Sustainability Statement Climate change (E1) 04 Reducing production plant energy use is the leading energy sufficiency lever presented in the prioritizing hierarchy of levers. In absolute terms, energy consumption declined by 5.3% yearon-year in 2024(1). However, the decline in output in 2024 had a significant impact on the energy performance of the manufacturing sites, which led to a 0.35% deterioration in the energy efficiency ratio over the period. Despite the plants’ ongoing deployment of best practices (e.g., tightening fluid leakage controls or recommending seasonal thermostat settings), the outcome fell short of the expected 3% reduction target for the year. The underperformance primarily stemmed from fixed energy use, as volatile production volumes led to unexpected shutdowns and restarts in certain sites. Managing these production shutdowns represents a genuine challenge. THE ENERGY MIX IN 2024 The energy mix chart shows that renewable sources have been steadily rising as a percentage of total energy consumed. In 2024, renewable energy accounted for more than a third (34%) of the Group’s total energy mix (compared with 28% in 2023). The 2024 percentage may be analyzed as follows Electricity accounts for most of the renewable energy used (more than 95% in 2024). In line with the market-based method, purchased electricity is considered to be of renewable origin and CO2 emissions-free only if each MWh is covered by a bundled or unbundled(2) energy attribute certificate (EAC) attesting to a renewable source. Such sources supply more than 85% of the renewable electricity used, or 61% of total power consumption. The proportion of renewable heat and cooling in renewable energy use rose from 1.7% in 2023 to 3.8% in 2024. The 63% of fossil energy in the mix corresponds to the fossil fuels burned either on-site to supply heat and cooling to the production units or off-site to generate the electricity purchased from the grid. Its percentage is trending downward as (i) production plant boilers are steadily converted through 2030 to less carbon-intensive fuels and (ii) the Group pursues its strategy of purchasing EAC-backed renewable electricity. The use of coal in the Group’s own utilities declined by 9.6% year-on-year in 2024, primarily due to a significant reduction in coal consumption at the Bassens plant. The share of nuclear energy in the mix, which stems solely from the electricity purchased from the grid, is also set to decline with the strategy of purchasing EAC-backed renewable electricity. (1) At comparable scope of reporting, i.e., the data do not include the energy used by Euromaster and RLU, which will only be included in CO2 outcomes in 2024, in line with the SBTi scope of reporting. (2) The term bundled means that the MWh of energy and its related EAC were purchased from the same supplier. 69% of renewable electricity purchases were backed by bundled EACs, in the form of Guarantees of Origin (GOs) or International Renewable Energy Certificates (I-RECs). Unbundled means that the electricity was first purchased from one supplier and then the EAC from another. This system represented 31% of all EACs, in the form of GOs, I-RECs and green electricity certificates (GECs). 34% Renewable energy 3% Nuclear energy 63% Fossil fuels Renewable energy: 34% Electric: 96.2% Covered by EAC: 86.7% Bundled: 68.5% Unbundled: 31.5% Not covered by EAC (network): 13.3% Thermal: 3.8% 210 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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