04 Sustainability Statement Biodiversity and ecosystems (E4) 4.5.4.2 Actions undertaken in the Group’s supply chain 4.5.4.2.1. Combating deforestation Since 2017, as part of its duty of care commitment, Michelin has worked with its suppliers to map the social and environmental risks in its natural rubber supply chain, including the risk of deforestation, with the RubberWay application, whose collected data is used to map at-risk jurisdictions. The application has been deployed in every Michelin source country (Indonesia, Thailand, Malaysia, Vietnam, Sri Lanka, Côte d’Ivoire, Ghana, Guinea, Nigeria, Liberia and Brazil). Since 2023, Michelin has worked with its natural rubber network and suppliers to geolocate all the smallholder rubber farms across its supply chain, in line with the European Union Regulation on Deforestation-free Products. As of end-December 2024, 98% of the natural rubber suppliers’ farm lots had been geolocated. The farms have been assessed with the Global Forest Watch Pro (GFW Pro) satellite monitoring system to confirm their compliance with EUDR requirements concerning plot geolocation, demonstrating the absence of any deforestation after January 1, 2020 and compliance with local regulations. The results are shared with direct Michelin suppliers and can be used to prepare improvement plans or deploy mutually designed risk mitigation projects. To drive faster progress toward a more sustainable natural rubber supply chain, in 2018, Michelin worked with a diverse group of stakeholders to launch the multi-stakeholder Global Platform for Sustainable Natural Rubber (GPSNR)(1). Today, the platform is leading improvements in the environmental and socio-economic performance of the entire natural rubber industry. GPSNR brings together stakeholders from across the natural rubber value chain, including farmers, processors and brokers, tiremakers and other users, automakers and civil society, with the participation of a large number of NGOs. 4.5.4.2.2. Promoting more sustainable, environmentally friendly farming practices Michelin, its joint ventures and its leading natural rubber suppliers are all working together with local associations to encourage farmers to embrace more sustainable farming practices. Awareness-building programs on agroforestry techniques, reducing pesticide and fertilizer use, preserving biodiversity and deforestation issues are being deployed in natural rubber sourcing regions in Southeast Asia, West Africa and Brazil(2). 4.5.5 METRICS AND TARGETS 4.5.5.1 Biodiversity and ecosystem targets To mitigate its material biodiversity and ecosystem impacts in line with the Sustainable Natural Rubber Policy’s objectives of zero deforestation and reduced pesticide use in the natural rubber operations, as well as to progress toward the objectives of the Kunming-Montreal Global Biodiversity Framework, in 2024 Michelin renewed its existing Act4nature international commitments and added the following two new undertakings: Impact/Risk Commitment Scope of application Geographic scope 2024 performance 2030 target Deforestation Natural rubber volumes used by the Group assessed as deforestation-free(1) Direct operations and natural rubber suppliers Thailand, Sri Lanka, Indonesia, Côte d’Ivoire, Ghana, Liberia and Brazil 98%(2) 100%(3) Pollution from pesticide use Reduction in pesticide use per hectare (2019 baseline) Direct operations: natural rubber plantations owned by the Group and its joint ventures(4) Brazil, Indonesia, Côte d’Ivoire, Ghana, Liberia and Nigeria -52% -70% (1) According to the definitions and requirements of the European Union Deforestation-free Regulation (EUDR) or other means of proof concerning plot geolocation, demonstrating the absence of any deforestation and compliance with local regulations. (2) Excluding certain Polymer Composite Solutions operations. (3) Excluding changes in the scope of consolidation. (4) Bahia, Brazil and PT Royal Lestari Utama, Indonesia. Joint venture: SIPH, West Africa, in which Michelin owns a minority interest. (1) https://sustainablenaturalrubber.org/. (2) https://purchasing.michelin.com/wp-content/uploads/2024/08/Sustainable-Natural-Rubber-Roadmap-2020-2025-2023-Results-V1.3_20240917.pdf. 247 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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