4 _185 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report A new campaign was conducted in 2020 and every year since then. Of the 116 raw material suppliers asked to submit data in 2023, nearly 95% responded. Together, they represented approximately 66% of the emissions from the Group’s purchased goods and services. In addition, 68% of the suppliers who responded to the CDP Climate Change questionnaire scored Bor higher, indicating that their emissions abatement systems were fairly mature. In 2023, the CDP recognized the Michelin Group’s ability to engage its suppliers in reducing carbon emissions with a CDP Supplier Engagement Leader award. Scope 3: reducing emissions from upstream purchased energy and end-of-life treatment of sold products The Scope 3 CO2 emission reduction targets approved by the SBTi in January 2023 include two indirect activities in the value chain, as defined by the GHG Protocol: ● Upstream purchased energy: the extraction, production and transportation of fuels, purchased or acquired by a company or consumed in the generation of electricity or heat; ● the end-of-life treatment of sold products. The change in the method of measuring emissions from the endof-life treatment of sold products, following the revision in the GHG Protocol, has resulted in a reduction in these emissions, to 0.3 million tonnes of CO2 from 3.7 million tonnes previously, which makes them much less material in the Scope 3 outcomes. This is why Michelin’s initiatives in this area will now be presented only in section 4.1.1.2 Enhancing the circularity of our products. The new target submitted to the SBTi in January 2024 reflected this change of scope. OUR OBJECTIVE: Reduce CO2 emissions from upstream purchased energy, in absolute value, by 15% between 2018 and 2030. Key performance indicator: tonnes of CO2 in absolute value from upstream purchased energy. CO2 EMISSIONS FROM UPSTREAM PURCHASED ENERGY (millions of tonnes of CO2) OUR LEVERS FOR ACTION: Reducing energy use and gradually phasing in renewables, which is being planned and managed to meet the Group’s Scope 1 and 2 objectives. This is based on the assumption that the upstream generation and delivery of fuel from renewable sources generally releases less CO2 than fossil fuels. 2023 OUTCOMES: The year-on-year reduction in 2023 was led by the decline in energy use by the production plants and by the increased proportion of renewables in their energy mix(1). NEW SCOPE 3 OBJECTIVE: A new, more ambitious emissions reduction target, aligned with our outcomes and “Race to Zero” commitment, was submitted to the SBTi in January 2024 and is pending validation. It covers not only Scopes 1 and 2, but also three Scope 3 categories – purchased goods and services, upstream and downstream transportation, and upstream purchased energy – which it aims to reduce by 27.5% in absolute terms between 2019 and 2030. Over the longer term, to 2050, the target is also designed to reduce all required Scope 3 emissions by 90% in absolute terms. Investing in socially responsible funds Since 2014, Michelin has invested €5.96 million in two Livelihoods Carbon Funds (LCF1 and LCF2), which support reforestation, agroforestry and low-carbon cookstove projects on three continents. Conducted in collaboration with local NGOs, its projects help to reduce GHG emissions, while improving quality of life in local communities(2). The Group is still aligned with its net-zero emissions targets for 2050, which are being pursued without using any carbon credits to offset CO2 emissions from its direct or indirect activities, in accordance with SBTi standards. As a result, the carbon credits derived from Livelihoods projects are neither set off against the Group's carbon footprint nor sold. (1) See section 4.1.1.4 c) Reducing energy use and greenhouse gas emissions. (2) Visit https://livelihoods.eu/lcf/. -2% +2% -12% -20% -15% 2030 2023 2022 2021 2019 2018 Baseline
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