_202 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report Active in rubber tree farming and natural rubber procurement for many years, the Michelin Group has deployed a Sustainable Natural Rubber Policy(1) and a dedicated process with its suppliers to safeguard this resource and manage the impact of its production on the environment and local communities. With regard to manufacturing operations, the Group’s Environmental Policy(2) addresses the management of pollution risks and the reduction of the environmental impact of the production facilities. Impacts related to climate change, water withdrawals and waste are covered by dedicated programs and reduction targets for 2030(3). In 2018, Michelin expanded on these policies with specific commitments to safeguarding biodiversity and ecosystems, undertaken with the act4nature international initiative. These commitments were strengthened in 2021, when targets for 2030 were defined for research and development, raw materials and manufacturing and research facilities. (1) https://natural-rubber.michelin.com/fr/committments-and-transparency/overall-approach. (2) https://www.michelin.com/en/sustainability/company/planet. (3) See section 4.1.14 Reducing the environmental footprint of our manufacturing operations. Land use change Pressure Potential Impacts Over exploitation of Resources (Water use) Climate Change (CO2 emissions) Air, water and soil pollution Invasive species • Deforestation • Biodiversity loss • Habitat loss • Water resources depletion • Increase in atmospheric CO2 • Increased GHG concentration in the atmosphere • Water and soil quality changes • Eutrophication • Biodiversity loss • Habitats loss EXAMPLES OF PROCESSES THAT CAN CAUSE SUCH IMPACTS • Unsustainable forest management • Landscape conversion and/or fragmentation • Soil artificialization and sealing • Fragmentation of natural areas • Biomass energy use • Soil artificialization and sealing • Fragmentation of natural areas • Transportation • Vehicle fuel consumption caused by tires • Recycling • Waste from tire abrasion • Elimination of waste in landfills • Transportation • Water withdrawals • Energy use • Use of chemicals • Wastewater discharges • Waste • Air emissions • Nursery irrigation (e.g. natural rubber) • Other water-intensive raw materials • Production, processing and transportation of fossil-based raw materials • Production and transportation of raw materials from biomass • Use of pesticides and fertilizers • Use of chemicals • Wastewater discharges • Waste • Introduction of non-native species Production of natural rubber and other raw materials Storage, Transportation, Usage, End-of-life Production Facilities Value chain Very high Level of potential impact High Medium Low Not yet determined Upstream Direct Operations Downstream Direct Operations (Natural Rubber Production) Source: internal analyses, Encore®and SBTN Steps 1&2 test results.
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