APC 2007 Annual Report Download - page 102

100
This is a free translation into English of the original
report issued in French language and is provided solely
for the convenience of English speaking readers
Ladies and Gentlemen,
Further to your request and in our capacity as statutory au-
ditor of Schneider Electric, we have performed a limited re-
view on the 17 environmental, safety and human resources
indicators for the financial year 2007 identified by the 
symbol in the annual report (the "Indicators").
These Indicators were prepared under the responsibility of
the Sustainable Development Department of Schneider
Electric, in accordance with the reporting protocol applica-
ble in 2007 (the Protocol), which can be consulted at the
Group's registered office, and a summary of which is pro-
vided on page 99 of this report.
It is our responsibility to express a conclusion on these In-
dicators, on the basis of our review
Nature and scope of our review
We performed the following review to obtain limited assur-
ance that the Indicators are free of material misstatements.
A higher level of assurance would have required more ex-
tensive work.
We have assessed the Protocol with respect to its rele-
vance, completeness, neutrality and understandability;
At Group and selected operational units levels, we have
conducted 18 interviews with the persons responsible for
environmental, safety and human resources reporting in
order to assess the application of the Protocol. At these
levels, we have assessed internal controls made on data
aggregation, analyzed the significant variances and veri-
fied, on a test basis, the calculations and the consolidation
of the data;
We have selected a sample of three operational units (1)
or equivalent in three countries: France, United States and
China, on the basis of their contribution to the Group's con-
solidated data and the results of the review performed dur-
ing prior financial years. On average, the selected units
account for 24 % (2) of the total value of the Indicators. At
this level, we have verified the understanding and applica-
tion of the Protocol and tested the data by means of ran-
dom checks which consisted in verifying calculations and
comparing the source data with supporting documents.
In performing our review, we were assisted by our special-
ized sustainable development teams, which are placed
under the responsibility of Mr. Eric Duvaud.
Information and comments
As regards the reporting Protocol defined by Schneider
Electric for the selected data, we wish to make the follow-
ing comments:
Improvements have been made regarding reporting pro-
cedures formalization and internal controls implemented
at Group level;
Efforts made in the operational units and sites to raise
Statutory auditor's report on certain environmental,
safety and human resources indicators
the awareness of the persons responsible for environ-
mental, safety and human resources reporting about re-
porting stakes should be pursued; specific attention should
be paid to the compliance with the Protocol regarding the
distinction between "DVC and Non DVC Staff" and the cal-
culation methodologies for indicators "Estimate of VOC
emissions" and "Average industrial and logistics head-
count";
The kind of controls to be performed on all environmen-
tal and social data as well as the persons in charge of
those at site and operational units levels should be de-
tailed, and their effectiveness reinforced in order to per-
petuate reporting reliability.
The Group provides detailed information about the meth-
ods used to prepare data in the methodological memo-
randum on page 99 and in the comments to the data
published. With respect to this information, we wish to un-
derline that environmental data is gathered in June and
December based on estimates for at least the last month
of each semester and is not readjusted at year end.
Conclusion
During our review, we detected the following anomalies,
which have been corrected: "Lost-Time Injury Frequency
Rate (LTIFR)", "Lost-Time Injury Severity Rate (LTISR)"
and "Number of Days Lost Ratio (NDL-R)" presented er-
rors in the application of the Protocol.
Based on our review, and except for these above qualifi-
cation, nothing has come to our attention that causes us to
believe that the Indicators were not established, in all ma-
terial respects, in accordance with the Protocol.
Neuilly-sur-Seine, February 28th, 2008.
Ernst & Young et Autres Ernst & Young
Ernst & Young Environnement et
Développement Durable
Pierre Jouanne Eric Duvaud
(1) France - IOE (sites: Sarel Sarre-Union, Dijon Epirey and
Dijon Longvic Canalis); United States – NAOD (sites: Lincoln
and Cedar Rapids) and China – APOD (sites: Shanghai SSIC
and SSPA).
(2) 36 % of energy consumption; 36 % of waste production and
recovery; 28 % of water consumption; 18 % of CO
2
emissions;
23 % of VOC emissions; 19 % of industrial and logistics
headcount; 17 % of total headcount; 13 % of training hours
and 11 % of number of days lost (NDL).