PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

ENERGY PERFORMANCE AND 2.2.2.1. REDUCTION IN CARBON FOOTPRINT IN THE FACE OF CLIMATE CHANGE Like the product strategy, where the emphasis is on the development of low-carbon vehicles, the Industrial Department has, through its environmental policy, promised to participate in the Group’s efforts to reduce its carbon footprint in relation to energy consumption. Within the Automotive Division, vehicle production uses energy for a wide range of industrial processes, such as casting, machining, paint curing, heat treatment, etc. The Group has developed an energy management plan for all its production plants based on best available techniques that has helped since 1995 to reduce per-vehicle energy consumption by 36% and greenhouse gas (GHG) emissions by 53%. Surveys of greenhouse gas (GHG) emissions of French facilities Pursuant to Article L. 225-25 of the French Environmental Code, derived from the Grenelle environment laws, the companies concerned in the Automotive Division (companies with more than 500 employees) have implemented greenhouse gas (GHG) emission checks (six GHGs from the Kyoto protocol) for their French operations, on the basis of 2014 emissions. These checks were conducted within regulatory scopes 1 and 2. Every company in question has established its report by applying the methodology established at the Group level, and passed it on to the competent regional Prefect in December 2015. An extremely summarised result of the PCA checks and its affiliates in France is given below:

In 2017, 4,991 hours of training were provided to improve employees’ environmental awareness and practices. This total does not take into account the training provided directly at the work station by the unit manager within the PES (PSA Excellence System) management control, which integrates information on the control of environmental impacts directly related to the work station. Over and above the training of major environmental contributors in the industry, every employee receives information on the environmental situation of his or her site at regular intervals and at least once a year. Finally, as part of the development of a Site Prevention Plan, every contributor outside the Group shall be made aware of the environmental policy of the site on which he is active. Measures for the prevention of environmental risk, pollution or effluents at sites DPEF.18 With a tried-and-tested organisational structure in which each Group facility has an environmental manager coordinated centrally by a team of experts, and with every employee committed to managing impacts at each stage of the process, the Group’s environmental strategy is guaranteed to be effective. On that basis, the environmental component of the Excellent Plant has led to ambitious targets being set for the five issues listed in the introduction to section 2.2.2 and to the implementation of appropriate resources. Resources implemented DPEF.16 Production plants The Industrial Department’s environmental vision is developed starting with the design of new means of production, so that its environmental impact can be considered. It can thus be estimated that 1% of the amount of investment in manufacturing tools corresponds to taking their environmental impact into consideration. In addition, the Industrial Environment Department manages an annual investment plan that provides for plant compliance operations relating to regulatory changes and the reduction of pollution and environmental risks. A €0.5 million investment plan was launched in 2017 in Europe. Provisions for environmental risk DPEF.17 PCD Automotive Division In accordance with Decree No. 2012-633 of 3 May 2012, since July 2014 the Group has established financial guarantees of €1 million as security for certain installations of its French facilities classified as environmentally sensitive. By 2019, the Group will have financial guarantees of approximately €5 million. Faurecia Pursuant to the aforementioned decree, Faurecia identified two French sites obliged to establish financial guarantees. In 2017 the amount of guarantees established was €295,768 for the two sites in question. Faurecia also set aside provisions for environmental risks amounting to €5,981 thousand. These provisions are mainly related to processing costs for site remediation. Compensation paid pursuant to a legal decision for environmental damage PSA Automobiles SA and Faurecia did not have to pay any such compensation in 2017.

0% Biomass mobile sources 2,076

5% Steam 25,808

29% Electricity 148,299

49% Combustion 250,619

0% Biomass

0

2% Refrigerants

12,273

6% Processes

8% Mobile sources 38,586

31,741

An action plan covering the period from 2015 to 2017 was attached to each assessment, the total expected gain being estimated at over 41,000 tonnes of CO 2 equivalent. The actions adopted came from either the energy management plan (e.g. reduction of electricity or gas consumption), or specific actions to reduce GHG emissions (e.g. use of refrigerants with a low Global Warming Potential). This second iteration of the GHG assessment, using the same methodology, provides points of comparison between the two reporting periods. A decline of 80,000 tonnes of CO 2 emissions was observed, showing that the action plans were brought off successfully, since they called for a 60,000 tonne reduction. This represents an 8.5% decline in CO 2 emissions produced per car in France.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT