4 _277 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report Levers for action deployed and dedicated CSR risk procedures Cross-functional levers for action deployed Enhancing the professionalism of employees and stakeholders Considerable resources have been deployed to enhance the professional skills of the procurement teams and to make purchasing processes more efficient. A series of 15 online modules focused on responsible purchasing practices ensures that high-quality training is available at any time for teams around the world. In 2023, the mandatory modules for buyers were taken by more than 70 people worldwide. Supplier training A dedicated supplier training module covering CSR fundamentals and desktop review practices has been developed to supplement the training available to suppliers on the EcoVadis platform (EcoVadis Academy) and on the CDP platform. 248 suppliers have completed at least one EcoVadis Academy module since 2021. Addressing CSR issues in appropriate purchasing processes The Group’s procurement strategy pays particular attention to CSR issues in the case of certain high-risk categories, which can result in purchases being consolidated and sourced from certain specifically approved suppliers. Buyers are increasingly encouraged to factor CSR criteria into their calls for tender. These criteria, which may concern the CSR performance of both the potential vendors and their products, services or solutions, address three critical issues: ● climate change and CO2 emissions; ● the circular economy and natural resources; ● ethics and people. Supplier transparency concerning CSR issues and their CSR performance are also taken into consideration: ● in the Supplier Relationship Management (SRM) process, in particular when suppliers are segmented and during the regular meetings that drive the process forward; ● when defining purchasing strategies. Diversifying the supplier base Michelin operates globally, but it consistently strives to source locally, as well as from sheltered work centers and social enterprises, in addition to the major international suppliers who meet its exacting requirements and embrace the principles of sustainable development. Since 2021, procurement from sheltered work centers and social enterprises has been particularly encouraged in France: creation of a dedicated intranet page, training module, directory and videos shared over several communication channels. Critical materials [SASB TR-AP-440a.1] The term critical material – defined as any substance whose use is highly necessary but whose supply is subject to risk – generally refers to certain ores and rare earths. Very few are used in tire manufacturing. At Michelin, they are managed in accordance with the system in place to manage supply risk(1) for all types of raw materials, which deploys a dedicated risk management response for any material identified in the mapping exercise as posing a particular risk. These responses include signing multi-year contracts, seeking new suppliers, maintaining strategic buffer inventory, finding substitute products, and, in the case of conflict minerals, maintaining duty of care procedures (see paragraph below). Climate change impact of our suppliers The Group has taken a proactive approach to identifying the purchasing categories and suppliers that represent the largest sources of GHG emissions. These suppliers are actively encouraged to initiate, step up or accelerate their commitment to reducing their GHG emissions (see section 4.1.1.1 a) Transition plan: decarbonizing our operations/Scope 3: reducing emissions from our transportation operations). Impact of our raw materials on the environment Circular economy To support the Group’s commitment to using sustainable materials, the main raw materials suppliers have been requested to submit a roadmap for developing materials made from renewable or recycled sources. (see section 4.1.1.2 Enhancing the circularity of our products/Incrementing the use of sustainable materials). In the other purchasing categories, a wide variety of initiatives are underway to support the circular economy. Examples include purchasing refurbished replacement parts for automated machinery, using more eco-friendly marketing materials and replacing laptops less frequently. Other initiatives are addressing raw materials packaging, for example by testing reusable pallets. Biodiversity Purchasing is also a stakeholder in the Group’s biodiversity initiatives, for example by getting natural rubber and raw materials suppliers involved in the Science-Based Targets Network (SBTN(2)) survey in 2021-2022 or by engaging landscaping service providers in the programs to reduce the use of pesticides and herbicides (see section 4.1.1.3 Supporting biodiversity). (1) See section 2.1, risk 5 - Supply chain. (2) SBTN: Building on the momentum of the SBTi, the SBTN is working to enable companies and cities to set targets for climate and nature.
RkJQdWJsaXNoZXIy NzMxNTcx