PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

ENVIRONMENTAL IMPACT OF 2.2.1.3. MATERIALS: THE CIRCULAR ECONOMY AND SUSTAINABLE MATERIALS MANAGEMENT Responsible use of materials DPEF.23 2.2.1.3.1. In 2017 the Group consumed (excluding Latin America): 2,170,000 tonnes of steel (+0.5% compared to 2016), including „ 660,000 tonnes direct (-3%); 320,000 tonnes of non-ferrous metals, including 74,000 tonnes „ of aluminium direct (+21%); 500,000 tonnes of synthetic materials, polymers and elastomers. „ These volumes represent the composition of parts in production in the Group’s plants, spare parts and parts intended for co-operative assembly plants. Proactive use of green materials Groupe PSA has undertaken to incorporate, on average, 30% natural and recycled materials in the Group’s vehicles. Recycled materials are integrated throughout the vehicle. Although metals are some of the most extensively recycled materials, the aim is to promote the recycling of metals in automotive products. In addition, the Group is continuing its research efforts on recycled polymers (non-metal and non-mineral elements), polymers representing on average 20% of the total mass of a vehicle. Most other materials (metals, fluids, etc.) are in fact already recyclable and, for the most part, recycled. The Group defines three categories of materials as “green”: recycled materials, materials of natural origin (wood, plant fibres, etc.) and bio-sourced materials (polymers not made from petrochemicals but from renewable resources). Their use has several advantages: such as reducing the use of fossil or mined materials, and fostering the development of recycling processes, by boosting demand. The wider application of green materials requires the development of robust supply chains and more research on new materials. To meet its targets, the Group is actively selecting and certifying materials that offer the best cost/technical trade-offs, to create a portfolio of solutions for future vehicle projects. Groupe PSA is involved in a large number of scientific partnerships to boost the development of the biomaterials industry and expand the use of these materials in vehicles, such as the BIOMass for the Future/Miscanthus project alongside the INRA (National Institute for Agronomic Research) or the COCCY-BIO (Tenue aux ChOCs et reCYclage de BIOcomposites multifibres or Shock resistance and recycling of multi-fibre biocomposites) project, with the following partners: ADDIPLAST SA, who aims to develop thermoplastic compounds comprising a significant fraction of biomass from resources local to the automotive industry. The use of green materials is now standard in engineering design and in specifications for calls for tender from suppliers of components and parts. The incorporation of green materials is also one of the selection criteria used when choosing suppliers.

The BlueHDi technology is the subject of approximately 100 patents filed by Groupe PSA. The Group continues to refine its technologies, notably with the introduction into its commercial vehicles and, in the future (third stage of Euro 6 – Euro 6d), into its passenger vehicles of an ASC (Amonia Slip Catalyst) for treating ammonia leaks (NH 3 ) thus increasing its efficiency in eliminating NO x emissions treated by the upstream SCR system. Previously, AdBlue® was scheduled to be replenished in Groupe PSA vehicles during maintenance work at the frequency stated in the service manual. From now on, to improve the performance of the Group’s new vehicles, (second stage Euro6 vehicles), filling up with AdBlue ® will be made easier through the use of an orifice that is conveniently placed in the fuel tank flap. However, this requires an extensive distribution network in France and Europe for urea (AdBlue ® ), the reducing agent used to convert NO x into nitrogen. Forging new ground: being 2.2.1.2.3. transparent with and responsibly informing customers and communities With groundbreaking technology solutions, Groupe PSA is also unique in terms of its customer information. Groupe PSA asserts itself as a major player in improving air quality: from the invention of the particulate filter to SCR and GPF, its technological solutions have a reputation for being the most relevant for fighting the environmental impacts of internal combustion engines. It takes part in public debates (conferences) and fiercely defends industrialists’ freedom to devise the most effective solutions, challenged only by the caps set by regulators. Convinced by the relevance of its technological choices in the light of the challenges posed by climate change and air quality, in November 2015, it announced its partnership with two environmental NGOs, Transport & Environment (T&E) and France Nature Environnement (FNE), and, together, they published fuel consumption figures for more than 1,000 of the Group’s vehicles under real-world driving conditions. This information is available on Group brand websites. The measurement protocol developed with T&E showed its efficiency in terms of the fuel consumption and CO 2 emissions tests actually in use (see Section 2.2.1.1.1). Encouraged by this success, the experiment was replicated for the measurement of NO x and particulate emissions. Groupe PSA published the first results of these measurements at the start of March 2018. This new step contributes to further increase the reliability of automotive tests and measurements. Groupe PSA is, to date, the only car manufacturer to commit to this transparency in respect of its customers. Aware of the challenge of informing its customers about the gaps between measurements taken in a laboratory and measurements taken in real-world conditions, the Group’s actions also include an educational dimension, enabling customers to both access all the information they need to make an informed choice and to measure the impact of their driving mode on their vehicle’s emissions. In addition, Groupe PSA points out that the results of the real driving emissions (RDE) tests performed on its recently-approved vehicles can be accessed on the following website http://www.acea.be/ publications/article/access-to-euro-6-rde-monitoring-data.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT