04 Sustainability Statement Resource use and circular economy (E5) 4.6.1 WIDELY IDENTIFYING MATERIAL CIRCULARITY IMPACTS, RISKS AND OPPORTUNITIES Michelin has in recent years steadily assessed and addressed the environmental impact of its operations across the entire value chain, primarily based on data from life cycle assessments (LCAs). This process was completed in 2024, with the result that the materiality of impacts related to the use of resources and their circularity has been assessed across the Group and its entire value chain The material resources used by the Group, other than energy and water, are the raw materials used in the manufacture of its products, which may be categorized as follows: BREAKDOWN OF RAW MATERIALS USED IN 2024 BY WEIGHT (TOTAL: 3.08 MT) Maintaining a linear economy entails a number of important material impacts and risks, including (i) the significant environmental impacts from the depletion of natural resources due to overharvesting (ii) economic risks that can jeopardize business continuity (iii) the accumulation of waste and adverse social impacts, such as the deterioration in living conditions. The circular economy, on the other hand, offers a wide array of opportunities. A core aspect is innovation, which drives the development of new, more sustainable ways of producing products and using resources, while extending product lifetimes. Circularity also helps to develop industrial-scale capacity to supply sustainable materials, fostering a more responsible, environmentally friendly future. The transition to a circular economy can carry risks, including high initial investments and questionable profitability. The lack of a regulatory framework could also hold back the take-up of these practices, while in the supply chain, companies must make complex adjustments. Lastly, environmental and social issues, as well as resistance to change, represent major challenges to be overcome. Mismanagement of end-of-life tires can pose significant risks to human health and cause soil pollution. Abandoned tires can become breeding grounds for mosquitoes that potentially carry diseases like malaria and dengue fever. In addition, the chemicals released by decomposing tires can leech into soil and groundwater, impacting water quality and local biodiversity. 4.6.2 AMBITIOUS RESOURCE USE AND CIRCULAR ECONOMY POLICIES Michelin has defined several policies to address the issues of resource depletion, the circular economy and end-of-life tire management. By deploying a sustainable, responsible sourcing model, eco-designing products and incorporating recycled and renewable materials, Michelin is assertively engaged in the circular economy. These initiatives are part of a holistic strategy designed to meet the rising expectations of stakeholders for more sustainability. 4.6.2.1 The Group Environmental Policy and the circular economy The Group's Environmental Policy represents the framework that underpins all the other policies related to environmental matters, including the circular economy. In this regard, it incorporates the Michelin Avoid+4R process, which encompasses all the actions undertaken to avoid, reduce, reuse, recycle and renew resources in response to the challenges of the circular economy and the preservation of resources. All these issues are addressed throughout the product life cycle. 25% Natural rubber 3% Textile 26% Fillers 14% Chemicals 13% Steel cord 19% Synthetic rubber AVOID ReDUcE Reuse RECYCLE RENew Offset 251 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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