Sustainability Statement General information 04 These impacts, risks and opportunities mesh with the sustainability issues already identified by the Group, either through the previous materiality assessment and the accountability-based(1) risk mapping exercise, or through the systems used to assess the impact of our products. However, the double materiality assessment has provided a more granular, targeted view of certain impacts, risks and opportunities, particularly as regards water consumption and water and air pollution in operations and the value chain. Overall, the double materiality matrix demonstrates that the full range of environmental, social and governance matters are being addressed. It is noted that certain matters have a positive impact on society and the environment and, as such, are a core component in the Michelin Group's business model. 4.1.4.2.1. Coverage of environmental, social and governance matters Environmental matters The most material environmental matters correspond to the main impacts identified in the product life cycle assessments (LCAs). n Climate change mitigation – Scope 3 (E1). The Scope 3 usephase impact of Michelin products is factored into corporate strategy. Energy efficiency is deeply embedded in the DNA of the Group, which pioneered the development of low rolling resistance tires. Today, we remain as committed as ever to continuously improving product performance, as illustrated by the target of reducing rolling resistance by a further 10% by 2030 compared with 2020. Energy efficiency also plays a decisive role in extending an EV’s range, bringing it to the forefront as mobility becomes increasingly electric. This means that it is both a Group commitment and one of our products’ key performance features, delivered without compromising on any other areas of performance. n Resource depletion (E5). The increasing depletion of fossil fuels and other resources is one of the core factors shaping the strategy and business model of the Group, where the frugal use of raw materials has always been top-of-mind. n Tire and road wear particles (E2). Tire and road wear particles (TRWP) from tire abrasion are a major focus of attention for the Group. In this regard, Michelin tires are recognized as the market’s top performers(2). The double materiality assessment revealed a certain number of impacts, risks and opportunities that are already addressed by Group policies, initiatives and disclosed targets, such as climate change mitigation in Scopes 1 and 2 (E1), deforestation/loss of habitat (E4), and end-of-life tire management (E5). It also highlighted a risk – climate change adaptation (E1) – that is covered by a policy issued in 2024, backed by initiatives and targets with defined time horizons. Social matters The most material social impacts, risks and opportunities are intrinsically linked to the industrial nature of Michelin’s business and to its global footprint and complex value chain. n Attracting and retaining talent (S1). Every society around the world is undergoing deep-seated change, in particular in ways that are transforming our relationship with work. The risk concerning the ability to attract and retain talent is considered material for the Group, given that certain production processes, plant locations or other constraining factors may dull employer appeal. n Employee health and safety (S1). Personal health and safety are critical concerns for the Group, whose employees work in a wide variety of environments subject to potential health and safety risks, both in production facilities, with extensive human-machine interaction, and in logistics hubs, dealerships and service centers. n Human rights in the value chain (S2). The complexity of the Group’s natural rubber and other value chains also incurs a potential material risk of human rights violations. Governance matters The primary material governance matter concerns business ethics (G1), which is an unavoidable issue given the size of the Group, the geographic scope of its business base and the risks of damage to its reputation. (1) Accountability, as defined in the ISO 26000 standard, means that an organization must be answerable for its impacts on stakeholders. The divisions on the accountability scale are determined by the amount of impact and the organization’s degree of influence on the impacted ecosystem. (2) See the 2021 ADAC study, Tyre wear particles in the environment; Allgemeiner Deutscher Automobil-Club, Tyre abrasion: wear and burden on the environment/31940 RMU, updated in March 2022. 192 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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