4 _281 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 4 NON-FINANCIAL STATEMENT Sustainable Development Report In 2019, a joint venture was formed with Continental AG and software publisher SMAG to make RubberWay® a stand-alone solution, accessible to every natural rubber stakeholder. By 2023, five tiremakers were using the RubberWay® system, helping to drive faster take-up of sustainable practices across the natural rubber industry. SOURCED RUBBER VOLUMES COVERED BY THE RUBBERWAY® APPLICATION NUMBER OF RUBBERWAY® QUESTIONNAIRES COMPLETED BY VILLAGE SMALLHOLDERS (CUMULATIVE) The app is currently deployed in Indonesia, Thailand, Malaysia, Vietnam, Côte d’Ivoire, Ghana, Guinea, Nigeria, Liberia and Brazil. A total of 239,583 questionnaires had been completed by the end of 2023. Michelin requests that suppliers initially deploy the RubberWay® app in their production facilities and with their own direct suppliers. In this way, 83% of sourced natural rubber volumes were mapped in 2023. However, the application is most impactful at the farmer level. Given their vast numbers (around six million worldwide), Michelin wants enough of them to participate in the RubberWay® mapping exercise to ensure that it is representative of their farming practices. By the end of 2023, this minimum representativeness had been reached for 69% of Michelin’s sourced volumes, out of a targeted 80% by 2025. Progress in deploying the RubberWay app and a summary of the risk findings are transparently reported on the Michelin Purchasing website(1). Michelin is tracking the specific risks of deforestation in its smallholder supply sheds using a dedicated assessment tool developed in association with the WWF. In 2021, a preliminary analysis was conducted, covering the main sourcing countries. Initially, the tool analyzes the environmentally sensitive areas around each natural rubber processing plant, based on a uniform radius. The factories are then prioritized, based on the risk found, for a detailed mapping of the supply chain. In 2022, eight plants and action plans were identified based on the results of this second analysis phase. In 2023, Michelin took this commitment to the next level by working with its natural rubber network and suppliers to geolocate all the smallholder rubber farms across its supply chain, in line with the new European Union Regulation of Deforestation-free Products. These farms were then assessed to confirm their compliance with both Michelin commitments and deforestation legislation. Wide-scale deployment and systematic assessment of deforestation-free operations are now underway. The Group is engaging with suppliers in combating deforestation, in particular by seeking opportunities to directly address the risks in priority geographies. (1) https://purchasing.michelin.com/en/sustainable-natural-rubber-policy/. 2023 2018 2019 0 20 40 60 80 100 25% 7% 45% 20% 55% 30% 64% 41% 83% 69% 80% 58% 2020 2021 2022 Deployment with production plant direct suppliers Deployment with village smallholders 11,278 27,365 42,053 52,267 239,583 143,766 2020 2023 2021 2022 2018 2019
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