4 _207 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report 4.1.1.4 Reducing the environmental footprint of our manufacturing operations SDG 6.3, 6.4, 7.2, 7.3, 8.4, 9.4, 11.6, 12.2, 12.4, 12.5 and 14.1. Risks related to manufacturing operations The main environmental impacts arising from the tire manufacturing process are caused by the use of energy, water and raw materials resources, the release of pollutants into the air, water and soil, the production of waste and the release of greenhouse gas emissions. The Group is exposed to the risk of legal or financial consequences if its operations cause soil, water or air pollution or if it fails to comply with the applicable local, national or international environmental regulations and standards(1). These risks are effectively controlled through the Environmental Management System(2). The Group’s environmental policy is aligned with the 3P Vision (People, Profit, Planet). Since 2020, the Environmental Policy has affirmed, in its general policy section, both the fundamental principles for addressing environmental issues and the Group’s ambitious objectives in the area. A section dedicated to the production plants and offices defines how these principles should be applied to enable each one to manage its operations sustainably. This process is impelled by three main drivers: ● improving environmental performance and reducing impacts; ● identifying and managing environmental opportunities and risks; ● complying with applicable legislation and Group guidelines. Improvements in environmental performance are being led by four programs(3) (Energy/CO2, Volatile Organic Compounds, Waste and Water), each with two objectives: ● ensure that the Group’s 2030 targets are met by defining a roadmap and the technical levers to be deployed; ● prepare for the future by defining ambitious improvement targets for 2050, as well as effective intermediate milestones. Each program is managed by a program leader, with the support of a multidisciplinary team of experts who perform medium and long-term opportunity and feasibility studies. They are all overseen by the Environmental Governance body(4). Each program’s policies and outcomes are described in detail in this section. The pace of progress in the four programs is tracked consistently across every production plant and manufacturing unit by a shared composite indicator, i-MEP, which is described in the methodological note. However, while perfectly suited to tire operations, the i-MEP can be more difficult to interpret in the Group’s new businesses. In response, a review was initiated in 2023 to revise the metric. At the same time, the Group has developed an Environmental Management System to prevent the risks of soil contamination and to protect sensitive ecosystems around its facilities. 4.1.1.4 a) An Environmental Management System backed by a network of experts The Group’s EMS is designed to enable each plant to manage its impact on the environment, on both a day-to-day and long-term basis. It comprises a process to track compliance with legislation and Michelin standards, the obligation to define and meet, every year, improvement targets aligned with local issues and Group commitments, and procedures to attenuate the risks of accidental pollution. It is structured into processes, so as to ensure compliance with ISO 14001-2015 standards. Since 2018, all of the production plants subject to certification have been certified to these standards. Group guidelines dictate that every new production facility must earn ISO 14001 certification within five years of start-up. In 2023, 93.4% of all facilities were certified(5). ISO 14001-certified facilities accounted for 98.3% of the products produced during the year. To ensure the effectiveness of both the system’s operating procedures and the implemented solutions, a networked organization is in place, comprising around 100 specialists based in every plant, in all host countries and in the Operating and Corporate Departments. Dedicated training courses to support EMS deployment have raised environmental awareness among all of the nearly 80,000 employees working on certified sites, along with a varying number of subcontractors and temporary workers. (1) See section 2.1 Risk factors specific to Michelin, description and related management systems/Risk 3: Environmental transition risks. (2) See section 4.1.1.4 a) An Environmental Management System backed by a network of experts. (3) See Methodology. (4) See section 4.1.1 The Environment/Environmental Governance. (5) Including the production plants, natural rubber processing facilities and Technology Centers having a material impact on the environment.
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