PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Corporate sustainable Development Commitment

Procurement policy social, ethical and environmental standards DPEF.34 DPEF.35 DPEF.42

decision to integrate workers with disabilities from the supplier Bretagne Ateliers into the La Janais plant at Rennes in 2018 where they will perform all assembly functions. Key figures: services purchased from the adapted and protected sector „ represent €45,4 million in added value the Group works with: „ 6 key associations: Adapei du Doubs, Adapei de Haute Saône, „ Bretagne Ateliers, Les Papillons Blancs du Haut Rhin, Les Ateliers de l’Ostrevent and the AMIPI/SLAMI Foundation, Adapei in Doubs, Adapei in Haute-Saône, Bretagne Ateliers, Les Papillons Blancs in the Upper Rhine, Les Ateliers de l’Ostrevent and the AMIPI/SLAMI Foundation, and a Spanish association: ILUNION, 2 329 beneficiaries (FTE disabled workers from companies in „ the sheltered or adapted work sector) 2 306 of whom are in manufacturing, corresponding to 3,95 employment rate percentage points for disabled individuals at Groupe PSA in France; 100% of cars manufactured by the Group in Europe include at „ least one part manufactured by the sheltered and adapted sector. Groupe PSA remained France’s number one buyer from the “EA” sector and the “ESAT” sector (companies employing individuals with disabilities, (Établissements et Services d’Aide par le Travail) in 2017. Exercising due diligence DPEF.35 2.3.1.2.2 Groupe PSA follows OECD Directives on exercising a duty of due diligence within its supply chain. This is based on analysing risks (mapping) to identify and prioritise the actual, or potential, negative impacts of its suppliers’ activities. (Section 4.2.2.1 of the CSR Report). If risks are identified, Groupe PSA has a prevention system which includes implementing and monitoring specific action plans with the suppliers in question, to prevent or mitigate any impacts. In the event of actual incidents, Groupe PSA is set up to contribute to remedial actions in resolving the issue. In full transparency, it publishes the diligence measures taken, and the results obtained, in its annual CSR Report. Identifying CSR risks in the supply chain The numerous crises experienced by the automotive industry over the last few years have enabled the Group to develop its risk analysis process so as to be better able to prevent risks from occurring and be more reactive once the risk has been identified. In line with the Group’s risk policy (see Section 1), purchases can be broken down into 660 different commodities to which the Purchasing Department applies a multi-criteria (quality, logistics, financial, CSR, etc.) risk analysis to define “Technical and Industrial Purchasing Policy” for each commodity. The policy is drawn up by the buyers in collaboration with experts from other divisions of the Group: financial analysts, logistics experts, quality experts, engineers, etc. Steps taken to prevent risks: training and systematic CSR Performance evaluation for suppliers Buyer trainings Every year, the Group’s purchasing school organises training sessions for new buyers in Europe and in Latin America. A special CSR module, annually updated, is deployed for this occasion. Since 2008, 495 people have been trained in Europe and 141 in Latin America. In addition, each operational buyer is trained on an ongoing basis in developments in regulatory constraints, best practices, tools responsible purchasing (including ethics, Human Rights, the environment etc.).

CSR is implemented on a global level. It is by bringing all the stakeholders together that the progress already made will be sustained over the long-term and will extend across the entire supply chain. By joining the United Nations Global Compact in 2003, Groupe PSA pledged to uphold and promote, and to encourage its suppliers to uphold and promote, the ten principles, inspired by the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development and the United Nations Convention Against Corruption. Incorporating workforce-related and social criteria into the purchasing process: focusing on Human Rights Groupe PSA’s Human Rights policy is implemented in line with OECD recommendations. For further details, please refer to Chapter 4 of the CSR Report. For example: Groupe PSA policy on conflict minerals. A specific clause has been inserted into the general purchasing terms and conditions (Article 14), stipulating that suppliers must provide details of the composition of materials used in the manufacture of the parts supplied as well as of any changes to said composition. In addition, suppliers must provide, in writing, all the information required in order to comply with current legislation, in particular with regard to consumer protection and conflict minerals. The Purchasing Department, with the help of the Research and Development Department responsible for sensitive products, undertook to systematically question the entire panel of approved suppliers in order to identify the suppliers, ask them to complete the EICC-GeSI form and, should it be established that materials have been procured from illegal sources, to set up replacement sourcing. Groupe PSA thus intends to exercise its duty of care and take part in the introduction of sustainable procurement. Suppliers make a major Contribution to achievement of the Group’s environmental Objectives For the most part, the Group’s suppliers are from industries that are faced with the same environmental challenges as the Group: reducing their carbon footprint and water consumption, curbing their industrial emissions, improving waste recycling, preserving biodiversity. Groupe PSA involves them in initiatives that follow its environmental roadmap. The Group’s environmental objectives for its products are translated into contractual commitments via specifications and purchasing policies targeting two areas, the nature of the materials used and CO 2 emissions generated. Groupe PSA’s strong Commitment to the adapted Sector For over 20 years, Groupe PSA has been sourcing direct parts (e.g.: instrument panels, interior trim, pedals etc.) from the sheltered sector. Subcontracting to this sector is one aspect of the Group’s agreement for the social and occupational inclusion of people with disabilities. The sixth agreement was signed on 21 February 2017. Nowadays, suppliers from the sheltered sector are expected to meet the same criteria as the rest of the Group’s suppliers in terms of quality, reactivity, economic performance, etc. The Purchasing Department, alongside with all the other Groupe PSA departments, has helped these suppliers to evolve in order to achieve this level of performance. For example, this improved expertise enabled some sheltered workshops to demonstrate their know-how to other clients and other business segments (railways, aeronautics etc.). The steps taken by Monozukuri with certain sheltered workshops helped further improve this type of partnership (example: integration of an Adapei du Doubs team on the PSA Sochaux site,

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GROUPE PSA - 2017 REGISTRATION DOCUMENT