PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

EMBRACING ENVIRONMENTAL ISSUES 2.2.

Incorporating environmental issues into product and service 2.2.1. design

RESOURCES COMMITTED TO PREVENT ENVIRONMENTAL RISKS AND POLLUTION DPEF.16 Automotive Division (PCD) Data (R&D budget, workforce, skills, partnerships) relating to the Automotive Division are presented in Section 4.5.4. of the Registration Document. 2.2.1.1. AND ADAPTING TO THE CONSEQUENCES OF CLIMATE CHANGE Technological innovation to combat 2.2.1.1.1. climate risk DPEF.16 DPEF.24 DPEF.27 As an environmental pioneer in CO 2 emissions from passenger cars, the Group is continuing to develop a range of increasingly fuel-efficient, low-carbon cars to constantly meet the growing mobility needs of the individual as well as regulatory standards, identifying the most cost-effective technical solutions for its customers. The technological solutions under consideration for all Group markets (including China) are structured around the following main objectives: deploying electric technologies with different-size engines and „ battery capacity to meet a wide range of types of use and budgets; plug-in and electric hybrids. These technologies will be widely deployed in its vehicle range thanks to multi-energy modular platforms: EMP2 and CMP; optimising IC powertrains, with a short hybridisation phase „ (Mild-Hybrid 48V); improving the overall fuel efficiency of its vehicles, in particular by „ optimising vehicle architecture and equipment (tyres, aerodynamics, mass, power management, etc.). In November 2015, Groupe PSA decided to take a unique approach to customer transparency by publishing its vehicles’ real-world fuel consumption. This initiative is a world first in the automotive industry and was awarded the ECOBEST prize in October 2017 (see also Section 2.2.1.2.3. relating to air quality). Measurements are taken on the road, in accordance with a publicly available test protocol, designed with the NGOs Transport & Environment (T&E) and France Nature Environnement (FNE), audited by Bureau Veritas. The measurements obtained on the 60 models made it possible to estimate the consumption in real-world driving conditions of more than 1,000 versions of Peugeot, Citroën and DS vehicles. Since 2017, the websites of the Group’s brands give access to these data and offers a configurator which allows the customer to estimate their own consumption, based on the actual use of their vehicle. COMBATING GLOBAL WARNING

The Group teams (including Faurecia’s teams) are proficient in the eco-design process, which helps to shrink a vehicle’s environmental footprint to a minimum at every stage in its life cycle, by improving fuel economy, reducing emissions of CO 2 and other pollutants, rationalising the use of natural resources and improving recyclability. In addition to ensuring that its vehicles comply with environmental legislation in the different markets, eco-design also ensures that the Group will stay ahead of the competition in terms of sustainable mobility. The Group focuses much of its research efforts on clean technologies to address the following four issues: combating global warming and adapting to climate change by „ reducing vehicle CO 2 emissions and fuel consumption; reduction of vehicle pollutant emissions to preserve air quality; „ responsible use of material in the vehicle life cycle, from the „ extraction of raw materials to the recycling of end-of-life vehicles; development of new mobility solutions to meet all needs. „ INCORPORATING ENVIRONMENTAL ISSUES INTO THE GROUP’S ORGANISATION IN THE PRODUCT AND SERVICE DESIGN PHASE DPEF.15 Automotive Division (PCD) Within the Automotive Division, the Quality and Engineering Department (QED) has a seat on the Executive Committee. It leads the Group’s work on technological innovation. Groupe PSA has defined three strategic R&D strategic focus areas: cars that are ever more environmentally friendly (see „ Section 4.5.2.1.); connected, autonomous cars to assist drivers during the most „ monotonous moments of driving (see Section 4.5.2.2.); attractive, pleasurable cars, that match the DNA of each of the „ Group’s three automotive brands (see Section 4.5.2.3.). The QED manages and carries out eco-design, in particular, life cycle analysis and monitoring of the use of green or recycled materials: it collects the required data from the engineering business lines and suppliers for each vehicle project. As these projects develop, the Programmes Department keeps track of the solutions implemented, measuring their efficiency based on the proportion of green materials used and CO 2 emissions. A special unit is responsible for coordinating the Group’s CO 2 programme. This monitors and reports on the emissions performance of vehicles developed by the Group. A dedicated entity oversees the Group’s end-of-life vehicle policy.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT