Sustainability Statement Climate change (E1) 04 TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION Michelin has been part of the “Race to Zero” campaign since July 2021, answering the call to action by the international consortium comprising the Science Based Targets initiative (SBTi), the United Nations Global Compact and We Mean Business. The Group’s transition plan is designed to achieve net-zero emissions by 2050 in Scopes 1, 2 and required Scope 3 (i.e., excluding use-phase emissions)(1). It also includes interim commitments for 2030 to reduce CO2 emissions from (versus 2019): n the entire production base; n the upstream purchased energy supplied to Group sites; n the supply chain with raw material suppliers; n logistics operations. In addition to its own operations, Michelin is helping to foster the low-carbon mobility of goods and people. 4.2.1 DECARBONIZATION TARGETS 4.2.1.1 Achieve net-zero emissions The transition plan is designed to enable an understanding of the Group’s past, present and future mitigation efforts, to ensure that its strategy and business model are compatible with the transition to a low-carbon economy. Over and above the debates on decarbonization pathways at the scale of an undertaking, Michelin chose to submit its targets to the Science-Based Targets initiative (SBTi), which in June 2024 approved them as consistent, according to its definition, with a pathway limiting global warming to 1.5°C in line with the Paris agreements(2). Scope of application Short term: 2030 (vs. 2019(1)) Long term: 2050 (vs. 2019) Scopes 1 and 2 -47.2% -90% Required Scope 3 (excluding use-phase emissions) -27.5% in the purchased raw materials, logistics and upstream purchased energy categories (1) Because 2020 was not a representative year, due to the Covid health crisis, the baseline for the SBTi-approved targets is 2019. For Michelin, setting course to net zero means: n reducing CO2 emissions from its own operations and the operations of its value chain by 90% by 2050; n preparing longer term solutions to capture and store enough CO2 to offset each year’s residual emissions. This is aligned with the Corporate Net Zero Standard defined by SBTi in October 2021. 4.2.1.2 Designing energy-efficient products Using a tire on an internal combustion vehicle requires additional energy that entails the burning of fuel and therefore the release of greenhouse gases. After reducing the rolling resistance of its tires by 50% between 1992 and 2020, Michelin’s objective now is to further reduce it by 10% in 2030 compared with 2020. As of end-2024, rolling resistance had been improved by 4.3%, in line with the target. (1) According to the GHG Protocol Corporate Standard, the benchmark for corporate carbon accounting, measuring CO2 emissions from tires in-use is optional because they only have an indirect impact on vehicle fuel efficiency. Nevertheless, Michelin is helping to attenuate the carbon impact of the use phase by designing ultra-energy efficient tires. Therefore, on the one hand, there is the "required" Scope 3 composed of all Scope 3 categories except for the Scope 3 use phase, and on the other hand, the Scope 3 use phase that is "optional" under the GHG Protocol. (2) Based on the cross-sector method, version 5.1 updated in April 2023. 198 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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