PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

WASTE ANDMATERIALS CYCLES: PRODUCTION PROCESSES DESIGN TO REDUCE 2.2.2.3. USE OFRESOURCES AND INCREASEWASTE RECOVERY

Reducing waste and promoting 2.2.2.3.2. recycling by introducing circular economy loops  DPEF.20  Within the AutomotiveActivities , the Group aims to reduce the mass of waste per vehicle manufactured,as well as eliminating landfillwastein favourof recoveryandrecyclingeffortsin European plants. Introduced in 1995,the policies,whichexcludemetalanddemolition waste,havedemonstrated theireffectiveness: theweightof wasteper vehicleprocessedoutsideof Groupe PSA n sites hasbeen reduced bymore than 63%; analysis and characterisationof waste produced during the n differentstagesof production(casting,foundrywork,mechanical parts manufacture, stamping, paint and final assembly) have made it possibleto identifyprocessingchannelsthat providean alternative to landfill. The gradual deploymentof new outlets, dependingon locally available treatmentsolutions, is driving a steadyincreasein the wasterecoveryand on-siterecyclingrate, which continuesto increaseslightlyat 91.7%, comparedto 91.2% in 2018. In addition, almost all scrap metal (sheet metal, filings, etc.) is recovered and recycled in the steel industry or the Group’s foundries. When waste metal is taken into account,Group plants reclaimor recycle97% of their industrial waste. For Automotive Trade in Europe, the Group is reinforcing its ambitionto sign frameworkagreementswith specialisthazardous and non-hazardouswaste managementproviders. This approach makes it possible to optimisewaste monitoringand to ensure its traceability within treatment networks and is one of the performanceobjectives for personnel responsible for overseeing businessand financialperformancewithin PSA Retail Management bodies. Pursuantthe action already engaged,a better characterizationof the waste gives the opportunityto reduce the amount of waste landfilled.

The Group’sindustrialsites are committedto developinga circular economy wherever they are located. This expresses itself in the desireto avoidanywastingof naturalresourcesand to use onlythe quantityof rawmaterialsnecessary.This strategyalso extendsinto wastemanagement,throughthe achievementof zero landfillwaste andencouragement of recycling andrecovery. Reducing material consumption via 2.2.2.3.1. optimised manufacturing processes  DPEF.23  In additionto effortsto reducevehiclemass on the productdesign phase,Groupe PSAplants’stampingbusinessline has developedan approachto the Material Use Coefficient(MUC), which optimises consumptionof sheet metal during the process of forming body parts.This actioncontributesdirectlyto keepingthe main sourceof industrialwasteundercontrol,as twothirdsof the 637,055 tonnes of waste metal are scraps from stamping.Even though all of these scraps are recycled in foundries,their reductionremains a major issue.TheMUCstrategyhelpspeopleto measurethe progressmade in stampingdesign.It quantifiesthe proportionof stampedmaterial used to producethe cars comparedto the amountof sheet metal that was received.Last launches,new DS3 and new Peugeot208, show that MUC continuesto improve, and reach a level of 63%, compared to an averageresultof 55%forpreviousgeneration.. For the other third of waste metal, which consists essentiallyof machine shavings, the development of aluminium parts and pressure die casting design have been determining factors in reducing the quantitiesof machiningwaste. Pressure die casting, which limits the thickness of materials, is now widely used to produce the Group’s engine blocks. Chips, which are dried and compressed into briquettes to recover the cutting fluids reintroducedinto the machiningprocess as much as possible,are then returned to the Group’s foundries or tosteelmakers. As for productionprocesses,paintsolventregeneration is a process that has been in place for many years. Technical cleaning and purgingsolventsusedby facilitiesare recoveredand regeneratedat a service provider before reintegration into the same cleaning process, following a circularloop.

Total weight of wasteby type and disposalmethod AUTOMOTIVEACTIVITIES

Recovery and recycling

Other disposal methods

On-site recycling

(in tonnes) (excluding metal waste, totally recycled)

Year

Landfilling

Total

Foundry waste

2019 2018 2019 2018 2019 2018 2019 2018

16 58,595 0 58,539

33 58,644 103,372 2,113 60,653 103,313

Non-hazardous process waste

5,524 109,111 4,233 112,339

3,569 118,204 6,114 122,686

937

1,478

Hazardous process waste

1,031

26,746 16,553 44,330

479 27,889

16,848

45,216

TOTAL

6,571

194,452 20,155 221,178 104,309

4,712 198,767

25,067 228,155 104,791

The tableabovedoesnot includerecycled wastemetal (637,055 tonnes in 2019).

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT