Sustainability Statement Biodiversity and ecosystems (E4) 04 Although most natural rubber is sourced from suppliers, Michelin directly owns two rubber plantations in Brazil and Indonesia. Activity E4-1-16a i. Site E4-1-16a Sensitive areas E4-1-16a iii. Impacts E4-1-16a ii. Dependencies E4-1-16a ii. Negative impacts E4-1-16b E4-1-16c Rubber tree farming Plantações Michelin da Bahia, Brazil. Atlantic Forest/ Michelin Ecological Reserve, Brazil. n Land-use change. n Natural habitat degradation. n Eutrophication. n Soil quality. n Freshwater supply. n Pollination. b) Land-use change and habitat degradation due to farming. c) Threatened species (IUCN Red List) identified in the activity area. Lestari Asri Jaya and Wanamukti Wisesa, Jambi, Indonesia. Multi Kusuma Cemerlang, East Kalimantan, Indonesia. Bukit Tigapuluh National Park. Bukit Panjang - Bukit Siguntang. Kutai National Park. Excluding the natural rubber plantations, the impact of Group sites on ecosystems has not been identified as material. However, the Group is mindful of the biodiversity sensitivity of its production and research sites which, since 2013, have inventoried their surrounding areas classified as protected under supranational, national or local legislation. These inventories are updated every five years. The latest, performed in 2023, shows that a number of production or research sites are located in or close to one or more protected areas. Each site’s environmental risk assessment, performed using the process defined in the SMEP Environmental and Risk Prevention Management System(1), addresses biodiversity through two criteria: n The presence of protected natural areas; n The presence of plant or animal species classified by the International Union for the Conservation of Nature (IUCN). For sites located in or near biodiversity-sensitive areas, potential biodiversity risks are rated higher and the most likely are covered by mitigation action plans. Each new project on a site is also subject to an environmental risk assessment, whose findings are factored into the site’s overall environmental risk assessment during its regular update in compliance with the ISO 14001 standard. These assessments are part of the following processes: n Michelin’s engagement with the Act4nature international initiative; n ISO 14001 certification of the production sites and the continuous upgrades in Group standards, aimed at ensuring the proper application of the Group’s environmental policy. 4.5.2 IDENTIFYING BIODIVERSITY AND ECOSYSTEM ISSUES: THE CRITICAL ROLE OF NATURAL RUBBER To identify the material impacts, risks and dependencies of its operations, Michelin has carried out the first two steps in the Science-Based Targets for Nature (SBTN) guidance: 1. Assess and 2. Interpret & Prioritize. The criteria used were frequency, time interval and impact severity or degree of dependency. The assessment reflected conditions in local ecosystems, e.g., the amount of forest conversion in Michelin’s primary natural rubber sourcing countries or water stress levels in its production plants’ host communities. Tools such as ENCORE, Altitude Axa-Climate and the WWF Biodiversity Risk Filter, as well as life cycle assessments and IUCN databases were used to carry out the following steps: n Geographically locating operations, both own and in the value chain, that interface with nature, along with the biodiversitysensitive areas they impact. In addition to the abovementioned tools, this step uses the inventories carried out by the sites since 2013 of areas located within a five-kilometer radius that are classified as protected under supranational, national or local legislation; n Identifying and assessing dependencies and impacts using the above-mentioned methodologies. (1) See section 4.1.5 Holistic management of the Group’s impacts, risks and opportunities, above. 240 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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