PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

Groupe PSA’s additive particulate 2.2.1.2.1. Filter: the only effective technology under all driving conditions The Group identified the need to tackle particulate pollution in the late 1990s, and introduced a new generation of diesel HDi engines into the market. These have cut particulate emissions by 60% compared to the previous generation (to 100mg/km from the new HDi engines, compared to 250mg/km in earlier versions). The Group subsequently equipped this new engine with a high-performance filtration technology, called “diesel particulate filter” (DPF), which it began selling in 2000, more than nine years before Euro 5 standards which made it compulsory from September 2009. The Group opted for the DPF with additive solution, the most effective solution in terms of regeneration efficiency. Groupe PSA’s solution includes an additive tank, a ceramic filter and sensors. Iron-based and captured, in full, by the filter, the additive is automatically added to the fuel (without driver intervention): this reduces the soot combustion temperature and speeds up regeneration in all driving conditions (around town, open road, etc.) unlike catalysed diesel particulate filters. The additive DPF technology developed by Groupe PSA reduces the percentage of NO 2 in NO x , unlike the catalysed diesel particulate filters developed by competitors. The question of fine and ultrafine particulates The DPF effectively screens out both fine and ultra-fine particulate matter: 99.7% by number and more than 95% by mass; source Agency for the Environment and Energy Management (ADEME): particulate and NO x emissions by road vehicles – January 2014). By the end of the 1990s, with the introduction of the additive DPF, the number of particulate emissions fell from over 3,500,000 particulates per cm 3 on unfiltered diesel engines to less than 3,500 particulates per cm 3 on diesel engines with DPF. The DPF removes particulates in all driving conditions. The DPF is a mechanical system which is fully operational and effective throughout all phases of engine operation – load/warm engine/cold engine, on the motorway/around town – even when the filter is full. A diesel engine fitted with a particulate filter emits less particulate matter than a latest generation direct-injection petrol engine, with particulate emission levels significantly lower than the thresholds required under current regulations (20 times less in mass, up to 100 times less in number). The particulate filter has been fitted as standard across the Group’s diesel models since 2010, and has been mandatory in all vehicles sold since the introduction of the Euro 5 regulation for all types (January 2011). In all its global markets, the vehicles marketed by the Group comply with the regulations in force in the country of sale, and benefit from the advanced technologies developed for Europe. A pioneer in this field, the Group had sold a total of 12.7 million DPF-equipped diesel vehicles by the end of 2017. In 2017, vehicles equipped with particulate filters accounted for 97% of the Group’s total diesel vehicle sales worldwide, compared to 97% in 2016 and 37% in 2009. The second stage of Euro 6 (Euro 6d-TEMP) has a tougher limit in terms of number of particulates from direct-injection petrol vehicles (which will have the same limit as diesel engines), and a new constraint consisting of a reduction in Real Driving Emissions (RDE). To comply with second stage of Euro 6 regulation, in addition to optimising injection systems, as of October 2017, the Group

introduced a particulate filter (GPF – gasoline particulate filter) with passive regeneration to reduce the particulate emissions in terms of number and mass in its direct-injection petrol vehicles. This solution, which will be widely used on all direct-injection petrol engines, is more than 75% effective on all particulate matter (fine and ultra-fine), no matter what the driving conditions. The Group chose to install the particulate filter under the turbo downstream from the TWC (three-way-catalyst) to ensure sufficient heat in the GPF to regenerate the soot when the foot is lifted. This mode of operation ensures that the filter management is completely transparent for the driver. Further, the Group decided to install a naked filter in addition to the catalyst volume to ensure the optimum efficiency of the TWC when converting pollutants, in particular to cold (urban issue). At the end of 2017, the Group sold in total 1,800 direct-injection petrol vehicles equipped with GPF. In 2017, the direct-injection petrol vehicles equipped with a GPF represented 0.3% of the sales of this type of vehicle. Selective Catalytic Reduction (SCR): 2.2.1.2.2. the most efficient solution for reducing nitrogen oxides The SCR after-treatment technology substantially reduces nitrogen oxide (NO x ) emissions by injecting a reducing agent (AdBlue ® : a mixture made up of 32.5% urea and 67.5% water) into the exhaust line upstream of a specific catalyst. Integrated into an emission control architecture upstream of the particulate filter, SCR helps to optimise fuel efficiency and limits CO 2 emissions in diesel engines. To comply with the second stage of Euro 6 Regulation, Groupe PSA developed a new emission control line architecture which significantly increases the performance of diesel engines in the treatment of nitrogen oxides upstream of the particulates, carbon monoxide and unburned hydrocarbons. This new BlueHDi line comprises: an oxidation catalyst which includes a function that stores NO x „ emissions at a low temperature (as long as the NO x emission reduction system is not in operation); a NO x emissions after-treatment system (Selective catalytic „ reduction), a filter media with an SCR function and a compact reducing agent injection system (Adblue®) which can eliminate up to 95% of NO x emissions emitted by the engine; additive or non-additive particulate filter (including an SCR phase, „ see above), which can eliminate 99.7% of particulate numbers, regardless of their size and driving conditions. This truly reflects the Group’s desire to reduce its vehicles’ pollutant emissions in real-world driving conditions whilst keeping fuel consumption and CO 2 emissions at optimum levels. This new BlueHDi line was put into production in October 2017 for all new vehicles with a 1.5l diesel engine. Launched in November 2013 on the Peugeot 508 and Citroën C4 Picasso (DW 2.0-litre engine), BlueHDi technology was extended to the DV 1.6-litre engine in 2014, before being rolled out across the Peugeot, Citroën and DS Automobiles fleet. It represents 91% of DPF-equipped diesel vehicles sold worldwide in 2017 equivalent to 3.0 millions vehicles in total at the end of 2017. The BlueHDi line is currently used by all diesel passenger vehicles manufactured by the Group, so as to reduce NO x emissions to levels close to those of petrol vehicles, whilst retaining the diesel advantage (15% lower CO 2 emissions).

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GROUPE PSA - 2017 REGISTRATION DOCUMENT