04 Sustainability Statement General information 4.1 GENERAL INFORMATION 4.1.1 GENERAL BASIS FOR THE PREPARATION OF THE SUSTAINABILITY STATEMENT Background The following Sustainability Statement has been prepared based on the consolidated scope of Compagnie Générale des Etablissements Michelin (CGEM; hereinafter, the “Group” or “Michelin”). The reporting cycle is annual, with this year's reported data covering the 12 months from January 1 to December 31, 2024. After a review by the Supervisory Board, the Statement was authorized for issue by the Managers on February 12, 2025. It has been prepared in compliance with the European Corporate Sustainability Reporting Directive (CRSD) requiring companies to disclose sustainability information, as transposed into French law by Government Order 2023-1142 of December 6, 2023, and in accordance with the final French language version of the European Sustainability Reporting Standards (ESRS), issued in December 2023. The 2024 reporting exercise, the first in application of the CSRD, was shaped by interpretive uncertainties, the absence of established practices and difficulties in collecting data within the required timeframes. The Statement has therefore been prepared on the basis of the information available within said timeframes. Scope of reporting of the Sustainability Statement The scope of reporting is based on the scope of the Group’s consolidated financial reporting. The quantitative metrics apply to fully consolidated companies. For substances of very high concern (E2-5, §35), the Group estimates its coverage rate at around 93%(1), corresponding to all the tire manufacturing operations except for the Camso brand (see section 4.3.7.3 Substances of concern (SOCs) and very high concern (SVHCs), below). Measures are underway to improve this coverage rate. For the living wage metric, the coverage rate was 96.5%(2) at December 31, 2024 due to a small number of companies that will be assessed in the coming Fair Wage Network(3) certification rounds (from 2025)(4) (see section 4.8.5.2 Adequate wage, below). Companies accounted for by the equity method are not included in the scope of reporting, in as much as the Group does not exercise exclusive operational control over them. Nevertheless, in accordance with the GHG Protocol, CO2 emissions from these companies are included in the Group’s Scope 3 emissions (Category 15). The Statement covers the Group’s upstream and downstream value chain, including suppliers, dealerships and other own operations, employees and customers (see section 4.1.3.1 below for a presentation of the Statement’s coverage of the value chain). Note that the Statement incorporates certain information by reference(5). (1) Based on total raw material purchasing volumes. (2) Based on the total number of employees. (3) See the list of companies in the table in Appendix D below. (4) Fair Wage Network certification attests that a company is a “Living Wage Global Employer”. (5) See Chapter 3, section 3 of the 2023 Universal Registration Document. Note as well that the Group has not used either the option to omit specific information corresponding to intellectual property, know-how or the results of innovation or the exemption from disclosure of impending developments or matters in the course of negotiation (ESRS 2, BP-1, §5(e)). 173 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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