PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

Recycling tires In France, based on the principle of extended producer responsibility, the Group’sbrandshaveimplementedproceduresfor collectingand processingthe tyresheldby authorisedELV centres. In 2019, 8,033 tonnesof tyres fromELVswere at least 50% treated as “materials recovery” (for reuse, drainage solutions, granulation, etc.). The Group signed in July 2019 a general agreement with all producers of tires to take in account 5 engagements on: recyclability improvement of tires recyclability, consumer informationaboutdurabilityof tires,helpto overseasterritories,free return of all tires waste, and treatment of tires of ensilage from farms. Vehicle life cycleand carbon footprint 2.2.1.3.4. analyses  DPEF.18  DPEF.19   DPEF.20   DPEF.27  Life cycle analysisto improvevehicles environmentalfootprint The Group conducts life cycle analyses of its vehicles and components that comply with the framework defined in the ISO 14040/044standards.These studies analyse the multi-criteria environmental footprintof a vehicleand validateits componentand materialsdesign.The entireproductlife cycle is taken into account from raw material extraction,to manufacture,use and end-of-life recycling. The Grouphas set itself the goal of performinga life cycle analysis for each new family of vehicles. In addition, for each major technologicalchangeor strategicinnovation,a study is carriedout, in conjunction with suppliers, to assess changes in the environmental impacts of these modifications. As a result, in 2019, life cycle analysescovered62.1% of the total fleetsold.The LCAmethodologyusedwas certifiedduringa critical reviewby THINKSTEP,a firmspecialising in life cycleanalysis. Environmental impacts are taken into consideration in the innovation process and a complete evaluation is made of each critical innovation.The goal is to guaranteethat the environmental impacts froma new modelare less than for the previous generation. In 2020,the Groupplansto conducta life cycleanalysison the first Plug-in Hybrid vehicles. The Group will continue to study major innovationsand the introductionof green materialsor composite materials. Monitoringthe carbonfootprint ofa vehicle Groupe PSA has begun a process to determine the total CO 2 equivalentof itsworldwideoperations. This footprintconsiders,over a year of activity,emissionsfrom the production of materials and components for the vehicles manufactured, emissions from the Group’s production plants, service activities, fuel extraction/production and electricity productionnecessary to use the vehicles manufactured,the use phase of the vehicles manufactured (emissions in real driving conditions,accordingto the hypothesisvalidatedby the SBTi) and the treatmentof end-of-lifevehicles. The method was verified and approved by Eco Act, a firm specialising in environmental analysis and greenhouse gas diagnostics. The detailedmethodologyis availablein section2.1 of the Group's CSR Report.

Focus onbatteries fromhybrid andelectric vehicles Repairand remanufacturing To extend the use phase and to avoid the prematurerecyclingof HighVoltage(HV)batteries,the Groupstartedthe remanufacturing in 2012. Since then, 439 HV batteries have b en remanufactured. To reinforcethe sustainabilityof its high-voltagebatteries,for the new generation developed for all its automotive brands, Groupe PSAwill introducea “repair and remanufacturing”process in 2020. If the batteryfails, it will either be repairedin the network or sent to a remanufacturing centrefor repair,after analysisby the Groupe’s dealer network. The repaired battery will be then reinstalledon the vehiclefromwhichit had been removedwhereas the remanufactured onewill be usedin anotherusedelectricvehicle to maintainthe electricmobilityof the Group’scustomersas much as possible. Secondlife Groupe PSA is workingon solutionsto reuseHighVoltagebatteries in electricstationarystoragefacilities.As a proofof this plan, a first containerincludingeightusedbatteries,fromvehiclesPeugeot-ION and Citroën C-ZERO, is installed in Carrières-sous-Poissy.This containerenablesto optimisethe energyconsumption in buildings by manyways includingload shifting,storageof energyduringthe night and use during the day, or balancing services to the grid. Anotherproject,enteringa real-lifephaseat the Group’stest center of Dudenhofen in 2020,wherea containerbasedincludingeighteen usedOpelE-AMPERA-Abatteries,will be installedto enableenergy bufferingfor chargingstationusedfor drivingtestof electricvehicle thereby. In addition, in order to study next generationof electric vehiclesbatteriesability to be reused in second life for stationary storage applications,Groupe PSAis exploring the reuse of those batteries by designing, building and testing electric stationary storagedemonstrators in 2020, focusedon residential,commercial and industrial use. Recycling Groupe PSAhas alreadysigneda contractfor the entire European marketwith an efficientpartner,whoserecyclingrates in 2018were 70,7% for Lithium-ion (Li-ion) batteries of electric vehicles and 82,8% for the Nickel Metal Hydrure (Ni-MH) batteries of hybrid vehicles. These rates are significantly higher than the 50% regulatory thresholds for materials recycling. The agreement covers all dealershipnetworks and industrial sites for all current Li-ion and Ni-MH batteries across all Europeanmarketingcountries.For the new generationof PHEV and BEV traction batteries,Groupe PSA will extend partnershipwith recyclersto cope with higher battery volumes in Europe. In terms of battery legislation, the Group is actively involved with its expertise via the EuropeanAutomobile Manufacturers’Association(ACEA).OutsideEurope,particularlyin China,Groupe PSAmakesan activecontribution in partnershipwith localjointventures.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT