01 The all-sustainable vision as a differentiating factor: Michelin issues its first CSRD Sustainability Statement In response to the challenges posed by climate change, resource depletion and the loss of biodiversity, Michelin is striving to attenuate as much as possible the environmental impact of its operations, its value chain and its product life cycles.To ensure that these challenges are effectively addressed in its future growth dynamic, the Group has defined new targets for 2030 and beyond, which were approved by the SBTi in June 2024 as being aligned with a 1.5° pathway to 2050. Because Michelin deeply believes in the ability of people to build a sustainable future and that companies have a role to play in providing collective responses to the challenges of our time, it feels that technological progress is one of the solutions to environmental challenges. This innovation-driven differentiation is an integral strand in Michelin’s corporate DNA. It is also grounded in a sense of social responsibility. Just as it has for nearly 130 years, Michelin is continuing to care for people throughout its extended ecosystem, whether employees or people living and working in its host communities, end-users or employees in its value chain, or its partner customers. To ensure that these commitments are recognized, Michelin has always valued involvement from its various stakeholders and ensured that they have access to transparent, standardized sustainability information, supporting the comparability of performance data and a clear understanding of the trajectories of every tire manufacturer. This is the trust of the new Corporate Sustainability Reporting Directive (CSRD), which is designed to align financial and non-financial reporting more closely and improve the comparability of sustainability performance. The Michelin Group embraces this dynamic with its first Sustainability Statement in application of the new regulatory framework, based on the in-depth assessment of the double materiality of its sustainability matters conducted in 2024. In this way, the Statement showcases the Group’s ongoing progress in addressing its environmental, social and governance impacts. It covers the matters deemed to be material in this initial reporting exercise, to wit, climate change (E1), pollution (E2), water resources (E3), biodiversity and ecosystems (E4), resource use and the circular economy (E5), own workforce (S1), workers in the value chain (S2), consumers and end-users (S4), and business conduct (G1). Financial and non-financial ratings Turning challenges into success CDP climate B CDP water AMSCI AAA SUSTAINALYTICS (risk rating) Low risk ISS ESG BMOODY’S ESG Solutions 73/100 ECOVADIS 79/100 Financial and non-financial ratings CREDIT RATING AGENCIES CONFIRM THE GROUP’S ROBUSTNESS MICHELIN IS A LEADING SUSTAINABILITY ENABLER, RECOGNIZED BY THE NON-FINANCIAL RATINGS AGENCIES NON-FINANCIAL RATINGS At April 4, 2025 CREDIT RATINGS At April 4, 2025 Short term Long term Outlook STANDARD & POOR’S A-1 A Stable FITCH F1 A Stable MOODY’S - A2 Stable SCOPE RATINGS S-1 A Stable On February 21, 2025, Fitch Ratings upgraded Michelin’s long-term credit rating from “A-” to “A”, with a stable outlook. “Michelin’s business profile is one of the strongest among its peers, with revenues primarily stemming from replacement demand and a diversified footprint that mitigates threats from tariff wars and industry cycles.” On March 31, 2025, Standard & Poor’s upgraded Michelin’s long-term issuer credit rating to “A” from “A-”, with a stable outlook. “Michelin will continue to maintain a very strong balance sheet in 2025 and 2026, supported by strong and resilient profitability and solid free operating cash flow.” Financial and non-financial ratings 46 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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