PSA_GROUP_REGISTRATION_DOCUMENT_2017

DECLARATION ON EXTRA-FINANCIAL PERFORMANCE Corporate sustainable Development Commitment

One session was notably set up specifically to train buyers in rolling out the new contracts that the Group is signing with its suppliers. This contract was submitted to the Directorate-General for Competition, Consumer Affairs and Prevention of Fraud (DGCCRF) which described it as being well-balanced. The training aims to stress the importance of negotiating with suppliers in good faith. This includes a section which focuses on the behaviour to be adopted by the buyer in contractual negotiations. Following the Group’s decision to have its entire approved supplier panel assessed by an external provider, EcoVadis, all buyers were trained in the changes to the CSR regulatory framework and the

Supplier information meetings are organised on a monthly basis to „ inform suppliers about the latest developments in CSR, to let them know about the Group’s expectations in terms of CSR and to inform them of legal and regulatory changes regarding CSR matters. An e-learning training course on CSR principles is available on their „ CSR performance evaluation platform. In 2017, a workshop was organised with EcoVadis to share CSR best „ practices with German suppliers. A total of 165 buyers and suppliers attended this event. Formal commitment from suppliers and evaluation of their CSR performance Evaluation of suppliers’ CSR performance is a key factor for the Group when it comes to selecting suppliers during calls for tenders. 94% of supplier selections were made on the basis of the CSR assessment in 2016. This assessment consists comprises suppliers’ commitment to comply with Groupe PSA’s CSR requirements and the results of assessment questionnaires and audits.

Group’s expectations. Supplier training

Groupe PSA’s ambition is to have trained 90% of its suppliers in the Group’s CSR risks and requirements by 2025. To achieve this objective, it supports its suppliers by providing them with lots of information and training tools to enable them to improve their practices.

Supplier CSR assessment process

AUDITS OF SUPPLIER PRODUCTION PLANTS IN ACCORDANCE WITH IATF STANDARD 16949

ASSESSMENT BY AN EXTERNAL COMPANY

RESPONSIBLE PURCHASING POLICY SIGNED

ON-SITE AUDITS

OF DIRECT MATERIAL PURCHASING SPEND = 90 % SUPPLIER GROUPS 642

SUPPLIER GROUPS 1,030

AUDITS OF CRITICAL SUPPLIERS SINCE 2008 86

OF SUPPLIER PRODUCTION PLANTS = 70 % CERTIFIED SUPPLIER PRODUCTION PLANTS 1,531

OF PURCHASING SPEND = 92 %

78% of the revenue generated by Mister Auto (equivalent to 0.35% of the annual value of Groupe PSA's purchases) consists of parts purchased from major equipment manufacturers who have signed the “Responsible Purchasing Policy" as tier 1 suppliers. Audits of supplier production plants to IATF (International Automotive Task Force) standard 16949 Groupe PSA requires that supplier production plants are certified to IATF 16949. This certification is awarded for three years and the certifying body conducts an annual audit to check compliance. Major non-compliances result in suspension of the certificate and supplementary audits to rectify the non-compliances. 70% of supplier production plants are certified to ISO/TS 16949 or IATF 16949, and the remaining sites have, as a minimum, the To supplement the supplier assessment system and make it more robust, the Group undertook to assess its entire supplier base on the basis of environmental, social, ethical and sustainable procurement. Groupe PSA chose to entrust this evaluation to an external provider, EcoVadis. An initial step has helped pinpoint supplier risks to a greater degree. The Group informed its suppliers that this process is mandatory if they wish to remain on the supplier base and that suppliers failing to achieve the required level would be systematically expected to implement corrective action plans. In 2017, 642 supplier groups, or 90% of the amount of purchases, were assessed. ISO 9001 certification. External assessment

Signature of the Responsible Purchasing Policy In 2017, charter “Groupe PSA requirements on social and environmental responsibility with respect to its suppliers” was revised and renamed. It outlines the Group’s CSR policy and sets out the commitments that suppliers working with Groupe PSA must abide by. The policy is available in several languages on the Group’s B2B portal. The Group’s CSR requirements: are based on a personal commitment to monitoring: since 2010, „ the Group’s Code of Ethics has specifically mentioned the integration of ethical and environmental criteria into the supplier relationship; are gathered in an ad hoc reference guide for suppliers: these „ requirements make explicit reference to the Global Compact, the Universal Declaration of Human Rights, the Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on the Environment and the United Nations Convention against Corruption; are distributed to the most important suppliers of the Group and „ to suppliers associated with high-risk countries or commodities. These suppliers are asked to formally commit to comply with the Groupe PSA guidelines or to demonstrate their compliance with equivalent guidelines. As of end-2017, 1,030 suppliers had made this commitment, accounting for 92% of the purchasing spend managed by the Purchasing Department; are incorporated into the fundamental principles of supplier „ relationship management, in contractual documents such as purchasing contracts and purchasing terms and conditions, and in the Group’s purchasing processes.

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GROUPE PSA - 2017 REGISTRATION DOCUMENT