PSA - 2019 Universal Registration Document

GROUPE PSA Vigilance plan

VIGILANCE PLAN 1.6.

Object of the vigilanceplan Pursuant to Act No. 2017-399of 27 March 2017 on the duty of vigilanceof parentcompaniesand principals, the vigilanceplan set out in this section includes reasonable measures of vigilance designedto identifyrisks and preventseriousbreachesof human rights and fundamentalfreedoms,and to ensure the health and safetyof persons andof theenvironment , arisingfrom:

the activities of the Company and those of the companies it n controlsdirectly or indirectly; the activities of subcontractors or suppliers with which an n established commercial relationship is maintained. To ensurethe fullesttransparency,Groupe PSAchoseto distinguish these two scopes in presenting the different measures (1) of its vigilance plan. Indicators presented in this 1.6 section are results of the 2019 Financial Year.

Mapping of the risks covered by the vigilance plan

1.6.1.

The items set out belowconstitute Groupe PSA answerto measureNo. 1: “Riskmapping designed to identify, analyse and classify risks”.

Methodology While updating its materialitymatrix, the Group identified seven macro-risks, translated into 23 CSR issues (see 2.1.1). The Group relied on an external third party to guarantee fair and rigorous rating of each of the issues accordingto a uniformmethodology (see 2.1.1). The risks identified are both those that may have negative consequences on the business of the company but also the extra-financial risksthatthe companyposesfor its stakeholdersand the environment. The findingsweresubmittedto appraisalby the Groupstakeholders through interviews conductedwith a representativesample. The new matrix (see 2.1.3) was validated by the members of the Executive Committee. Among the 23 CSR issues of Groupe PSA,10 are selected to be includedin the VigilancePlan, accordingto the followingrule. They are presented in sections 1.6.1.1 and 1.6.1.2. A CSR issue is included in the vigilance plan if and only if: it has an impact on one of the three themes:Humanrights and n fundamentalfreedomsor/and Human health and safety or/and Environment (withthe exceptionof the CSR issue“Localsourcing development in hostterritories” bynature) ; AND it is classifiedas “StrategicCSRissue”or “SignificantCSRissue”in n Groupe PSAmaterialitymatrix (see 2.1.3.) (with the exceptionof the CSR issue “Respect for human rights in supply chain” by nature) ; AND it has an impact at the supply chain level or at the Company’s n operations level. Impactsrelatedto the use of productsand servicesare onlydealt within theDeclarationon Extra-FinancialPerformance, in orderto avoid duplicationof information.The CSR issues “CO2 emissions fromvehicles”,“Impactof vehicleson air quality”,“Vehiclesafety” and “Responsible management of customer's data and relationship”are already highly detailed respectivelyin sections 2.2.1.1., 2.2.1.2.,2.3.2.1.and2.3.2.2.

RISKS ARISING FROM 1.6.1.1. THE ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES

Amongthe 23 CSRissuesof Groupe PSA,sevenare selectedto be included in the vigilance plan, related to the activities of the Company and its subsidiaries: DV.1 - Management of Company transformationsand social n dialogue; DV.2 - Attractiveness anddevelopmentof all talents; n DV.3 - Diversity andequalopportunities; n DV.4 - Health, safetyandwell-being at work; n DV.5- Energy/industrial carbon footprint; n DV.6 - Control of industrial discharges and nuisances; n DV.7 - Wise use of material in the vehicle life cycle (including n product recycling). 1.6.1.2. THE ACTIVITIES OF SUBCONTRACTORS OR SUPPLIERS Amongthe 23 CSRissues of Groupe PSA,three are selectedto be included in the vigilance plan, related to the activities of subcontractors or suppliers: DV.8- Local sourcing development in hostterritories; n DV.9 - Human rights inthesupplychain; n DV.10 - Environmental performance of the supply chain: n Purchasing and Logistics. Groupe PSA implemented the Due diligence policy in order to address a risk of corruptionassociatedwith on boardingof third parties,includingsuppliersfor direct and indirectmaterial.The due diligence process is based on the anti-corruptionrisk mapping conducted. It also considers such warning signals as ownership, country risk, expertise, integrity and reputation, dealings with government officials andpoliticallyexposed persons. RISKS ARISING FROM

Article L. 225.102.4.I. of the French Commercial Code requires a vigilance plan comprising five measures. (1)

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT