Inspire and engage suppliers Abiding by strong ethical principles to achieve shared value creation The Group is committed to forging relationships with its suppliers based on respect for each party's interests and cultures. Michelin works with suppliers that meet its quality, cost, lead time and reliability requirements and which are committed to making progress while respecting people and the environment. Sustainable purchasing policy The Group has around 45,000 suppliers located on every continent. Amounting to around €14 billion in 2021, purchasing represents nearly 60% of the Group's consolidated net sales. . The requirements and expectations of suppliers are set out in the Michelin Purchasing Principles, the Michelin Purchasing Department's benchmark document, published in 2012 and subsequently updated in 2017 and 2020. CSR RISK MAPPING A mapping of the most at-risk purchasing categories and countries in terms of CSR has been drawn up and is regularly updated. CSR PERFORMANCE ASSESSMENT Michelin has established a system for evaluating its suppliers against CSR criteria. End of 2021, 85% of the 965 suppliers evaluated meet Michelin's standards. And for those who do not reach the required level, action plans are implemented. CDP Supply Chain To encourage its raw materials suppliers to reduce their greenhouse gas emissions, Michelin involves them to measure and publish their emissions, and set themselves ambitious target reductions. Michelin signed the French government's "Responsible Supplier Relations" charter in October 2012, and in June 2014 obtained the official label. Then on June 25, 2019, Michelin was presented with the Responsible Supplier Relations and Purchasing Label at the French Ministry of the Economy and Finance at Bercy. This label distinguishes companies that have proven sustainable and balanced relationships with their suppliers; it was awarded to Michelin again in 2020. Similarly, in April 2019, Michelin received a certificate confirming the maturity of Michelin's purchasing practices in relation to the new international ISO 20400 "Sustainable procurement" standard. Purchasing site A closer look at natural rubber suppliers Natural rubber is a critical raw material for the tire industry, which uses 75% of the global production. Michelin is one of the main buyers on the market and in recent years has been pushing for a responsible and sustainable management of natural rubber production. Working in tandem with NGOs, in 2016, Michelin drew up its Sustainable Natural Rubber Policy, since updated in 2021. It documents its strategy and tracks its progress on its Responsible and Resilient Natural Rubber platform. The evaluation of the natural rubber supply chain varies with the stakeholders: For suppliers, the process consists in document audits and on-site audits; For suppliers' plants and their upstream supply chain, the risks are mapped using the Rubberway mobile application developed by Michelin.   Mapping of CSR practices of the natural rubber industry Numerous initiatives on the ground are helping to drive improvements in responsible natural rubber growing in Brazil, West Africa and Indonesia. Lastly, Michelin is actively contributing to an industry-wide initiative aimed at improving the environmental and socio-economic performances of the entire natural rubber sector: the Global Platform for Sustainable Natural Rubber (GPSNR), which brings together rubber growers, processors, tire manufacturers, car manufacturers and civil society. Â
