Responsibility and Ethics
Groupe PSA's CSR commitment is central to its strategy.
Groupe PSA’s social and environmental policy is based on continuous dialogue with its stakeholders and the conviction that automotive sustainability can contribute to the creation of value for everyone. It is expressed in public commitments and concrete objectives in response to strategic issues in sustainable mobility, regional development and innovative social practices.
CSR, a driver of value creation
CSR: TRUST – A GOLDEN OPPORTUNITY
How our CSR (Corporate Social Responsibility) policy brings value to the Group.
What is CSR?
Leading the company in a responsible way involves taking on board all the risks associated with our activity, then evaluating, measuring their impact and taking action to reduce them. It is also a means of identifying and capitalizing on new opportunities. The PSA Group is a world leader in terms of CSR.
4 key issues:
Environmental our impact on the environment
Social our responsibilities as an employer
Societal our broader impact on society
Governance ethics and transparency in the way we do business
BY REDUCING RISK, WE CAN GAIN THE TRUST OF OUR PARTNERS
Did you know?
In 1989, the Exxon Valdez oil tanker ran aground in Alaska. The catastrophe was due to gross navigational errors... The economic and environmental consequences of this disaster were considerable: some 800 km of coastline polluted, widespread destruction of wildlife, costs amounting to several billion (fines and compensation), a drop in stock market value and damage to the company’s reputation.
An efficient CSR policy acts as a guarantee to our customers, bankers and investors, to the community, elected representatives and regions, as well as to consumers, employees and suppliers – in fact, to all those people we have dealings with in one way or another.
BUILDING THE TRUST OF OUR CUSTOMERS
of professional customers consider that CSR is an important issue for their company.
* Source: EY study - May 2015
Our professional customers account for a third of our sales. When selecting suppliers, they include numerous CSR criteria in their calls for tender. Our bids would never be accepted if we were unable to meet these criteria!
EcoVadis has awarded the PSA Group a “responsible supplier” gold medal.
STRENGTHENING THE TRUST OF OUR BANKERS
of the financial ratings market is controlled by three agencies: Moody’s, Standard & Poor’s, Fitch
* Source: Washington Post
In 2016 Fitch re-evaluated the PSA Group rating at BB+ / Outlook stable
By reducing our risks we can increase the stability of our activities. This is interpreted as a positive sign by our bankers, leading to a reduction in our credit rates, a decrease in financing costs and access to specific funding such as green bonds*.
* Green bonds are bond issues which are launched on the financial market by a company, international organization or local authority to fund an environmentally-friendly project or activity.
GAINING THE TRUST OF OUR INVESTORS
increase in the sums currently deposited in socially responsible investments (SRI), a total of 746 billion Euros in France.
* Source: Novethic
10% of SRI institutional funds in the PSA Group capital.
An increasing number of investment funds include environmental, social and governance criteria in their choices. The CSR performance of a company is becoming a decisive factor in its funding. Underperforming firms may even find themselves actively excluded from such funding.
The PSA Group features in all the main SRI indices.
BUILDING TRUST IN THE COMMUNITY
of French people trust communications from companies and institutions
* Source: Ethicity study - 2016
At a time when two out of three companies in France are seeing a deterioration of their image, the image of the PSA Group is improving. * Posternak-Ifop barometer, September 2016
Within a context of widespread distrust of corporations, the PSA Group CSR performances are proof of its credibility.
CONSOLIDATING THE TRUST OF ELECTED REPRESENTATIVES AND REGIONS
people in Europe will be signed up to a car-sharing scheme by 2020.
* Source: Frost & Sullivan
Almost 1,000 of the Group’s vehicles already equip urban public car-sharing schemes.
Our mobility solutions, the environmental performance of our vehicles and production sites and the presence of our activities in the regions all testify to our commitment to our regional partners.
All the Group’s factories are certified ISO14001
EARNING THE TRUST OF CONSUMERS
An average of 104.4 g/km
of CO2 emissions officially recorded, making the Group the European leader for 2015.
In view of the disrepute into which the automobile sector was brought in 2015, the PSA Group opted for transparency by publishing, together with 2 NGOs*, measurements of consumption in real-life driving conditions.
Audited by Bureau Veritas, a reliable, reproducible, open-source measurement protocol enables the consumption of our customers to be measured. The results are available on the respective websites of each brand.
* Transport & Environment (T&E) and France Nature Environnement (FNE)
BEING WORTHY OF THE TRUST OF OUR COLLABORATORS
of employees consider it to be the responsibility of employers and promote health and well-being at work.
* Source: E-rse, April 2016
Health and safety are central to the priorities of the PSA Group and the PSA accident rate is 19 times lower than the industry average.
We are also a signatory of the Healthy Workplaces charter.
A RELATIONSHIP OF TRUST WITH OUR SUPPLIERS
of purchasers state that implementing and amplifying their responsible purchasing policy is a priority.
* Source: Décisions Achats
All of PSA Group suppliers are evaluated according to CSR criteria.
EcoVadis notes that the average rating of PSA Group suppliers is higher than that of evaluated firms as a whole.
EXTRA-FINANCIAL RATINGS: PROOF OF OUR SINCERITY
Our CSR performances are recognized by main market indices.
Our CSR policy is regularly evaluated by rating agencies, which evaluate not only economic performance, but also analyze governance practice and how we interact with the environment, our employees and society at large.
Each area of analysis is evaluated according to criteria of transparency, innovation and results achieved.
These “extra-financial” ratings are a measure of how seriously we take CSR. They are proof of the level of trust that is placed in us by different categories of people.
EXTRA-FINANCIAL RATINGS: PROOF OF OUR SINCERITY
CSR, A DRIVER OF VALUE CREATION
The value of a firm is not limited to the sum of its material assets.
CSR performance is key to ensuring the continued existence of the company.
Our capacity to reduce risks and build trust with stakeholders is a genuine asset for our Group.
An approach based on dialogue
For Groupe PSA, responsible and transparent behaviour is the only way of creating development and economic performance on a lasting basis. That conviction has led the Group to develop an approach of in-depth dialogue with all the company’s stakeholders and at each stage in the CSR policy:
implementing and monitoring action plans.
The CSR policy and management system are integrated in the Group’s governance structures and are subject to a specific organisation at both strategic and operational level.
The annual CSR Report
This Report presents all the work carried out by the Group on its societal issues, including climate issues. Audited by an independent third party, it connects financial and non-financial performance, in accordance with the recommendations of the International Integrated Reporting Council (IIRC).
Groupe PSA CSR Report has been awarded “Advanced” for four consecutive years by the United Nations Global Compact. This label rewards both transparency and best practices in sustainable development.
The Group gives its stakeholders a global vision of its measures to fight climate change and mitigate its effects. It also describes how the Push to Pass strategic plan integrates climate-related economic opportunities and risks. The achievement of the Group’s climate objectives is monitored with full transparent indicators
This Climate Report complies with the recommendations of the FSB Task-Force on Climate-related Financial Disclosures (TCFD).
For Carlos Tavares: “Our structured climate governance ensures Groupe PSA focus on CO2 issues. As a mobility provider, our company is fully involved in an evolving dynamic. We put our ability to innovate, our agility and our skills at the service of a high-performance and responsible business model that creates shared and sustainable value for its stakeholders.”
The automotive industry accounts for 6.9% of Europe’s GDP, 12.9 million direct and indirect jobs and a €92 billion trade surplus. This economic importance brings with it a special dynamic and responsibility for players in the sector. Groupe PSA, Europe’s number-two carmaker, is a company that creates social, societal and environmental value. To develop sustainable and responsible growth, the Group has committed to optimising the management of all its forms of “capital”, including its financial capital as well as its industrial, human, intellectual, relational and environmental capital.
The three pillars of CSR
The Group’s social and environmental responsibility policy is based on three pillars:
Groupe PSA’s business culture, based on responsibility and respect, is reflected in requirements on ethics and transparency backed by rigorous systems applying to all its stakeholders, both external and internal.
Consistent with the commitment of its leaders, the company strives to ensure ethical business practices, notably through a zero-tolerance approach to corruption and the failure to respect competition rules.
In 2017, Groupe PSA has published its Anti-corruption Code of Conduct which applies to all employees and reminded its requirements regarding the relationship with Agents and Intermediaries. Translated into 22 languages, a Code of Ethics sets out for all employees ethical guidelines in the fulfilment of their responsibilities. Campaigns are carried out regularly with all employees to increase acceptance of the Code of Ethics. At the end of 2017, 18,122 people had individually signed up to the Code of Ethics in 15 countries. A rigorous approach to prevention and monitoring is supervised by an Ethics and Compliance Committee, assisted by Compliance Officers and deployed by an international network comprising Chief Ethics Officers and heads of Internal Control, Compliance and Risk Management in each Group department.
In 2018, Groupe PSA implements a worldwide whistleblowing system operated by an independent service provider, which collects reports from employees on unethical or illegal conduct they observe. Reports are dealt with in compliance with whistleblowing and non retaliation Policy
The Group’s positions on the major issues stemming from its activities are public, as are the special-interest groups of which it is a member. Consistent with its ethical principles of integrity and transparency Groupe PSA maintains responsible relations with public Institutions, by responding to their requests for information, in order to support economic, social, scientific and cultural developments.