Corporate Social Responsability Strategic Guidelines, Commitments and Indicators

CORPORATE SOCIAL RESPONSABILITY STRATEGIC GUIDELINES, COMMITMENTS AND INDICATORS CORPORATE SOCIAL RESPONSIBILITY 20 STRATEGIC GUIDELINES, 12 COMMITMENTS AND INDICATORS In addition to the Group’s 2012 Sustainable Development and Annual Report and 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 covers the Group’s automotive and banking businesses. 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 2012 accomplishments. Together, these publications make up PSA Peugeot Citroën’s sustainable development reporting for 2012 and are available on the corporate website, www.psa-peugeot-citroen.com. Global Reporting Initiative (GRI) Guidelines For the tenth 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 sixth year. According to the criteria recommended in the “G3 Guidelines, Application Levels”, the Group’s own assessment of its 2012 sustainable development reporting results in an A+ application level (the GRI application level check statement is available at the end of this report). Audit The information in this report complies with French legislation, notably Articles L. 225-102-1 and R. 225-105 of the French Commercial Code as amended by the Grenelle 2 Law, effective since 2012 and described in the Group’s Registration Document. The 42 topics addressed in the aforementioned Articles are indicated in this document with icons numbering G1 to G42, and a correspondence table at the end of this report indicates on what pages the information required by the Articles can be found. In its capacity as outside auditor, Grant Thornton has performed the necessary verifications to: O ensure that all required information is given in the Group’s Management Report and this CSR report, and that explanations are provided for any missing information as set forth in Article R. 225-105, Paragraph 3, of the French Commercial Code and in French Decree 2012-557 of 24 April 2012 (disclosure certification); O express moderate assurance that all material information is reported faithfully and in accordance with the selected guidelines (moderate assurance report). In the parts of the document where there is a «Grenelle» reference, the few indicators that were not audited by Grant Thornton in 2012 are indicated by the symbol: Y Grant Thornton’s full Auditor’s Report is available in Section 7 of this document. Contact For more information, particularly concerning the Group’s reporting processes, please write to Délégation au Développement Durable, PSA Peugeot Citroën, 75, avenue de la Grande-Armée, 75116 Paris, or send an e-mail to [email protected]. PSA PEUGEOT CITROËN Corporate Social Responsibility - Strategic guidelines, commitments and indicators 2012 1 ONTENTS CA STRATEGICALLY INTEGRATED 2.3. MOBILITY SOLUTIONS 57 1 CORPORATE SOCIAL 2.3.1. Mobility services RESPONSIBILITY APPROACH 5 and onboard intelligence 57 2.3.2. Finance and insurance 59 1.1. MESSAGE FROM THE CHAIRMAN 2.3.3. Road safety G.41 60 OF THE MANAGING BOARD 7 2.4. PEUGEOT AND CITROËN: LISTENING 1.2. PSA PEUGEOT CITROËN’S RESPONSE TO CUSTOMERS 64 TO THE AUTOMOBILE INDUSTRY’S 2.4.1. Peugeot and Citroën customers 64 CSR CHALLENGES 8 2.4.2. Meeting customer expectations 69 1.2.1. The automobile industry’s major 2.4.3. compliance with health, safety sustainable development challenges 8 and customer privacy standards 72 1.2.2. Areas in which PSA Peugeot Citroën 2.4.4. Advertising, communication can have an impact 10 and consumer information 73 1.2.3. PSA Peugeot Citroën’s CSR policies 11 1.2.4. CSR commitments and objectives 15 1.2.5. Main indicators 20 A COMMITMENT TO PROTECTING 1.3. CSR GOVERNANCE 21 3 THE ENVIRONMENT 75 1.3.1. Organisation 21 3.1. MANAGING ENVIRONMENTAL IMPACT 79 1.3.2. External standards and commitments 21 1.3.3. CSR reporting 22 3.1.1. Environmental challenges and corporate strategy 80 1.4. RELATIONS WITH STAKEHOLDERS 24 3.1.2. Combating climate change 83 1.4.1. Stakeholders and forums 24 3.1.3. Reducing the impact of resource use 89 1.4.2. Dialogue resources 25 3.1.4. Limiting pollution 91 1.4.3. Dialogue initiated in 2012 3.1.5. Reducing waste 96 by PSA Peugeot Citroën 26 3.2. PROTECTION OF NATURAL 1.5. PRESENCE IN INDICES, AWARDS HABITATS AND BIODIVERSITY 101 AND DISTINCTIONS RECEIVED 27 3.2.1. Facilities located near protected areas 101 Presence in Socially Responsible 3.2.2. Signifi cant initiatives Investment (SRI) indices 27 to promote biodiversity 102 Awards 28 PSA PEUGEOT CITROËN: SETTING THE SUSTAINABLE 4 A FULL-FLEDGED PARTNER 2 MOBILITY STANDARD 31 TO ITS HOST COMMUNITIES 103 2.1. THE INNOVATION PROCESS 32 4.1. EXCELLENCE IN SUPPLIER 2.1.1. City on the move institute 32 RELATIONS: A SUPPLY CHAIN 2.1.2 R&D and open innovation 33 COMMITMENT 104 2.1.3. Eco-design and life cycle analysis 39 4.1.1. The Group’s purchasing strategy 104 4.1.2. Locating purchasing teams close 2.2. LOW CARBON VEHICLES to manufacturing facilities to FOR ALL TYPES OF USE 40 ensure more eff ective integration into host regions 106 2.2.1. Greenhouse-friendly technologies and adaptations to the eff ects 4.1.3. Strengthening supplier of climate change 41 relationship management 107 2.2.2. Protecting air quality 52 2.2.3. “From cradle to cradle”: resource management and recycling 54 2 PSA PEUGEOT CITROËN Corporate Social Responsibility - Strategic guidelines, commitments and indicators 2012 4.1.4. Supporting supplier development 108 5.5. COMPENSATION POLICY 151 4.1.5. Incorporating sustainable development 5.5.1. Fair and competitive compensation criteria into the supplier relations policy 109 that rewards performance 152 4.2. GLOBAL AND LOCAL CORPORATE 5.5.2. Employee benefi ts 155 CITIZENSHIP 111 5.6. A DEEP COMMITMENT TO SOCIAL 4.2.1. The PSA Peugeot Citroën Foundation: RESPONSIBILITY 158 supporting mobility for all 112 5.6.1. Working together 158 4.2.2. Corporate Philanthropy 116 5.6.2. Continuing to increase the percentage 4.2.3. Local CSR Plans at Group sites 116 of women in the workforce 161 4.2.4. CSR initiatives supported by 5.6.3. Human rights 166 the Peugeot and Citroën brands and by Banque PSA Finance 118 CORPORATE GOVERNANCE RENEWED COMMITMENT 6 AND ETHICAL PRACTICES 169 TO CORPORATE SOCIAL 5 6.1. CORPORATE GOVERNANCE 170 RESPONSIBILITY 119 6.1.1. nature of ownership and legal form 170 5.1. MANAGING JOBS RESPONSIBLY TO 6.1.2. Governance principles 172 MEET NEW CHALLENGES 121 6.1.3. Governance structure 174 5.1.1. Workforce 121 6.1.4. Internal control procedures 179 5.1.2. Employment policy 126 6.2. DIRECT ECONOMIC VALUE DISTRIBUTED 181 5.2. DEVELOPING TALENT 132 6.2.1. Payments to capital providers 181 5.2.1. Attracting talent 132 6.2.2. Remuneration and benefi ts 5.2.2. Managing talent 132 of corporate offi cers 183 5.2.3. PSA Peugeot Citroën University: Nurturing talent 134 6.3. ETHICAL PRACTICES 185 5.3. BUILDING TRUST THROUGH 6.3.1. The Code of Ethics 186 MEANINGFUL EMPLOYEE RELATIONS 136 6.3.2. Preventing fraud, corruption and anti-competitive behaviour 186 5.3.1. International social dialogue organisations 136 6.3.3. Transparency and integrity of infl uence strategies and practices 190 5.3.2. Strengthening social cohesion 136 5.4. WORKPLACE HEALTH AND SAFETY: A TOP PRIORITY 138 EXTERNAL AUDITOR’S REPORT 193 5.4.1. Workplace Health and Safety 7 Management System 138 INDEPENDENT AUDITOR’S DISCLOSURE 5.4.2. Long lasting progress 139 CERTIFICATION AND MODERATE ASSURANCE 5.4.3. Five priority commitments for REPORT ON THE COMPANY’S HUMAN preventing health and safety risks 141 RESOURCES, ENVIRONMENTAL, AND 5.4.4. An active commitment to health 143 SOCIETAL INFORMATION 194 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 GRI STATEMENT AND CROSS 8 REFERENCE TABLES 197 PSA PEUGEOT CITROËN Corporate Social Responsibility - Strategic guidelines, commitments and indicators 2012 3 4 PSA PEUGEOT CITROËN Corporate Social Responsibility - Strategic guidelines, commitments and indicators 2012 1 A STRATEGICALLY INTEGRATED CORPORATE SOCIAL RESPONSIBILITY APPROACH 1.1. MESSAGE FROM THE CHAIRMAN 1.3. CSR GOVERNANCE 21 OF THE MANAGING BOARD 7 1.3.1. Organisation 21 2012 was a turbulent year 7 1.3.2. External standards and commitments 21 1.3.3. CSR reporting 22 1.2. PSA PEUGEOT CITROËN’S RESPONSE TO THE AUTOMOBILE 1.4. RELATIONS WITH STAKEHOLDERS 24 INDUSTRY’S CSR CHALLENGES 8 1.4.1. Stakeholders and forums 24 1.2.1. The automobile industry’s major sustainable 1.4.2. Dialogue resources 25 development challenges 8 1.4.3. Dialogue initiated in 2012 by PSA Peugeot 1.2.2. Areas in which PSA Peugeot Citroën can have Citroën 26 an impact 10 1.2.3. PSA Peugeot Citroën’s CSR policies 11 1.2.4. CSR commitments and objectives 15 1.5. PRESENCE IN INDICES, AWARDS AND DISTINCTIONS RECEIVED 27 1.2.5. Main indicators 20 Presence in Socially Responsible Investment (SRI) indices 27 Awards 28 PSA PEUGEOT CITROËN Corporate S ocial R esponsibility - Strategic guidelines, commitments and indicators 2012 5 A STRATEGICALLY INTEGRATED CORPORATE SOCIAL RESPONSIBILITY APPROACH 1 6 PSA PEUGEOT CITROËN Corporate S ocial R esponsibility - Strategic guidelines, commitments and indicators 2012 A STRATEGICALLY INTEGRATED CORPORATE SOCIAL RESPONSIBILITY APPROACH 1.1.

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