PSA - 2019 Universal Registration Document

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Societal commitment to sustainable development

SUPPLIERS: LINCHPINS 2.3.1.2. OF THE SUSTAINABILITY CHAIN DPEF.30   DPEF.34   DPEF.35  Groupe PSAbelieves that there can be no performancewithout responsibility.As a memberof the UnitedNationsGlobalCompact, the GlobalPurchasingprocurementpolicycontainsthe rules set by the International Labour Organization(Human Rights, child and forcedlabour),healthand safetystandards,environmentalpractice standards(ISO 14001)and strict regulationson the use of materials and substance emissions (REACH regulations for example). Procurementof specificmaterialssuch as conflictmineralsis also the subjectof particularattention.This policy is publishedand can be accessedon the Group’swebsite. Consideringthe limitedsphereof influencethoughthe entiresupply chain, Groupe PSAexpectsall its suppliersto share the equal due diligencein regard to CSR risks in their entire downstreamsupply chain aswell. Groupe PSA procurement policy: 2.3.1.2.1. performance andresponsibility The PurchasingDepartmentdeterminesand managesprocurement policies and strategies globally and acts as interface between Groupe PSAand its suppliers. Its role is to build and maintain a robust supplier data base at the best technical, industrial and economiclevel. It also guaranteesthe quality and security of the Group’s supplies, by ensuring that suppliers comply with Group standards,particularlyin terms of quality, logisticsand sustainable development. The Purchasing Department is responsible for purchasing ofall departments of the Group(excluding Faurecia). Procurement policy social, ethical and environmentalstandards DPEF.21   DPEF.42  CSR is implementedglobally.This enablesto bring all stakeholders together to ensure that progress already made will be long-term persistentand will be valid and respectedacross the entire supply chain. By joining the United Nations Global Compact in 2003, Groupe PSApledgedto upholdand promote,and to encourageits suppliersto upholdand promotethe ten principlesinspiredby the Universal Declaration of Human Rights, the InternationalLabour Organization’sDeclarationon FundamentalPrinciplesand Rightsat Work, the Rio Declarationon Environmentand Developmentand the United Nations Convention Against Corruption. Incorporatingworkforce-relatedand social criteriainto the purchasingprocess:focusingon HumanRights Groupe PSAHumanRightspolicyis implemented in line withOECD recommendations. For furtherdetails,pleaserefer to Chapter 6.2of theCSRReport. Focus on conflict minerals A specific clause has been inserted in the general terms and conditionsof purchase (clause 12),stating that the supplier must disclose the detailed composition of the materials used to manufacturethe parts supplied, as well as any changes in that composition.This requirement is got updatedin 2019 to specifically complywith the Devoir de Vigilance legislation.The suppliermust also providethe written informationnecessaryto complywith the legislationin force,particularlyon consumerprotectionand conflict

minerals. From the R&D Department, who in charge of the managementof sensitiveproducts,the PurchasingDepartmenthas begunto systematically requestthe entire supplierbase to identify the suppliers concerned. Additionally, after having joined the ResponsibleMineralsInitiative(RMI)theGrouphas accessto a wider rangeof informationanddatato ensurethatsustainability standards are implemented by the smelters and themining industry. The Conflict MineralsReportingTemplatethat is providedby the RMI is requestedfor the suppliersusing the 3TG metals(tungsten, tantalum,tin and gold).If they havenot sourcedany compliantraw materials, the suppliers have to set up alternative sources. The Groupthus seeksto exerciseits duty of care and fostersustainable procurement. Focus on mica All Groupe PSApaint suppliers that supply products containing mica are committed to a sustainable supply chain. All of them confirmed that their lower tier suppliers or they themselvesare member of the Responsible Mica Initiative. This proofs the seriousnessof CSReffortsthatare undertakento ensuresustainable mica supplyto Groupe PSAby all actors. Supplierslargelycontributeto achieveGroupe PSA environmentalobjectives Mostof theGroup’ssuppliersare fromindustriesthatare facedwith the same environmentalchallengesas the Groupitself Groupe PSA involvesthemin initiativesthat follow its environmental roadmap. TheGroup’senvironmentalobjectivesfor its productsare translated into contractual commitments via specificationsand purchasing policies targetingtwo areas: the nature of the materialsused and CO 2 emissionsgenerated. Moreover,collectivecateringservice providersof Groupe PSAare committedto struggleagainst food waste. Groupe PSA strongcommitment tothe adapted sector For over 20 years,Groupe PSAhas beensourcingdirectparts( e.g. : instrument panels, interior trim, pedals, etc.) from the sheltered sector. Subcontractingto this sector is one aspect of the Group’s agreementfor the social and occupational inclusionof peoplewith disabilities. The sixth agreementwas signedon 21 February 2017. Nowadays, suppliers from the sheltered sector are expected to meet the same criteriaas the rest of the Group’ssuppliersin terms of quality, reactivity, economic performance, etc.The Purchasing Department, alongside with all other Groupe PSA departments, supportedthesesuppliersto evolvein orderto achievethis level of performance. As a result of this support, improved expertise enabled some sheltered workgroups/companies to demonstrate their know-how to other clients and other business segments (railways,aeronautics, etc.). Services bought from the adapted and sheltered sector have generated€58 millionin added value for these companieswhich represents more than 2,600 full time workers in the sheltered sector, inFranceandSpain. 100% of the cars built in France, Spain and Portugalhave at least one part manufacturedby the adaptedand shelteredsector. Also, to ensure the transitionto the new mobility,100% of the Group’s plug-in hybrid vehicles have at least one part coming from the adapted andsheltered sector.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT