PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Social responsibility: an integral part of the Group’s strategy

This sectionincludesthe mainCSR risks and challengesidentifiedby Groupe PSAbasedon a macroscopicrisk analysis(seemethodology presented in 2.1.1), covering the 45 categories included in Article R. 225-105 of the FrenchCommercialCode.

SOCIAL RESPONSIBILITY: AN INTEGRAL PART

2.1. OF THE GROUP’S STRATEGY

Within the Group, the Sustainable Development Department recommendsthe GroupCSR commitmentsproposedby members managesthe CSRprocesswitha cross-functional approach,backed of the ExecutiveCommittee,whichvalidatesthemonce a year and by a network of correspondentsin each of the Group’s major monitorstheir implementation.This informationis presentedto the departments. It reports to the CommunicationsDirector, who Supervisory Board on an annualbasis. reports directly to the Chairman of the Managing Board. It

The Group’s main CSR risks  DPEF.B   DPEF.15 

2.1.1.

In line with the sustainabledevelopmentobjectivesof the United NationsOrganisation,Lawno. 2016-1691of 9 December2016related to transparency,anti-corruptionandmodernisationof economiclife and Law no. 2017-399of 27 March2017 relatedto the duty of care of parent companies and sourcing companies, the Group has identifiedthe macro-risksit must face. Given the Group’sbusiness, each macro-risk translates into several CSR issues (see 1.5). Chapter 2outlinestheGroup’sresponseto eachof theseissues.The Group’sCSRReportpresentsthe sameresponsesin moredetail,as wellthe roadmap it is committed to following.

The Grouphas identifiedits macro-risksand CSR issues as part of its work to updateits materialitymatrix(methodologydescribedin CSR Report – section 9.4.2).The new matrix (see section 2.1.3), which prioritisesthe 23 CSR issues categorisedinto 7 macro-risks, was approved by the members of the Executive Committee in September 2017. The identificationof the CSR issuesandmacro-riskswas conducted based on the business expertise of the Group’s network of CSR correspondents representingall activities.The resultwas confirmed by a review of issues reported by industry peers (including the Global Reporting Initiative) anda reviewof information in the media, then submitted for evaluation by the Group’s stakeholders by means ofinterviewsconductedon a representative sample. The Group relied on an externalthird party to guaranteefair and rigorous rating of each of the issues according to a uniform methodology. With this objective, it is mobilising its innovation resources to reducethe environmental impactsof mobility.Its strategyis based on rollingout themosteffectivetechnologiesacrossthe greatest numberof vehicles , so as to constitutemassiveleveragein the fight against pollution and climatechange. Fromdesignthroughto manufacture,Groupe PSAis committedto optimisingthe use of resources by incorporatinggreenor recycled materialsinto its vehicles,by guaranteeing theirrecyclabilityand by limitingthe environmentalfootprintof its productionplants and dealership networks in terms of energy, water andwaste. Vehicleuse is the maincause of emissions. The Groupalso: widelyfits its rangeswithclean, lowcarbon efficienttechnologies n that preserve air quality , and sells best in class combustion, hybrid andelectric vehicles; is developinga rangeof connectedmobilityservices in response n to changesin customer behavioursandexpectations. Lastly, as a result of listening to the views of the general public, inventstomorrow’smobilitysolutionsby makingdigitaltechnology part of its ranges’ DNA, by rolling out driver assistancesystems offering increasing levels of safety and improved traffic flows, foreshadowing the autonomous vehicle.

The Group’s CSR policy  DPEF.15  2.1.2.

For Groupe PSA, sustainable growth and long-term economic performance can only be achieved by taking a responsibleand transparentapproachto its business.On this basis, in line with the United Nations Global Compact,of which it has been a member since 2003, the Group defined its corporate social responsibility programme. This CSR policy, which is the result of ongoing dialogue with stakeholders and is reflected in its public commitments , guides the Group’s approach to its strategic challenges. It is based on three pillars: sustainable mobility, economicdevelopmentof its host communitiesand drawingon all its talentandcreatingthe right environment for success. SUSTAINABLE MOBILITY As a pioneerin manytechnologies,Groupe PSA is demonstrating its social responsibilityby developinga range of mobilitysolutionsin response to changes in stakeholder expectations: not just for consumersbut also for the hostcommunities. Its strategyis to have a presence across all mobility market segments.

52

GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT