_184 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report Transporting differently, a lever for innovation The third lever consists of implementing innovative solutions, informed by two processes: Collaborating with outside organizations Michelin is continuing to play a leading role in a number of organizations, such as France Supply Chain, Smart Freight Center and the New Energy Coalition. Involvement in these organizations is helping to identify actionable levers, while laying the foundations for collaborative work on innovative issues supporting decarbonized transportation. Innovating to deploy more environmentally friendly technologies and practices Overland shipping: Michelin takes an active part in discussions about the future of logistics, in a commitment to promoting and deploying innovative technologies. In Europe, electric semi-trucks are being trialed for deployment as early as 2024, when the first EVs could also come into service in Thailand and China. Three use cases for hydrogen-powered rigid and semi-truck units are currently being activated, for scheduled roll-out in 2025. Maritime shipping: Michelin is participating in the Shippers’ Coalition for Low Carbon Maritime Transport (SCLMT) to support a north transatlantic (Europe-North America) service operated by wind-powered container ships. This innovative, energy-efficient shipping solution is expected to be deployed in 2026. It will reduce by 50% the environmental impact of more than 100,000 TEUs(1) a year, including 8,000 for Michelin. Scope 3: reducing emissions from purchased raw materials and components OUR OBJECTIVE: In 2020, the SBTi approved the Group’s greenhouse gas emissions reduction targets, including one relating to purchased goods and services. Suppliers representing 70% of greenhouse gas emissions from purchased goods and services (Scope 3, category 1) are expected to set science-based reduction targets by 2024. Key performance indicator: percentage of CO2 emissions from suppliers of purchased goods and services (Scope 3, category 1) that have set science-based greenhouse gas emission reduction targets for 2024. PERCENTAGE OF EMISSIONS FROM PURCHASED GOODS AND SERVICES SOURCED FROM SUPPLIERS WITH SCIENCE-BASED TARGETS Purchased goods and services: inventory Emissions from purchased goods and services (Scope 3, category 1 in the Greenhouse Gas Protocol, which excludes emissions related to purchased logistics services) represent around two-thirds of all Scope 3 emissions excluding the in-use phase (category 11). Given that raw materials account for around 85% of emissions from purchased goods and services, programs to reduce supplychain related emissions prioritize the supply of raw materials, alongside the significant gains being made in purchased logistics services. OUR LEVERS FOR ACTION: The Group has taken a proactive approach to identifying the purchasing categories and raw materials suppliers that represent the largest sources of GHG emissions. These suppliers are encouraged to initiate, step up or accelerate their commitment to reducing their GHG emissions. The CDP questionnaire provides a comprehensive system for disclosing environmental information in order to assess the strategies in place to abate climate change. In 2018, Michelin joined the CDP’s Supply Chain Program and engaged its leading raw materials suppliers to participate in it, encouraging them to measure and disclose their greenhouse gas emissions and to develop strategies to reduce them. (1) Twenty-foot equivalent units, the standard unit of container capacity. 21% 13% 30% 42%* 70% 2023 Target 2024 2022 * The 42% figure corresponds to a Group-wide calculation. Excluding Fenner, Camso and Multistrada, to establish a comparable scope of reporting with the 2020 to 2022 period, the figure would amount to 45%. 2021 2020
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