Michelin - Forests 2022
F0. Introduction
F0.1
(F0.1) Give a general description of and introduction to your organization.
Since 1889, Michelin has constantly innovated to facilitate the mobility of people and goods. Today, the Group is setting the standard across every tire and travel-related services market, while leading a global strategy to drive responsible, sustainable and profitable growth. In short, Michelin is making mobility safer, cleaner, more connected and more accessible. Michelin enjoys exceptional geographic coverage and is stepping up its deployment in emerging markets. Currently operating in 26 countries at 123 production facilities and 9 research centers, and 7,900 dealerships and service centers in 30 countries. Michelin employs a total of 125,000 people worldwide. Net sales in 2021 were €23.7 billion.
Technological leader in tires and tracks and the world's leading brand of premium tires for individuals and businesses, the Michelin group works closely with manufacturers to bring innovations to all markets (sustainable tires, connected tires, radial tires for agricultural machinery, civil engineering, aircraft and off-road solutions). Associated brands and services also include dealerships and service centers (Euromaster, TBC, TyrePlus), online retailing (Allopneus, Blackcircles) and wholesalers (Euromaster and Ihle AG).
As the market leader in connected tires and a major partner in digital fleet management, the Michelin Group offers its corporate customers services and solutions that improve their performance, simplify their maintenance, increase asset uptime, enhance their safety performance, reduce their costs and attenuate their environmental impact. Unveiled in November 2021, the Michelin Connected Fleet umbrella brand now consolidates all the fleet Services & Solutions under a single identity, enhancing the synergies among Sascar, Masternaut, and Michelin's long-standingtire-related products and services. The new solution will be gradually deployed around the world.
In June 2021 Michelin launched "WATEA by Michelin" to support its corporate customers in transitioning to zero-emission mobility.
Michelin enjoys unrivaled expertise in high-tech materials, from their properties and possible combinations to their process engineering and applications. Already a core factor in the unique sustainable performance of the Group's tires, these capabilities are being enhanced and marketed to customers in other industries through a proactive policy of acquisitions, incubators and partnerships as part of specialized joint ventures. The high-tech materials business is organized around four divisions: - High-tech sustainable flexible composites (composites solutions: Fenner, Fabri Cote, AirCaptif; Polymer components: ResiCare, AraNea Composite; Sustainable materials: Pyrowave, Enviro, Lehigh and Biobuterfly) . - Medical applications, expanding the range of biocompatible products, in particular for use in regenerative medicine and cell therapy. - Metal 3D printing with AddUP, a 50/50 joint venture created in 2016 with industrial engineering specialist Fives. AddUP markets a comprehensive range of metal 3D printing solutions comprising machines and software, consulting and training services, and component design and production. - Hydrogen mobility, making the Symbio joint venture with Faurecia a world leader in hydrogen mobility systems (hydrogen fuel cell systems for light vehicles, commercial vehicles, trucks and other applications).
F0.2
(F0.2) State the start and end date of the year for which you are reporting data.
Start Date | End Date | |
Reporting year | January 1 2021 | December 31 2021 |
F0.3
(F0.3) Select the currency used for all financial information disclosed throughout your response.
EUR
F0.4
(F0.4) Select the forest risk commodity(ies) that you are, or are not, disclosing on (including any that are sources for your processed ingredients or manufactured goods); and for each select the stages of the supply chain that best represents your organization's area of operation.
Commodity disclosure | Stage of the | Explanation if not disclosing | |||
value chain | |||||
Timber | Not disclosing | Manufacturing | Limited quantities of wood-derived product are used as an input material in some of our semi-finished products. Our focus remains on | ||
products | natural rubber, which comprises the vast majority of our forest risk commodity use. | ||||
Palm oil | This commodity is not produced, sourced or | <> | |||
used by our organization | Applicable> | ||||
Cattle | This commodity is not produced, sourced or | <> | |||
products | used by our organization | Applicable> | |||
Soy | This commodity is not produced, sourced or | <> | |||
used by our organization | Applicable> | ||||
Other - | Disclosing | Production | |||
Rubber | Processing | ||||
Manufacturing | |||||
Other - | This commodity is not produced, sourced or | <> | |||
Cocoa | used by our organization | Applicable> | |||
Other - | This commodity is not produced, sourced or | <> | |||
Coffee | used by our organization | Applicable> | |||
CDP | Page | 1 | of 38 |
F0.5
(F0.5) Are there any parts of your direct operations or supply chain that are not included in your disclosure?
Yes
F0.5a
(F0.5a) Identify the parts of your direct operations or supply chain that are not included in your disclosure.
Value | Exclusion | Description of exclusion | Potential | Please explain |
chain | for | |||
stage | forests- | |||
related | ||||
risk | ||||
Supply | Other, please specify | Compound rubber is a specific compound | Potential | A vast majority of our natural rubber is purchased in the form of 'pure' processed natural rubber. For limited applications, |
chain | (Specific input | material occasionally purchased directly | for forests- | compound rubber (where synthetic rubber, natural rubber and other materials are pre-mixed) is purchased directly from |
compound material | in low volumes for use in limited | related | suppliers. This material only accounts for less than 1% of our procurement spend, and the natural rubber components, a | |
purchased directly for | applications, which can contain varying | risk but | proportion of this. In the coming years, we plan to work with our suppliers of compound rubber to assess the forest-related | |
specialized | amounts of natural rubber. | not | risks of their natural rubber component supply chains. | |
applications) | evaluated | |||
F0.6
(F0.6) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.?)
Indicate whether you are able to provide a unique identifier for your organization | Provide your unique identifier |
Yes, an ISIN code | FR0000121261 |
F1. Current state
F1.1
CDP | Page | 2 | of 38 |
(F1.1) How does your organization produce, use or sell your disclosed commodity(ies)?
Other - Rubber
Activity
Growing/production of raw materials
Refining & processing
Using as input into product manufacturing
Retailing/onward sale of commodity or product containing commodity
Form of commodity
Other, please specify (Raw Natural Rubber, Processed Natural Rubber)
Source
Owned/managed land
Smallholders
Multiple contracted producers
Contracted suppliers (processors)
Country/Area of origin
Brazil
Côte d'Ivoire
Ghana
Indonesia
Malaysia
Nigeria
Sri Lanka
Thailand
- of procurement spend 21-30%
Comment
The countries listed account for more than 95% of natural rubber volumes used by the Group in 2021. We have 100% traceability to our direct suppliers (natural rubber processing factories) and are working with them to better understand our indirect suppliers through supply chain mapping and risk mapping initiatives. This includes our suppliers who primarily source from smallholder farmers, where supply chains can be especially complex and be several layers deep with multiple intermediaries. To help tackle this, we are deploying the RubberWay® tool with prioritized suppliers which empowers them to map environmental and social risks throughout their supply chains, through a field-ready questionnaire housed on a mobile application, which aggregates risk mapping data on a dashboard so that Michelin and natural rubber suppliers can prioritize interventions. This dashboard includes an actual map showing the geographical sourcing areas where the RubberWay® tool has been deployed, within a country, at a jurisdiction level.
F1.2
(F1.2) Indicate the percentage of your organization's revenue that was dependent on your disclosed forest risk commodity(ies) in the reporting year.
% of revenue dependent | Comment | |
on commodity | ||
Timber | ||
products | ||
Palm oil | ||
Cattle | ||
products | ||
Soy | ||
Other - | 91-99% | The Group derives 95.6% of its revenue from tire sales and sales related to the supply of tires to the original equipment or replacement market, plus sales of Fenner |
Rubber | conveyor belts. Natural rubber is a critical raw material used in the manufacturing of tires. | |
Other - | ||
Cocoa | ||
Other - | ||
Coffee | ||
F1.3
CDP | Page | 3 | of 38 |
(F1.3) Provide details on the land area you control and/or manage that is used for the production of your disclosed commodity(ies).
Forest risk commodity
Other - Rubber
Type of control
Own land
Country/Area
Brazil
Land type
Area (Hectares)
1366
-
Area certified
0
Certification scheme
No certified area in this country/area
Conversion of natural ecosystems monitored during the reporting year, the last 5 years and/or since specified cutoff date
We have monitored conversion of natural ecosystems during the last 5 years
Area of natural ecosystems converted during the reporting year (hectares)
Area of natural ecosystems converted since specified cutoff date (hectares)
Area of natural ecosystems converted during the last 5 years (hectares)
0
Please explain
Michelin (Plantações Michelin da Bahia ltda) manages 4578 hectares of land in Bahia, Brazil. Of this, 3182 hectares are officially designated as protected areas (either Reserva Legal, Área de Preservação Permanente or Reserva Particular do Patrimônio Natural), and most of this area is managed as part of the Michelin Ecological Reserve (see F1.4). Of the 1366 hectares currently designated as 'Areas Productivas' (Productive Area), over 700 hectares are now managed under the purview of the Michelin Ecological Reserve as of 2021; production activities in these rubber groves have stopped with the aim to restore a natural forest matrix and increase connectivity for the adjacent reserve areas. This makes the Pachanga River valley the only one in the region with no economic or agricultural activity. The rest of the Productive Area is primarily dedicated to research and development of varieties resistant to pest and disease. Since the property was acquired in the 1980's, all forest areas have been retained and set aside area has been increased. In the period since Michelin undertook its Sustainable Natural Rubber Policy, this status of no conversion has been maintained. Deforestation monitoring and biodiversity protection is conducted primarily through physical monitoring by a dedicated team of five rangers hired from the local community.
F1.4
(F1.4) Provide details on the land you control and/or manage that was not used for the production of your disclosed commodity(ies) in the reporting year.
Forest risk commodity
Other - Rubber
Country/Area
Brazil
Type of control
Own land
Land type
Set-aside land
Area (hectares)
3182
- covered by natural forests 100
Please explain
Michelin (Plantações Michelin da Bahia ltda) manages 4,578 hectares of land in Bahia, Brazil. Of this, 3,182 hectares are officially designated as protected areas (either Reserva Legal, Área de Preservação Permanente or Reserva Particular do Patrimônio Natural), and most of this area is managed as part of the Michelin Ecological Reserve. In total, 3,900 hectares of the property are managed under the purview of the reserve. The reserve was created to preserve one of the world's most species-rich tropical rainforests, the southern Bahian Atlantic rainforest, in a region suffering from widespread deforestation and environmental degradation. This area includes primary forest, mature secondary forest, and pioneer forest on retired rubber groves that have been incorporated into the reserve over time as restoration areas. The retired rubber groves are in various stages of natural succession, with 300 hectares having undergone enrichment planting with native species as part of the reserve's restoration program. Other than non-forest ecosystems such as wetlands and water bodies, and including the pioneer/regenerating forests in the restoration areas, it can be said that the area is largely covered by natural forests.
F1.5
CDP | Page | 4 | of 38 |
(F1.5) Does your organization collect production and/or consumption data for your disclosed commodity(ies)?
Data availability/Disclosure | |
Timber products | |
Palm oil | |
Cattle products | |
Soy | |
Other - Rubber | Consumption and production data available, disclosing |
Other - Cocoa | |
Other - Coffee | |
F1.5a
(F1.5a) Disclose your production and/or consumption figure, and the percentage of commodity volumes verified as deforestation- and/or conversion-free. Forest risk commodity
Other - Rubber
Data type
Production data
Commodity production/ consumption volume
39
Metric for commodity production/ consumption volume
Metric tons
Data coverage
Full commodity production/consumption
Have any of your reported commodity volumes been verified as deforestation- and/or conversion-free?
Please select
- of reported volume verified as deforestation- and/or conversion-free
Please explain
Forest risk commodity
Other - Rubber
Data type
Consumption data
Commodity production/ consumption volume
900000
Metric for commodity production/ consumption volume
Metric tons
Data coverage
Full commodity production/consumption
Have any of your reported commodity volumes been verified as deforestation- and/or conversion-free?
Please select
- of reported volume verified as deforestation- and/or conversion-free
Please explain
A rounded figure has been provided.
F1.5b
CDP | Page | 5 | of 38 |
Pour lire la suite de ce noodl, vous pouvez consulter la version originale ici.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Compagnie Générale des établissements Michelin SA published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 15:59:01 UTC.