Sustainability Statement Own workforce (S1) 04 4.8.4 SOCIAL PROTECTION, HEALTH AND SAFETY, AND ATTRACTING AND RETAINING TALENT: THREE CORE ELEMENTS OF MICHELIN’S WORKFORCE STRATEGY AND ITS DEPLOYMENT 4.8.4.1 An adequate wage and social protection Fair Wage Network certification granted in 2024 The promise that employees will be paid compensation that enables them and their families to live with dignity has long been deeply embedded in Michelin’s value system. The recently deployed Adequate Wage and Universal Social Protection Floor programs were both designed around the objective of ensuring that they cover every Group employee around the world. In this way, they are fostering the long-term personal growth of employees and helping to enhance the Group’s appeal and ability to retain talent. Employee compensation today must enable a family of two adults and two children to meet their basic needs, save for the future and purchase standard consumer goods (depending on each country's standard of living). This adequate wage-based compensation is largely higher than a host country’s legal minimum wage. To fulfill this commitment, Michelin worked with the Fair Wage Network, an independent NGO specializing in adequate wage issues, whose methodology is recognized by IDH-The Sustainable Trade Initiative and many other NGOs(1). As a result, Michelin was one of the first companies to earn the Fair Wage Network’s “Living Wage Global Employer” certification in February 2024. The Group’s living wage commitment is an integral part of the Employee and Team Compensation and Social Protection Policy, supported by a standards manual explaining the methodology and implementation process. When a company is acquired, the living wage commitment is quickly deployed within three years, except in special cases(2). A heritage of social protection: Michelin One Care In addition to a living wage, the Group has deployed the Michelin One Care program to provide every employee with a universal social protection floor, comprising a set of basic social protection benefits to supplement host country social security systems. Designed in 2021 and covering 98% of the worldwide workforce at the end of 2024, Michelin One Care includes the following measures: n New child leave: a minimum of 14 weeks maternity/ adoption leave and four weeks paternity leave, both at full pay n Access to health care: health care cover not only for hospitalization and emergencies, but also for maternity care, doctors’ visits and outpatient care n Family protection in the event of an employee’s death: payment of a death benefit equal to at least one year’s salary, with coverage from the first day on the job On January 1, 2026, the Michelin One Care program will be enhanced with the introduction of an education annuity for the children of deceased employees. Reflecting their importance at Michelin, employee benefits programs are overseen by a dedicated governance body, the Global Employee Benefits Board (GEBB), which is co-chaired by the Corporate Finance Department and the Corporate Personnel Department. It is especially tasked with supporting a comprehensive, holistic approach to the Group’s benefits commitment, ensuring that it is properly factored into corporate strategy and operations management, and approving changes in Group benefits policies or strategy and tracking compliance. The process for engaging with the workforce and their representatives with regards to these issues is presented above. (1) In referring to adequate or decent pay, “living wage” is the term preferred by the United Nations Global Compact, the International Labor Organization and other international bodies. Ensuring that Group employees are paid at least the equivalent of the living wage benchmark is a key factor in meeting the Sustainable Development Goals defined in the UN Global Compact. (2) For example, if special in-field reviews are needed when the Fair Wage Network cannot provide data for a given company’s host community. 266 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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