Risk management Risk factors specific to Michelin, description and related management systems 03 Governance and risk management response A governance body is in place for this risk factor, chaired by the Executive Vice President, Group Research and Development, and co‑chaired by the Executive Vice President, Manufacturing. To prevent the risk of Michelin know-how and/or expertise being disclosed or lost: n projects, processes and data are classified according to their sensitivity, with each classification protected by appropriate safeguards and practices. For example, cloud computing solutions are no longer used for certain categories of data and encryption levels have been raised for certain other categories; n intellectual property is protected through our policy of obtaining patents wherever this is possible or desirable based on a broad vision of the secrets to be protected. Operating markets are monitored to ensure that our intellectual property rights are not infringed; n sensitive information, tangible assets and intangible assets are also protected by physical security systems; n a dedicated, purpose-designed information systems architecture is in place to securely store and share sensitive information; n every employee is a protection enabler, with a deeply instilled security culture informed by the Group Security Charter; n experts within the Group who have the skills that are critical for our operations are identified and afforded the recognition needed to retain their talent. Impact 7 – Environmental impacts from the use of our products Impact factors Through its potentially negative environmental externalities, Michelin could possibly have an impact on the planet and on its own stakeholders. Michelin is committed to acting as a leading enabler of sustainable development and mobility. This means clearly identifying and effectively managing the environmental impacts inherent in its business operations, including the impact of products and services during the in-use phase. The main impact factors are: n Scope 3 CO2 emissions from the use of sold products (see section 4.2 of the Sustainability Statement); n the generation of tire and road wear particles (TRWP). (See section 4.3 of the Sustainability Statement); n the impact of end-of-life treatment of sold products (see section 4.6 of the Sustainability Statement); n tire rolling noise (see section 4.10 of the Sustainability Statement). Today, societal expectations regarding climate change are rising and regulatory frameworks are tightening, particularly as concerns pollution, where, in the case of TRWPs, the scientific contours are still incomplete. In this environment, the above impact factors can translate into risk factors both for the Group and for the tire industry as a whole. Specific nature of the impact Environmental impacts are inherent to the tire itself, particularly during the in-use and end-of-life phases. Governance and impact management response The Environmental Governance body is tasked with managing environmental risks and impacts, including the effects of using our products (see Risk 1 above). As a tire manufacturer that assesses the environmental impact of its products throughout their life cycles, from raw materials to end-of-life, Michelin carefully analyzes any potential impacts from its tires during the in-use phase, in full alignment with its All Sustainable vision, correlated with its Michelin in Motion strategic plan. The main levers used by the Group to manage these impacts are: n reducing tire rolling resistance during the design phase, which helps to improve vehicle fuel efficiency, which in turn reduces carbon emissions during the in-use phase. This process is supported by the systematic use of life cycle assessments, performed product by product, and the deployment of ecodesign practices; n reducing abrasion, by leveraging the Group’s materials expertise and a long-standing design strategy focused on optimizing materials use. Moreover, by funding both in-house and external research programs, the Group is helping to deepen its understanding of the potential impacts of TRWPs, so as to develop new materials capable of attenuating them; n organizing the collection and treatment of end-of-life tires. The Group is exercising its leverage with public and privatesector stakeholders (i) to support the efficient operation of nationwide collection and resource recovery systems; and (ii) to encourage, wherever possible, local systems to focus on materials recovery, which optimizes the reuse of tire components as secondary raw materials and offers a generally smaller carbon footprint than energy recovery. In addition, the Group itself is developing end-of-life tire recycling solutions with other market participants; n developing services and solutions that optimize the use and management of vehicle fleets, while improving their fuel/ energy efficiency. 164 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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