PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

EMBRACING ENVIRONMENTAL ISSUES 2.2.

Incorporating environmental issues into product and service 2.2.1. design

COMBATING GLOBALWARMING 2.2.1.1. AND ADAPTINGTO THE CONSEQUENCES OF CLIMATECHANGE  DPEF.28  Technological innovation to combat 2.2.1.1.1. climate risk DPEF.16  DPEF.24   DPEF.27  As an environmentalpioneerin CO 2 emissionsfrompassengercars, Groupe PSA is continuingto developa rangeof low-carboncars to constantlymeetthe growingmobilityneedsof the individualas well as regulatory standards, identifying the most cost-effective technical solutions for its customers. A corporate CO 2 Committee chaired by the Chairman of the ManagingBoardis held everymonthwith the ManagingBoardand the ExecutiveCommitteeto decideactionplans(technicalenablers, product planadaptation and strategy) to reach the Group’s targets. See 4.5.2.1for clean-techstrategydescription,of which hybridand electric technologies, optimization of internal combustion powertrains, vehicle architecture and equipment (multi-energy platforms,mass,aerodynamics, driver assistance…). See2.2.1.3.4.for vehicle lifecycle andcarbonfootprintanalyses. CO2 performance of vehiclesold 2.2.1.1.2. by the Group  DPEF.16  As an historical leader in the area of CO 2 efficient vehicles, Groupe PSAreinforcedits commitmentto tackle climate change, pavingthe way for carbon eutrality. Groupe PSA has defined in 2019 a strengthened target, which consistsin a reductionof 37% per vehiclekilometerof greenhouse gases emissions by 2034 from a 2018 base year, assessed on a "well-to-wheel" perimeter. This target(relatedto "Scope3"), whichhas beenapprovedby the Science Based Targets initiative (SBTi) SteeringCommittee,echo the unconditionalnecessityto limit global warming to 2°C above pre-industrialevels, according to thelatestclimatescience. To reach this objective,GroupePSA is committedto achieving,by 2035, more than 50% of its sales with electric,fuel cell and hybrid vehicleswithan emission-free mode.

The Group teams (includingFaurecia’steams)are proficientin the eco-designprocess,whichhelpsto shrinka vehicle’senvironmental footprintto a minimumat everystagein its life cycle,by improving fuel economy, reducing emissions of CO 2 and other pollutants, rationalising the use of natural resources and improving recyclability.In addition to ensuring that its vehicles comply with environmentallegislationin the differentmarkets,eco-designalso ensuresthat the Groupwill stay aheadof the competitionin terms of sustainablemobility. The Group focuses much of its research efforts on clean technologies to addresstheseissues. INCORPORATING ENVIRONMENTAL ISSUES INTO THE GROUP’S ORGANISATION IN THE PRODUCT AND SERVICE DESIGN PHASE DPEF.15  The Researchand DevelopmentDivision, sitting on the Executive Committee, leadsand followsup the Group’sworkon technological innovation in threestrategicR&Dstrategicfocus areas: clean techs, for cars that are ever more environmentally friendly n (see 4.5.2.1); connected,autonomouscars to assist drivers during the most n monotonous moments of driving (see 4.5.2.2); attractive,pleasurablecars, that match the DNA of each of the n Group’s threeautomotive brands. The R&DDivisionmanagesand carriesout eco-design, in particular, life cycle analysis and monitoringof the use of green or recycled materials:it collectsthe requireddatafromthe engineeringbusiness lines andsuppliers for each vehicle project. As these projects develop, the Programmes Department keeps trackof the solutionsimplemented,measuringtheirefficiencybased on the proportionof green materials used and CO 2 emissions.A special unit is responsible for coordinating the Group’s CO 2 programme. This monitors and reports on the emissions performance of vehicles developed by the Group. A dedicatedentity oversees the Group’s end-of-life vehicle policy. RESOURCES COMMITTED TO PREVENT ENVIRONMENTAL RISKS AND POLLUTION  DPEF.16 

Data (R&D budget, workforce,skills, partnerships)relating to the Automotivedivision are presented in section 4.5.4.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT