Sustainability Statement Climate change (E1) 04 In addition to these levers, a process electrification program is underway to replace tire curing presses powered by steam generated mainly by gas-fired boilers with electric presses. This considerably reduces energy use by making the curing process six to eight times more efficient, while also supporting the energy transition by purchasing electricity from certified renewable sources. 4.2.2.2 Required Scope 3: Optimizing the purchased raw materials, transportation and upstream purchased energy action plans In the case of Scope 3, Michelin is focusing on reducing emissions from purchased raw materials, transportation and the purchased energy used in its production plants. Reducing emissions from purchased raw materials The Group has taken a proactive approach to identifying the purchasing categories and suppliers representing the largest sources of GHG emissions. The resulting initiatives are primarily aimed at raw material suppliers, inasmuch as they represent approximately 85% of the emissions from the Group’s purchased goods and services. These suppliers are encouraged to initiate, step up or accelerate their commitment to reducing their GHG emissions. The CDP questionnaire provides a comprehensive system for disclosing environmental information in order to assess the strategies in place to abate climate change. In 2018, Michelin joined the CDP’s Supply Chain Program and engaged its leading raw material suppliers to participate in it, encouraging them to measure and disclose their greenhouse gas emissions and to develop strategies to reduce them. This exercise has been conducted every year since 2020. The Group also encourages suppliers to set ambitious sciencebased emissions reduction targets. Lastly, to measure its emissions more granularly and to further engage its raw material suppliers, the Group asks the latter to provide either life cycle assessment data or carbon footprint data (in tCO2eq/t) for products purchased by the Group. In 2024, 55% of total emissions were calculated from supplier data. To shrink the carbon footprint of its purchased raw materials, Michelin and its suppliers are activating the following levers: n increasing the percentage of renewable or recycled materials used in production; n increasing the percentage of low-carbon energy used to produce raw materials; n preparing dedicated decarbonization roadmaps for each supplier, to support energy efficiency, waste reduction, internal recycling and process optimization; n focusing procurement on low-carbon suppliers or products; n developing new low-carbon technologies for the production of raw materials. In 2024, the CDP recognized the Michelin Group’s ability to engage its suppliers in reducing CO2 emissions with a 2023 CDP Supplier Engagement Leader award. Reducing emissions from Michelin's transportation operations Michelin optimizes its transportation resources by focusing on multimodal solutions and scaling back the use of air freight. This commitment concerns logistics operations under Michelin’s direct control, from the inflow of raw materials to the delivery of finished products. The Group’s strategy is structured around three levers: n Transporting less, a fundamental lever focused on improving the effectiveness of logistics operations by analyzing where inventory should be ideally located to improve product availability and reduce the need for transportation. The analytics also guide the siting of production units, with a preference for local facilities to limit the transfer of finished products between producing and consuming regions. In 2024, the volume of intercontinental finished product deliveries was reduced by around 11% yearon-year, thereby avoiding the release of some 11,000 tonnes of CO2; n Transporting better, an operational lever focused on improving the efficiency of logistics operations based on a number of pathways: l engaging with our transportation partners: Michelin firmly believes that partnerships with logistics providers are mutually beneficial over the long term, by enabling them to invest in decarbonization solutions, l promoting and developing multimodal solutions: Michelin is continuing to shift to more efficient modes of transportation. In 2024, for example, nearly 24% of the Group’s intraregional shipments in North America were carried by rail, while in Europe, a new modal shift-inducing corridor opened at year-end between Luxembourg and Romania, for a targeted gain of around 1,500 tonnes of CO2 a year; n Transporting differently, an innovation lever focused on implementing innovative solutions, informed by two main processes: l collaborating with outside organizations: Michelin is continuing to play a leading role in a number of organizations, such as France Supply Chain, the New Energy Coalition and Movin’On, etc. Proactive involvement is helping to identify actionable levers, while laying the foundations for collaborative work on innovative issues supporting decarbonized transportation, 200 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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