Sustainability Statement Climate change (E1) 04 Scope 3 methodology and performance assessment In accordance with GHG Protocol guidelines, Scope 3 CO2 emissions are calculated for each category as follows: Category description and boundary Analysis of main changes in 2024 versus 2023 Category 1 Category 1 comprises all purchases of goods and services, with raw materials accounting for the lion’s share (85% in 2019). The 2030 SBTi target concerns only raw materials, i.e., 85% of the category. Purchasing data are taken from internal databases, while emission factors are provided by suppliers or, by default, taken from recognized external databases. The change primarily reflected the decline in raw materials-related emissions, stemming from the reduction in input volumes and the improved awareness of suppliers’ emission factors. In this way, emissions from raw material procurement declined from 7.7 MtCO2 in 2023 to 7.2 MtCO2 in 2024, which represented an 18% reduction from the baseline 8.8 MtCO2 in 2019, in line with the SBTi target. Category 2 Category 2 includes all purchases of capital goods (CapEx). Purchasing data are taken from internal databases, while emission factors are taken from recognized external databases. There was little change over the year, since this category tracks the Group’s CapEx. Category 3 Category 3 comprises emissions from the purchased energy used on the Group’s sites (upstream purchased energy). Emissions in this category are therefore calculated using the cradle-to-gate method. The 2030 SBTi target concerns 100% of this category. The change stemmed from the reduction in energy consumption, combined with an increase in the percentage of renewables, which have a smaller carbon footprint. In this way, emissions from purchased energy declined from 0.46 MtCO2 in 2023 to 0.43 MtCO2 in 2024, which represented a 26% reduction from the baseline 0.57 MtCO2 in 2019. This is well in line with the SBTi target of a 2.5% reduction per year (i.e., a total 12.5% decline from 2019 to 2024). Category 4 Category 4 includes all emissions from the upstream transportation of raw materials and semi-finished products. In 2019, 71% of these emissions came from sources operated by raw material suppliers and 29% from sources operated by Michelin (natural rubber and semi-finished products). The 2030 SBTi target concerns only Michelin-operated transportation sources, i.e., 29% of the category. The year-on-year change reflected improved estimates of transportation emissions from our raw material suppliers, resulting from a decline in volumes carried, the use of transportation modes with smaller carbon footprints and improved estimates of intercontinental tonnages.In this way, emissions from Michelinoperated upstream transportation stood at 0.30 MtCO2 in 2023 and 0.30 MtCO2 in 2024, representing a 25% reduction from the baseline 0.40 MtCO2 in 2019. This is well in line with the SBTi target of a 2.5% reduction per year (i.e., a total 12.5% decline from 2019 to 2024). Category 5 Category 5 includes emissions from all waste generated in manufacturing operations, measured according to the GHG Protocol cut-off method (carbon accounting stops before the waste is recovered). There was little change in 2024. Category 6 Category 6 comprises CO2 emissions from business travel by air, rail and rental car. Emissions from hotel rooms are not calculated due to a lack of data. The change stems from the increase in air travel during the year. Category 7 Category 7 emissions include commuting emissions estimated for each employee, with emission factors by country. The change reflected the reduction in the Group's workforce over the year. Category 8 Category 8 includes emissions from upstream leased cars, real estate, IT equipment and handling equipment. There was little change in 2024. Category 9 Category 9 includes emissions from transportation and distribution operations downstream from the production plants, excluding warehouse emissions (already included in Scopes 1 and 2). The 2030 SBTi target concerns 100% of this category. The change primarily reflected the decline in volumes sold over the year. In this way, emissions from downstream transportation operations declined from 0.74 MtCO2 in 2023 to 0.72 MtCO2 in 2024, which represented a 27% reduction from the baseline 0.98 MtCO2 in 2019. This is well in line with the SBTi target of a 2.5% reduction per year (i.e., a total 12.5% decline from 2019 to 2024). Category 11 See the section on Scope 3 Use of sold products, below. The year-on-year decline from 130 MtCO2 to 115 MtCO2 was due to the use of a new, more accurate calculation method rather than to a reduction in emissions, which are difficult to assess. 214 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
RkJQdWJsaXNoZXIy NzMxNTcx