PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Embracing environmental issues

Reducing material consumption via 2.2.2.3.1. optimised manufacturing processes DPEF.23 Efforts to reduce materials consumption are largely focused on the product design phase (see Section 2.2.1.1.1.). Work on reducing vehicle mass entails an overall reduction of material mass, particularly steel, in the production of the Group’s vehicles (see Section 2.2.1.3.1.). In addition to efforts to reduce product mass, Groupe PSA’s stamping business line has developed an approach to the Material Use Coefficient (MUC) which optimises consumption of sheet metal during the process of forming body parts. This action contributes directly to keeping the main source of industrial waste under control, as two thirds of the 450,000 tonnes of waste metal are scraps from stamping. Even though all of these scraps are recycled in foundries, their reduction remains a major issue. The MUC strategy helps people to measure the progress made in stamping design. It quantifies the proportion of stamped material used to produce the cars compared to the amount of sheet metal that was received. As a result, this coefficient increased from 47% for the Peugeot 207 to 55% for the Peugeot 208. It reached 60% for the new 3008, and it is used for all new models. For the other third of waste metal, which consists essentially of machine shavings, the development of aluminium parts and pressure die casting design have been determining factors in reducing the quantities of machining waste. Pressure die casting, which limits the thickness of materials, is now widely used to produce the Group’s engine blocks. Chips, which are dried and compressed into briquettes to recover the cutting fluids reintroduced into the machining process as much as possible, are then returned to the Group’s foundries or to steelmakers. As for production processes, paint solvent regeneration is a process that has been in place for many years. Technical cleaning and purging solvents used by facilities are recovered and regenerated at a service provider before reintegration into the same cleaning process. Accordingly, operations related to the painting of the cars are carried out with solvents following a circular economy process. Reducing waste production and 2.2.2.3.2. promoting recycling by introducing circular economy loops DPEF.20 Within the PCD Automotive Activities , the Group aims to reduce the mass of waste per vehicle manufactured, as well as eliminating landfill waste in favour of recovery and recycling efforts in European plants. Introduced in 1995, the policies, which exclude metal and demolition waste, have demonstrated their effectiveness: the weight of waste per vehicle processed outside of Groupe PSA „ sites has been reduced by more than 63%; analysis and characterisation of waste produced during the „ different stages of production (casting, foundry work, mechanical parts manufacture, stamping, paint and final assembly) have made it possible to identify processing channels that provide an alternative to landfill. The gradual deployment of new outlets, depending on locally available treatment solutions, is driving a steady increase in the waste recovery and on-site recycling rate, which is now above 91%.

In addition, almost all scrap metal (sheet metal, filings, etc.) is recovered and put to a good alternate use in the steel industry or the Group’s foundries. When waste metal is taken into account, Group plants reclaim or recycle around 96.8% of their industrial waste. For PCD Automotive Trade in Europe, the Group is reinforcing its ambition to sign framework agreements with specialist hazardous and non-hazardous waste management providers. This approach makes it possible to optimise waste monitoring and to ensure its traceability within treatment networks and is one of the performance objectives for personnel responsible for overseeing business and financial performance within PSA Retail Management bodies. In 2017, the Master Agreement as applying to France has procured a 9% increase in recoverable proportion of hazardous waste. A constant effort has been maintained in the dealership network since 2016 to identify and define waste-treatment processes in order to match treatment processes with the waste output, in order to reduce the quantity of waste assigned by default to landfill. Even though on this point results have fallen behind, efforts in this area have been maintained, especially in the UK, which contributes at 45% of volumes declared as conveyed to waste dumps. The above-mentioned data from brands was reported from an average 92% of their sites in 2017 (97% in 2016 and 95% in 2015). All Faurecia sites , especially the production plants, aim to reduce the mass of waste generated during the manufacturing process. In total in 2017: 61% of waste was recycled (+2% compared with 2016); „ 13% of waste was recovered with energy recovery (-3% compared „ with 2016). In 2017, Group sites produced 230,216 tonnes of waste (+5.5% compared with 2016, due to increased volumes). Non-hazardous waste accounted for 93% of the total. Furthermore, waste metal (scrap iron, castings) which represented 32% of the total, were fully recovered and recycled by the foundries.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT