Sustainability Statement European Taxonomy 04 4.7.2.2 Identifying eligible activities in 2024 CCM and CCA activity 3.6 – Manufacture of other lowcarbon technologies As noted in previous years, the “manufacture of rubber tyres and tubes, retreading and rebuilding of rubber tyres” (NACE Code C2211) is not one of the economic activities listed in the Taxonomy with specific screening criteria, even though the tire industry could participate in meeting the transport industry’s greenhouse gas emission reduction targets. In response, pending recognition of this economic activity and the related screening criteria, Michelin has identified, for reporting purposes, economic activity “3.6 Manufacture of other lowcarbon technologies,” as corresponding to its tire manufacturing activities, which contribute to the first two environmental objectives, CCM and CCA. This reflects the fact that activity 3.6 comprises the “manufacture of technologies aimed at substantial GHG emission reductions in other sectors of the economy.” These economic activities “could be associated with several NACE codes, in particular from C22 (...) in accordance with the statistical classification of economic activities established by Regulation (EC) 1893/2006.” Rolling resistance, a factor in reducing greenhouse gas emissions Pending clarification from the European Commission, and based on recital (10) of Delegated Regulation (EU) 2023/2485, the Group is using tire rolling resistance as the technical screening criterion for activity 3.6. European tire-labeling regulation EU 2020/740 provides for the objective measurement of tire rolling resistance using an EUvalidated process, comprising calculation methods, EU-approved reference laboratories and the alignment of measuring machines. Measurement results are registered in the European Commission’s EPREL energy labeling database. The vast majority of tires sold outside Europe are also measured for rolling resistance, which means that the proportion of these sales meeting the screening criteria can be included in the totals. As in prior years, passenger car, light truck and truck tires in the first four rolling resistance classes [A, B, C and D] are considered as eligible for activity 3.6 with regards to the objective of contributing to climate change mitigation. As in 2023, tires with the lowest class E rolling resistance rating are excluded from eligibility. The Group has reviewed the climate change adaptation objective in relation to activity 3.6. It found that CapEx contributing specifically to climate change adaptation was eligible, but deemed that it was still immaterial at the present time (see, however, section 4.2 Climate change (E1)). This outcome did not have any impact on the key performance indicators. CE activity 5.1 – Repair, refurbishment and remanufacturing In 2024, as in 2023, truck tire retreading services and other activities, excluding retreading activities licensed (e.g., Recamic in Europe) or franchised (e.g., Michelin Retread Technologies in North America) by the Group(1), are considered eligible for the transition to a circular economy objective, as they meet the definition of activity 5.1 of Delegated Regulation C(2023)3851 of June 27, 2023 on the environmental objectives. CCM activity 8.2 – Data-driven solutions for GHG emission reductions In 2024, as in 2023, the Services and Solutions activities comprise the Masternaut, Sascar and Nextraq companies. These connected solutions businesses focus on lowering their customers’ fuel bills, for example by offering solutions to optimize routes or driving practices. As a result, they are eligible as contributing to the climate change mitigation objective. CCM and CCA activity 7.2 – Renovation of existing buildings Although renovation work on office buildings to make them more energy efficient is eligible as contributing to the climate change mitigation objective, it is immaterial in the Group’s CapEx budget. (1) Because in these cases, Michelin does not sell the retreaded tires. 258 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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