Purchases

The Global Compact is an initiative launched in 1999 by the United Nations. It invites companies to adopt, support and apply, in their sphere of influence, 10 fundamental principles in the following areas:

• Human rights;
• Labour standards;
• Environmental protection;
• The struggle against corruption.

Since 2005, Schneider Electric asks its suppliers to commit themselves to the Global Compact. Suppliers who agree to such a commitment:

• send the United Nations Secretary General a letter signed by their Managing Director expressing their support for the principles of the Global Compact,
• are publicly listed on the Global Compact site,
• publish each year information on the way in which they apply the 10 principles.

Trade globalisation has resulted in companies working with suppliers who are bound by regulations with very variable requirements. Supranational standards and principles of responsibility are creating a framework that companies can observe and make known.

Schneider Electric signed the Global Compact in 2003. The Group actively promotes its principles in its direct circle of influence. Its commitment makes it possible to:

• involve a large number of suppliers for a significant part of its purchases worldwide;
• raise awareness and involve its suppliers in the Group's sustainable development commitments;

Almost 50% of Schneider Electric's turnover is spent on purchases.

Sponsor Pilot	Purchasing department Skills, Methods and Tool development manager
Scope	All Schneider Electric entities globalizing their spends into our supplier global database
Calculation	(Year-to-date purchasing amount with suppliers identified as Global Compact or Electronic Industry Code of Conduct (EICC) into our suppliers global database) / (year-to-date total purchasing amount with referenced suppliers into our suppliers global database) The Electronic Industry Code of Conduct was etablished by the Electronic Industry Citizenship Coalition in 2004 to ensure worker safety and fairness, environmental responsibility, and business efficiency.
Reporting	Quarterly