PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Social responsibility: an integral part of the Group’s strategy

7 macro-risks

23 linked CSR issues

Climate change > Climate change requires a global approach: designing vehicles that emit > less CO 2 , but also reducing the carbon impact of manufacturing facilities, logistics and purchasing, and finally implement levers for carbon compensation. Depletion of resources > In an age marked by the scarcity of natural resources, reducing our > dependence on water resources and raw materials is not only a question of responsibility towards the environment but also a question of the sustainability of the business. Health and safety: vigilance of civil society > In response to the increasing concerns of the civil society relating > to the impact of industrial products and processes on our health, car manufacturers must show their capacity to reduce the impact of their activity and increase the positive differentiation of their products in terms of safety. Increasing inequality in the economic development of the host > communities As a result of increasing inequality in the economic development of > the host communities, specific focus must be given to the redistribution of the value created by the companies in the regions in which it operates. Infringements on human rights and unethical conduct > Auto industry stakeholders must anticipate tightening of national and > international regulations linked for example to minerals originating from conflict zones, equality and integrity in business relations, the duty of care of large companies, as well as consumer protection. Human capital and internal social climate > Within a context of rapidly changing work within the automotive industry > (automation, digital transformation, etc.) the competitiveness of the Company must be based on all of its talent, social dialogue, employee well-being and workplace safety. Customers’ expectations and market risks > In response to transport policies and urban constraints, car > manufacturers must set themselves apart by developing new solutions adapted to each mobility need, based on quality products and services and impeccable management of customer relations. The Group identified its macro-risks and CSR issues as part of its work to update its materiality matrix. The new matrix (see Section 2.1.3), which prioritises the 23 CSR issues categorised into 7 macro-risks, was approved by the members of the Executive Committee in September 2017. The identification of the CSR issues and macro-risks was conducted based on the business expertise of the Group’s network of CSR contributors, representing all activities. The result was confirmed by a review of issues reported by industry peers (including the Global Reporting Initiative) and a review of information in the media, then submitted for evaluation by the Group’s stakeholders by means of interviews conducted on a representative sample. As a result of this structured approach, we were able to list all of the factors justifying the materiality of each issue for the Group. Strategic CSR issues (see Materiality Matrix in Section 2.1.3). *

Vehicle CO 2 > Energy/Industrial carbon footprint (see Section 2.2.2.1.) > Environmental performance of the supply chain: Purchasing > and Logistics (see Section 2.3.1.2.1) Responsible use of materials throughout the vehicle’s life > – including recycling (see Section 2.2.1.3.) Sustainable water management: (see Section 2.2.2.4.) > Optimisation of material cycles – including waste – in industrial > processes (see Section 2.2.2.3.) emissions* (see Section 2.2.1.1.) Biodiversity (see Section 2.2.2.5.) > Vehicle safety* (see Section 2.3.2.1.) > Vehicle impact on air quality* > (see Section 2.2.1.2.) Control of industrial discharges and nuisances > (see Section 2.2.2.2.) Local sourcing development in host territories > (see Section 2.3.1.1.) Balanced governance and distribution of added value > (see Section 3.) Philanthropy and socially responsible mobility (see > Section 2.3.3.) Responsible information and marketing > (see Section 7.5. of the 2017 CSR Report) Ethics in business practices (see Section 2.3.4.) > Human rights in the supply chain (see Section 2.3.1.2.) > Attracting and developing all talents (see Section 2.4.3) > Management of company transformations and social > dialogue* (see Section 2.4.1. and 2.4.2) Health, safety and well-being in the workplace > (see Section 2.4.4.) Diversity and equal opportunity (see Section 2.4.5.) > Vehicles and services quality – customer satisfaction* > (see Section 2.3 of the 2017 CSR Report) Responsible management of customer's data and > relationships (see Section 3.2.2.2.) Development of new mobility solutions* (see Section 2.2.1.4.) > The issues were rated on two focus areas: the position of the issue on the x-axis represents the importance 1. for business performance according to three criteria: likelihood that threat will occur and opportunities linked to the issue, severity of the impact on the Group. For each issue, the „ opportunities and threats were categorised into three categories (business, operational functioning and reputation) and their impact was quantified economically by the department concerned, degree of impact on long-term performance; „ the position of the issue on the y-axis represents the importance 2. to the stakeholders, taking into account the legitimacy of each stakeholder to express an opinion on each issue. The Group relied on an external third party to guarantee fair and rigorous rating of each of the issues according to a uniform methodology.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT