_190 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report Detailed information concerning the application of TCFD recommendations may be found in the public answers to the CDP Climate Change 2023 questionnaire (see https://www.cdp.net/en/responses). A summary of these disclosures is presented below(1): GOVERNANCE Roles, responsibilities and control Climate strategy As part of the Supervisory Board’s role of exercising permanent oversight of the Group’s management, its CSR Committee reviews the climate strategy, including the transition plan and the adaptation plan, and issues recommendations. Transition plan/decarbonizing our operations and adaptation plan The Environmental Governance body reviews climate-related and energy transition issues impacting the Group’s business operations and under this remit, makes decisions on behalf of the Group Executive Committee. It ensures that targets for decarbonizing operations are met and that climate-related physical risks are identified and properly managed. The body comprises two Executive Committee members and representatives from nine departments, supported by a group of in-house experts forming the Climate Change Committee(2). Via the Executive Committee, it may receive opinions concerning the Group’s climate change strategy issued by the Corporate Stakeholders Committee(3). Transition plan/Company strategy The Group Executive Committee manages the transition plan in relation to the Group’s strategy, based on its analysis of the climate scenarios. Climate change-related transition issues are identified in the strategic planning process and the resulting priorities are then defined in the business line strategic plans. STRATEGY Time horizons considered when identifying, assessing and managing risks and opportunities Long-term (16 to 30 years) Build a roadmap to lower the carbon intensity of the Group’s business operations, aligned with the Paris Agreement/1.5°C scenario and the goal of reaching net zero emissions in Scopes 1, 2 and 3 by 2050; analyze physical risks with global warming scenario modeling; review climate change/societal scenarios for strategic or innovation purposes (see below). Medium-term (6 to 15 years) Manage strategic risks and opportunities requiring decisions related to (i) manufacturing facilities (type of energy, energy utilities, deployment of new technologies and/or processes); (ii) future CO2 allowance costs; (iii) research and development priorities (environmental footprint of future tire generations, new powertrains and high-tech materials); (iv) the strategic foresight analysis of the economic environment and trends in the mobility of people and goods; (v) responses to forthcoming changes in standards and regulations; (vi) the review of climate change/societal scenarios for strategic or innovation purposes (see below); (vii) the building and management of decarbonization roadmaps to meet CO2 emission reduction targets; and (viii) the analysis of physical risks with global warming scenario modeling and preparation of adaptation plans. Short-term (0 to 5 years) Operational management: (i) analyze exogenous factors, such as investors, customers, competitors, peers, NGOs, institutions and other stakeholders; (ii) make decisions concerning reductions in Scope 1 and 2 carbon emissions (e.g., energy efficiency projects and renewable energy purchases) and Scope 3 emissions (e.g., supply chain organization, engagement with suppliers and new partnerships); (iii) manage regulated carbon quotas; (iv) prepare strategic plans and create new solutions and partnerships; (v) implement R&D projects in low carbon/energy efficient materials, products and services; (vi) deploy a tactical strategy to address standards and regulations; (vii) manage prevention and protection measures against extreme weather events; (viii) manage media coverage of climate change-related social responsibility issues; (ix) engage with public and private sustainable mobility stakeholders to support the decarbonization of the transportation industry via the Movin’On ecosystem and the Transport Decarbonization Alliance. (1) This information has been structured according to the framework recommended for energy and transportation companies in “Climate-related financial reporting: Operational framework for a constructive dialogue between investors and companies,” issued in July 2018 by the MEDEF French business network, the French Insurance Federation and the French Asset Management Association. (2) See section 4.1.1 The Environment/Environmental governance. (3) See section 4.1.2.3 a) Dialogue with stakeholders.
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