23 slides from Cie Generale Des Etablissements Michelin Sa's sustainability presentation, Nov 14, 2024
Slide 1: November 14, 2024
November 14, 2024
Slide 2: Sustainability has always been part of Michelin DNA
Sustainability has always been part of Michelin DNA ESG • 1902 – first free medical care onsite • 1992 – first low emission tire • 2023 – global fair wage Florent Menegaux elected as Head of the Global Compact France Network, June 2023 We believe that the 3P nurture each other x x Roadshow ESG _ Nov
Slide 3: A vision that encompasses a large scope of topics
A vision that encompasses a large scope of topics ESG Fair Wage Social Protection Health and safety of workers Human rights in the value chain Governance Compliance Business ethics Climate change and adaptation Circularity Water Deforestation & biodiversity Product usage: CO2 and TRWP Roadshow ESG _
Slide 4: Ambitions for 2030 and 2023 results
Ambitions for 2030 and 2023 results ESG Total Case Incident Rate: number of accidents and cases of occupational illness recorded per 200 000 hours worked. The Partner NPS « Net Promoter Score », a weighed average of the OEMs and business dealer clusters. Roadshow ESG _ November 14, 2024
Slide 5: Ambitions for 2030 and 2023 results
Ambitions for 2030 and 2023 results ESG (1) Interim target by 2030: divide by two compared to 2010 (2) The Industrial Michelin Environmental Performance (i-MEP) indicator will be used to track the environmental impacts of the Group’s manufacturing operations over the next ten years. It will make the
Slide 6: 2030 environmental ambition: on track to reach net zero emissions in 2050
2030 environmental ambition: on track to reach net zero emissions in 2050 Group’s ability to have an influence ESG high limited -25%(1) -44%(1) -50% Manufac- Reduce energy Shift towards CO2 emissions turing consumption renewable energy vs. 2010 Transport less, better and differently -15% Logistics C
Slide 7: Sharp reduction in the environmental footprint of our operations, on track to reach 2030 target
Sharp reduction in the environmental footprint of our operations, on track to reach 2030 target ESG Environmental footprint of our sites (MEF vs. 2025 till 2019, i-MEP since 2019 - ISO14001- certified) 100 (2) Water withdrawal x water stress Generated waste MEF (1) Organic solvent use // Energy use
Slide 8: Recognized leadership in non-financial performance
Recognized leadership in non-financial performance ESG Major ratings (as of September 30, 2024) Michelin Ratings Negligible A- B B- 78 / 100 Risk AAA 73 / 100 CLIMATE WATER Prime Platinum 9,6 CHANGE « LEADERSHIP » SECURITY « MANAGEMENT » Roadshow ESG _ November 14, 2024
Slide 9: On the path to full product circularity with 40% renewable or recycled materials by 2030
On the path to full product circularity with 40% renewable or recycled materials by 2030, up to 100% by 2050 ESG SYNTHETIC RUBBER NATURAL RUBBER (2) FILLERS PLASTIFIERS / RESINS (1) (2) (1) METALS TEXTILES OTHER … (1) European project sponsored by Horizon 2020; project number: 82068 (2) Carried out
Slide 10: Michelin: First manufacturer to design a road-homologated tire with 58% renewable or recycled materials
Michelin: First manufacturer to design a road-homologated tire with 58% renewable or recycled materials ESG On the way to our “100% Renewable or Recycled materials by 2050” goal: new tires with breakthrough technologies Steel incorporating Sustainable recycled scrap metal textile fibers Carbon black
Slide 11: Tires abrasion: A considerable competitive advantage, without any compromise on safety
Tires abrasion: A considerable competitive advantage, without any compromise on safety ESG Particle emissions: Particle emissions get reduced with each Michelin vs. other premium tiremakers (1) new range (2) Particle per vehicle unit: g/1,000 km 131 136 122 e.Primacy CrossClimate 2 Pilot Sport 5 115
Slide 12: TRWP: Michelin driving innovation and advancing knowledge in the tire industry
TRWP: Michelin driving innovation and advancing knowledge in the tire industry ESG Scientific studies to measure the environmental impact of TRWP (1) TRWP AIR WATER 5 x 10-2 mm Studies confirm that TRWP account for less Studies suggest that most TRWP do not than 1% of particulate matter pollution re
Slide 13: Natural resources and decarbonation: driving up industry standards on product performance
Natural resources and decarbonation: driving up industry standards on product performance ESG If the world was driving on Michelin PC/LT tires, it would save every year … Tire industry CO2 emissions are mostly related to scope 3 (3) Illustration: Michelin 2023 CO2 (2) emissions (1) 89% scope 3 - usa
Slide 14: Watèa by Michelin: A unique solution to decarbonize urban LCV fleets
Watèa by Michelin: A unique solution to decarbonize urban LCV fleets ESG Stakes of transition to E-LCV Fleets pain points Value proposition LCVs ~ 3-4% of Tailored solution How to transition ? EV, charging solution, maintenance global CO2 emissions Switch to EV ➔ - 60% emissions How to operate? Digi
Slide 15: Strong commitment to reduce impact of operations on biodiversity and ecosystems
Strong commitment to reduce impact of operations on biodiversity and ecosystems ESG > 100% EUDR compliant (1) Criteria in accordance with the EUDR - European Union Deforestation-free Regulation (2) Calculated on the basis of 2023 volumes by supplier (3) Per hectare (4) Other than natural rubber ; Im
Slide 16: Sustainable natural rubber by Michelin: Driving progress across a fragmented value chain
Sustainable natural rubber by Michelin: Driving progress across a fragmented value chain ESG ACCELERATING SUSTAINABILITY ACROSS THE INDUSTRY BY 2025 ID CARD • Dedicated roadmap tracking commitments on zero deforestation, human rights, and farmer empowerment ~90% of Group’s supply come • Geolocation
Slide 17: Externalities: 2023 achievements exceeded ambitions
Externalities: 2023 achievements exceeded ambitions ESG Externalities costs evolution: CO2 emissions, VOC(1) emissions and water withdrawals (€ millions) +260 590 (3) 545 -104 436 -32 -13 -5 CO2 CO2 Scopes Water Volatile Scope 3(2) 330 1&2 organic compounds Increase in the CO2 cost per ton from €58
Slide 18: Michelin applies the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)
Michelin applies the recommendations of the Task Force on Climate- Related Financial Disclosures (TCFD) ESG MICHELIN’S ANSWER See p. 189 of 2023 Universal Registration Document for more details As part of the Supervisory Board’s role of exercising permanent oversight of the Group’s management, the C
Slide 19: Climate strategy structured around transition and adaptation plans, towards Net-Zero emissions by 2050
Climate strategy structured around transition and adaptation plans, towards Net-Zero emissions by 2050 ESG STRUCTURED AROUND 2 AXES: ● A TRANSITION plan including initiatives to decarbonize direct and indirect activities in the value chain (Scopes 1, 2 & 3) and a strategic plan to support a low-carb
Slide 20: Fostering social and societal cohesion through ambitious initiatives
Fostering social and societal cohesion through ambitious initiatives ESG ‘Living wage’ for every Michelin One Care Program, Group employee a universal social protection floor • ‘Global Living Wage Employer’ • Provide time to welcome a new child certified by Fair Wage Network • Family protection in c
Slide 21: Diversity and inclusion: Progress in gender balance and acceptance of diversity
Diversity and inclusion: Progress in gender balance and acceptance of diversity, demonstrating the Group’s commitment ESG EQUAL OPPORTUNITY Every employee can develop his/her talents within the company. Michelin pays particular attention to the internal promotion of manufacturing operators. GENDER B
Slide 22: Disclaimer
DISCLAIMER Disclaimer This presentation is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des marchés financiers, which are also available from the Mi
Slide 23: Contacts
CONTACTS BUSINESS CENTER PARIS TROCADERO Guillaume JULLIENNE 112 avenue Kléber 75116 Paris – France Flavien HUET 23 place des Carmes Dechaux 63040 Clermont-Ferrand – France Benjamin MARCUS investor-relations@michelin.com Roadshow ESG _ November 14, 2024