Sustainability Statement Biodiversity and ecosystems (E4) 04 4.5.4 BIODIVERSITY AND ECOSYSTEM INITIATIVES Michelin did not use any biodiversity offsets in its action plans in 2024. Key initiatives undertaken to prevent, mitigate and remediate identified negative impacts and to meet the Group’s objectives and targets are as follows: 4.5.4.1 Actions undertaken in the Group’s direct operations 4.5.4.1.1. Supporting the zero-deforestation commitment The first tire manufacturer to publish a zero deforestation commitment in 2015, Michelin ensures that its directly owned plantations are deforestation-free and engaged in conservation and restoration programs. 4.5.4.1.2. Conserving and restoring biodiversity sensitive areas The Michelin Ecological Reserve (REM) in Bahia, Brazil Created in 2004, the 3,950-hectare Michelin Ecological Reserve is located in the Bahia Center of Endemism, in the heart of the Atlantic Forest. It is one of the world’s most species-rich yet most endangered biotopes, as well as a key biodiversity ecosystem. An action plan defined and undertaken to protect the area from deforestation has already reduced hunting pressure by more than 85%. This has helped to spur an almost 117% increase in the wildlife population over the past 20 years, including certain species classified as critically endangered by the International Union for the Conservation of Nature (IUCN). More than 110,000 trees spanning some 340 species have been planted to restore 300 hectares of degraded land. These programs have resulted in a survival rate of close to 70%, while recreating environmental corridors to reconnect the various forest areas, thereby strengthening the ecosystem’s resilience and seamlessness. Royal Lestari Utama (RLU) A wholly owned Michelin Group subsidiary since 2022, RLU is committed to fostering sustainable natural rubber production on 88,000 hectares of concessions (70,000 hectares in the province of Jambi, Sumatra and 18,000 hectares in the province of East Kalimantan, Borneo), which had been severely degraded and deforested prior to Michelin’s involvement in 2015. The Group is assertively developing deforestation-free natural rubber production on the concessions. It has also undertaken to preserve and restore more than 15,000 hectares, including around 3,000 prioritized for active restoration, over the next 20 years with a dedicated roadmap and budget. The pilot active restoration project was launched in 2018 with the first phase focused on performing forest trials, collecting seeds and creating nurseries. To date, more than 15,000 trees have been planted over an area of around 100 hectares, with a more than 70% survival rate. 4.5.4.1.3. Reducing pesticide and fertilizer use on the plantations Compared with other crops, rubber trees do not require the intensive use of pesticides. However, such use may sometimes be necessary, in particular to treat certain plant diseases. In its own operations, the Group prohibits the use of pesticides that have been banned by the Stockholm and Rotterdam Conventions and the Montreal Protocol, including in countries where these conventions and protocols have not yet been adopted. It also bans the use of WHO class Ia and Ib products and paraquat, including in countries where these products have not yet been banned, and ensures that the risks of contaminating water resources with natural or artificial chemicals are carefully controlled. The Group has set a target for abating pesticide use on its own and its joint ventures’ plantations by 2030. Rubber trees do not require rich soils to grow and are fairly well adapted to soils previously degraded by other crops. Michelin cooperates with industry stakeholders through the French Rubber Institute to support the science-based reduction in fertilizer use. 246 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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