on car
258、bon,total cost of ownership,and ability to secure certifications and subsidies to increase our competitive advantage and benefit our partners.First-ever Sustainability Impact AwardsSchneider Electric launched the Sustainability Impact Awards in 2022 and,in the programs inaugural year,focused on part
259、ners who share our passion for decarbonization and are taking action to make the most of their energy and resources.It is altogether fitting that our inaugural global awards program recognizes our partners for their sustainability efforts in their own operations and on behalf of their customers.Over
260、all,we had participation from 37 countries,11 channel partners type joined the partner award program,such as contractors,design firm,system integrators or IT solutions provider and 6 global winners will be announced in Q1 2023.In 2023,the awards program will expand to recognize suppliers and end use
261、rs for their sustainability impact,as well.650kPartners and Service Providers Co-innovate and exchange.10+mySchneider Partner Programs Curated content,tools and training.3.5k+EcoXpert partners to implement solutions worldwide.Partnerships of the FutureClimate change is the defining issue of our time
262、.We must limit the planets warming to 1.5 Celsius,which means collectively eliminating three times more carbon emissions by 2030.The good news is,we have tools available to make the world less carbon intensive and more energy efficient.But no one can complete the decarbonization journey alone.Only b
263、y teaming together can we accelerate progress on the worlds path to net zero.And thats what Partnering for Sustainability is all about.30Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TIMPACTCompanySustainability strategyA changemaker for sustain
264、abilityFor over 15 years,sustainability has been at the core of Schneider Electrics 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
265、 their own energy efficiency and sustainability transition.Our purpose drives us in“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 in being an Impact Company be
266、cause 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 sol
267、id 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 clim
268、ate 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 uniqu
269、e 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.1.Do well to do good and vice versa2.Bring everyone alo
270、ngPerformanceThe foundation for doing goodModel&cultureSet up for global and local impactBusinessPart of the solutionAll stakeholdersin your ecosystemAll ESGDimensions See our recognitions on the Awards page at An Impact model recognized in external ratingsA LIST2022CLIMATEPlatinum medal recognizing
271、 top 1%performance among 100,000+companies.The only company in its sector listed as A List 12 years in a row.Schneider has been featured on Corporate Knights Global 100 list of sustainability leaders every year since 2012,ranking#4 in 2022.Terra Carta Seal obtained in 2022,the guiding mandate for th
272、e Sustainable Markets Initiative.#1 among industry peers,scoring 90 out of 100 in the latest S&P Global Corporate Sustainability Assessment.31Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R T1.Focu
273、sed on material issues2.Disrupting the status quo3.Transparent quarterly disclosure 4.Robust assured by an independent third party5.Rewarding employees for performanceOur 2025 sustainability commitments With less than 10 years left to reach the 17 United Nations Sustainable Development Goals(SDGs),S
274、chneider Electric has accelerated its impact and is making new,bold commitments to drive meaningful impact within the framework of its business activity.Schneider Electrics 6 long-term commitments are to:Act for a climate-positive worldby continuously investing in and developing innovative solutions
275、 that deliver immediate and lasting decarbonization in line with our carbon pledge.Be efficient with resourcesby behaving responsibly and making the most of digital technology to preserve our planet.Live up to our principles of trustby upholding ourselves and all around us to high social,governance,
276、and ethical standards.Create equal opportunitiesby ensuring all employees are uniquely valued in an inclusive environment to develop and contribute their bestHarness the power of all generationsby fostering learning,upskilling,and development for each generation,paving the way for the next.Empower l
277、ocal communitiesby promoting local initiatives and enabling individuals and partners to make sustainability a reality for all.Our unique transformation tool Since 2005,Schneider Electric measures and demonstrates its progress against sustainability goals with a unique transformation dashboard called
278、 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 ext
279、ernal 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,64,000 employees of the Group are rewarded for the progress achieved as
280、 the SSI constitutes 20%of their short-term incentive plans collective share(STIP).To ensure robustness,the SSIs performance and monitoring systems are audited annually by an independent third party and obtain a“moderate”assurance,in accordance with ISAE 3000 assurance standard,except for SSI#+1.In
281、2022,the Group obtained a“reasonable”assurance for SSI#8 and will progressively cover all externally assured KPIs with this new level of assurance.Read more about Schneider Sustainability Impact and Schneider Sustainability Essentials in chapter 2 page 78 to 81.Read more about our contributions the
282、United Nations Sustainable Development Goals on pages 82 and 83.32Schneider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R TProud of 2022s sustainability achievementsThe Schneider Sustainability Impact is a scorecard demonstrating that rapid and disruptive
283、 changes for a more sustainable world are possible across diverse,complex topics.We are committed to taking urgent action to co-create a brighter future aligned with the United Nations SDGs,and measuring our impact with transparency.In 2022,the SSI achieved a great score of 4.91/10,exceeding its 4.7
284、0/10 target for the year,and is on track to achieve its 2025 ambition.This result represents the average progress of 10 SSI programs,ie excluding SSI#+1 and exceptionnaly SSI#6 as 2022 is the baseline for this program.Significant progress was notably achieved for SSI#9 with 5.5 million people provid
285、ed with access to green electricity in 2022 alone(vs 4.2 in 2021).The Group also achieved the rapid transition of 45%of its packaging to plastic-free and recycled carboard(SSI#5),compared to 21%one year before.The Decent Work program(SSI#6)was launched for the first year,with more than 500 suppliers
286、 committing to join the program and some 1.5%already meeting the expectations set by Schneider Electric.Lastly,progress against the nearly 200 local commitments taken in all markets where Schneider operates under SSI#+1 can be consulted online,some examples are provided in the opposite page.4.91/10v
287、s 3.92 in 2021 and outperforming 4.70/10 target for 2022Schneider Sustainability Impact6 Long-term Commitments11+1 targets for 2021-2025Baseline(1)2022 Progress(2)2025 TargetClimate 1.Grow Schneider Impact revenues(3)2019:70%72%80%2.Help our customers save and avoid millions of tonnes of CO2 emissio
288、ns2020:263M440M800M3.Reduce CO2 emissions from top 1,000 suppliers operations2020:0%10%50%Resources 4.Increase green material content in our products2020:7%18%50%5.Primary and secondary packaging free from single-use plastic,using recycled cardboard2020:13%45%100%Trust 6.Strategic suppliers who prov
289、ide decent work to their employees2022:1%1%100%7.Level of confidence of our employees to report unethical conduct2021:81%+1pt+10ptsEqual 8.Increase gender diversity in hiring(50%),front-line management(40%)and leadership teams(30%)(4)2020:41/23/24(4)41/27/2850/40/309.Provide access to green electric
290、ity to 50M people2020:30M+9.7M50MGenerations 10.Double hiring opportunities for interns,apprentices and fresh graduates2019:4,939x1.33x2.0011.Train people in energy management2020:281,737397,8641MLocal+1.Country and Zone Presidents with local commitments that impact their communities2020:0%100%100%(
291、1)The baseline year is indicated in front of each SSI baseline performance.(2)Each year,Schneider Electric obtains a“limited”level of assurance on methodology and progress from an independent third party verifier for all the SSI and SSE indicators(except SSI#+1 and SSE#12 in 2022),in accordance with
292、 ISAE 3000 assurance standard(see Independent verifiers report on page 270).In addition,SSI#8 received a“reasonable”assurance level in 2022.Please refer to page 242 for the methodological presentation of each indicator.The 2022 performance is also discussed in more details in each section of this re
293、port.(3)Per Schneider Electric definition and methodology.Note that for the reporting requirements under the European Taxonomy Regulation,please refer to pages 253 to 263.(4)Calculation methodology for SSI#8 has been expanded in Q2 2022 to include blue collar managers in the scope of front line mana
294、gers.Due to this methodological change,the 2020 baseline for front line managers has been recalculated to 23%instead of 25%.33Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TClimateNew Net-Zero ta
295、rget validated by SBTiBecoming one of the first companies in the world to have its Net-Zero commitment roadmap validated by the Science Based Targets initiative(SBTi)in line with the new Corporate Net-Zero Standard.EqualClean electricity for essential facilities in IndiaWe helped install clean energ
296、y solutions for health clinics and government schools in rural villages in India with Clean Energy Entrepreneur Tushar.525 students across three schools in India are benefiting from Schneiders Solar Power Backup solutions installed by Clean Energy Entrepreneur Tushar Mahajan.TrustLaunch of the Decen
297、t Work programThe Decent Work Program focuses on engaging suppliers to protect worker rights,going beyond the regulatory requirements and prevailing normative practices.The initiative is aimed at implementing preventive controls that act as an additional buffer against any potential violations and r
298、educe the likelihood of any malpractices.LocalSupporting Schneider Electric employees in Ukraine Schneider Electric,with the support of its Foundation and the individual contributions of thousands of employees,raised over 2 million in donations to directly support Ukrainian colleagues and their fami
299、lies affected by the crisis.Schneider Electric also donated equipment worth 4 million to help restore essential energy supplies in Ukraine,while the Schneider Electric Foundation continues to work with local NGOs in support of the local community.Resources100%sustainable packaging for our Wiser rang
300、ePackaging transformation is making great progress with 100%recycled cardboard already used in our distribution centers in India,China,and Europe.Our Wiser range is free from single use plastics and using only recycled cardboard.GenerationsGo Green Winners Celebrating Team GreenOverMorrow from Moroc
301、co for their automated greenhouse solution in our student competition.“GreenOverMorrow is our smart energy management system controlled through the internet of things and artificial intelligence to digitally transform power grids and set in motion the energy transition of modern agriculture.”34Schne
302、ider Electric Universal Registration Document 2022|Integrated ReportS T R A T E G I C R E P O R T2023 outlook and targetExpected trends in 2023 A continuation of strong and dynamic market demand,supported by secular trends of electrification,digitization and sustainability Demand in consumer-linked
303、segments(Residential buildings,Distributed IT)to continue deceleration from highs,particularly in mature markets Government incentives across the world centered around energy transition,decarbonization and improved energy efficiency to further support growth Backlog execution to support growth Suppl
304、y constraints expected to progressively ease;improving supply environment should support stronger underlying industrial productivity Some deceleration of inflationary pressure,though pockets of inflation expected to remain 2023 TargetThe Group sets its 2023 financial target as follows:2023 Adjusted
305、EBITA growth of between+12%and+16%organic.The target would be achieved through a combination of organic revenue growth and margin improvement,currently expected to be:Revenue growth of+9%to+11%organic Adjusted EBITA margin up+50bps to+80bps organic This implies Adjusted EBITA margin of around 17.4%t
306、o 17.7%(including scope based on transactions completed to-date and FX based on current estimation).20222024 targets and long-term ambitions as announced in 2021 Capital Markets Day20222024 Targets:Organic revenue growth of between+5%to+8%,on average A yearly organic improvement of between+30 bps to
307、+70 bps in adjusted EBITA margin c.4 billion Free Cash Flow by 2024Longer-term ambitions:Organic revenue growth of 5%+on average across the economic cycle Opportunity to further expand adjusted EBITA margin and Free Cash Flow beyond 2024:Operational leverage and continued evolution of business mix t
308、o positively impact margins35Life Is On|Schneider Electric|Integrated ReportS T R A T E G I C R E P O R TC H 1C H 2C H 3C H 4C H 5C H 6C H 7C H 8C H 9I N T E G R A T E D R E P O R TGovernanceOur Board of DirectorsAs of March 28,2023,the Board of Directors consisted of 14 Directors and 2 Observers.Th
309、e appointment as Directors of Mr.Abhay Parasnis and Mrs.Giulia Chierchia,who joined the Board as Observers respectively on July 27,2022 and February 15,2023,will be submitted to shareholders at the Annual Shareholders Meeting to be held on May 4,2023.Jean-Pascal Tricoire Chairman&Chief Executive Off
310、icer 59 years,French Organizes and oversees the Boards work and reports thereon.Represents the Company in its dealings with third parties,and is vested with the broadest powers to act on behalf of the Company in all circumstances,within the limits of the corporate purpose.Lo Apotheker Director 69 ye
311、ars,French&GermanNive Bhagat Independent Director 51 years,BritishCcile Cabanis Independent Director 51 years,FrenchRita Felix Employee Director 40 years,Portuguese Linda Knoll Independent Director 62 years,American Jill Lee Independent Director 59 years,SingaporeanXiaoyun Ma Employee Shareholders D
312、irector 59 years,Chinese Anna Ohlsson-Leijon Independent Director 54 years,Swedish Anders Runevad Independent Director 63 years,SwedishGregory Spierkel Independent Director 66 years,Canadian Lip-Bu Tan Independent Director 63 years,AmericanBruno Turchet Employee Director 49 years,FrenchAbhay Parasni
313、s Observer 48 years,AmericanGiulia Chierchia Observer 44 years,Belgian&ItalianFred Kindle Vice-Chairman&Lead Independent Director 64 years,Swiss Ensures proper governance.Sets the agendas for Board meetings with the Chairman.Meets with shareholders.Chairs the Governance&Remunerations Committee.Chair
314、s the executive sessions.3 Employee Directors 82%Independent Directors*45%women Directors*79%non-French Directors 10 nationalities from 3 continentsBoard expertise International markets(14)Corporate finance(12)Public company management(13)Industry knowledge(8)Accounting,audit&risk(5)Sustainability(5
315、)Law,governance,ethics&compliance(4)Digital&Technology(6)Employee perspective and knowledge of the Group(4)Activities of the Board in 2022There were nine meetings(including a Strategy session of three days)with 97%average attendance.Business and financial resultsOngoing business,financial statements
316、 and information delivered to the market,and ESG strategy.Strategy and investmentReview of strategic priorities,including during the Strategy session,and authorization of significant acquisitions and disposals(over 250 million).Risks and complianceRisk mapping,business continuity plan,and ethics&com
317、pliance framework.Corporate governanceComposition of the Board and its committees,succession plan for Corporate Officers,compensation of Corporate Officers,Long-term incentive plan,preparation of the Annual General Meeting.Board committeesGovernance&Remunerations Committee9 meetings*5 members80%inde
318、pendent93%average attendanceAudit&Risks Committee6 meetings*4 members100%independent100%average attendanceInvestment Committee2 meetings5 members75%independent*100%average attendanceDigital Committee5 meetings*5 members75%independent*83%average attendanceHuman Resources&CSR Committee6 meetings*4 mem
319、bers100%independent*100%average attendance*Excluding the Director representing the employee shareholders and Directors representing the employees.*Including joint meeting with other committee.*The Director representing the employee shareholders and Directors representing the employees are excluded a
320、s per the French Commercial Code and AFEP-MEDEF Corporate Governance Code.Board committees Governance&Remunerations Committee Audit&Risks Committee Investment Committee Digital Committee Human Resources&CSR Committee Committee Chair36Schneider Electric Universal Registration Document 2022|Integrated
321、 ReportS T R A T E G I C R E P O R TGovernanceA new governance effective on May 4,2023In accordance with the intention of the Board of Directors announced in 2021 to separate the functions of Chairman and Chief Executive Officer,the Board,at its meeting of February 15,2023,has decided to implement a
322、 new governance structure that splits the office of Chairman from that of Chief Executive Officer as of May 4,2023:Mr.Peter Herweck who was Chief Executive Officer of AVEVA,will succeed Mr.Jean-Pascal Tricoire as Chief Executive Officer of Schneider Electric,becoming responsible for the general mana
323、gement of the Company,as the sole executive corporate officer;Mr.Jean-Pascal Tricoire will remain as Chairman,at the unanimous request of the Board of Directors who wants to retain the benefit of his experience in significantly and successfully transforming the company over the past 20 years.“TheGov
324、ernance&Remunerations Committee,under the guidance of the Board of Directors,has conducted over the last four years a comprehensive robust process to propose a succession plan for the role of CEO.Several high-quality candidates were considered.Peters level of global operational experience,technology
325、 and software acumen,skills and personal qualities were assessed by the Board as being particularly in line with the Groups strategy.His appointment was unanimously approved by the Board of Directors with Jean-Pascal Tricoires full support”.Fred Kindle,Vice-Chairman&Lead Independent Director 1982-19
326、871966Mr.Peter Herweck,incoming Chief Executive OfficerBiographyMr.Peter Herweck joined Schneider Electric,where he successfully led the global Industrial Automation Business,in 2016 before being appointed as Chief Executive Officer of AVEVA.Mr.Peter Herweck started his career as software developmen
327、t engineer with Mitsubishi in Japan,later joining Siemens,where he held several executive positions in Automation,Power Distribution and Building Technologies,before becoming Chief Strategy Officer.Mr.Peter Herweck has a diverse,cross-cultural mindset,derived from leading teams in both mature and em
328、erging markets.His passion for technology driving positive progress in term of energy efficiency for the world makes him a great candidate for the role of Chief Executive Officer of Schneider Electric.Timeline“Passionate about technology driving efficiency and sustainability,allowing both progress a
329、nd decarbonization.”Multi-decade industry experience in Energy Management and Industrial Automation Technology focus digital and software Diverse,cross-cultural mindset derived from leading teams in both mature and emerging markets20-20-1991AVEVA Chief Executive Officer
330、,Switzerland&UKSchneider ElectricExecutive Vice President,Industrial Automation,SwitzerlandSiemensExecutive Positions in Automation,Power Distribution and Building Technologies&Chief Strategy Officer,China,USA,GermanyMitsubishi Electric CorpSoftware Development Engineer,JapanElectrical Engineering M
331、etz University,France&Fachhochschule des Saarlandes,GermanyElectrician Stadtwerke Saarbrcken,GermanyBorn in GermanyRoles and Responsibilities Chairman Organizes and directs work of Board,presides over AGMs Supports the Company in its high-level relations with select stakeholders(notably in Asia),in
332、coordination with CEO Promotes Companys values and culture in particular in relation to Environmental,Social and Governance Advises CEO,notably on strategic,human capital and leadership development mattersVice-Chairman&Lead Independent Director Consulted by the Chairman on agenda and sequence of eve
333、nts 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 BoardChief Executive Officer Has sole authority to bind the company toward third parties Defines and proposes the Strategy Manages the Company Runs the Business Develops human capital and leadership37Life Is On|Schneider Ele