Michelin commits to protect the planet Innovating and committing itself more than ever to a life in motion The Group's strategy is based on balanced development between “People, Profit and the Planet1”. In 2021, Michelin is taking a new step by transforming its All-Sustainable approach into goals for 2030 and beyond. On the occasion of COP26, Michelin is reaffirming its commitment to the Planet in 3 areas: fighting against global warming, preserving natural resources and protecting biodiversity. 1 Human, economic, and environmental challenges Commitments to the planet by 2030 Fighting against global warming As of 2013, the Group set itself non-financial ambitions for 2020, and in particular the reduction of the carbon footprint from its activities and the use of its products. Due to the climate emergency, in April 2021 the Group announced even more ambitious objectives for the reduction in CO₂ emissions, based on science and compliant with the Paris Climate Agreement; these will be submitted for approval by the Science Based Targets initiative (SBTi)2 international consortium in 2022. In July 2021, Michelin joined the “Race to Zero” global campaign that aims to mobilize companies around the climate goal of the Paris Agreement, by subscribing to the “Business Ambition for 1.5°C”, a commitment supported by several bodies, including SBTi, the United Nations Global Compact, and We Mean Business. 2 Launched in 2015, several months before COP21, the Science Based Targets initiative is a partnership between four organizations – CDP, the UN Global Compact, World Resources Institute and the World Wide Fund for Nature, the aim of which is to validate the goals for reducing CO2 emissions put forward by companies in accordance with the main criterion of aligning with the goal of the Paris Agreement, i.e., curbing the average global temperature rise to below 2°C, or even 1.5°C. Reach net zero emissions by 2050 (manuf. and energy) CO₂ emissions (Scope 1 & 2) -50% compared to 2010, in 2030 -24.8% in 2019 - 6.5% in 2020 - 29% in 2021 - 41% in 2022 ________________________________________ Emissions from logistics operations (Scope 3) -15% compared to 2018, in 2030 - 1.44% in 2019 - 11.70% in 2020 +14.24% in 20211 - 14.01% in 2022 ________________________________________ Energy efficiency of products (Scope 3) +10% compared to 2020, in 2030 +0.5% in 2021 +1.8% in 2022 ________________________________________ Raw material suppliers (Scope 3) 70% of CO₂ emissions covered by science-based targets (SBT) in 2024 13% en 2020 21% en 2021 30% en 2022 Scope 1: direct emissions. This groups together direct greenhouse gas emissions from sources that are owned or controlled by the reporting company. Scope 2: indirect emissions from energy consumption. This groups together greenhouse gas emissions from the production of electricity or heat energy purchased and consumed by the Company. Scope 3: other indirect emissions. This groups together all other indirect greenhouse gas emissions. These stem from the Company’s activities but come from sources not owned or controlled by the latter. 1 In response to supply chain disruptions, the Group occasionally had to resort to more costly workarounds on an as-needed basis, which had an adverse impact on CO₂ emissions for the year. Preserving resources Michelin is setting itself a sizeable challenge: integrate 100% sustainable materials into its tires by 2050. This approach aims at integrating more renewable3 or recycled materials4 into the Group’s products while maintaining their performances and minimizing the overall environmental impact. This is made possible by an extremely advanced technological maturity in the high-technology materials field and a multitude of ambitious and tremendously innovative programs. At Michelin, innovation allows for presenting conditions for progress in which less energy and fewer raw materials are used while improving both performances over the life of its products, and the safety of goods and people. 3 Renewable materials are those obtained from natural resources for which stocks can be replaced over a short period in human terms, such as biomass. Therefore, fossil resources (oil, natural gas, coal, etc.) and minerals are excluded. (According to the American Chemical Society - "12 Principles of green chemistry"). 4 Recycled materials are the raw materials generated by any reuse operation by which industrial or post-consumption waste is reprocessed into products, materials, or substances. Energy reuse and the reprocessing of materials for use as energy are excluded. (According to the definition of the European Directive for Waste). Water withdrawals by industrial sites -33% compared to 2019, in 2030 -6.67% in 2021 -6.10% in 2022* (m3/metric ton of semi-finished + finished products, weighted by the water stress index) * This degradation is due to an unfavorable production context as well as the high summer temperatures particularly in Europe, which increased cooling water consumption. ________________________________________ Reach 100% of sustainable materials in our tires by 2050 Sustainable materials rate 40% in 2030 26% in 2019 28% in 2020 29% in 2021 30% in 2022 Protecting biodiversity Because Michelin is aware of the need to protect biodiversity and ecosystems in order to sustainably continue its activity, it considers the environmental impacts of its products, as of the design phase, as well as those of its activities and its sites. Since July 2018, the Michelin Group has been a signatory of the #Act4Nature international initiatives in favor of biodiversity. The company is setting itself new goals for 2030 in 3 fields: Research and Development, Raw Materials, and Production and R&D sites. Life Cycle Analysis integrating biodiversity criteria for the most mature methods In 2030, 100% of new product and service ranges marketed in 2030 By the end of 2021, Life Cycle Analysis have been carried out on: 50% of new Passenger Car and Light Truck product projects 30% of new Truck product projects 65% of new specialty product projects In 2022, Life Cycle aAnalyses were carried out on at least 75 % of new projects ________________________________________ Compliance with the Responsible Natural Rubber Policy In 2030, 80% of the natural rubber volume is assessed compliant with environmental criteria In 2021, a collaboration was initiated with WWF France to review the compliance frame of that policy. In 2022, assessment of 4.5% of the natural rubber in volume used by the Group in 2021. ________________________________________ Evaluation of raw material supplier policies and practices* In 2030, 80% of suppliers with the biggest impact on biodiversity In 2021, preparation of the pilot project for 2025 In 2022, a study was carried out to identify the raw materials with the greatest impact on biodiversity based on the results of the Science Based Targets for Nature (SBTN) method and the life cycle analyses of raw materials ________________________________________ No phytosanitary products used to maintain green spaces Biodiversity management plan adapted to local issues In 2030, 100% of industrial sites** In 2022, 12 French sites do not use phytosanitary products anymore, and 8 sites under pollution risks with a management plan. *The pilot to be launched in 2025 is currently being prepared. **12 sites maintain green spaces without the use of phytosanitary treatments, and 3 others use only one product, within the framework of an exemption valid for a maximum of 3 years. These sites are all located in France, but the feasibility is being studied for other European countries. 8 sites that have identified pollution risks have set up control plans. IMPROVE Environmental PERFORMANCE and reduce the impact of INDUSTRIAL SITES The Group is continuing its environmental commitment at its sites in order to reduce their impact and is setting new goals for 2030, taking into consideration both the progress made and the challenges of stakeholders, through a variety of programs: water withdrawals, amount of waste generated, use of organic solvents, energy consumption and CO₂ emissions. By 2030, Michelin aims to reduce the environmental impact of its sites by 1/3. i-MEP Decarbonisation
