_204 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report 4.1.1.3 d) Preserving biodiversity and ecosystems in rubber tree farming Combating deforestation(1) Natural rubber production entails a risk of deforestation, which is why in 2016 Michelin included a “zero deforestation” commitment among the environmental criteria in its Sustainable Natural Rubber Policy. To exercise its duty of care in its sourcing countries(2) and ensure that its natural rubber inputs do not come from deforested land, Michelin has in recent years been deploying both the RubberWay®(3) application, which maps at-risk jurisdictions, and a deforestation risk analysis tool developed with the WWF. Based on this risk analysis, prevention and mitigation measures were introduced to reach a significant portion of the farmers in the jurisdictions concerned(4). In 2023, Michelin expressed this commitment as a measurable target for 2030 and replaced its former act4nature commitment (In 2030, 80% of the natural rubber volumes used by the Group will be assessed for compliance with the environmental criteria in its Sustainable Natural Rubber Policy), with a more ambitious commitment that is clearer for external stakeholders: In 2030, 100% of natural rubber volumes used by the Group will be assessed as deforestation-free(5). This commitment is currently being validated by act4nature international. Reducing pesticide use While natural rubber production does not require the intensive use of pesticides, their judicious use at various stages in the production cycle may help to improve efficiency, for example by treating certain plant diseases. In addition to banning pesticides and herbicides in production plant groundskeeping by 2023, Michelin has defined a new commitment to reducing the use of pesticides in the production of natural rubber: Reduce the amount of pesticide used per hectare on rubber tree farms operated by the Michelin Group and its joint ventures(6) by 70% in 2030(7). This commitment is also currently being validated by act4nature international. Michelin also promotes best practices across the industry to scale back the use of pesticides and herbicides. Helping to transform the supply chain To help move the supply chain towards more sustainable practices, the Group is mapping social and environmental risks using the RubberWay® application. When at-risk jurisdictions are identified, Michelin works with its partners to offer training programs for village farmers and their families. From 2021 to 2023, a total of 1,437 farmers were trained in biodiversity and agroecological practices(8). The Group is committed to training 30,000 farmers by 2030. In addition, the Group is sharing identified best practices with stakeholders across the industry through the Global Platform for Sustainable Natural Rubber (GPSNR)(9). Restoration and conservation initiatives The Michelin Ecological Reserve in Bahia, Brazil The 3,350-hectare Michelin Ecological Reserve (REM) in Bahia, Brazil, was created in 2005 to safeguard areas of the Atlantic Forest, one of the world’s most species-rich biomes, in a region suffering from widespread deforestation and environmental degradation. In 2021, the reserve was expanded by 550 hectares and now covers a total 3,900 hectares. To protect the Reserve from hunters, forest rangers were hired to conduct regular day and night patrols, which have reduced hunting by 91%, allowing wildlife abundances to increase to 117% since the Reserve’s creation. Certain species critically threatened with extinction, such as the yellow-breasted capuchin monkey (Sapajus xanthosternos) and the red-billed curassow (Crax blumenbachii), are once again flourishing in the Reserve, which has become essential for their long-term survival. Every year, more than 100 scientists are supported by the REM research program, which has funded 134 ecological studies over the past 17 years, resulting in the publication of 163 scientific papers, including some on the forty previously unknown species found since the Reserve was opened. As part of the program launched in 2005 to restore deforested areas, REM has planted 110,000 trees spanning 275 species, enabling the forest to regain 300 hectares. The Reserve also protects the 61-meter high Pandaca Grande waterfalls, which are visited by more than 80,000 tourists a year. (1) See section 4.1.4.2 c) A dedicated approach for natural rubber/Supply chain risk assessments. (2) https://purchasing.michelin.com/en/we-care-about-the-environment/. (3) https://rubberway.tech/. (4) See section 4.1.4.2 c) A dedicated approach for natural rubber/Supply chain risk assessments. (5) “Deforestation-free” status is determined by reference to the definitions and standards of the European Union Deforestation-free Regulation (EUDR). (6) Joint ventures in which Michelin holds a minority stake. (7) Compared with the 2019 baseline year. (8) See section 4.1.4.2 c) A dedicated approach for natural rubber/Frontline initiatives. (9) See section 4.1.4.2 c) A dedicated approach for natural rubber/The Global Platform for Sustainable Natural Rubber (GPSNR).
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