Groupe PSA

Groupe PSA has a publicly available low-carbon transition plan with measurable, time-bound emissions performance indicators and milestones. Examples include a target to reduce global average fleet emissions by 55 percent by 2035, as compared with 2012 levels, and the target to launch four plug-in hybrid and two battery electric vehicles before 2020. The plan takes into account significant stressors on the group’s activities and extends to new markets, such as car sharing and autonomous vehicles. Groupe PSA is clearly preparing for a low-carbon economy. It has placed climate change responsibilities at the highest level of decision-making, uses scenario analysis and long-term visions to plan its transition, and offers incentives for emissions reductions across the group. Financial incentives for emissions reducation are in place at the highest management levels and a significant proportion of all employees’ variable compensation is based on emissions performance.

Groupe PSA focuses on marketing the idea of electric mobility options. The group has launched several video campaigns to encourage consumers to purchase electric vehicles, such as its “MOVE TO ELECTRIC” campaign with videos entitled “Electric life, Charge at home, Hit the road, Map your route, Plan your trip”. Groupe PSA launched new onboard eco-coaching and eco-mode functions for plug-in hybrid electric vehicles in 2018 as well as a web-based application allowing customers to access the fuel consumption of its vehicles, to make informed purchasing choices.

Groupe PSA’s share of sales from battery or fuel cell electric vehicles – reaching only 0.3 percent in 2018 – is significantly lagging behind the target set for the low-carbon pathway. However, the group scores well on all other indicators under the sold product performance scoring module. Groupe PSA’s recent acquisitions and partnerships, such as its joint venture with Nidec on the design and production of electric motors, support its low-carbon transition plan, as does its policy to enter agreements with other auto manufacturers to cooperate on sharing design, engineering and production efforts.

Groupe PSA’s new emissions targets are well aligned with those set for the low-carbon pathway. For example, it aims to cut 55 percent of its fleet emissions by 2035 and for its operations to become carbon neutral by 2050. Groupe PSA could, however, further improve its decarbonisation efforts by setting additional interim milestones with intervals of five years or less between targets to guide and improve its low-carbon transition plan.

Groupe PSA has publicly committed to prioritising its transition to a low-carbon economy. Commitments include: electrifying 50 percent of its portfolio by 2021 and 100 percent by 2025; a 30 percent reduction in fleet emissions by 2025 and 55 percent by 2035, as compared to its 2012 levels; a 26 percent reduction in manufacturing emissions by 2025 and 33 percent by 2035, as compared to its 2012 levels; and achieving carbon neutrality in its own operations by 2050.

Groupe PSA’s low-carbon transition plan will be achieved through its ‘Push to Pass’ and PACE! strategies, which aim to increase the group’s electric vehicle offerings and decrease advanced vehicles’ costs with new electric motor developments and energy management best practices. New models will also systematically be available in either hybrid or fully electric versions, with the company stating that 100 percent of models will be available in electric or plug-in hybrid versions by 2025.

Groupe PSA is on track to meet its existing emissions reductions targets, though these targets could be more ambitious. The group is developing modular production platforms with powertrain flexibility and has established a separate dedicated department for electric vehicle programmes. It has also widely deployed its Free2Move mobility brand and is actively engaging in circular economy initiatives, namely battery recycling.

Groupe PSA has a strong track record of being transparent about its emission intensities and working to decrease its emissions. While its share of sales from low-carbon vehicles have been very low, the group is increasing the number of electric vehicle models it offers. Furthermore, Groupe PSA has participated in projects on connected autonomous vehicles, namely SCOOP and L3PILOT, and on new urban mobility, such as EU-LIVE. It is also working with the French government Agency for the Environment and Energy Management (ADEME) on various decarbonisation projects such as the development of innovative battery packs.

Groupe PSA is clearly taking effective action to prepare for a low-carbon economy and plans to continue making progress. However, it is difficult to accurately assess how ambitious the group’s decarbonisation efforts are relative to its ongoing promotion of internal combustion engine vehicles.