Since 2014, Michelin has calculated annual greenhouse gas emissions for Scope 3: all upstream and downstream activities in the value chain. These calculations use the methodology laid out in "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, revised edition" and its supplement, "Corporate Value Chain (Scope 3) Accounting and Reporting Standard" (World Resources Institute and World Business Council for Sustainable Development, September 2011).

Toward sustainable logistics

The process is based on a quest for new synergies between loaders and shipping companies, with the goal of increasing the efficiency of the tonnage transported and with a shared objective of reducing emissions.

 

Internal and external change drivers are progressively being implemented:

 

1. Optimizing distances for the right type of transportation

  • Michelin continues to expand the use of direct factory-to-customer deliveries.
  • A new warehouse in northern Vietnam is supplied mainly by direct maritime freight from producer countries. This has halved the use of road transportation from the warehouse in southern Vietnam.
  • A new warehouse in southern Japan has made it possible to reduce and optimize road transportation of supplies from the country’s central warehouse.
  • In Brazil, the increased storage capacity for finished products at the Campo Grande (RJ) warehouse has made it possible to reduce transfers of truck tires for storage at the Resende (RJ) plant.

 

2. Increasing fill rates

The goal is to reduce the kilometers driven empty by optimizing vehicle capacity, in compliance with the limits defined by national legislation.

  • More systematic use of compactors enabled a 15 percent increase in the number of tires in containers exported from Thailand to Indonesia, Vietnam and South Korea.
  • In South America, an increase in loading off the line rather than from piles of car tires made it possible to increase the number of tires transported per truck for deliveries to manufacturer customers.

 

3. Expanding multimodal transport, changing modes of transportation and reducing use of air freight

Michelin works with shipping companies to assess the technical and budgetary feasibility of multimodal solutions (road-rail, road-river, road-maritime) or of changing modes of transportation. In addition to cutting greenhouse gas emissions, this can also reduce noise and air pollution, wear on public infrastructure, accidents and traffic.

  • North America saw a significant increase in multimodal solutions in 2017.
  • Car, light truck and truck tires are now exported from Brazil to Chile by sea rather than road.
  • Michelin limits air freight to the strict minimum Group-wide.

 

4. Encouraging partnerships with shipping companies that are committed to energy efficiency

The Group uses a wide range of tools and measures to optimize vehicles: newer vehicles that undergo frequent maintenance, motors carefully chosen for the routes driven and tonnages transported, limitations on speed, aerodynamic accessories, low-rolling-resistance tires, and retreaded and regrooved tires for longer tire lifespans and decreased consumption.

 

5. Encouraging eco-driving

Training and management can help drivers use up to 10 percent less fuel with appropriate monitoring. That offers trucking companies a 2 to 5 percent increase in their operating margin, depending on the country. By training drivers to better anticipate the road ahead, eco-driving can also help reduce the number of accidents.

 

In 2017, energy efficiency was once again used as a determining factor in logistics purchases worldwide.

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