Sustainability Statement Climate change (E1) 04 CLIMATE CHANGE MITIGATION Impacts, Risks and Opportunities (IROs) Brief description Upstream value chain Downstream value chain Own operations Short-term Medium-term Long-term E1 – CLIMATE CHANGE Climate change mitigation Higher energy performance standards for tires Standards are being raised both by market demand and through regulations. Tires account for 15% to 30% of an internal combustion vehicle’s fuel consumption. As mobility goes electric, the focus is expected to shift to certain products or components that are harder to decarbonize, such as tires. Original equipment manufacturers are looking for tires with low rolling resistance, while fleets prefer long-lasting, high-mileage products. Urbanization and the emergence of new mobility solutions will heighten the role of fleets. Regulatory standards governing rolling resistance and other energy performance factors are tending to become stricter around the world, along the lines of European Union legislation. Opportunity Rising demand for a wider range of electric vehicles Michelin is positioned as a leading manufacturer of high-performance, long-lasting, energy-efficient tires that play a critical role in optimizing the EV experience. According to the International Transport Forum, an estimated 40% of new vehicles will be electric in 2027, representing a tripling of their market share in just five years and offering the Group new opportunities. Opportunity Contributing to climate change through direct and indirect greenhouse gas emissions (Scopes 1 and 2) Michelin is a global manufacturer with a broad industrial footprint. Greenhouse gases are emitted by our own operations and by the energy used in our production and other sites. The impact covers Scope 1 and 2 emissions. Negative impact Contributing to climate change through direct and indirect greenhouse gas emissions and land use change (Scope 3) Scope 3 emissions comprise two main categories: n GHG Protocol required Scope 3 emissions, which come from purchased raw materials, upstream logistics activities, upstream purchased energy and a variety of other sources. This category is significantly larger than Scope 1 and 2 emissions; n GHG Protocol optional Scope 3 emissions from the use of sold products, which in the case of Michelin corresponds to the 15% to 30% of a vehicle's fuel or electricity used to overcome tire rolling resistance. This makes their contribution critically important, with Scope 3 use-phase emissions representing more than 90% of Michelin’s carbon footprint (115 million tonnes of CO2 in 2024). Michelin is a leader in rolling resistance performance. Negative impact Facilitating greater energy efficiency by offering services to optimize the use and management of vehicle fleets and accelerating the transition to zero-emission mobility Michelin is a leading sustainable mobility enabler. In addition to tires, the Group offers solutions to optimize fleet management and support hydrogen-powered and other forms of zero-emission mobility. The Group promotes sustainable mobility, in particular through international forums and networks such as Movin'On and the World Bank’s Sum4All initiative. Positive impact Introduction Determining Michelin’s impact on climate change begins by measuring its carbon footprint based on the GHG Protocol – a practice initiated several dozen years ago. Transition risks are assessed using scenarios prepared by the Group’s Strategic Anticipation Department, while business strategy is assessed against the best and worst-case warming scenarios. To address the impacts and opportunities identified in the double materiality assessment, the Group’s climate strategy is organized around two core components: n a transition plan comprising initiatives to decarbonize direct and indirect activities in the value chain (Scopes 1, 2 and 3) and a strategic plan to build resilience and foster a low-carbon economy; n an adaptation plan to prepare for the physical impacts of climate change, which is governed by a dedicated policy in place since March 2024. The Group's climate strategy is informed by three principles addressing impacts, risks and opportunities: n achieve net-zero emissions by 2050 by fulfilling our external emission reduction commitments by 2030; n identify risks and opportunities for our business models and operations, based on climate change scenarios; n transparently disclose the information expected by our external stakeholders. Upstream Downstream OP Downstream Downstream Upstream OP Downstream Upstream OP 204 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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