FIR

Alexis Masse & Caroline Le Meaux 47 rue Berger

75001 PARIS

Subject

Amsterdam, May 13, 2021

Answer to your letter dated March 31st, 2021

Dear Sirs,

We thank you warmly for your questions and your interest in Stellantis. Following the oral answers provided during the AGM, we are pleased to send you the corresponding written answers.

Environnement

1. To be in line with the Paris Agreement, what are the CAPEX amounts by 2025? How will these CAPEX be distributed across the entire value chain between maintenance CAPEX and growth CAPEX? What is the geographical distribution?

Stellantis is targeting a level of R&D and Capex spend <8% of revenues at steady state. Now investment is mostly directed to electrification, software and autonomous vehicle. We do not intend to invest more in ICE apart from regulatory requirements, so we are using the existing assets of the company. Logically, geographical distribution of spending is more or less in line with geographical distribution of revenues over time.

2. How do you limit the impact of biodiversity loss on your future income? Specify the indicators and means put in place?

FCA and Groupe PSA merged on January 16, 2021.

STELLANTIS N.V.

Amsterdam, The Netherlands

Corporate Office:

Netherlands Chamber of Commerce: 60372958

Singaporestraat 92-100, 1175 RA Lijnden,

www.stellantis.com

The Netherlands

Teams are now working on the alignment of their practices and definition of Stellantis Policy regarding all environmental impacts, including biodiversity, in consistency with previous stewardship.

Regarding the impact on biodiversity in particular, Stellantis already defined an approach towards biodiversity using an indicator developed by the University of Paris I to evaluate the existing biodiversity on its sites and thus ensure the preservation, or even identify areas for enhancing biodiversity (e.g. soft mowing by sheep, nesting boxes for protected bird species, flora and fauna censuses, etc.). Some of these activities are then taken further to build a dedicated biodiversity project guided by qualified biodiversity professionals to ensure its quality. In addition, some sites have obtained Wildlife Habitat Council Organization certifications for their biodiversity projects. The combination of evaluating the biodiversity of its sites and conducting specific biodiversity projects has been company practice for several years in both former companies and will be continued under Stellantis with a common approach. Additionally, environmental impact studies assessing the sensitivity of the natural environments located in the immediate vicinity of the sites, and in particular the proximity of protected areas (areas of flora and fauna), are carried out in preparation of site developments (extension, new installations etc…).

3. How do you anticipate the scarcity of certain natural resources and the difficulties of procurement of your strategic resources? How does this affect your economic models and how do you secure your supply chains?

The potential of shortage or scarcity for any raw material worldwide, whatever it could be worldwide issue or located in some countries or region, are part of Stellantis risks matrix. If any difficulties show up, Stellantis will work on alternative sourcing in other countries and/or alternative materials, of course without any compromise on the safety and the quality of the products. We also promote actively the materials coming from recycling supply chains, which are usually the best compromise on sustainability and price.

Electrification of vehicles brings new materials and new challenges into the list of critical materials (Lithium, Cobalt, Nickel, Rare earths, etc...). Due to the growing needs, these materials are mostly coming from mine extraction (Cobalt, lithium, conflict minerals for example) from a limited number of countries. So, we first ensure that the raw material that will be used in Stellantis vehicles is coming from sustainable supply chain. Stellantis is currently relying on independent and reliable third-party to audit and report on these supply chain:

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  • RCS Global for lithium and cobalt,
  • Conflict Minerals Report Template (CMRT) and smelter or refiner audits through Responsible Mineral Initiative (RMI) for conflict minerals.

Even though we do not have any direct contracts with miners on this kind of raw materials, we regularly discuss with these companies on new mines projects and the tonnage related to these new projects.

On a mid-term basis, we also work with the suppliers to modify the content of some raw material in the key components of the electrified cars. On mid-term basis too, the use of recycled materials will increase as a source of raw materials in the supply chain.

Social

4. Solidarity between economic players, large and small businesses, seems necessary to limit the negative impacts of the current crisis. How is your group adapting, nationally and internationally, its buying or selling practices to support its suppliers or customers who are affected by the crisis? Do you apply differentiated policies for VSEs and SMEs? Has the crisis prompted you to structurally change your policies in this area?

Stellantis will develop long-term relationships with its suppliers in a win-win logic, which has shown its efficiency for both former FCA and PSA companies who have seen many of their partners grow with them.

The current crisis challenges all companies, Stellantis itself, but also its suppliers of all size.

Stellantis purchasing practices, based of Stellantis Code of conduct, support business and operational continuity. Stellantis systematically monitors the financial health of its suppliers. Where appropriate, it can then provide support to suppliers to preserve their sustainability (cash support, reduction of payment terms, price increase, etc...) while taking the necessary measures to protect the Group. Stellantis favors solutions adapted to each supplier and works in close collaboration with the public authorities to define the most appropriate means of intervention, if necessary.

5. How do you manage, at the group level, the social impacts associated with the massive development of teleworking since the start of the pandemic? In particular

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in terms of psychosocial risk management, cost sharing, employee satisfaction survey, reverse of the choice made by employees, proportion of employees teleworking, etc…

The approach of FCA and PSA to implement remote working during the pandemic were quite similar through a massive implementation for protecting as much as possible the employees.

Beyond the pandemic time, Stellantis has a clear vision for the future through the "New Era of Agility" project.

Group PSA launched "New Era of Agility" project in May 2020, an innovative concept of working based on an efficient operational balance with 70% of remote work and 30% on site presence. This project was launched with the ambition of an accelerated worldwide deployment and the mobilization of all stakeholders to achieve a revolution in working methods, behaviors and mindset. The Group had anticipated these evolutions since it has already extensively experimented with teleworking since 2014, as well as dynamic workspaces, and had further developed remote working with the signing in January 2020 of the collective agreement on motivation and well-being.

We have learnt a great deal from the crisis and it is an opportunity to accelerate the Group's transformation. At the heart of this project is the search for benefits for individual and collective efficiency: benefits for the health and safety of employees, improvement of their work-life balance, motivation and well-being and economic and environmental performance.

The "New era of agility" project launched a major survey of 40,000 employees worldwide on their experiences and aspirations. Participation in this survey reached 50% of responses, demonstrating success. 79% of employees expressed support for this new way of working.

As a direct result of COVID-19, FCA accelerated the deployment of working remotely and provided tools and resources to support employees. Many of FCA support organizations, such as ICT, worked to transition large portions of workforce to working remotely. Across our regions, a variety of programs are in place in FCA to enable work-life integration.

Within both former companies, PSA and FCA, and within Stellantis now, several training programs have been provided to managers and employees to support them in this phase of transition to a new way of working.

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As a result of the success of those activities, initiatives are under way to provide more opportunities for flexible work arrangements to employees around the world.

6. Do you have a definition of "living wage" that is not limited to the local legal minimum wage? If yes which one? How does your company ensure that its employees, but also the employees of its suppliers, receive a living wage?

Stellantis promotes a unified renumeration policy which promotes equal employment opportunity and diversity, where everyone is valued for their contributions to the Company. Both Groups had already similar approaches beforehand. Both PSA and FCA Salary policies aimed to ensure objective, fair and transparent rules relating to remuneration. For Stellantis, the goal is to design a comprehensive reward policy based on three main rules: respect for the interests of employees and social dialogue, respect for fair treatment of employees allowing equivalent remuneration for comparable responsibilities and respect for sustainable collective performance consistent with good market practices. With this renumeration policy we enable our employees and their family to have decent living conditions.

As mentioned in our code of conduct, Stellantis also encourages the adoption and sharing of sustainable practices among our business partners, suppliers and dealers. Stellantis is committed to sustainable practices in its procurement activity. The selection of suppliers is based not only on the quality and on competitiveness of their products and services, but also on their adherence to social, ethical and environmental principles, maintaining the highest standards of quality, and taking care of the communities in which we do business. We endorse, among other declarations, the United Nations ("UN") declaration on human rights and the International Labor Organization declaration on fundamental principles and rights at work. We expect our workforce to be respectful in all their professional interactions with co-workers, customers, visitors and other business partners.

7. Within the framework of the profit-sharing agreement formula from which your employees benefit in France, do you take environmental and social criteria into account? If yes :

  • What are these criteria ? Have they changed since April 1, 2020?
  • What is the proportion of these criteria in the profit-sharing formula? Has it changed over the past year?
  • What is the share of the employees concerned?
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Stellantis NV published this content on 20 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2021 14:51:05 UTC.