PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

ENVIRONMENTAL IMPACT 2.2.1.3. OF MATERIALS: THE CIRCULAR ECONOMY AND SUSTAINABLE MATERIALS MANAGEMENT Responsibleuse of materials DPEF.23  2.2.1.3.1. Proactive useof green materials Groupe PSAhas undertakento incorporate,on average,30%natural andrecycled materials in theGroup’s vehicles. The Groupdefinesthreecategoriesof materialsas “green”:recycled materials(includingpolymersandmetals),materialsof naturalorigin (wood, plant fibres, etc.)and bio-sourcedmaterials(polymersnot madefrompetrochemicals but fromrenewableresources).Theiruse has severaladvantages:such as reducingthe use of fossil or mined materials,and fosteringthe developmentof recyclingprocesses,by boostingdemand. A widerapplicationof greenmaterialsrequiresthe developmentof robustsupplychainsandmore researchon newmaterials.To meet its targets, the Group is actively selectingand certifyingmaterials that offer the best cost/technical trade-offs,to createa portfolioof solutions for futurevehicleprojects. The use of green materialsis now standardin engineeringdesign and in specifications for calls for tender from suppliers of componentsand parts. The incorporationof greenmaterialsis also oneof the selection criteria usedwhenchoosing suppliers. The latest vehicles to be marketed show the results obtained: common programmebetween the New Peugeot 208, the New Peugeot 2008 and Opel Corsa, have led to the common use of recycledand natural materialsin the polymersand these vehicles reachthe targetof 30%of globalgreenmaterialcontent.Significant applicants include the use of natural hemp fibers in white edge reinforcement, the use of recycled polypropylene in baffles (underfloorair, under tank, airbag, front/rearfenders),and in the front/rear bumpers. One can also mention the use of recycled polyamidein the hubcapsand the intake manifold,as well as the motor-fanunit. On average, the percentageincorporationof green materials on vehiclessold worldwidein 2019 was over 30% (weightedaverage on 2019PCD volumesof vehicle sales in Europe). Reducinghazardous substances DPEF.18   DPEF.36  Regulatory requirements, combined with the use of hazardous substances,are factoredinto all phasesof vehiclelife, from design and manufacture to use and end-of-life recycling, in close collaborationwith suppliers.The Groupasks its suppliersto provide a compliancecertificate for each part delivered using the IMDS (InternationalMaterialData System)with regard to regulationson chemicalsubstances.The integrationof theserequirements focuses on twomajor objectives: the elimination of four heavy metals (lead, mercury, cadmium and n hexavalent chromium): for example, from January 2016, lead could no longer be used in the soldersof the electronicboards andon glassapplications of new vehicles;

compliance with the REACH regulation: the Grouphas set up an n organisationand a communication systemto monitorits partners and suppliers and ensure that they comply with the REACH regulation.TheGrouphas set itselfthe goalof minimisingthe use of substanceson the REACHcandidatelist and anticipatingthe restrictions in Annexes XIVand XVIIby workingon newmaterials rightfromthe researchand innovationphase.For example,DEHP (DiEthylHexylPhtalate),used as a plasticiserin PVC sheathsfor wiring harnesses, has been replaced. Vigilant scrutinyof materials’ criticality Bearing in mind the growing scarcity and increasingcost of raw materialsover the long-term,the PurchasingDepartmentand the R&D Departmentare working together, via a Materials Strategy Committee,to manageand securethe Group’ssupplyof materials over the long term and to direct the focus of its R&D towards replacementmaterials.Thisstrategy,whichwas originallyappliedto source materials is nowbeingextendedto synthetic raw materials. Eco-design for better ecycling 2.2.1.3.2.  DPEF.20   DPEF.23  The Group’s initiatives in this area come under European Directive 2000/53/EC of 18 September2000on end-of-lifevehicles (ELVs),which sets out the requirements for vehicledesignand the operationalrequirements for the treatmentof end-of-lifevehicles.It identifiesthree types of ELV recovery:reuse of parts, recyclingof materials,and energyrecovery.Up until 2015, it requiredvehiclesto be overall 85% recoverableby vehicle weight (of which 80% is actuallyreusableor recyclable)andafterthat,vehicleshadto be 95% recoverable (ofwhich85%reusableor recyclable). To fulfill these obligations, Groupe PSAhas set up a dedicated network.This highly cross-functionalstructurepools the expertise necessaryfor the upstreamand downstreamtreatmentprocesses. The activity is managed at two levels: upstream, which seeks eco-designsolutions,and downstream,which involvesmonitoring the collection and treatment of end of life vehicles. These are handled in close collaborationwith the Group’s partners, such as suppliers, recycling operators andcarmanufacturers associations. Prevention measures: recyclabilitycommitment Upstream,the impactsof recyclingend-of-lifevehicles(ELVs) are taken into accountin every newmodeland component.To ensure that itsvehiclesare highly recyclable, the Groupis committed to: using easily recyclable materials; n reducingthe varietyof plasticsin a car, to facilitatesortingafter n shredding,optimise the related recoveryprocessesand ensure their profitability; using a single family of plastics per major function, so that an n entire sub-assembly can be recycled without prior dismantling; marking plastic parts with standardised codes, to ensure n identification, sorting and traceability; introducinggreen materials, especially recycled materials, into n vehicledesignto supportthe emergenceor developmentof new markets forcertainmaterials; integratingrecycling considerationsvery far upstream,starting n with the innovation phases, with particular attention to new materialsor vehicle parts;

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT