4 Psa Peugeot Citroën

20 CORPORATE SOCIAL RESPONSIBILITY STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS CORPORATE SOCIALSO RESPONSIBILITY STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS 2011 In addition to the 2011 Sustainable Development and Annual Report and its website (www.annualreport.psa-peugeot- citroen.com), this document covers the economic, environmental, social, societal and governance aspects of the corporate social responsibility performance of PSA Peugeot Citroën companies. It is designed to provide a deeper understanding of the Group’s sustainable development challenges and impacts and explain more about its policies, programmes and 2011 accomplishments. Together, these publications make up PSA Peugeot Citroën’s sustainable development reporting for 2011 and are available on the corporate website (www.psa-peugeot-citroen.com) Global Reporting Initiative (GRI) Guidelines For the ninth straight year, the Group’s sustainable development reporting follows the Sustainability Reporting Guidelines issued by the Global Reporting Initiative, using the G3 version for the fifth year. According to the criteria recommended in the “G3 Guidelines, Application Levels”, the Group’s own assessment of its 2011 sustainable development reporting results in an A+ application level (the GRI application level check statement is available at the end of this report). Audit In its capacity as outside auditor, Grant Thornton has performed the necessary verifications aimed at expressing moderate assurance on: | The Group’s procedures for compiling i) the environmental data from PCA, PCI and PMTC production plants, Peugeot and Citroën dealerships, Gefco and Faurecia, and ii) the employee relations data from the Automotive Division, Peugeot and Citroën dealerships and Gefco published in this Report, which are indicated by this symbol: P | Certain PCA environmental indicators and certain Automotive Division employee relations indicators. Indicators for which data has been audited are preceded by this symbol: D Unaudited indicators are preceded by this symbol: The full review report by the auditor, Grant Thornton, is available at the end of this document. Contact For more information, particularly concerning internal reporting processes, please write to Délégation au Développement Durable, PSA Peugeot Citroën, 75, avenue de la Grande-Armée, 75116 Paris, or by e-mail at [email protected]. PSA PEUGEOT CITROËN - CORPORATE SOCIAL RESPONSIBILITY - STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS - FINANCIAL Y EAR 2011 - 1 CONTENTS A STRATEGICALLY INTEGRATED 2.4. PEUGEOT AND CITROËN: 1 CORPORATE SOCIAL LISTENING TO CUSTOMERS 60 RESPONSIBILITY APPROACH 5 2.4.1. Peugeot and Citroën Customers 60 2.4.2. Meeting Customer Expectations 65 1.1. MESSAGE FROM THE CHAIRMAN 2.4.3. Compliance with Health, Safety and OF THE MANAGING BOARD 6 Customer Privacy Standards 68 2.4.4. Advertising, Communication 1.2. PSA PEUGEOT CITROËN’S and Consumer Information 68 RESPONSE TO THE AUTOMOBILE INDUSTRY’S CSR CHALLENGES 8 1.2.1. The Automobile Industry’s Major A COMMITMENT Sustainable Development Challenges 8 1.2.2. Areas in which PSA Peugeot Citroën 3 TO PROTECTING Can Have an Impact 10 THE ENVIRONMENT 71 1.2.3. PSA Peugeot Citroën’s CSR Policies 11 3.1. MANAGING ENVIRONMENTAL 1.2.4. CSR Commitments and Objectives 14 IMPACT 74 1.2.5. Main Indicators 20 3.1.1. Environmental Challenges and Corporate 1.3. CSR GOVERNANCE 21 Strategy 74 1.3.1. Organisation 21 3.1.2. Combatting climate change 78 1.3.2. External Standards and Commitments 21 3.1.3. Reducing the Impact of Resource Use 85 1.3.3. CSR Reporting 22 3.1.4. Limiting Pollution 87 3.1.5 Reducing Waste Production 92 1.4. RELATIONS WITH STAKEHOLDERS 23 3.2. PROTECTING THE NATURAL 1.4.1. Stakeholders and Forums 23 ENVIRONMENT AND BIODIVERSITY 98 1.4.2. Dialogue Resources 24 3.2.1. Facilities Located near Protected Areas 98 1.4.3. Dialogue Initiated in 2011 with Independent CSR Experts 25 3.2.2. Signifi cant Initiatives to Promote Biodiversity 99 1.5. PRESENCE IN INDICES, AWARDS AND DISTINCTIONS RECEIVED 26 PSA PEUGEOT CITROËN: 4 A FULL-FLEDGED PARTNER TO ITS HOST COMMUNITIES 101 SETTING THE STANDARD 2 IN SUSTAINABLE MOBILITY 29 4.1. EXCELLENCE IN SUPPLIER RELATIONS: A SUPPLY CHAIN 2.1. THE INNOVATION PROCESS 30 COMMITMENT 102 2.1.1 The City on the Move Institute (IVM) 30 4.1.1. The Group’s purchasing strategy 102 2.1.2. R&D and Open Innovation 31 4.1.2. Locating purchasing teams close 2.1.3. Eco-Design and Life Cycle Analysis 35 to manufacturing facilities to ensure more effective integration 2.2. LOW CARBON VEHICLES into host regions 104 FOR ALL TYPES OF USE 36 4.1.3. Strengthening supplier relationship 2.2.1. Greenhouse-Friendly Technologies 36 management 105 2.2.2. Protecting Air Quality 48 4.1.4. Supporting supplier development 106 2.2.3. Cradle to Cradle: Resource Management 4.1.5. Incorporating sustainable development and Recycling 50 criteria into the supplier relations policy 106 2.3. MOBILITY SOLUTIONS 53 2.3.1. Mobility Services and Onboard Intelligence 53 2.3.2. Road Safety 55 2 - PSA PEUGEOT CITROËN - CORPORATE SOCIAL RESPONSIBILITY - STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS - FINANCIAL Y EAR 2011 4.2. GLOBAL AND LOCAL 5.6. A DEEP COMMITMENT CORPORATE CITIZENSHIP 108 TO SOCIAL RESPONSIBILITY 158 4.2.1. The PSA Peugeot Citroën Foundation: 5.6.1. Working together 158 supporting mobility for all 109 5.6.2. Continuing to increase the percentage 4.2.2. Corporate philanthropy 110 of women in the workforce 162 4.2.3. Local Philanthropy and Social Action Plans 5.6.3. Human rights 167 Deployed by Plants and Offi ce Facilities 111 4.2.4. Initiatives supported by the Peugeot and Citroën brands 113 CORPORATE GOVERNANCE 6 AND ETHICAL PRACTICES 171 DEPLOYING AN INNOVATIVE, 6.1. CORPORATE GOVERNANCE 172 5 RESPONSIBLE EMPLOYEE 6.1.1. Nature of ownership and legal form 172 RELATIONS POLICY 115 6.1.2. Governance principles 174 6.1.3. Governance structure 176 5.1. MANAGING JOBS RESPONSIBLY 6.1.4. Internal Control Procedures 181 TO MEET NEW CHALLENGES 117 5.1.1. Workforce 117 6.2. DIRECT ECONOMIC VALUE 5.1.2. Employment policy 122 DISTRIBUTED 183 6.2.1. Payments to capital providers 183 5.2. HUMAN RESOURCES, 6.2.2. Remuneration and benefi ts of corporate A STRATEGIC CHALLENGE 128 offi cers 185 5.2.1. Attracting talented people 128 5.2.2. Managing talent 129 6.3. ETHICAL PRACTICES 188 5.2.3. PSA Peugeot citroën University: 6.3.1. The Code of Ethics 188 a window on the world 131 6.3.2. Preventing fraud, corruption and anti-competitive behaviour 189 5.3. BUILDING TRUST THROUGH 6.3.3. Transparency and integrity of infl uence MEANINGFUL EMPLOYEE strategies and practices 191 RELATIONS 133 5.3.1. International social dialogue organisations 133 EXTERNAL 5.3.2. Strengthening Social Cohesion 134 7 AUDITOR’S REPORT 195 5.4. WORKPLACE HEALTH AND SAFETY: A TOP PRIORITY 135 5.4.1. Workplace Health and Safety GRI STATEMENT AND CROSS Management System 135 8 REFERENCE TABLES 199 5.4.2. Long lasting progress 137 5.4.3. Five priority commitments for preventing health and safety risks 140 5.4.4. An active commitment to health 142 5.4.5. Joint management-worker health and safety agreements and committees 145 5.4.6. Promoting employee well-being 146 5.4.7. Organisation of working hours 148 5.5. COMPENSATION POLICY 152 5.5.1. Fair and competitive compensation 152 5.5.2. Employee benefi ts 155 PSA PEUGEOT CITROËN - CORPORATE SOCIAL RESPONSIBILITY - STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS - FINANCIAL Y EAR 2011 - 3 4 - PSA PEUGEOT CITROËN - CORPORATE SOCIAL RESPONSIBILITY - STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS - FINANCIAL Y EAR 2011 1 A STRATEGICALLY INTEGRATED CORPORATE SOCIAL RESPONSIBILITY APPROACH 1.1. MESSAGE FROM THE CHAIRMAN 1.4. RELATIONS WITH STAKEHOLDERS 23 OF THE MANAGING BOARD 6 1.4.1. Stakeholders and Forums 23 1.4.2. Dialogue Resources 24 1.2. PSA PEUGEOT CITROËN’S RESPONSE 1.4.3. Dialogue Initiated in 2011 TO THE AUTOMOBILE INDUSTRY’S CSR with Independent CSR Experts 25 CHALLENGES 8 1.2.1. The Automobile Industry’s Major Sustainable 1.5. PRESENCE IN INDICES, AWARDS Development Challenges 8 AND DISTINCTIONS RECEIVED 26 1.2.2. Areas in which PSA Peugeot Citroën Can Have Presence in Socially Responsible Investment (SRI) an Impact 10 Indices 26 1.2.3. PSA Peugeot Citroën’s CSR Policies 11 Awards 27 1.2.4. CSR Commitments and Objectives 14 1.2.5. Main Indicators 20 1.3. CSR GOVERNANCE 21 1.3.1. Organisation 21 1.3.2. External Standards and Commitments 21 1.3.3. CSR Reporting 22 PSA PEUGEOT CITROËN - CORPORATE SOCIAL RESPONSIBILITY - STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS - FINANCIAL Y EAR 2011 - 5 A STRATEGICALLY INTEGRATED CORPORATE SOCIAL RESPONSIBILITY APPROACH 1 1.1. MESSAGE FROM THE CHAIRMAN OF THE MANAGING BOARD 1.1. MESSAGE FROM THE CHAIRMAN OF THE MANAGING BOARD 2011 was a difficult year in which our performance did not live up to be more disciplined in our choices and priorities, so that all resources our ambitions. While it is true that we achieved recurring operating can be devoted to our major developments. This plan has led us to income of €1.3 billion, it was thanks to the good results of our make sometimes difficult decisions concerning our teams. In making subsidiaries Banque PSA Finance, GEFCO and Faurecia, all of which those decisions, we have maintained a continuous dialogue with recorded growth in their respective businesses. The Automotive employee representatives, in accordance with our corporate values, Division, on the other hand, had a mixed year, as the first half’s gains to ensure that an effective support network is in place for all those were wiped out in the second half.

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