PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

designingin vehicle depollutionor pre-treatmentrequirements, n the first mandatoryphase of end-of-lifevehicle disposal which consists of draining all fluids from the vehicle, neutralising pyrotechnical components and dismounting parts considered harmful to the environmentso as to prevent any transfer of pollutionduringend-of-lifevehicledisposal.As a participant in the Internationaldismantlinginformationsystem (IDIS) project, the Group providesrecyclingfacilitieswith disassemblyinstructions for theGroup’s vehicle brands. On 30 May 2018, the Group’s UTAC certificatewas renewed for three years, demonstratingits ability to implementthe processes neededto meet the requirementof 95% recyclability/recoverability (by weight),of which 85% throughreuse or materialrecycling:all Peugeot,Citroën,DS, Opel and Vauxhallvehiclesare now certified tomeetthisrequirement. Management ofend-of-lifeproducts 2.2.1.3.3.  DPEF.16   DPEF.20  A business unit is dedicated to the circular economy in the aftermarket, from business development to manufacturing and marketing.Thegoalof this businessunit is to builda sustainableand profitablebusinessbasedon circulareconomyprincipleseverywhere (worldwide scope) and whenever (technical limitation) it makes sense. This includes notably reusing of plant surplus, network-issued damaged parts and end-of-lifevehicle parts. So that to provide, afterGroupe PSAremanufacturing and testing,highand sustainable quality parts to all customers everywhere in the world. A label “Renew” makes anyrelatedservicerecognisable. Re-useand remanufacturing ofparts The Group participates in the circular economy by offering a standard exchangeprogramme(remanufacturedhigh-valueparts and subassemblies),as well as second-handspare parts (parts recoveredfrom end-of-lifevehicles).It has also introduceda new “repair& return” service. Since 2019 in France, Groupe PSA has made available a reuse catalogue to its authorizedrepairers, in accordancewith French Decree (n° 2016-703), which requires availability of circular economyparts in France. At the end of 2019, this offer was also made available for independent repairers. These programmes are described in greater detail in the CSR Report which is available onthe Group’swebsite. Recycling of end-of-life vehicles (ELV) Downstream, the Group has been involved in collecting and processingELVs from its dealershipnetworksfor almost 30 years, through partnerships with vehicle demolition and shredding companies.Dismantlers(ELV Centres)are in chargeof depolluting and partially or entirely dismantling end-of-life vehicles, while shreddingcompaniesextractthenprocessscrapaluminium,copper and other important materials for sale in the international marketplace. Apartfrommetalsandplastics,Groupe PSAaimsto recovera wider rangeof materials.This supplies two sectorsof business activity:

In France, the Group relies on industrial partnerships that are technicallyand economicallyefficient.Theseensurefull traceability of ELVs andguaranteethe achievement of the overall recovery rate. The Group’s partnerswork with networksof certifieddismantlers (447 ELVCentresat year-end2019)that collectend-of-lifevehicles, deregisterand depollutethem, and then dismantlethem to resell certainparts forreuse. The Group’s performancein France in overall recovery of ELVs collected through its network is compliant with European regulationsandbetterthanthe nationalaverage:in 2018,it amounts to 95%, of which 88%reusedor recycled (1) . Groupe PSAmade a major contributionto pilot the actionplan for the re-absorption of historic stocks in the French overseas territories in which the French Environmental Code applies (Guadeloupe,St Martin, Martinique,FrenchGuyana,ReunionIsland and Mayotte). This plan, which addresses the environmentaland health issues that arise when vehiclesare abandonedby their last owner, resultedin the signingof a frameworkagreementbetween manufacturers on 24 October 2018. The Group started by anticipationin 2018 in Martinique.At the end of 2019, this action plan is alreadyactivein all Frenchoverseasdepartments,withmore than 4,500 discarded ELVs collected. On the European markets, in appliance of the EU End-of-Life Vehicle Directive,all vehicle producersare required to take back vehiclesfrom last owners or holders,when the cars have reached the end of their life. For that purposeand by followingthe different nationalrequirements,Groupe PSAhas built up take backnetworks in eachEU member state. After18 yearsof successful implementation andexecutionof all legal requirements, the EU decidedto reviewthe EU ELVDirectiveand if deemednecessary, to comeupwithproposals for a revisionuntilend 2020. Groupe PSAtogetherwith the other membersof ACEA are currentlyfocusingon defining country-specificbest processesfor treatmentof ELVs, in order to ensure best environmentalresults withinthe frameworkof a self-sustainable ELVbusiness.Thiswill also be stillvalidfortheUnitedKingdomafterBrexit. In regions outside Europe , the Group is actively analysing the regionaland localmarketsituationas well as ELVrelatedlegislation. If required,the Group adopt and developstrategiesand plans for implementation.The Groupcontinuedto maintainand superviseits ELV’s take-back network, accordingto our targets. In Africa, the Group discussed with Morocco’s government to implementa study on how to improvecollectionand treatmentof ELV. In Asia, some countries have developed some dynamics around waste legislation.The Group is in close cooperationwith its joint venture partners for China. Groupe PSA ensureslegalcompliance forall automotivebrandsof the Group with all legal requirementsfrom ELV-Directive 2000/53/EC and itsnational transcriptions in therespective EU member states. In accordance with Directive No. 2006/66/EC,the Group has implemented collection and treatment procedures for its High Voltagebatteries(HVBatteries)usedin hybridand electricvehicles sold in Europe. The battery technology in electric and hybrid vehiclesrequires specific handling methods.

recovery and recyclingof materials; n recovery and recyclingof energy. n

Since ADEME has not released official statements for the end of 2019 concerning ELV operators in France, the Group is not yet able to (1) determine its performance for 2019.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT