Six ambitions to move the Company forward
As a signatory to the UN Global Compact and official partner of the COP21 climate conference, Michelin has set 6 ambitions for 2020 to become a sustainable mobility world leader, and one of the world's top-performing and most innovative companies in addressing its financial, environmental, social and societal responsibilities.
A commitment at the core of Group strategy
These ambitions are implemented throughout the organization by employees in all functions, at all levels and in each country, which clear objectives. They guide the decisions and inspire concrete initiatives. Each ambition emphasizes measurable performance, aligned on the Group’s operational strategy.
The ambitions for 2020 express Michelin’s commitment to building growth over the long term and helping to address societal challenges by putting its values of respect into practice.
We want to be a company that is successful in all its businesses, one that is responsible and attractive to talent from around the world.
1. Continuously improve customer satisfaction
- Ensure that by 2020, all of the targeted customer groups deliver Net Promoter Scores (NPSs) in line with the Group’s objective.
2. Demonstrate our commitment to the well-being and development of our employees
- Achieve and maintain an 85% employee engagement rate for the entire Group.
- Further improve safety performance and achieve a Total Case Incident Rate (TCIR) of less than 2 for the entire Group.
- Ensure that 75% of all management positions are held by employees who come from within the Company, reflecting our ever-increasing diversity.
- Increase the percentage of women in all management positions to 30%.
- Increase the percentage of local top managers in growth regions to 80%.
3. Secure robust financial performance
- Deliver €1.4 billion in structural free cash flow per year as from 2020.
- Achieve, as from 2020, at least a 15% return on capital employed (ROCE) after tax and at constant scope of consolidation, excluding goodwill.
4. Innovate to widen our lead in product and service performance
- Improve the overall performance of our products by at least 10% compared with 2010, while using less raw materials in their production.
- Save 3 billion liters of fuel over the lifespan of our tires and avoid releasing 8 million tonnes of CO2 compared with 2010 thanks to product improvements.
- Contribute to the development of a circular economy by increasing the percentage of renewable or recycled materials in our tires to 30%.
5. Set the industry standard for responsible manufacturing
- Reduce the environmental impact of our sites, as measured by the Michelin site Environmental Footprint (MEF), by 50%, notably by improving our energy efficiency by 38% in relation to 2005.
- Develop a responsible supply chain and reduce its CO2 emissions by 10%.
- Assess the sustainable development performance of the Group’s top 400 suppliers and provide encouragement and support so that 70% of them are confirmed as compliant with Michelin standards.
6. Contribute to the development of our host communities and support sustainable mobility
- Deploy a local community engagement program in every plant, in line with the 2013 guidelines.
- Encourage employee involvement in initiatives that support the local community by donating 30,000 working days per year.
- Contribute to local employment through Michelin Development, with the creation of 2,000 jobs per year.
- Reinforce our advocacy of road safety, with a strong focus on driver education in emerging countries.
- Promote energy-efficient, low-emissions mobility, particularly in cities.
Integrated into every project and cascaded to every team, these ambitions for 2020 express Michelin’s commitment to building growth over the long term and helping to address societal challenges by putting its values of respect into practice.
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