International ILO Conference - November 2009 Maurice Dhooge Global Health & Safety Department

2 How to use the management system as a lever to drive the change of H&S culture accross geographical areas

3 Agenda  Schneider Electric company overview  The internal global context  The H&S Department role  The new global Health & safety policy  OHSMS Deployment in Schneider Electric

Groupe Schneider becomes Schneider Electric, focused on Power & Control 1975 Merlin Gerin joins Groupe Schneider 1988 Telemecanique joins Groupe Schneider 1991 Square D joins Groupe Schneider 1996 Modicon, historic leader in Automation, becomes a Schneider brand 2007 Acquisition of APC corp. More than 170 years of history 1836 Creation of Schneider at Le Creusot, France 19th century20th century21st century 2000 Acquisition of MGE UPS Systems 2003 Acquisition of T.A.C 2005 Acquisition of Power Measurement Inc Targeted acquisitions in wiring devices and home automation (Lexel, Clipsal, Merten, Ova, GET, etc.) 2008 Acquisition of Xantrex, leader in renewable energy solutions Steel Industry Energy Management Power & Control

5 Sales by business Electrical distribution Automation Critical power Sales by geography Europe North America Asia-Pacific RoW Sales by end market Energy & Infrastructure Industry Data centres & Networks Buildings Residential People by geography Europe North America Asia-Pacific RoW An international and sustainable growth billion sales in 2008 (in €) % of sales in new economies people in 100+ countries Rank in Fortune 500 ranking Revenue devoted to R&D 44% 27% 19% 10% 57% 29% 14% 42% 25% 8% 16% 26% 17% 31% 10%

6 The internal global context ●Our permanent growth rises the risks ●Acquisitions of companies with different activities, from different geographical zones, with new working conditions which have to be taken into account ●Resource to relocations, sub-contracting of production, increases our social risks, among them Health & Safety risks ●Growing activity of services, where the safety risk is high ●Our presence more than 100 countries embraces : ●specific sanitary and health situations ●Different cultures and legal requirements ●The perception of safety risk can be different from one country to another

7 The global H&S Department role ●Deploy the group policy ●Give, enrich the vision and define the action plans ●Be the Referent ●Provide and enrich permanently the global framework and guidelines (notably for the OHSMS) ●Propose new tools ●Drive the performances ●Identify and promote leading best initiatives ●Perform safety audits (pre-acquisition and in worriyng entities) ●Drive the H&S network and support the entities

8 Our stakes  Sustain management commitment  Increase employee empowerment  Implement a continuous improvement system based on a propper risk assessment and law compliance  Manage safety thoroughly in all the entities by increasing the H&S support across territories  Give the vision (reference)  Disseminate the expertise in the divisions  Increase knowledge locally  Understand and avoid the risks  Build a healthy culture

9 A new global Health & Safety policy ●Our Group Policy is adapted to local context ●Managers issue a written H&S policy that is in consistency with the nature and scale of the H&S organization, with the H&S local context ●The group H&S policy may be adapted or supplemented locally to take into account local practice and legal environment as long as the local adaptation is not less stringent than the legal or company principles established

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11 Why this new global H&S policy? ●To state clearly the Group's approach to achieving its H&S objectives, the responsibilities of Group functions, entities and individuals ●To outline our vision and commitment which applies across all Divisions, Businesses and areas, worldwide ●To share One common vision among all entities, coming from different activities and cultures ●To achieve a H&S culture leading to Employer of Choice

12 OHSMS as a key element to structure in a same way the components that drive a safety culture ●Schneider Electric is an international company. It is key to embrace all entities to One model and ensure prevention measures in countries where legal requirements are poor, where culture is not oriented to enough prevention towards all stakeholders. ●OHSMS, built on regular risk assessment, legal compliance and annual preventive programs, is a very good tool that contributes to the achievement of company objectives

13 OHSMS deployment in Schneider Electric ●In the framework of One company program , all industrial and logistic entities must implement a H&S Management System ●External certification in an H&S Management System is not mandatory unless it provides a business advantage (services activity for example) and to recognize the initiatives implemented by an entity (motivation tool). This decision is made locally

14 Choice of ILO ●ILO-OSH standard has been promoted in Schneider Electric ●ILO represents several advantages, among them: the authority and legitimacy of its source.. an improved integration into health considerations (medical follow up, traceability), imperative staff involvement, and an improved implementation of upstream measures and better account taken of partners. These elements are very important to give the vision to countries where the national legislation or culture is not oriented to enough prevention towards all stakeholders. ●The impact of OHSMS on results is clearly visible in most entities; but while the OHSMS is necessary, it is not sufficient: without leadership and managerial involvement, it will not generate any results.