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2014 CSR REPORT 2014 CSR REPORT CORPORATE SOCIAL RESPONSIBILITY CONTENTS 1 5 A CSR PROGRAMME FULLY INDUSTRIAL ECOLOGY WITHIN THE INTEGRATED INTO THE GROUP’S GROUP’S MANUFACTURING PLANTS 161 STRATEGY 1 5.1. The group’s environmental protection policy 1.1. Message from the Chairman of the Managing Board 3 at manufacturing level: organisation and strategy 163 1.2. Group profi le 4 5.2. Energy and carbon footprint from manufacturing 168 1.3. CSR organisation, strategy and policies 12 5.3. Industrial waste and pollutants: managing impacts 1.4. Relations with stakeholders 33 on the environment and local residents 176 5.4. Waste and materials cycle 181 5.5. Managing the water cycle in facilities 188 2 5.6. Protecting natural environments and actions to promote biodiversity 192 A GROUP TREND-SETTER IN SUSTAINABLE MOBILITY 39 5.7. Scope and methodology of reporting 194 2.0. PSA Peugeot Citroën’s innovation system 41 2.1. Vehicle CO2 emission and fuel consumption 52 2.2. Air quality 62 6 2.3. Vehicle quality and safety 65 ETHICAL PRACTICES , ECONOMICS 2.4. Environmental impact of materials and end of life 74 AND CORPORATE GOVERNANCE 197 2.5. Provision of mobility services 83 6.1. Ethics in business relationships 199 2.6. Scope and methodology of reporting 86 6.2. Distribution of added value 206 6.3. Transparency and integrity of infl uence strategies and practices 209 3 6.4. Governance principles 213 HUMAN RESOURCES, 6.5. Integration of CSR into Governance 217 DRIVING CHANGE WITHIN 6.6. Scope and methodology of reporting 218 PSA PEUGEOT CITROËN 87 3.1. The path of social dialogue to implement the new PSA social contract 89 7 3.2. Responsible employment and skills management 92 THE GROUP’S COMMITMENT 3.3. Developing talent and cultivating automotive engineering expertise 104 TO SOCIETY 219 3.4. Workplace health and safety, the company top priority 116 7.1. Involvement in host communities 221 3.5. Making our differences an asset 127 7.2. Group strategy in the area of sponsorship and philanthropy 221 3.6. Scope and methodology of reporting 134 7.3. Socially responsible mobility: the Foundation’s initiatives 222 7.4. Sponsorship and philanthropy 4 to grow strong local roots 225 7.5. Information and respect for customers 227 RESPONSIBLE PURCHASING POLICIES FOR THE ENTIRE SUPPLY CHAIN 137 4.1. Responsible purchasing as a key element of Group performance 139 8 4.2. Supplier relations and purchasing practices 144 APPENDICES 233 4.3. Social and environmental standards for purchasing 150 8.1. Concerning this report 234 4.4. Reducing the environmental impact of logistics 154 8.2. Scope and methodology of reporting 235 4.5. Scope and methodology of reporting 159 8.3. Cross-reference tables 237 8.4. Auditor’s examination report 247 1 A CSR PROGRAMME 1FULLY INTEGRATED INTO THE GROUP STRATEGY 1.1. MESSAGE FROM THE CHAIRMAN OF THE MANAGING BOARD 3 1.2. GROUP PROFILE 4 1.2.1. Core businesses, brands and locations 4 1.2.2. Key fi gures 7 1.2.3. Corporate governance 9 1.2.4. “Back in the Race”, the Group’s new roadmap 11 1.3. CSR ORGANISATION, STRATEGY AND POLICIES 12 1.3.1. CSR governance 12 1.3.2. Key CSR issues and materiality matrix 15 1.3.3. Risks and opportunities in all areas of CSR as they relate to future fi nancial performance and long-term prospects 23 1.3.4. CSR policies: commitments, objectives, action plans and key indicators 25 1.3.5. An approach recognised by SRI rating agencies 31 1.4. RELATIONS WITH STAKEHOLDERS 33 1.4.1. Presentation of stakeholders and tools for dialogue 34 1.4.2. Forums for dialogue and exchange set up by PSA Peugeot Citroën 35 1.4.3. External standards and commitments 38 PSA PEUGEOT CITROËN CORPORATE SOCIAL RESPONSIBILITY - Strategic Guidelines, Commitments and Indicators 2014 1 1 A CSR PROGRAMME FULLY INTEGRATED INTO THE GROUP STRATEGY “ … OUR LONG-TERM COMMITMENTS ARE PART OF A PROACTIVE STRATEGY THAT CONVEYS OUR VISION OF A CARLOS TAVARES RESPONSIBLE AUTOMOTIVE INDUSTRY CHAIRMAN OF THE MANAGING BOARD AND REFLECTS THE THREE FOCUS AREAS WHICH FORM OUR CORPORATE SOCIAL RESPONSIBILITY PROGRAMME” 2 PSA PEUGEOT CITROËN CORPORATE SOCIAL RESPONSIBILITY - Strategic Guidelines, Commitments and Indicators 2014 A CSR PROGRAMME FULLY INTEGRATED INTO THE GROUP STRATEGY 1 1.1. Message from the Chairman of the Managing Board 1.1. MESSAGE FROM THE CHAIRMAN OF THE MANAGING BOARD G4-1 “BACK IN THE RACE” IN 2014, THE GROUP taking place in society and in the markets. Overcrowding in cities REAFFIRMS ITS COMMITMENT TO DRIVE is one of these factors, to which car sharing offers a viable solution. ITS BUSINESS RESPONSIBLY. But car sharing also offers a way to meet the mobility needs of the disadvantaged, especially the most vulnerable members of society, “The Group’s financial results and sales performance in 2014 those in rural communities and people residing in outlying urban show that PSA Peugeot Citroën is firmly on the path to a areas not well served by public transport. Through its Foundation, sustainable recovery, made possible by exemplary corporate the Group is working to develop solutions to strengthen social governance and responsible dialogue with the employee and cohesion by serving marginalised populations. labour union representatives having signed the Group’s New Social Contract. In my view, it was essential that this return to In addition, the Group is fully conscious of its responsibilities the front ranks of the automotive industry be accompanied by a as a core player in economic development for its host countries, strong commitment to a business model able to deliver sustainable owing to its dense supplier network. Accordingly, the Group growth year after year. pursues an active local supplier integration strategy in each of the main world regions where it has operations, notably Asia, The Group, whose adherence to the ILO conventions and the Latin America and Europe. For example, the Group has received principles of the UN Global Compact is well established and “Origine France Garantie” certification for 14 vehicles produced regularly renewed, has long embraced its responsibility to society in its French factories. and the environment. This responsibility is deeply embedded in the Group’s culture and its core values. This is also reflected in the Group’s efforts to promote social integration through work as well as internship and work- The commitments presented in this report were defined following study programmes at our sites and across our networks, such an analysis of the issues faced by an automobile manufacturer as the support provided through the Foundation to more than and provider of mobility services in the twenty-first century, while 300 community projects around the world. also giving due consideration to the concerns of our stakeholders. These long-term commitments, involving a set of goals to be Our responsibility also takes the form of initiatives on behalf met between now and 2025, are part of a proactive strategy of all of our employees, by implementing an attentive and for the way forward that conveys our vision of a responsible ground-breaking approach to human resources management automotive industry and reflects the three focus areas which form that emphasises effective dialogue as central to all relations with our Corporate Social Responsibility programme: our staff. This dialogue was instrumental to the development of the Group’s New Social Contract, an essential ingredient in the > breaking ground in sustainable mobility; rebuilding of our financial fundamentals. Furthermore, the open > playing an active role in host countries, regions and lines of communication maintained with the various committees communities; on health, safety and working conditions across the Group have > establishing and maintaining open lines of communication also made possible the launch of prevention measures for both between labour and management as a responsible employer. physical and psychosocial risk factors in the workplace, with exemplary results. For PSA Peugeot Citroën, promoting sustainable mobility requires constant efforts to reduce our environmental impacts. We have good reason to take pride in our socially responsible approach, which garnered high praise from rating agencies once First of all, this means moving towards carbon-neutral mobility: again this year, thus encouraging us to continue our efforts . Over with average CO2 emissions of 110.3 g/km in 2014, PSA Peugeot the last two decades, extraordinary progress has been made in the Citroën maintained its low-carbon leadership in Europe and automotive industry, in terms of safety as well as reductions in is at the forefront of efforts to mitigate climate change. This greenhouse gas emissions and pollutants. The automobile must achievement is the direct result of our proven capacity for be seen more as a mobility solution than as a potential problem innovation, allowing us to bring varied and affordable product and will continue to hold its rightful place among modern offerings to the market that incorporate best-in-class technologies means of transport thanks to constant progress made in limiting for engines, joined with a constant focus on manufacturing its environmental impacts. Automated, connected, shared and lighter-weight vehicles. consuming only 2 litres of fuel per 100 kilometres, tomorrow’s Our commitment to sustainable mobility is also one that draws on cars are already being designed today at PSA Peugeot Citroën.” the vast potential of the circular economy, limiting the depletion of natural resources and actively putting more recycled materials Carlos Tavares, into supply chains. Chairman of the managing board Lastly, sustainable mobility increasingly involves sharing, separating vehicle use from vehicle ownership . Businesses can only succeed today if they are attuned to the transformations PSA PEUGEOT CITROËN CORPORATE SOCIAL RESPONSIBILITY - Strategic Guidelines, Commitments and Indicators 2014 3 1 A CSR PROGRAMME FULLY INTEGRATED INTO THE GROUP STRATEGY 1.2.

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