_276 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report SUPPLIER CSR ASSESSMENTS Along with the deployed corrective actions, the careful attention paid to the assessments by both the Group’s purchasing teams and its suppliers is helping to drive steady progress. By year-end 2023, for example, of the 1,041 suppliers with an assessment track record, 66% had improved and 15% had maintained their score. Lastly, of the suppliers whose low scores in previous assessments had prevented them from being “confirmed” as compliant with Michelin standards, 64% had delivered the expected performance over the year. Particular attention is paid to the scores on the topic of “social and human rights” which has its own target. See the box below on “Supplier failure to respect human rights.” Tracking and follow-up Suppliers who fall short of confirmed compliance must implement a CSR performance improvement plan, whose progress is tracked by the purchasing teams. To manage the deployment of these remedial action plans more effectively, an indicator measures the percentage of suppliers concerned who actually created such a plan or implemented remedial actions. Successful deployment is systematically confirmed by a follow-up review. Results deemed to be structurally insufficient or a lack of engagement with sustainable development issues may lead the Purchasing Department to revise or terminate its contractual relationship with the supplier. Such a decision is always made by consensus, after discussing all of the potential consequences. A simplified questionnaire A quick, simplified CSR self-assessment questionnaire was prepared and issued to front-line Purchasing Department teams, who may ask suppliers to complete it whenever they deem it necessary, either during the tender phase or while the contract is in effect. The questions measure the maturity of a supplier’s CSR practices, which can be used as a selection criterion if warranted. The questionnaire is used only for suppliers whose CSR performance is not assessed by desktop reviews. On-site audits To support supplier compliance with its Quality standards and Purchasing Principles, Michelin has introduced a “supplier quality system audit procedure” (ESQF), which is performed on-site. Aside from quality issues, it also addresses the application of the health, safety, environmental and human rights standards stipulated in or derived from the Michelin Purchasing Principles. Following an ESQF, Michelin auditors assign a separate score for compliance with the Purchasing Principles. Where the score is less than 80%, the supplier is required to take the identified corrective measures and improve overall performance with a continuous improvement process. The initial score is then reassessed in light of the actions implemented by the supplier. Note: a dedicated CSR assessment and risk mapping exercise has been deployed for natural rubber suppliers (see section 4.1.1.3 a). 422 547 513 654 604 715 697 817 828 965 973 1,121 1,092 1,221 Number of suppliers assessed for CSR compliance Number of suppliers confirmed in compliance with Group CSR standards % of suppliers confirmed in compliance with Group CSR standards 77% 78% 84% 85% 87% 89% 84% 2017 2018 2019 2020 2021 2022 2023
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