04 Sustainability Statement Workers in the value chain (S2) Training stakeholders across the supply chain is also a key factor in preventing risk. For example, Group buyers and employees are being upskilled with such dedicated training resources as human rights webinars, an e-learning module (optional for employees and mandatory for the most senior executives) and training sessions for buyers on human rights and other CSR issues. Suppliers are also engaged with training modules developed by Michelin or available on the EcoVadis and other CSR assessment platforms. For natural rubber farmers, field projects aim to develop their skills and include systems for tracking implementation and outcomes. The attendant risk is factored into the Group’s audit process. On-site audits of raw material suppliers, as well as annual or biennial audits of natural rubber processing plants performed as part of supplier quality system assessments, include questions relating to human rights and working conditions. 4.9.5.2 Michelin's positive impact initiatives Michelin also strives to create positive impacts for workers in its value chain. In 2024, a wide range of field projects were pursued in the natural rubber supply chain to develop the skills of village smallholders and improve their living and working conditions, both essential levers in avoiding the use of forced or child labor. These included the Cascade projects in Indonesia (2020-2027, in partnership with Porsche), the River project in Sri Lanka (20222025, in partnership with the French Ministry of the Economy and Finance) and the Mahakam project in Indonesia (2022-2025). In West Africa, the SIPH joint venture is also deeply engaged with village smallholders and local communities, where it is leading a variety of programs to prevent malaria, AIDS and other diseases, providing training in best farming practices and supplying highquality planting material by producing and marketing rubber seedlings. All these projects are empowering farmers to improve their living and working conditions, while enabling them to increase yields and upgrade their environmental and labor practices. 4.9.5.3 Action plans tracked and recognized by outside agencies Michelin tracks and assesses the outcomes of these initiatives with a number of metrics, of which several have annual or multi-year targets. Three of these are presented in the Metrics and Targets section, below. For example, the Group tracks the deployment of CSR assessments and the progress of supplier scores. Projects such as Cascade, River and Mahakam include metrics for measuring not only the number of participants and their profiles, but also actual progress, with indicators tracking the number of farmers whose working conditions and/or livelihoods have improved. Awards and labels earned from agencies include (i) the French government’s Responsible Supplier Relations label (June 2014); (ii) the French government’s Responsible Supplier Relations and Procurement label recognizing French companies that have demonstrated the ability to foster balanced, sustainable relations with their suppliers (2019, 2022, confirmed in 2024); and (iii) certification that the Group’s purchasing practices are mature with regard to the new ISO 20400 Sustainable Procurement standard (2019, 2022). In 2024, Michelin was awarded an EcoVadis score of 90/100 in Responsible Purchasing, ranking it in the top 1% of companies rated in its industry. Also in 2024, for the third year running, Michelin was ranked No. 1 in the tiremaker category by SPOTT, a natural rubber ESG disclosure platform, with a score of nearly 81% (No. 2 in the general natural rubber category). 4.9.5.4 Initiatives coordinated with Group purchasing processes In its day-to-day operations, Michelin takes great care not to contribute to the risk of human rights violations impacting workers in the value chain. Its purchasing practices actively encourage the integration of CSR criteria into sourcing processes. These criteria can be discriminating (i.e., mandatory) or differentiating; they can concern suppliers and/or the product or service offering. In the case of natural rubber, the Group does not source from certain extremely high-risk countries, or from certain suppliers whose practices are not acceptable. In addition, purchasing teams include a dedicated CSR unit, particularly for natural rubber sourcing. In the event of a negative impact, the Group’s response will be carefully adapted to the situation and proportionate to the issues at stake. If a shortfall is identified, through supplier assessments, grievance mechanisms or any other channel, the Group will work with the supplier to define a mutually acceptable, time-bound improvement program. Confirmed or persistent non-compliance may result in the scale-back, suspension or termination of business relations with the supplier. Within the Group, the Human Rights Governance body and the Group Ethics Committee may play an advisory and arbitration role in the event of a conflict between social responsibility and business issues. Naturally, Michelin has allocated resources to managing any potential impacts. In terms of governance, the Chief Procurement Officer is a member of the Group Human Rights Governance body, the Group Ethics Committee and the Sustainable Natural Rubber Committee. Operationally, the sustainable purchasing process is managed in each purchasing category and each region, with the support of a global Sustainable Purchasing network that includes a natural rubber team. 277 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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