Michelin Group

RATING

SECTOR

Consumer Durables

WEBSITE

CONTACT

Headquarters

23 Place des Carmes, 

Clermont-Ferrand,

Auvergne 63040,  France 

STOCK EXCHANGE

LISTING

  • FTSE4Good 
  • ASPI Eurozone 
  • Vigeo (EuroNext) 
  • CDP A list 
  • Ethibel Pioneer & Excellence 
  • Ethibel Sustainability Index

EMPLOYEES

117,400

CHIEF SUSTAINABILITY OFFICER

Erik Grab

AWARDS

Ecovadis Gold

CONTENT SOURCE

FURTHER READING

N/A

Michelin Group

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Michelin, the leading tire company, is dedicated to sustainably improving the mobility of goods and people by manufacturing and marketing tires and services for every type of vehicle, including airplanes, automobiles, bicycles/motorcycles, earthmovers, farm equipment and trucks.

It also offers digital mobility support services and publishes travel guides, hotel and restaurant guides, maps and road atlases. 

Headquartered in Clermont-Ferrand, France, Michelin is present in more than 170 countries, has 111,200 employees and operates 67 production plants in 17 different countries. 

Michelin has a Technology Center in charge of research and development, with operations in Europe, North America and Asia. 

Company Sustainable Activity

According to the company:

“ENVIRONMENTAL GAINS 

  • 49.3% from 2005 to 2018. This reduction in the MEF offsets the environmental impact of the Group’s five largest units 
  • In 2017, 59 sites had a reclamation rate of more than 95% and 26 sites achieved “zero waste landfilled” 
  • In addition, Michelin is developing the use of renewable energy : wind power, biomass and solar energy. These new methods of energy production reduce direct and indirect CO2 emissions by 30,000 tons a year.
  • At Le Puy-en-Velay, the Earthmover tire site in France, we have more than 17000 solar panels, covering the area of 3 football fields, catering for the electricity requirements of 1,200 homes. This is one of the largest solar energy areas on an industrial site in France.”

SUSTAINABLE MOBILITY DRIVEN BY PERFORMANCE MADE TO LAST 

Michelin states that “Not all new tires are created equal, and worm tires even less so. In fact, some tires that have worn down to the legal minimum tread depth (1.6 mm in Europe) brake just as well as certain new tires. But how can we know which ones? Tests and labelling systems focus on new tires and many tire makers and influencers encourage users to change them too soon. In the interest of our customers , as well as the environment, Michelin makes tires that deliver the same safe, superior performance from the first to the last kilometer. Using tires until they are worn down to the minimum legal tread depth would avoid the unnecessary replacement of 400 million tires a year, worldwide, the waste of the corresponding production materials and the emission of 35 millions of CO2 (estimates  based on European data). Plus, in Europe alone, motorists would save a massive €6.9 billion. Michelin is committed to planed longevity, because it supports mobility that is efficient environmentally sensitive, affordable safe.”

SUSTAINABLE MOBILITY THROUGH THE CIRCULAR ECONOMY 

For years now, Michelin has been offering trucking, airline and mining companies solutions whereby we sell the use of our tires rather than their ownership, 

The company states that “I.e, We supply the tires, oversee their management and invoice the customer based on distance covered, landings made or weight carried. The Group handles every aspects of this process from tire selection and fitting to maintenance, support, retreading and end-of-life recycling. Onboard tire pressure and temperature monitoring systems help to optimize preventive maintenance, avoid accidents and reduce downtime. Properly maintained tires last longer and are more and more fuel efficient which is good for our customers and the environment. 

Michelin is committed to the functional economy, because it supports mobility that is safe efficient, affordable and clean.”

SUSTAINABLE MOBILITY – ACTIVELY ENGAGED IN ROAD SAFETY 

In addition to the safety impact of its tires, services and solutions, Michelin works to improve  road safety directly, through its employees and its Corporate Foundation. 

As an active member of the Global Road Safety Partnership, the Youth for Road Safety and the international Automobile Federation FIA Action for Road Safety campaign, we focus primarily on awareness and educational initiatives for young people. Example include the Road Safety Academy in China, Beyond the Driving Test in the United states, the Michelin Best Driver contest for students in Brazil, the Safe Mobility program for School Children in Southeast Asia, and Youth Road Safety Ambassadors in South Africa. In 2018, In Michelin and Total and launched a joint road safety education program that aims to reach 100.000 young is committed to innovating, engaging and taking action to make safer. 

SUSTAINABLE MOBILITY THROUGH THE CIRCULAR ECONOMY 

Michelin is firmly engaged in the circular economy through its 4R strategy to reduce, Reuse, Recycle, and Renew. 

The focus is doing more with less. Reduce the amount of resources needed to make a tire by practising eco-design and engineering tires that are lighter, more energy efficient and longer lasting. Reuse tires by repairing, regrooving or retreading them. Recycle scrap tires and recover their resources with appropriate technologies (Lehigh). Renew by using biobased materials. Industrial partnerships have been formed to produce these materials, such as the biobutadine made by the IFPEN/Axens venture. Michelin, also supports the responsible production of natural rubber, in particular through a major project in Indonesia with Barito Pacific Group and the support of the WWF, promoting best practices across the industry. Michelin is committed to circular economy, because  it supports mobility that is efficient, safe, affordable, and clean”  

Certificates

All their Earthmover tire factories are ISO 14001 certified. These standards confirm the presence and application of an environmental management policy.

Sustainable Development Goals

How company covers SDGs

According to the company

“SDG 3:

The Michelin Group has a multifaceted commitment to road safety.

In research and development, the Group innovates to ensure that its products maintain high performance throughout their lifespans.

  • Through its membership on the executive board of the Global Road Safety Partnership and support for the FIA’s Action for Road Safety program, with its 236 initiatives to improve road safety in more than 70 countries during the past five years, including training for school bus drivers in Turkey and Indonesia, helmet distribution for motorbike users in Bangkok (Thailand), and Road Safety Days for families (especially children).
  • At the national level in countries where Michelin operates, in the form of a commitment to road safety driven by employee volunteer involvement in both community engagement programs and Michelin Corporate Foundation initiatives.

The Group is also involved in numerous institutional partnerships on U.N. initiatives, including the road safety stakeholders’ meeting for the midpoint of the Decade of Action, the United Nations Road Safety Collaboration, the Global Road Safety Partnership, and the Youth Movement for Road Safety. The Group focuses on experience sharing and identifying ways businesses can act to improve road safety.

SDG 5: 

The Group has implemented a number of programs for individual support and development in the areas where it operates, through philanthropic endeavors structured by the Michelin Corporate Foundation (URD 4.1.5 d) and volunteer initiatives as a part of the Community Engagement program (URD 4.1.2.5 c): The Group’s regular areas of focus worldwide include schooling for children who lack access to primary education and efforts to spark interest in technical careers in both young men and women.

SDG 8: 

Tires’ impact on natural resources (energy, raw materials, water) must be improved throughout their life cycle, using a circular economic approach. The Use phase accounts for 80 percent to 95 percent of a tire’s environmental impact. Michelin acts on four drivers to promote better use of resources. This is the Michelin 4R strategy: Reduce, Reuse, Recycle and Renew (URD 4.1.4.2 a).

The Group’s top priority is to make its tires more energy efficient while simultaneously continuing to improve their other performances, particularly safety, noise and durability. Reducing tires’ rolling resistance helps reduce vehicles’ fuel consumption and thus emission of local pollutants (NOx, SO2, etc.) as well as CO2 emissions generated during the use phase. Increasing a tire’s durability also leads to more efficient use of raw materials and amortizes the energy used in manufacturing over more kilometers driven. That is Michelin’s approach to designing tires that rise to the challenges of sustainable development. The cornerstone of this approach is analyzing a tire’s life cycle to understand and then reduce (or eliminate) its impact from the product design phase.

The Group is making major long-term investments in research and development to offer the most environmentally responsible products possible. The Group has made three major commitments to that end: improving total product performance by at least 10 percent compared with 2010 while also reducing raw material needs; saving 3 billion liters of fuel over the tire lifespan, thus reducing CO2 emissions by more than 8 million tonnes (compared with 2010); and contributing to developing the circular economy by achieving 30 percent renewable or recycled material in tires. These commitments are monitored on an annual basis (URD 1 / Progress on our Ambitions for 2020).

SDG  9: 

We are here to offer everyone a better way forward. The Group has implemented an inclusive Sustainable Mobility strategy that is fully integrated into an approach grounded in the circular economy (our “4 Rs” strategy), including a commitment to responsible management of natural rubber and using biomaterials to limit reliance on fossil-based raw materials, an approach that has already produced real results (world leader in energy-efficient tires for cars and trucks, world leader in retreading, etc.).

SDG  10:

The Group applies a structured approach to foster diversity (URD 4.1.2.2), alongside objectives and indicators that are monitored each year, including the following goals for 2020 (URD 1 / Progress on our Ambitions for 2020): ensuring that 75 percent of management positions are held by people from within the Company, reflecting its ever-increasing diversity (74 percent in 2019), increasing the percentage of women in supervisory and management roles to 30 percent (27,4 percent in 2019), increasing the percentage of local top managers in growth zones to 80 percent (75 percent in 2019). In 2006, the Michelin Group defined a policy on employment of people with disabilities, with the goal of offering employment to people with disabilities and retaining employees who become disabled. In countries that impose hiring quotas for people with disabilities, Michelin’s systematic minimum objective is to achieve those levels.

SDG  11:

The Michelin Corporate Foundation (URD 4.1.2.5 d), established in January 2014, is active in all countries where the Group operates. It supports innovative, high-quality projects that fit Michelin’s humanist culture and values of respect and address one of five issues: sport and health, community and education, environmental protection, culture and heritage. In 2019, it provided 20,4  million euros in financial support to 124 projects (https://fondation.michelin.com/).

The emergence of new players including NGOs, regional governments, cities and social media shows the importance of “soft law.” Today’s policymakers need support from innovative public-private partnerships worldwide. The Group is committed to road safety (URD Goal 3) on three levels: as a tire manufacturer, through the technological progress offered by its products and services, particularly its experience in competition (Michelin and the Fédération Internationale de l’Automobile partnered to launch the international “Golden Rules” campaign as a part of the FIA’s “Action for Road Safety” program); as an employer, Michelin decided in 2015 to include road safety in its Group Health Policy; as a global stakeholder, Michelin is a member of the United Nations’ “Road Safety Collaboration,” a member of the “Global Road Safety Partnership,” and a founding member of Youth for Road Safety.

As a member of the World Business Council For Sustainable Development, Michelin is also involved in the “SIMPlify” project (previously the “Sustainable Mobility Project”). This urban mobility planning resource, which is made available to cities to help them develop sustainable urban mobility plans, has been successfully tested in six pilot cities: Bangkok (Thailand), Campinas (Brazil), Chengdu (China), Hamburg (Germany), Lisbon (Portugal) and Indore (India). The European Commission has approved this methodology and developed technical support for 55 European cities.

The Group is also involved in open innovation: Michelin’s Movin’On Labs bring together more than 200 entities, including major companies, startups, international organizations, corporate and academic research centers, consultants and experts in Europe and North America to promote practical innovations and solutions for better sustainable mobility, and ultimately to promote them to governments.

SDG  12: 

Michelin is working both to reduce the amount of waste generated by its tire production sites (URD 6.4.3 Waste prevention and management) and to reduce the amounts of raw materials needed to manufacture tires while maintaining their rolling and braking performances and boosting durability (URD 4.1.4.2 a).

Michelin’s main contribution to sustainable production is its reduction of the environmental footprint of its industrial activity (URD 4.1.4.3 b). The scope of this footprint was defined in 2005. It has been published with the annual results in the Group’s Non-Financial report every year since 2005.

Michelin has a longstanding commitment to sustainable consumption. It offers retreading to save resources and manufactures lighter, more fuel-efficient tires that consume fewer resources (raw materials and energy) and last longer while offering the same safety performance and even improvements on other performances (URD 4.1.4.2 a).

The Group’s responsible purchasing process (URD 4.1.1.3) is coordinated by each Purchasing area and each Region, with support from a global network. The Purchasing teams’ training program includes a mandatory module on “Sustainable Purchasing” for all purchasers, technical specification drafters and key internal Group partners. An online training module has also been developed and is now being rolled out to ensure compliance with the rules of ethics defined by the Code of Ethics and the Anti-Corruption Code of practice.

SDG  13:

The Group supports efforts to prevent climate change through a 2015 policy that defines four priority actions: reducing energy consumption due to tires by 20 percent per kilometer driven by 2030 (compared with 2010); reducing CO2 emissions by 50 percent by 2050 (absolute value, compared with 2010, on the condition that 65 percent of energy purchased is renewable); using its expertise and culture of innovation to develop long-range electric vehicles and integrating its products and services into new forms of mobility for people and goods; and supporting implementation of a global carbon price. Its actions are reinforced by a strong commitment to unify the transportation sector in support of sustainable mobility (4.1.4.1).

Michelin is also committed to sustainable mobility at the international level as a member of the PPMC (Paris Process on Mobility and Climate), a coalition of leading transportation players formed during the 2015 COP21 to make nongovernmental voices heard in implementation of the Paris Agreement. This platform was created at the joint initiative of the Michelin Challenge Bibendum / Movin’On and SLoCaT (a group of UN entities, NGOs and multilateral development banks involved in sustainable and low-carbon transportation). The Paris Agreement set a goal of a “zero net emissions” economy by 2050+, in line with the objective of limiting the global temperature increase to 2 degrees C above preindustrial levels. The PPMC continued its work during the COP23, when it proposed a “macro-road map” to decarbonize transportation.

SDG 17: 

The Michelin Group, which has been committed to more sustainable mobility since 2010, is a participant in the UN Global Compact and its 10 principles, which represent a voluntary international engagement, an international benchmark and a platform for action and dialog. Sustainable mobility is a vital part of any global sustainable development program: It supports growth, which is key to health, employment and culture. Achieving sustainable mobility requires government support (both national for road maps and local for road safety).

Michelin and a group of NGOs founded the Paris Process on Mobility and Climate (PPMC) in 2015 to amplify the transportation sector’s voice during the COP21. This platform has provided the structure needed to ensure that nongovernmental sustainable mobility players are heard in climate negotiations since the COP21. The PPMC has developed a global macro-road map for transforming Transportation by 2050, which fits into the framework defined by the Paris Agreement.

When it comes to technology and innovation, the Group is also committed to open innovation, with 300 operational research partnerships worldwide. Michelin’s Movin’On Labs bring together more than 200 entities, including major companies, startups, international organizations, corporate and academic research centers, consultants and experts in Europe and North America to form an innovative and collaborative “Think & Do Tank.” Its goal? To foster innovations and practical solutions for better, more sustainable mobility and ultimately to promote them to governments.

The Movin’On Summit event (previously the Challenge Bibendum), supported by the Movin’On Labs, is the annual global sustainable mobility summit.”

Secondary SDGs : 1, 2, 4, 6, 7, 14, 15 and 16

see more on https://www.michelin.com/en/sustainable-development-mobility/performance-transparency/un-sustainable-development-goals/

Progress

According to the company:

“OBJECTIVES FOR 2020 

  1. Halve our sites’ environmental impact as measured by the MEF (Michelin site Environmental Footprint) including a 38% improvement in energy efficiency compared with 2005. 
  2. Promote responsible logistics and cut CO2 emissions by 10 %
  3. Evaluate the Group’s top 400 suppliers on sustainable development, encourage them to do better and provide support to help 70% of them achieve “confirmed” status on Michelin’s standards. 

2018 HIGHLIGHTS

  • Energy consumption in Gj per tonne of finished product (1Gj = 277.5 kWh) → 12.0 
  • CO2 emissions in tonnes per tonne of finished product → 0.88 
  • Water consumption in cu.m per tonne of finished product → 8.1 
  • CSR assessment of key suppliers (78% are confirmed in compliance with Group’s CSR standards) → 654
  • Paid working days devoted by Michelin employees to local community outreach →34,800 
  • Local jobs created with the help of Michelin Development → 1,822 “

Michelin is very dedicated to announce their goals and improvements towards their sustainability activity, details in their CSR report. It holds famous recognition as they are part of CDP A List and international certificate such as ISO 14001 for the all company. They are committed to offer energy efficient products.They do not hold primary certificates so they are rated as B.

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