Sustainability Statement Climate change (E1) 04 4.2.3 FINANCIAL RESOURCES ALLOCATED While the Michelin Group’s carbon footprint reduction targets are stated in absolute terms, in line with the 1.5°C objective, and are therefore not impacted by output volumes, the related action plans are adjusted each year according to market realities. Consequently, the following financial resources are designed to secure the Group’s ability to meet these targets, in alignment with its corporate strategy. For Scopes 1 and 2, capital expenditure committed across the Group to the plan to decarbonize the production plants amounted to €107 million in 2024, and is budgeted at more than €400 million over the next five years. For the Scope 3 use of sold products category, €119 million was invested in 2024 to support the deployment of technologies to improve the rolling resistance of tires, and more than €600 million has been budgeted over the next five years. 4.2.4 GOVERNANCE AND MONITORING OF THE TRANSITION PLAN Michelin’s climate strategy is overseen by the Managers with the support of the Group Executive Committee (CEG). The Environmental Governance body, comprising members of the Group Executive Committee and representatives of various departments, makes the decisions needed to meet decarbonization targets and manage climate change risks. Climate change-related transition issues are identified in the strategic planning process and the resulting priorities are then defined in the business line strategic plans. A portion of the variable pay paid both to the Managers and to every Group employee is tied to the achievement of Scope 1 and 2 CO2 emission reduction targets. 4.2.5 ALIGNMENT OF THE TRANSITION PLAN WITH THE GROUP’S BUSINESS STRATEGY As a global manufacturer, Michelin has a significant impact throughout the life cycle of its products and services. The main climate change impact factors identified by the materiality assessment concern the CO2 emissions from the Group’s direct operations (Scopes 1 and 2) and from its transportation operations, the operations of its suppliers and the use of its products (Scope 3 use-phase). In this regard, offering efficient solutions without compromising on safety is the very heart of Michelin’s past, present and future positioning, as expressed in products and services that lead the market in energy efficiency, CO2 emissions abatement and longlasting performance. As part of its strategic plan, the Group is continuing to innovate to nurture the transition to low-carbon mobility for people and goods and to demonstrate its leadership in high-tech materials, in particular by: n designing products that are ultra-energy efficient throughout their life cycle, from production and use to end-of-life recycling; n developing services and solutions that optimize the use and management of vehicle fleets, while improving their fuel/ energy efficiency; n driving the emergence of new mobility solutions, led by the development of hydrogen mobility and ecosystem-driven innovations. In addition, the physical consequences of climate change on its business, and the possible impacts from the inadequate management of the environmental transition, have also been identified as risk factors by the Group’s risk management system. Lastly, the policies, objectives, levers for action and metrics in place to mitigate these risks have been integrated into the Transition Plan and the Adaptation Plan, in line with TCFD recommendations. 202 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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