Supplier performance assessment
Michelin assesses its suppliers' performance in four areas:
- Fair working conditions
- Business ethics
- Supply chain
Seventy-seven percent of the 547 suppliers assessed in 2017 met our standards. Action plans were implemented with the suppliers who fell short of compliance.
Last year, in compliance with the recommendations of ISO 20400, the Group carried out a study to check its level of maturity in assessing the CSR practices of raw materials suppliers in countries with environments and/or human rights risks. In recognition of this commitment, Michelin has held "Responsible Supplier Relationships" certification since 2014.
In 2017, the Group received three awards: a Gold trophy in the CSR category from Décision Achats; the Best Supplier CSR Performance Improvement trophy from EcoVadis, in recognition of the fact that 78 percent of suppliers have improved their CSR score thanks to their partnership with Michelin; and the Payment Time prize in the Large Groups category from the French Ministry for the Economy and Finance.
Michelin had 52,000 active suppliers in more than 50 countries spread across all the inhabited continents in 2017, including close to 400 suppliers covered by the Supplier Relationship Management (SRM) process.
At €13.1 Bn in 2017, purchasing is equivalent to close to 60 percent of Michelin's turnover.
A map of CSR risks linked to industrial and services purchases in at-risk countries has also been developed.
Focus on rubber suppliers
Natural rubber is a critical raw material for the tire industry, which uses 75 percent of global production. As the market's largest buyer, Michelin has long been deeply committed to ensuring that the entire supply chain is managed responsibly and sustainably.
To help make that a reality, in 2016 the Group worked with NGOs to formalize its Responsible Natural Rubber Policy.
The policy lays out Michelin's commitments in five areas:
- Respect for people
- Protecting the environment
- Improving agricultural practices
- Good use of natural resources
- Good governance
Rubberway, a mobile app developed by Michelin, is used to track the CSR practices of the different players in its value chain.
No high risk areas for environmental protection
In 2017, the Group carried out a study to check its level of maturity in assessing the CSR practices of raw materials suppliers in at-risk countries. The study showed that Michelin does not have any supplier in countries with high environmental protection risk levels.