PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Corporate sustainable Development Commitment

PROTECTION OF NATURAL 2.2.2.5. ENVIRONMENTS AND BIODIVERSITY EFFORTS DPEF.19 DPEF.29

For PCD Automotive Activities , less than 10% of the effluent presented above is released into the environment after full treatment in an integrated plant. The remainder is channelled to public waste water plants for further treatment. Polluting discharge remains generally constant, thus illustrating the stability and performance of internal treatment facilities. At Faurecia , when water is contaminated during the manufacturing process and must be treated before discharge, the sites most often use the collective network (for 60% of water discharged). Other sites have in-house installations (14% of discharges). Other, uncontaminated water is discharged directly into the natural environment.

The Group’s carmaking operations do not intrinsically pose a high risk to the environment.

The Peugeot carbon sink project in the Amazon At end-2015, after 17 years of the project, total carbon sequestration by biomass and soil was estimated at 702,974 tonnes of CO 2 equivalent according to the VCS (verified carbon standard). The corresponding 632,676 carbon credits were marketed according to the VCS protocol. The income from this source is systematically reinvested in the project. Average annual carbon sequestration (41,351 tonnes) represents 7.34% of the 563,540 tonnes of CO 2 emitted by Group plant in 2017.

CORPORATE SUSTAINABLE DEVELOPMENT 2.3. COMMITMENT

Responsible supply chain management 2.3.1.

THE SUPPLIERS: VITAL LINKS IN THE VALUE CREATION CHAIN

2.3.1.1.

Type of automotive purchases The Group’s purchases include: direct material parts: purchases of direct vehicle parts and mechanical subassemblies, direct purchase of materials. Series parts „ purchased represent more than 75% of a vehicle’s production cost; spare parts and accessories; „ indirect machinery & equipment: SG&A, services, commercial facilities, competition, information technology and telecoms. „

WORLDWIDE PURCHASES IN 2017 BY REGION

Latin America

Middle East Africa

Europe 19,111 1,499 5,885 26,496

Eurasia

China

Total

(in million euros)

Direct parts Spare parts

896

190

70

138 20,406

32

-

-

-

1,530 6,215

Indirect Machinery & Equipment

249

24

48 119

8

TOTAL

1,177

214

146 28,151

Groupe PSA suppliers For the Group, long term relationships with its suppliers are essential. The Purchasing Department relies on creating a “win/win” situation. The aim of this approach is that each partner will share its know-how and establish a long-term relationship through an ongoing improvement process. In taking this approach, the Group aims to surround itself with suppliers who, by virtue of their sound financial structure and capacity for innovation, are capable of supporting the Group’s expansion, particularly on the international stage.

Groupe PSA’s PCD Automotive Division purchases amount in 2017 reached €28 billion, which corresponds to 43% of the Group’s revenue. In 2015, the Group acquired Mister Auto, an online website selling spare parts. The purchasing policies and processes described in this section also apply to Mister Auto. Faurecia has a special status – it is a subsidiary, but also a supplier to other car manufacturers which are direct competitors of Groupe PSA. This requires these units to be strictly separated, including the purchasing function. However, the principles of responsibility within the Groupe PSA Purchasing Department also apply to Faurecia’s relationship with its own supply chain, as both a part of the Group and a strategic supplier.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT