_176 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report The hierarchy defines the medium-term issues for action proportionally to the challenges that must be addressed throughout the product life cycle. Applicable to every Group unit, it will effectively align the initiatives underway in the different business segments with the Group’s environmental goals and its 3P-based All Sustainable vision. In addition, the Group is actively supporting the circular economy through the “Michelin 4R” strategy, which is designed to address the challenges of resource preservation and end-of-life product management by activating four levers: Reduce, Reuse, Recycle and Renew. The following section presents the outcomes of the application of the environmental policies now in place. It does not cover the dealership networks, which do not have any manufacturing operations and whose environmental impact is estimated at less than 5% of the Group total. Environmental Governance The Environmental Governance body is chaired by the Executive Vice President of Manufacturing, and the Executive Vice President of the Research and Development, who are both members of the Group Executive Committee. Led jointly by the Group Environment Director and the Sustainable Development Director, the body also comprises nine other standing members representing the Standards and Regulations, Sustainable Development and Impact, Materials Research, Risk Management, Purchasing, Public Affairs and Industrial Strategy Departments, the Sustainable Materials Operational Department and the HighTech Materials Business Line. The Environmental Governance body meets at least four times a year to validate environmental policies, objectives and strategies, and to track the proper execution of the action plans deployed to meet the objectives. It ensures that environmental risk is under control and that, if necessary, effective preventive or remedial measures have been defined and implemented. It is supported by the work of five multidisciplinary Operational Committees dedicated to Climate Change, the Circular Economy, Biodiversity and, since 2023, Water and Pollution. They are tasked with coordinating initiatives, detecting weak signals, assessing emerging risks and identifying opportunities to reduce environmental impacts in their respective remits(1). 4.1.1.1 Implementing a climate strategy SDG 13.1, 13.2 and 13.3. Climate change risks As a global manufacturer, the Michelin Group extensively interacts with the natural environment throughout the life cycle of its products and services. The main climate change impact factors identified by the materiality analysis(2) concern the carbon emissions from the Group’s direct operations (Scopes 1 and 2)(3) and from its transportation operations, the operations of its suppliers(4) and the use of its products(5) (Scope 3)(6). In addition, the physical consequences of climate change on its business, and the possible impacts from the inadequate management of the environmental transition, have also been identified as risk factors by the Group’s risk management system(7). The policies, objectives, levers for action and indicators in place to mitigate these risks have been integrated into the Transition Plan and the Adaptation Plan described below, in line with TCFD recommendations. (1) See section 4.1 Sustainable Development Report/Governance/Oversight by the Group Management Committee (CDG). (2) See section 4.1. Sustainable Development Report/Materiality matrix. (3) See section 4.1.1.1 a) Transition plan: decarbonizing our operations/Scopes 1 and 2: reaching net-zero emissions in the manufacturing operations by 2050. (4) See section 4.1.1.1 a) Transition plan: decarbonizing our operations/Scope 3: reducing emissions from our transportation operations/Scope 3: reducing emissions from purchased raw materials and components. (5) See section 4.1.1.1 b) Transition plan: Company strategy/Designing highly energy efficient products. (6) See section 2.1 Risk factors specific to Michelin, description and related management systems/Impact 7 – Environmental effects of our products. (7) See section 2.1 Risk factors specific to Michelin, description and related management systems/Risk 1 – Physical effects of climate change/Risk 3 – Environmental transition risks. AVOID RENEW REDUCE REUSE RECYCLE
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