Suppliers pledge to support PSA Peugeot Citroën’s social and environmental standards

Fourteen of PSA Peugeot Citroën’s largest suppliers, accounting for more than €7.5 billion in purchasing volume (one-quarter of total 2006 procurement), have committed to applying the Group’s social and environmental standards.

Through this initiative PSA Peugeot Citroën intends to make compliance with its social and environmental requirements a core component of its purchasing policy, alongside quality, deadlines and costs.

The agreement represents a major step forward in the Group’s commitment, undertaken in 2003, to continuously improve its sustainable development performance. It also demonstrates the shared resolve of PSA Peugeot Citroën and its suppliers to ensure compliance with best social and environmental practices around the world. The agreement has been signed less than a month after the 14 suppliers were first briefed by Jean-Philippe Collin, Vice President of Purchasing, Jean-Luc Vergne, Vice President of Human Resources, and Thérèse Martinet, Sustainable Development Director.

In a second phase, all of the Group’s 9,000 current suppliers, as well as future suppliers, will officially pledge their support by signing the agreement, which is posted on the Group’s B2B web portal. They will also ensure that the initiative is embraced by their own suppliers, in accordance with the principles of extended business values. Deployment should be completed by the end of 2007.

The agreement comprises 13 commitments, including implementation of an environmental quality management system, promotion and respect of human rights, elimination of all forms of forced or compulsory labour, respect for employee health and safety, and the eradication of discrimination in the workplace.

The initiative, part of PSA Peugeot Citroën’s sustainable development priority action plan, complements commitments pursued in this area by the Group since 2003.