04 Sustainability Statement Own workforce (S1) Like any large organization with a global footprint, Michelin must also constantly respond to a myriad of impactful changes both internally and in the wider society. Since 2018, for example, the acquisitions of Camso, Fenner, Multistrada, Masternaut and FCG have brought in around 14,000 new employees, considerably expanding the Group’s diversity and skills base. Job families and skills sets are also evolving, with IT, digital technology, data management, artificial intelligence, innovation and environmental matters all helping to drive transformation. The Group is also having to adjust to new business lines leveraging its long-standing polymer composite expertise, such as engineered fabrics and films, conveyor belts, seals and belts for very high value-added industries. At Michelin, turnover is more frequent among employees with less than two years’ seniority, although it remains limited compared to the market. If this risk is not properly managed, the Group’s operations and 2030 objectives could be impacted over the medium term. This is particularly the case for production jobs with irregular working hours, which could have an impact on an employee’s health, social life and family life. Policies and action plans deployed to manage talent turnover risks and enhance employer appeal Group-wide, overall turnover has been stable and contained over the past three years. It is tracked more specifically in certain seniority categories (less than two years), certain business operations (manufacturing and marketing/sales) and certain regions. This risk is being effectively managed by the combined impact of the seven Corporate Personnel Department policies described above, as well as by the action plan currently being deployed by the Department. Built on the findings of an internal audit performed in late 2023, the plan is structured around three major objectives and segmented into several initiatives, some of which are scheduled to be completed by the end of 2025: n Defining "critical" jobs and positions and prioritizing measures to retain people in them and/or attract new people to them n Managing the concept of employer appeal and attractiveness in general with a cross-cutting governance body n Managing and tracking the employer brand and employee experience The action plan supplements other bedrock risk management initiatives being pursued by the Group, including the following: n A talent planning process is enabling the Group to take a strategic approach to the jobs and skills needed over the next five years in each Group unit, supported by an action plan. It is capable of accurately foreseeing both the emergence of new professions, jobs and skill-sets and the ways in which they will inevitably evolve in response to ever-faster transformations. As a cross-cutting management process, talent planning is closely tied to the Group’s strategic plan and the strategic workforce planning (SWP) process that is supporting a variety of hiring, reskilling and upskilling action plans. n Michelin actively encourages employee share ownership. At December 31, 2024, 3.75% of outstanding shares were held either by employees (2.59%, up 0.49 points on 2023) or former employees (1.16%) and 61% of employees were company shareholders. During the latest employee share ownership plan in September 2024, 57% of worldwide employees took up the offer, four points more than in 2022 and including 16% or nearly 11,000 people who were firsttime investors. n Michelin is committed to offering every employee compensation that is personalized and fair, in each reference market, and reflective of his or her individual performance and level of responsibility. Compensation policies are implemented with a long-term view, taking into account each person’s professional development, so as to enable people to advance according to their aspirations and abilities and the needs of the Group. Compensation is also carefully aligned with evolving market conditions and local practices. In every host country, compensation is competitively set and raised with a constant eye on achieving the right balance between employee satisfaction and financial performance; n updated in 2024, the Group’s Diversity, Equity and Inclusion policy aims to ensure that everyone feels valued in the company. It addresses three issues: l Well-being in the workplace. Having inclusive teams means enabling each member to feel accepted and at ease in the organization, regardless of their origin, gender, age, sexual orientation, religion, physical appearance, disability or social background. l Performance. Diversity helps to hone collective intelligence, improve customer understanding, deepen the talent pool and foster engaged, committed teams, l Social responsibility. Michelin is deeply committed to making a positive difference in society, in particular by working towards the inclusion of people who struggle to find work. 269 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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