Universal Registration Document 2023

_288 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report Our OEM customers also recognized our excellent relations with a number of awards, including the Supplier Excellence Award from Caterpillar; a Masters of Quality Award from Daimler Truck; the Best Supplier Award from Jiangxi Copper Group for the fifth straight year; the 2024 Competitive Tire Partners Award from BMW AG; and the 2023-2025 Preferred Partner Award by Mercedes Benz China. For the fourth year running, its Customer Call Centers were named Best Customer Service of the Year in the tire manufacturer category in its three European host countries (France, Germany and Spain). 4.1.4.4 Playing an active role in ensuring consumers’ safety on the road and safeguarding the environment Minimum performance standards European legislators have introduced minimum tire-performance standards, as specified in Regulation EC No. 661/2009 and United Nations’ ECE Regulation 117. The Michelin Group supported the introduction of these regulations, offering data and other input to help define the minimum performance levels. These standards cover: ● rolling resistance; ● noise; ● wet grip. They are designed to limit a tire’s environmental impact and improve road safety. Introduced in 2012 for all new products, the legislation has been gradually extended, in precisely defined phases, to products already on the market. Compliance of new Passenger car, Light truck and Truck tires is verified by government technical services when the product is certified. Stricter rolling resistance thresholds derived from Regulation No. 117 have been applied in the European Union since November 2016. In 2023, as proposed by the tire industry, even higher rolling resistance and wet grip standards were approved by the UN for application over the 2024-2026 period. The setting of regulated performance levels, which was originally a European initiative, is now being extended via UNECE Regulation No. 117, in legislation passed by countries that signed the UN’s 1958 agreement concerning uniform technical prescriptions for wheeled vehicles. Since then, many countries, such as Turkey, Israel, Brazil and Russia, have introduced similar legislation and Japan is planning to do so in 2024. Among the countries that did not sign the 1958 agreement, the United States and India have decided to introduce at some future date the same type of standards to protect the environment and improve consumer safety. Other countries, like China, South Africa, Morocco, Thailand and the Gulf States, are also discussing such measures. In each of these countries, Michelin has been supportive of the application of these standards and when requested, is helping to define the minimum requirements. Tire labeling The new version of the EU tire labeling regulation (2020/740) has pushed the labeling beyond rolling resistance, wet grip and noise performance, in particular by improving consumer information. The “3PMSF snow” and “ice” logos are now displayed on the label and technical information is registered in the publicly accessible EPREL database. Published in 2020, this labeling regulation has been in effect since May 1, 2021. Label information will be extended in the future to other performance parameters, such as the rolling resistance of retreaded tires or tire abrasion, as soon as suitable testing methods are available. Other countries have introduced similar regulations for certain tire categories. In each one, the Michelin Group, when requested, helped to define the terms (e.g.: India, Morocco in progress). In 2023, the Group did not incur any fines or penalties for noncompliance with regulations and/or voluntary codes concerning product and service information and labeling [GRI 417-2]. The impact of tires on vehicular CO2 emissions The rolling resistance of Passenger car, Light truck or Truck tires accounts for 15% to 30% of an internal combustion vehicle’s fuel consumption and therefore its CO2 emissions, depending on the vehicle, its use and how it is driven. This is why Michelin is encouraging the use of vehicular carbon emission assessment methods that are precise enough to accurately ascertain the contribution of the various factors, including tire rolling resistance. For example, Michelin proposed including a metric in the R154 and WLTP regulations measuring actual emissions with very low rolling resistance tires. Its proposal was accepted in the latest UNECE regulation on October 8, 2022. This approach encourages transparency by suppliers and technical competition to reduce rolling resistance and, with it, carbon emissions.

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