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MICHELIN SUSTAINABLE NATURAL RUBBER POLICY - REFERENCE DOCUMENT - 2021 Edition - Michelin Purchasing ...
MICHELIN
SUSTAINABLE NATURAL                 >
RUBBER POLICY
REFERENCE DOCUMENT - 2021 Edition
MICHELIN SUSTAINABLE NATURAL RUBBER POLICY - REFERENCE DOCUMENT - 2021 Edition - Michelin Purchasing ...
SUSTAINABLE NATURAL RUBBER POLICY                    2021 Edition

                            CONTENTS
                                  Purpose

                                INTRODUCTION

                            We care about people

                       We care about the environment

<                       We care about rubber farmers             >
                       We care about natural resources

                       We care about our Stakeholders

                                  Appendix
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    Purpose   INTRODUCTION                                                                                              Appendix
                             people           the environment   rubber farmers   natural resources   our Stakeholders

                                                    Michelin Group
                                                       Purpose

                               " Because we believe that mobility is essential for human development, we are innovating
                                 passionately to make it safer, more efficient and more environmentally friendly.
                                    Our priority and firm commitment is to offer our customers uncompromising quality.
                                    Because we believe that all of us deserve personal fulfillment, we want to enable
                                    everyone to do his or her best, and to make our differences a valuable asset.
                                    Proud of our values of respect for customers, people, shareholders, the environment
<                                   and facts, we are sharing the adventure of better mobility for everyone.
                                                                                                                                   >
                                    We care about offering everyone a better way forward."
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                    Purpose   INTRODUCTION                                                                                                                  Appendix
                                              people               the environment     rubber farmers        natural resources     our Stakeholders

                              The “all sustainable”
                                   vision from
                                  Michelin CEO,
                               Florent Menegaux
    Florent Menegaux                                                                                                              Yves Chapot
    Michelin Group CEO                                                                                                            General Manager and
                                                                                                                                  Chief Financial Officer

    “In the Michelin of tomorrow, everything         This defines our purpose: “We care about           Our human and social model is based on a
    will be sustainable”. This means that the        offering everyone a better way forward”,           double ambition: to foster our employees’
    Michelin Group is committed to profitable        which nourishes both our strategic, and            development and to pursue a balance

<   development for the company and its
    employees, with the greatest respect for our
                                                     human and social models.
                                                     Our strategic model is based on innovation,
                                                                                                        between individual and common interests.
                                                                                                        When it comes to addressing the current
                                                                                                                                                                       >
    planet and its inhabitants.                      capitalizes on our know-how, and relies on         global transformations and unprecedented
    For more than a century, Michelin has            four core activities: tires, mobility-related      technological revolutions, as well as the
    pushed innovation forward to create the          services and solutions, unique gastronomic         post-Covid 19 context, Michelin always puts
    future of mobility, to meet its customers        and travel experiences, and high-tech              people at the core of its corporate vision and
    and stakeholders’ expectations while ena-        materials. This of course also applies to our      daily life.
    bling the employees of the Group to develop      natural rubber supply chain.
    their full potential.
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                        Purpose            INTRODUCTION                                                                                                                          Appendix
                                                                 people                     the environment              rubber farmers   natural resources   our Stakeholders

                                                          Purpose of the
                                                       Sustainable natural
                                                          rubber Policy
    Hélène Paul
    Michelin Group CPO

    As the world leader in tires and the world’s big-                    legal obligations can be found in Appendix 2).
    gest purchaser of natural rubber, the Michelin                       I am proud of all that has been achieved by
    group aims to lead the way in sustainable ma-                        our team in the past five years, helped along
    nagement of the natural rubber supply chain.                         by the valuable contributions of our stakehol-
    This document is an update of the Michelin                           ders. I am confident we can progress further
    Sustainable Natural Rubber Policy (2016 edi-                         all together, for the benefit of people and the

<                                                                                                                                                                                           >
    tion) that was elaborated on the public commit-                      planet. To that end, a roadmap, detailing our
    ments taken by Michelin group (“the Group”) in                       planned implementation activities for the next
    2015. It directs decision-making processes, sys-                     five years, has been developed and accompa-
    tems, and performance metrics of corporate                           nies this Policy.
    management, relevant business units, subsi-                          Furthermore, the Group will continue to
    diaries, company affiliates and joint ventures.                      contribute to the Sustainable Development
    This document focuses on the natural rubber                          Goals (SDGs) at all levels, including through its
    domain and is part of a larger body of work                          Sustainable Natural Rubber Policy and its in-
    that serves to pursue sustainable develop-                           fluence in the natural rubber supply chain. To
    ment and mobility throughout all operations                          that end, this Policy will catalyze impact toward
    and domains (these documents and relevant                            the 10 goals1 described below.

    [1]
          The 10 goals were identified through an analysis of alignment of policy items to the SDGs at a target level.
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                          Purpose       INTRODUCTION                                                                                                   Appendix
                                                       people              the environment   rubber farmers   natural resources   our Stakeholders

                                                                                                                                  Michelin is proud to be a founding
                                                                                                                                  member of the Global Platform for
                                                                                                                                  Sustainable Natural Rubber (GPSNR)
                                                                                                                                  [https://www.gpsnr.org] and this
                                                                                                                                  Policy is designed in accordance
    Section 1                                                                                                                     with the GPSNR Policy Framework,
    We care for people    ✓         ✓          ✓         ✓             ✓                                                          approved by members on
                                                                                                                                  23 September 2020.
                                                                                                                                  The Group requires from its
    Section 2
    We care for
    the environment
                                               ✓                                ✓            ✓        ✓                           joint-ventures, suppliers and
                                                                                                                                  their subcontractors involved
                                                                                                                                  in producing, processing and
                                                                                                                                  marketing natural rubber to
    Section 3                                                                                                                     have appropriate management
    We care for rubber
                          ✓                              ✓             ✓        ✓                     ✓                           systems to ensure compliance
<                                                                                                                                                                         >
    farmers
                                                                                                                                  with laws and regulations and
                                                                                                                                  to conform with all points em-
    Section 4                                                                                                                     bedded in this Policy. It contri-
    We care for natural
    resources
                                                         ✓                      ✓            ✓        ✓                           butes to capacity building activities
                                                                                                                                  that help our suppliers progress in
                                                                                                                                  their sustainability performance
    Section 5
                                                                                                                                  and equip them to implement this
    We care for our
    stakeholders                                                                ✓                     ✓       ✓           ✓       Policy.
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                    Purpose            INTRODUCTION                                                                                                                        Appendix
                                                             people                     the environment           rubber farmers    natural resources   our Stakeholders

    Where a discrepancy has been identified                          cing from or linked to any party engaged in
    through supplier assessments or available                        these serious breaches.
    grievance mechanisms, the Group will mu-                         The Group will engage its natural rubber
    tually agree on an acceptable, time-bound                        suppliers to publish their own sustainable
    improvement program with the associated                          natural rubber policy, in line with the GPSNR
    supplier. Proven or persistent nonconfor-                        Policy Framework, and expects its suppliers to
    mance or, where relevant, failure to apply                       hold, in turn, their suppliers and subcontractors
    the mutually agreed improvement programs                         accountable to their policy.
    will result in the suspension or termination
    of business relations with the relevant sup-                     The Group encourages continuous improve-
    plier and/or their subcontractor(s).                             ment of the supply chain by exploring means
                                                                     to further support, incentivize and recognize
    Should any tier 2 supplier (supplier of a sup-                   suppliers and supply chain actors that are
    plier) be in proven non-conformance with this                    pursuing sustainability in their operations,
    Policy, the Group will engage with the tier 12                   including alignment with GPSNR principles.
    supplier to assist in developing a time-bound
    improvement program to be executed by the                        In light of the complex and dynamic nature
                                                                     of the supply chain, which includes millions
<                                                                                                                                                                                     >
    tier 2 supplier. If improvement requirements
    are not met, this will also result in the termi-                 of smallholder farmers all over the globe, the
    nation of the tier 2 and tier 1 supplier.                        Group is convinced that the best way forward
                                                                     for sustainable natural rubber relies on risk-
    Where it has been proven that suppliers are                      based mapping, combined with the principle
    engaged in serious human rights abuses or                        of continuous improvement. This would al-
    environmental breaches, the Group will im-                       low for the inclusion of all the value-chain
    mediately suspend its business relations with                    stakeholders and a focus on impact driven
    the supplier and ask for immediate correc-                       progress that would optimize sustainability
    tive actions. This applies to suppliers sour-                    achievements.
    [2]
       The Group sources natural rubber primarily from independent suppliers. These suppliers can be individual natural
    rubber processing factories, a group with multiple factories or traders (natural rubber wholesalers). In every case, the
    Group conducts on-site audits, which through a pilot have now been expanded to include environmental and labor aspects,
    on individual natural rubber processing factories before they are added to an approved factory list. All suppliers, including
    groups and traders, have to abide by this list, meaning that all supply is known to the natural rubber processing factory
    level. These are collectively known as ‘tier 1’ suppliers.
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    Purpose   INTRODUCTION                                                                                              Appendix
                             people           the environment   rubber farmers   natural resources   our Stakeholders

                                    The Michelin Sustainable Natural Rubber Policy hinges on five themes:

                                       Section 1                      Section 2                      Section 3
                                       We care about                  We care about                  We care about
                                       people                         the environment                rubber farmers

                                       Section 4                      Section 5
                                       We care about                  We care about
                                       natural resources              our stakeholders
<                                                                                                                                  >
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                        Purpose       INTRODUCTION                                                                                                    Appendix
                                                        people             the environment    rubber farmers   natural resources   our Stakeholders

                                                     Introduction
                                                     A sustainable resource

    Natural rubber is a renewable natural resource,        addressed wisely, it will inevitably put more
    and its cultivation can create positive spin-offs      pressure on forests, ecosystems, biodiversity,
    from economic, social and environmental deve-          agricultural land, and local and Indigenous com-
    lopment perspectives.                                  munities.
    When done responsibly, the cultivation, harves-        Michelin’s vision is to consider sustainable
    ting and transformation of natural rubber provi-       natural rubber as a natural and responsible
    des stakeholders in the supply chain with regular      way to uphold human rights and protect fo-
    and sustainable revenue streams, and contri-           rests and ecosystems with high conservation
    butes to the development of rural areas while          value and high carbon stock, as well as to fos-
    preserving the environment and ecosystems.             ter the essential environmental services they
<   In addition, the supply chain can enjoy a neu-
    tral, and potentially positive, carbon footprint
                                                           provide. This involves all key stakeholders
                                                           in a participatory and transparent process,
                                                                                                                                                                 >
    provided the entire supply chain is managed            while ensuring satisfactory production yield,
    optimally.                                             environmental sustainability and improved
    The growing global population and the develop-         livelihoods for local and Indigenous commu-
    ment of mobility solutions will have an impact         nities with particular attention to vulnerable
    on the demand for tires and, by extension, na-         groups.
    tural rubber. If this increase in demand is not
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                         Purpose       INTRODUCTION                                                                                                       Appendix
                                                          people             the environment    rubber farmers     natural resources   our Stakeholders

                                         The natural rubber supply chain

    The six main groups of actors involved in the            PROCESSING FACTORIES                                FINISHED PRODUCT USERS
    supply chain are as follows:                             "Remilling plants” which process the raw            Finished products such as tires are made
    PRODUCERS                                                material (latex or cup lumps) into bales of va-     from compounds that contain natural rubber.
    Producers harvest the latex from rubber trees.           rious grades of processed natural rubber in-        The users of these products, typically car
    It is estimated that at least 85% of the cultivated      tended for the manufacturing industry. Examples     makers, are the final consumers of natural
    rubber tree areas in the world are made up of            of these grades include Technically Specified       rubber.
    very small farms (average of 2 to 3 hectares)            Rubber (TSR), Ribbed Smoked Sheets (RSS) and
    directly managed by owner-operators (a.k.a.              centrifuged latex.
    smallholders), who generally receive 60-80% of           TRADERS
    the commercial value of the natural rubber they
    produce, depending on the country and region.
                                                             Brokers buy TSR, RSS or centrifuged latex and                             PRODUCTION
                                                             sell it mainly to manufacturers.
    The remaining 15% is cultivated by large-sized

<                                                                                                                                                                    >
    (usually several thousands of hectares) indus-           MANUFACTURERS (DOWNSTREAM USERS)
    trial plantations often referred to as estates.          Manufacturers buy processed natural rubber
    DEALERS                                                  directly from processing factories or through                             PROCESSING
                                                             traders, then incorporate it into the production
    Intermediaries who collect and purchase                  of finished or semi-finished products. In some
    natural rubber from some producers, typically            cases, an actor can span an integrated supply
    those which are small farmers, to sell to                chain, being a producer (plantation), processor,
    processing factories. Dealers may also purchase          trader and even a manufacturer.
                                                                                                                                       LOGISTICS
    in turn from other dealers, resulting in complex
    multi-tier supply chains.
We care about               We care about             We care about                  We care about                  We care about
    Purpose          INTRODUCTION                                                                                                                                                Appendix
                                          people                      the environment           rubber farmers                 natural resources              our Stakeholders

                            natural  rubber
                                 Natural        SUPPLY
                                         Rubber Value Chainchain
                                    Natural rubber supply chain

        production
                             Industrial plantations    10.6
                                                       Million
                                                       ha

                                                                                        Latex collection                  Dealers
                                                                    Tapping               Cup lumps                   100.000 dealers

                                  Smallholders
                      6 Million farmers - 30 Million people
        processing

                                TSR Rubber                                Drying                             Shredding

<                                                                                                                                                                                           >
                                                                                                                                  NR processors
                                                Quality Control                          Washing                         500 factories - 100.000 workers
        logisticS

                                                       SMPT: Michelin
                                                      Purchasing Center                                    Delivery

                                                                           Shipping worldwide                                           Michelin Tire Factories
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    Purpose   INTRODUCTION                                                                                             Appendix
                             people          the environment   rubber farmers   natural resources   our Stakeholders

                                                          Section 1
                                                          We care about people
                                                       1.1 Respecting and empowering local communities

                                                       1.2 Upholding human rights, working conditions
                                                            and living environment

<                                                                                                                                 >
                                                 Core contribution to UN SDG’s

                                                 The group is committed to respect and uphold all Human
                                                 Rights and community livelihoods.
We care about           We care about      We care about        We care about          We care about
                              Purpose          INTRODUCTION                                                                                                                       Appendix
                                                                   people                  the environment    rubber farmers       natural resources      our Stakeholders

                                                 1.1 – Respecting and empowering
                                                          local communities

    RESPECTING LAND RIGHTS; in addition to applicable national and internatio-                        The Group recognizes and respects the customary, collective and communal
    nal human rights and norms, the Group recognizes and respects all legitimate                      rights of forest-dependent people and local and Indigenous communities to:
    tenure right holders, including the land use rights, collective and customary                                                       • access pertinent information;
    rights, and associated rights of local and Indigenous communities, that might
    have an influence on land and forest tenure and use.                                                                                • access forest resources and enjoy their
                                                                                                                                           customary and traditional share of the
    The Group is committed to “zero land grabbing” and undertakes not to                                                                   benefits from their use for subsistence,
    contribute directly or indirectly, to actions which might lead to the illegi-                                                          medicinal, cultural, spiritual and religious
    timate appropriation of land, forests and natural resources, to the detri-                                                             traditions, customs and ceremonies;
    ment of local or Indigenous communities.
                                                                                                                                        • have access to adequate farm, foraging
    The Group is committed to "free, prior and informed consent" (FPIC) of                                                                 and grazing land to ensure their right to
    local or Indigenous communities likely to be affected by its operations,                                                               adequate food and nutrition;
    especially when setting up, restoring, or transforming corporate plantations and/

<                                                                                                                                                                                            >
    or industrial sites, as well as associated infrastructure. In this regard, it complies                                              •
                                                                                                                                         receive fair compensation through ap-
    with the FAO technical guidance on FPIC3 and methodologies developed by the                                                          propriate, mutually agreed measures re-
    UN-REDD Program Guidelines on FPIC4.                                                                                                 flecting and described in the negotiated
                                                                                                                                         outcomes of the FPIC process for conser-
    The Group will avoid adverse social or economic outcomes on natural re-                                                              vation measures or commercial land use
    source-dependent or forest-dependent local or Indigenous communities resul-                                                          that infringe on their rights and livelihoods.
    ting from the Group’s operations-related impact on resource access and/or use.

    [3]
          http://www.fao.org/fileadmin/user_upload/faoweb/2018-New/Our_Pillars/FPIC_package_.zip

    [4]
          http://www.unredd.net/index.php?option=com_docman&task=doc_download&gid=8717&Itemid=53
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                        Purpose       INTRODUCTION                                                                                                            Appendix
                                                        people              the environment      rubber farmers      natural resources    our Stakeholders

                                        1.1 – Respecting and empowering
                                                 local communities

    All forms of forced eviction are prohibited, and       digenous communities; creating fair and decent          REDUCING THE IMPACT OF ODORS AND NOISE
    involuntary resettlements are avoided or mini-         direct or indirect jobs for both men and women,         POLLUTION LINKED TO NATURAL RUBBER PRO-
    mized, and affected persons receive the means          increasing the employability of the local               CESSING OPERATIONS; the Group adopts inter-
    to improve or at least restore their standard of       population, especially by supporting access             national norms and best practices in order to re-
    living.                                                to education and education infrastructures,             duce any odors and harmful noise pollution.
                                                           supporting community essential services and
    The Group will take measures to provide re-            facilities (i.e. health, access to water, sanitation)
    medy through mutually agreed procedures in             and      supporting       sustainable     livelihoods
    cases where the company has caused or contri-          (including the right to food security through
    buted to the appropriation of or harm to the           adequate food, water and nutrition).
    lands, territories, or natural resources of local
    and Indigenous communities without securing            PROMOTING GENDER EQUITY, EQUAL RIGHTS
                                                           OF WOMEN AND WOMEN'S EMPOWERMENT;
<                                                                                                                                                                        >
    FPIC.
                                                           the Group actively supports the equitable
    The Group makes sure to establish and ensure           inclusion of women across natural rubber
    effective, culturally appropriate and transpa-         operations, addressing barriers faced and
    rent channels of dialogue with local and Indi-         fairness of treatment for women and men ac-
    genous communities.                                    cording to their respective needs. This may
                                                           include equal or equivalent treatment in terms
    ENCOURAGING THE DEVELOPMENT OF LOCAL                   of rights, wages, benefits, obligations and
    COMMUNITIES; the Group fosters the economic,           opportunities.
    social and cultural development of local and In-
We care about       We care about        We care about       We care about           We care about
                          Purpose        INTRODUCTION                                                                                                                  Appendix
                                                            people              the environment      rubber farmers      natural resources       our Stakeholders

                                             1.2 – Upholding human rights,
                                            working conditions and living
                                                      environment

    The Group respects relevant domestic laws and              infrastructure; teaching best work practices (ges-      FIGHTING ALL FORMS OF DISCRIMINATION
    international human rights legislation and pro-            tures and postures, work schedules, etc.); raising      based on gender, age, ethnicity, religion, national
    motes the best social practices. In this respect the       the awareness of workers and their family about         origin, marital status, sexual orientation, social sta-
    Group is engaged in:                                       genuine risks (water quality, agrochemicals, occu-      tus, political opinion, union membership, health
                                                               pational illnesses, endemic or epidemic diseases).      status and physical or mental disability (Conven-
    RECOGNIZING AND RESPECTING INTERNATIO-                                                                             tions 97, 111 and 143 of the ILO).
    NAL HUMAN RIGHTS (including upholding the UN               PROTECTING THE SAFETY OF EMPLOYEES; ta-
    Guiding Principles on Business and Human Rights)           king steps to identify employment-related hazards       PROHIBITING CHILD LABOR in accordance with
    by avoiding causing or contributing to adverse hu-         and prevent accidents, injury, and disease arising      national law, international law and the recommen-
    man rights impacts and preventing or mitigating            from, associated with, or occurring in the course       dations of relevant civil society organizations, in
    any harm linked to company operations, making              of work by minimizing the causes of hazards, in a       regard to agricultural employment and minimum

<   sure to take vulnerable groups into consideration.         manner consistent with good international indus-
                                                               try practice; ensuring that employees and contrac-
                                                                                                                       working age (Conventions 138 and 182 of the ILO),
                                                                                                                       by drawing on recommendations made by the In-              >
    COMPLYING WITH AND ENSURING CONTRAC-                       tors’ employees use suitable personal protective        ternational Partnership for Cooperation on Child
    TORS’ COMPLIANCE WITH INTERNATIONAL                        equipment and collective protective equipment           Labor in Agriculture (2007).
    STANDARDS as set out in the list of reference do-          (particularly in remilling plants) and that they are
    cuments provided in Appendix 2.                            able to work in satisfactorily safe conditions. Train   PROHIBITING FORCED, BONDED, TRAFFICKED OR
                                                               employees regularly on health and safety prac-          COMPULSORY LABOR AND MODERN SLAVERY
    PROTECTING THE HEALTH OF EMPLOYEES AND                     tices, follow up accidentology indicators and keep      including all forms of labor exploitation or any
    THEIR FAMILY; contributing to enhance the ac-              appropriate records.                                    form of mental or physical coercion (ILO Conven-
    cessibility and quality of local health provision and                                                              tions 105, 29 and its 2014 Protocol).
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                         Purpose       INTRODUCTION                                                                                                        Appendix
                                                         people              the environment     rubber farmers     natural resources   our Stakeholders

                                           1.2 – Upholding human rights,
                                          working conditions and living
                                                    environment

    RESPECTING THE RIGHTS OF MIGRANT AND                    ting safe and adequate working conditions by          SUPPORTING THE DEVELOPMENT OF DECENT
    CASUAL WORKERS and in particular exercising             drawing on the best practices in force in the in-     MOBILITY CONDITIONS; when workers live on
    ethical recruitment practices including no direct       dustry; ensuring that workers have employment         site, ensuring that an adequate and safe trans-
    or indirect recruitment fees for workers (ILO           contracts and that an employee’s salary is at         port system is implemented, enabling employees
    Conventions 97 and 143).                                least equal to the country’s minimum salary for       and their family to access healthcare and edu-
                                                            an equivalent job with the view of fostering an       cation infrastructures.
    FOSTERING FREEDOM OF ASSOCIATION AND                    adequate/decent living wage as envisioned by
    COLLECTIVE BARGAINING in accordance with                the ILO (ILO Conventions 100, 105 and 131); en-
    the provisions of national and international law,       suring compliance with rest period entitlement
    and especially those outlined in ILO Conventions        and fair working hours; ensuring that employees
    87 and 98. If national law substantially restricts      are informed regarding their rights under natio-

<   workers’ organizations, the Group will seek to
    enable alternative means for workers to express
                                                            nal labor and employment law.
                                                                                                                                                                      >
    their grievances and protect their rights regar-        FOSTERING DECENT LIVING CONDITIONS; en-
    ding working conditions and terms of employ-            suring that employees living on site are housed
    ment.                                                   in decent infrastructure of adequate quality. En-
                                                            suring a minimum livable surface area per wor-
    ENSURE FAIR, DECENT AND SAFE EMPLOY-                    ker, access to safe drinking water, electricity and
    MENT CONDITIONS; maintain working prac-                 gender-appropriate sanitation systems. Ensure
    tices and working environments that are fair,           access to adequate sources of food (ILO Conven-
    inclusive, benevolent and professional; promo-          tion 110).
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    Purpose   INTRODUCTION                                                                                             Appendix
                             people          the environment   rubber farmers   natural resources   our Stakeholders

                                                          Section 2
                                                          We care about the environment
                                                       2.1 Zero deforestation

                                                       2.2 Controlling the potential impact of rubber cultivation
                                                            and processing on biodiversity and natural ecosystems

<                                                                                                                                 >
                                                 Core contribution to UN SDG’s

                                                 The Group is committed to healthy and functioning ecosystems
                                                 and recognizes the importance of ecosystem services.
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                         Purpose        INTRODUCTION                                                                                                           Appendix
                                                           people                the environment       rubber farmers   natural resources   our Stakeholders

                                                       2.1 – zero deforestation

    Keen to protect ecosystems and particularly forests       The identification of these areas using participatory
    and areas of high ecological importance likely to be      mapping and the outlining of suitable management
    jeopardized by the development of rubber cultiva-         methods are subject to a consultation of all of the
    tion, the Group is committed to responsible land          relevant local and Indigenous communities, natio-
    management across all its operations.                     nal Civil Society Organisations (CSOs) and interna-
    By all reasonable means, the Group ensures                tional stakeholders involved (scientific, institutional
    that the natural rubber it uses is produced               or non-governmental organizations, HCV Resource
    in accordance with the following "zero                    Network and High Carbon Stock Approach Steering
    deforestation" principles:                                Group) to ensure economic, social and environmen-
                                                              tal needs are taken into account and the proposed
    • National forest protection and environmental laws      farming techniques are socially and environmental-
       are complied with;                                     ly acceptable. Procedures and methodologies are
    • Primary forests are completely protected and pre-      implemented in order to ensure that, in the long
<      served;                                                term, any protected and preserved areas are not
                                                              destroyed, developed or damaged.
                                                                                                                                                                          >
    •
     Areas of High Conservation Value (HCV) as de-
     fined by the HCV Resource Network (HCVRN)                The Group first adopted “zero deforestation” prin-
     (https://www.hcvnetwork.org/) are protected and          ciples as part of its Natural Rubber Procurement
     preserved;                                               Policy in 2015, and expanded on them in its first
    •
     Areas of High Carbon Stock (HCS) as de-                  Sustainable Natural Rubber Policy in 2016. It has ex-
     fined by the HCS Approach Steering Group                 pected and continues to expect that all natural rub-
     (http://highcarbonstock.org/) are protected and          ber sourced be in conformance with those policies.
     preserved.                                               The Group notes that the GPSNR has adopted a zero
                                                              deforestation clause as part of its Policy Framework,
    Identification and management of area for develop-        acknowledges the prescribed cutoff date of 1 April
    ment and conservation follow the methodology and          2019, and welcomes the wider adoption of zero de-
    guidance consistent with the HCVRN and HCSA.              forestation commitments throughout the industry.
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                                Purpose       INTRODUCTION                                                                                                                Appendix
                                                                 people               the environment      rubber farmers      natural resources     our Stakeholders

     2.2 – Controlling the potential impact of rubber cultivation
       and processing on biodiversity and natural ecosystems

          The Group works alongside local and Indigenous            PROTECTING BIODIVERSITY                                 natural rubber cultivation, harvesting and pro-
          communities and civil society organizations to            The Group undertakes to:                                cessing do not have any adverse effects relating
          protect ecosystems, biodiversity, water and soil,                                                                 to quality and quantity of surface water, wet-
          and to develop the best transparent and partici-          • Preserve biodiversity and take into account the      lands or groundwater resources. It prevents wa-
          patory land use plans, factoring in the economic,            specificities of each landscape;                     ter contamination from agricultural and industrial
          social and environmental needs of local and Indi-         • Protect wildlife, including rare, threatened, en-    chemicals, and erosion and sedimentation. It en-
          genous communities.                                          dangered and critically endangered species5          sures that all wastewater generated from natural
          PROTECTING FOREST                                           from poaching, over-hunting, and habitat loss         rubber production is properly treated in full
                                                                      and supporting wildlife protection activities in      compliance with national and local regulations and
          Beyond its zero deforestation commitment, the               the context of a landscape approach;                  maximizes water recycling in the production pro-
          Group will:                                                                                                       cess. It implements timebound improvement plans
                                                                    • Take precautions to avoid introducing any po-
          • appropriately manage and maintain identified              tentially invasive alien species;                    regarding quality of wastewater (including COD and
             HCV and HCS areas;
<                                                                                                                                                                                    >
                                                                                                                            BOD) and water use intensity when necessary.
                                                                    • Promote ecological buffer zones around bodies
          • prevent the use of any infrastructure for illegal         of water, and between production areas and           It ensures the protection of wetlands, streams
             activities;                                               areas of high conservation value;                    and banks (riparian buffers) to support stream
          • restore degraded or deforested forests in pro-                                                                 quality and aquatic life in accordance with natio-
                                                                    • Promote biodiversity conservation through edu-       nal and international legal provisions and best
             tected areas as required by law, so as to reduce          cation to local communities and stakeholders.
             fragmentation and restore ecosystem func-                                                                      environmental practices. It carries out environ-
             tions where applicable; restoring or supporting        PRESERVING SURFACE WATER AND                            mental restoration operations where necessary.
             restoration of deforested and degraded rubber          GROUNDWATER                                             It complies with local legal provisions and com-
             landscapes.                                            The Group ensures that its operations related to        munity rights related to using water resources.

    [5]
          https://www.iucnredlist.org/
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                          Purpose        INTRODUCTION                                                                                                                        Appendix
                                                             people               the environment       rubber farmers       natural resources       our Stakeholders

    2.2 – Controlling the potential impact of rubber cultivation
      and processing on biodiversity and natural ecosystems

    SAFEGUARDING SOILS QUALITY                                  in justified and documented cases of fire break es-      climate change and climate change adaptation.
    AND PEATLANDS                                               tablishment, waste management for sanitary rea-          Possibilities include:
    The Group is committed to best management prac-             sons where public garbage collection is not avai-        • Further reducing energy requirements of natural
    tices to protect soils and peat, including but not li-      lable, phytosanitary and other emergencies.                 rubber processing;
    mited to erosion control, drainage, soil functioning,       MITIGATING CLIMATE CHANGE                                • Maximizing carbon sequestration of rubber plan-
    nutrient conservation, and preventing subsidence            The Group is fully committed to minimizing and mi-          tations (including with agroforestry systems);
    and contamination.                                          tigating its greenhouse gas emissions.                   • Encouraging useful application of rubber wood for
    The Group refrains from any form of rubber pro-             It is actively involved in efforts to prevent climate       energy cogeneration, lumber or furniture making;
    duction or drainage activity on any known peatland.         change by minimizing the rate of energy usage and
    These areas are fully protected and preserved re-                                                                    • Exploring how rubber plantations, together with
                                                                greenhouse gases emissions. Measures are taken              areas set-aside as natural forest, can play a role in
    gardless of depth, extent, or status (wet, drained or       to reduce energy use and increase energy efficien-
    dry).                                                                                                                   climate-smart landscapes.
                                                                cy of natural rubber processing. Sources of alter-
<   NO OPEN BURNING/FIRE IN OPERATIONS                          native energy, including energy cogeneration with
                                                                rubber wood, are identified, evaluated and are in
                                                                                                                                                                                        >
    The Group refrains from using open burning/fire
    in new or ongoing operations for land preparation           use where feasible.
    of new planting or replanting, land management,             The Group is actively exploring how the natural
    waste management, or any other reason other than            rubber supply chain can be part of the solution to
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                          Purpose        INTRODUCTION                                                                                                               Appendix
                                                            people              the environment      rubber farmers      natural resources     our Stakeholders

    2.2 – Controlling the potential impact of rubber cultivation
      and processing on biodiversity and natural ecosystems

    ENSURING THE CONSERVATIVE USE OF                           •
                                                                It refrains from using WHO class Ia and Ib            RESPONSIBLY MANAGING WASTE
    CHEMICAL INPUTS                                             pesticides, including in countries where these        Wherever possible, the Group implements a
    Rubber cultivation does not require intensive use           products are not yet banned;                          system for the collection, segregation, processing
    of pesticides compared to the production of other          • It ensures that the risks of polluting water re-    and recycling of waste or byproducts generated
    crops. However, the use of chemical products can              sources with natural or artificial chemical pro-    by farming or industrial operations or by its
    prove necessary at various phases of production               ducts are controlled;                               employees and their families.
    and processing in order to increase the overall ef-        •
                                                                It ensures that its employees are trained on
    ficiency of the process. The Group ensures com-             chemical transportation, storage, handling, di-
    pliance with stringent rules relating to chemical use       lution, use and disposal;
    and applies the highest standards relating to the
    safe use of chemical products (purchasing, trans-          • It ensures that its employees use suitable per-
    portation, handling, storage, use, waste collecting           sonal protective equipment and that authorized

<                                                                                                                                                                              >
    and disposal).                                                chemical products are used and stored safely;

    •
     The Group refrains from using pesticides that             • It continuously strives to reduce and minimize
     are prohibited by the Stockholm and Rotterdam                its global use of chemicals and pesticides;
     Conventions and Montreal protocol including in            • It, wherever possible, considers Integrated Pest
     countries where these conventions/protocols                  & Disease Management, biological methods
     have yet to be adopted;                                      and natural or organic fertilizer.
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    Purpose   INTRODUCTION                                                                                             Appendix
                             people          the environment   rubber farmers   natural resources   our Stakeholders

                                                          Section 3
                                                          We care about rubber farmers
                                                       3.1 Promoting good agricultural practices
                                                            and natural rubber quality

                                                       3.2 Acting to improve farmers livelihood
                                                            and economic resilience
<                                                                                                                                 >
                                                 Core contribution to UN SDG’s

                                                 The Group is committed to support the livelihood of rubber
                                                 farmers through encouraging decent revenue and
                                                 the principle of equity.
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                        Purpose       INTRODUCTION                                                                                                    Appendix
                                                       people               the environment   rubber farmers   natural resources   our Stakeholders

                         3.1 – Promoting good agricultural practices
                                  and natural rubber quality

    The Group actively supports capacity building, dissemination of good agri-
    cultural practices and raw rubber quality improvement. Every effort is being
    taken to increase yield per hectare and rubber quality for sustainable eco-
    nomic, social and environmental reasons.
    Good agricultural practices, sustainable tapping practices and improving ru-
    bber quality enable farmers, particularly small farmers, to cut production
    costs, improve working conditions, diversify livelihoods, enhance climate re-
    silience and increase revenues over the long term.
    Increasing yield per hectare provides a means of keeping up with the global
    demand for natural rubber without increasing the surface area of cultivated
    land, thereby reducing land pressure on forested areas and/or land that
    would otherwise support food production. Yield improvement is key to mi-

<   nimize the land use impacts of natural rubber cultivation.
                                                                                                                                                                 >
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    Purpose   INTRODUCTION                                                                                                            Appendix
                             people               the environment      rubber farmers      natural resources     our Stakeholders

      3.2 – Acting to improve farmers livelihood
                and economic resilience

                                The Group is committed to improve the liveliho-          quality and livelihood improvement and farmers
                                od and economic resilience of natural rubber far-        empowerment intended for groups of growers,
                                mers through:                                            cooperatives, smallholder associations, wo-
                                • research programs focusing on the most effi-          men’s groups and suppliers; relevant topics
                                   cient rubber tree varieties, pest management          could include farm management, farming prac-
                                   and agricultural technique optimization;              tices, sustainable tapping techniques, livelihood
                                                                                         diversification, climate change resilience, CO2
                                • technological transfer and promotion of good          sequestration optimization, operational health
                                   agricultural practices (planting density, tapping     and safety, social and environmental practices,
                                   techniques, intercropping, agroforestry, han-         quality control, financial management, record
                                   dling and minimizing the use of agrochemical          keeping, etc;
                                   inputs, quality etc.);
                                                                                        • promotion of value creation for rubber wood,
                                • operational support for the production of hi-
<                                                                                                                                                >
                                                                                           to facilitate no-burn replanting and supplement
                                   gher yield varieties (rubber clones) best suited        farmers revenues;
                                   to the environment and promoting the use of
                                   those high yielding varieties when replanting;       • promotion of diversified systems including
                                                                                           mix-cropping and agroforestry;
                                •
                                 support for professional training bodies in-
                                 tended to increase the level of expertise and          • promotion of the valuation of ecosystems ser-
                                 skills of growers and rubber tappers;                     vices;

                                • practical training sessions on good rubber culti-    •
                                                                                         promotion of transparent, gender equitable
                                   vation, sustainable tapping practices, rubber         and fair pricing.
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    Purpose   INTRODUCTION                                                                                             Appendix
                             people          the environment   rubber farmers   natural resources   our Stakeholders

                                                          Section 4
                                                          We care about natural resources
                                                       4.1 Increasing the material efficiency of natural rubber
<                                                                                                                                 >
                                                 Core contribution to UN SDG’s

                                                 The Group is committed to pursuing its research efforts to increase
                                                 the material efficiency, i.e. the quantity of natural rubber used per
                                                 thousand kilometers traveled.
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                        Purpose        INTRODUCTION                                                                                                       Appendix
                                                         people              the environment      rubber farmers   natural resources   our Stakeholders

                                  4.1 – Increasing the material efficiency
                                              of natural rubber

    In order to meet the growing need for tires             • developing retreading and regrooving services;
    without excessively increasing the surface area         • recycling or reusing new materials during the
    of land used for rubber cultivation, the Group is          production process;
    simultaneously exploring several actions:
                                                            • recycling or reusing used materials during the
    • reducing the mass of the average tire;                   production process;
    • increasing tire durability and promoting natio-      •
                                                             supporting national and international End of
       nal and international regulations that encou-         Life Tire (ELT) policies that encourage collect
       rage and support long lasting performance R&D         and recycling of used tires;
       and products;
                                                            • integrating Life Cycle Analysis of main tire raw
    •
     developing technologies to progressively                  materials when developing new products to
     eliminate the need for a spare wheel;                     reduce their potential identified impacts on

<                                                                                                                                                                    >
    • developing optimized tire management services           ecosystems.
       for large fleets of vehicles ("Michelin Fleet
       Solutions");
    •
     developing the concept of airless tires
     ("Michelin Tweel" and “UPTIS”, Unique Puncture-
     proof Tire System);
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    Purpose   INTRODUCTION                                                                                             Appendix
                             people          the environment   rubber farmers   natural resources   our Stakeholders

                                                          Section 5
                                                          We care about our Stakeholders
                                                       5.1 Combating corruption

                                                       5.2 Interacting with stakeholders

                                                       5.3 Risk based approach and continuous improvement

                                                       5.4 Traceability, Transparency and Reporting

<                                                      5.5 Monitoring & Implementation                                           >
                                                 Core contribution to UN SDG’s

                                                 The Group is committed to legal compliance. It always makes
                                                 sure to comply with applicable local, national and international
                                                 laws on human rights, labor, land use, and the environment.
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                                       Purpose          INTRODUCTION                                                                                                   Appendix
                                                                       people            the environment   rubber farmers       natural resources   our Stakeholders

         5.1 – Combating                                                                              5.2 – Interacting
           corruption                                                                                with stakeholders

    The Group rejects all forms of active and passive                   The Group commits to interact with relevant         “whistleblowing” system for reporting any si-
    corruption, including extortion and bribery. It re-                 local and global stakeholders on a regular          tuation that may constitute a breach to any
    quires enforcement of the principles outlined in                    basis, through an inclusive, transparent and        Michelin codes of conduct (including this
    the Michelin Purchasing Principles with its joint                   participatory approach (ensuring the inclu-         Policy). This is stated on every purchasing
    ventures, suppliers and their subcontractors6.                      sion of the interests of women and margi-           contract, and the link is available on the Mi-
                                                                        nalized groups), be it directly or indirectly,      chelin website (starting 2021).
                                                                        in accordance with the Group Directive on           An     accessible  grievance    mechanism
                                                                        stakeholder relations. It canvasses informa-        (consistent with UNGP effectiveness crite-
                                                                        tion from various sources (local stakehol-          ria and OECD guidelines) will be set up by
                                                                        ders, global stakeholders and any relevant or       2021 to enable stakeholders to express their
                                                                        affected parties) regarding its performance         grievance independently and to give oppor-
                                                                        against its commitments by applying various         tunities to remedy adverse impacts caused
                                                                        engagement systems, through both informal
<                                                                                                                                                                                 >
                                                                                                                            through production or sourcing.
                                                                        and formal means.
                                                                                                                            Michelin is proud to be a founding member
                                                                        The Group provides its suppliers and em-            of the Global Platform for Sustainable Natu-
                                                                        ployees with a dedicated and confidential           ral Rubber (GPSNR). The Group is strongly

         [6]
               https://purchasing.michelin.com/en/document-area/
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                      Purpose     INTRODUCTION                                                                                                 Appendix
                                                   people            the environment   rubber farmers   natural resources   our Stakeholders

                                5.2 – Interacting with stakeholders

    committed to actively support GPSNR and           CONSULTING WITH INTERNATIONAL
    uphold its activities, principles and poli-       STAKEHOLDERS
    cies. The Group advocates all the actors and      The Group undertakes active and regular
    stakeholders of its natural rubber supply         dialogue with its international stakeholders
    chain to join GPSNR in order to work collec-      on its natural rubber operations at a global
    tively to achieve global sustainable natural      level.
    rubber sourcing, production, use and recy-
    cling.                                            At least once every two years, the Group
                                                      brings together a panel of international
    The Group is willing to participate in/sup-       stakeholders for discussions on its Policy
    port multi-stakeholder planning and policy        and its natural rubber operations, to create
    efforts that uphold the GPSNR principles at       opportunities for feedback, as well as out-
    a landscape, jurisdictional or other spatial      looks for development.

<                                                                                                                                                         >
    level.
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                                  Purpose           INTRODUCTION                                                                                                                           Appendix
                                                                          people                     the environment   rubber farmers       natural resources       our Stakeholders

                                                             5.3 – Risk based approach
                                                           and continuous improvement

    The Group is working closely with its suppliers (ap-                      nability in the natural rubber chain. The system links    85% of its natural rubber spend. These assess the
    proved factories) to establish a risk-map of its sup-                     all the actors of a natural rubber processing factory     maturity of actions and systems related to sustai-
    ply chain. Such risk-mapping provides a means to                          supply chain and the risk scoring is displayed on an      nability by scoring the performance of suppliers
    identify critical areas with risk of social issues and                    interactive map at a jurisdictional level which allows    in four themes: Environment; Labor and Human
    conflicts as well as environmental risks such as de-                      locating of the most at-risk areas. Through this in-      rights; Ethics and Sustainable Procurement. These
    forestation. The resulting maps provide the basis                         novative tool, the Group encourages all players in        assessments help the Group to understand relative
    for purchasing decision by the Group and the deve-                        the natural rubber supply chain to adopt socially         risk among its supply base and identify suppliers
    lopment of timebound risk mitigation action plans                         and environmentally responsible practices to keep         with weaker performance so that they can imple-
    together with its suppliers whenever necessary.                           rubber growing in a virtuous dynamic.                     ment improvement plans. Significant issues are
    RISK-MAPPING                                                              CONTINUOUS IMPROVEMENT                                    addressed collaboratively through building and fol-
                                                                                                                                        low up of timebound Corrective Action Plans.
    With a constant Environmental, Social and Gover-                          The Group strongly believes in cooperation and
    nance (ESG) progress approach, the Group is inves-                        partnership, and is regularly engaging and sup-           In addition, the Group audits all natural rubber pro-

<   ting ever more in digital technology to develop new
    innovative tools to serve its sustainable development
                                                                              porting its natural rubber suppliers to set up ap-
                                                                              propriate management systems in order to sup-
                                                                                                                                        cessing factories in its supply chain before they are
                                                                                                                                        added to an approved factory list. They are subse-            >
    strategy. Pursuing its commitment to the production                       port their continuous improvement regarding the           quently re-audited every year (or every two years for
    of sustainable natural rubber, the Group is deploying                     conformance with this Policy.                             factories in West Africa). These onsite audits focus on
    Rubberway®, a technological solution that maps and                                                                                  quality management, but also assess several aspects
                                                                              The Group also supports its suppliers through the         of this Policy. Gaps identified are addressed collabo-
    assesses practices and risks regarding ESG issues                         recommendation of best industrial practices, es-
    throughout the natural rubber industry, from natural                                                                                ratively through timebound Corrective Action Plans.
                                                                              pecially through its on-site quality audits. It aims to
    rubber processing factories to rubber-farms.                              formalize some of these recommendations through           Beyond engaging with its suppliers, the Group also
    Rubberway® provides its users (tire manufactures                          the drafting of best practice guidelines (e.g. guide-     cooperates with relevant government agencies, uni-
    and their suppliers - the natural rubber processors)                      lines to reduce odor from processing activities).         versities, research centers, non-governmental orga-
    with risk analysis derived from the collected data and                                                                              nizations, and various industry players to uphold na-
                                                                              The Group carries out independent CSR assess-             tural rubber value-chain sustainability.
    enables them to improve transparency and sustai-                          ments 7 of its direct suppliers representing at least
    [7]
          Currently undertaken through EcoVadis, a global business sustainability ratings provider
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     Purpose   INTRODUCTION                                                                                                        Appendix
                              people              the environment     rubber farmers      natural resources    our Stakeholders

    5.4 – Traceability, Transparency and Reporting

                                 The Group supports the development of natu-           framework on sourcing control that captures
                                 ral rubber traceability, at an appropriate juris-     both aspects of traceability and risk control or
                                 dictional level to know or control the origin of      mitigation will also be published.
                                 purchased materials, to understand risk, and
                                 enable risk mitigation where needed, so that
                                 purchased material can be in alignment with
                                 this Policy.
                                 The Group is striving to provide transparency
                                 of its operations. It will work towards compre-
                                 hensive disclosure of the provenance of na-
                                 tural rubber purchased from industrial plan-
                                 tations (estates), and for sources other than

<                                                                                                                                             >
                                 industrial plantations (including smallholders)
                                 will publish jurisdictional-level summaries of
                                 the Rubberway risk mapping.
                                 The Group will report, at least annually, on
                                 various metrics (KPIs) that demonstrate pro-
                                 gress regarding the implementation of this
                                 Policy through a dashboard on the Michelin
                                 purchasing website. A structured reporting
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                         Purpose       INTRODUCTION                                                                                                                 Appendix
                                                          people                the environment      rubber farmers      natural resources     our Stakeholders

                                      5.5 – Monitoring & Implementation

    To facilitate the implementation of this Policy,         This Policy is attached to all of the Group’s natural    This Policy is subject to future updates, enhan-
    the Group is publishing a timebound Sustainable          rubber purchasing contracts. The Group consi-            cements or changes, at any time, in light of the
    Natural Rubber Roadmap with clear targets and            ders that by acknowledging a natural rubber pur-         results and learning gained from its implementa-
    milestones; these are be defined to be geogra-           chasing contract, a supplier is bound to the terms       tion.
    phic-specific when needed. The Roadmap is                of this Policy. Suppliers are expected to cascade        For further information regarding the Michelin
    considered a subcomponent of this Policy and             this Policy up their respective supply chain. The        Sustainable Natural Rubber Policy, please contact
    helps to define the specific metrics that are to be      Group monitors the sustainability performance            the Michelin Natural Rubber Sustainability Officer
    reported on the dashboard. The Group will also           and progress of suppliers through a combination          through the Michelin Purchasing Department.
    maintain open communication on its progress to           of supplier and supply chain assessments. It also
    local and international stakeholders.                    encourages its suppliers to publicly report on
    Sustainability performance of our suppliers and          their progress and sustainability achievements.
    their commitment to progress is a key factor in          To facilitate the implementation of this Policy, the

<                                                                                                                                                                              >
    the Group’s Supply Relationship Management.              Group will provide dedicated training sessions for
    The Group encourages its suppliers and the en-           its purchasing officers, as well as for its suppliers.
    tire value-chain to seek continuous improvement          Where needs have been identified, training will
    over time by implementing knowledge-building             be extended to various levels of its natural rub-
    and capacity building activities by themselves           ber supply chain.
    and through collaborative efforts in order to de-        The Group reserves the right to conduct speci-
    monstrate progress in the areas covered by this          fic sustainability audits or onsite visits of its sup-
    Policy.                                                  pliers as deemed appropriate.
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                          Purpose           INTRODUCTION                                                                                                                      Appendix
                                                                people                    the environment     rubber farmers       natural resources     our Stakeholders

                                                                  Appendix 1:
                                                                  Definitions

    LOCAL COMMUNITY                                                                                  SUSTAINABLE DEVELOPMENT
    A group of interacting people living in and sharing a specific environment and place,            Sustainable development aims to meet human development goals without com-
    and sharing common concern around local facilities, services, and environment and                promising the ability of future generations to meet their own needs.
    which may at times depart from traditional or State definitions. Such communities
    may attach particular meaning to land and natural resources as sources of culture,
                                                                                                     SUSTAINABLE NATURAL RUBBER POLICY
    customs, history, and identity, and/or depend on them to sustain their livelihoods,              (ALSO REFERRED TO AS ‘’THIS POLICY’’)
    social organization, culture, traditions, and beliefs. Local communities may be le-              The Michelin Sustainable Natural Rubber Policy covers commitments and mea-
    gally or customarily known or designated using various terms, such as “traditional               sures taken by the Group to foster the responsible and sustainable management
    communities”. Like Indigenous Peoples (or Indigenous communities), they may use                  of natural rubber throughout the value chain.
    and manage land in accordance with customary tenure systems and associated

<                                                                                                                                                                                        >
    rights and may depend of their land for cultural and physical survival.8
     Source: Free, Prior and Informed Consent Guide for Roundtable on Sustainable Palm Oil (RSPO)
    [8]

    Members. RSPO Human Rights Working Group 2015, 2018.

    NATURAL RUBBER
    Natural rubber is an elastomer or natural polymer, polyisoprene, harvested in the
    form of latex, drawn off by making incisions into the bark of the rubber tree.
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                         Purpose          INTRODUCTION                                                                                                                                  Appendix
                                                              people                  the environment      rubber farmers            natural resources         our Stakeholders

                                        Appendix 2:
                                   Reference documents
    In all its upstream operations related to the consumption of natural rubber, the Group is committed to promoting, on its sites, with its joint ventures,
    suppliers and their subcontractors, the main principles outlined in the international reference documents provided below.

    A. INTERNATIONAL REFERENCE DOCUMENTS                                                         • The Ten Principles of the UN Global Compact (2010) to which Michelin is a signatory;
                                                                                                 • United Nations Sustainable Development Goals (UN SDGs – 2015);
    • United Nations Universal Declaration of Human Rights (UDHR, 1948);
                                                                                                 • OECD Guidelines for Multinational Enterprises (2011);
    • International Convention on Economic, Social and Cultural Rights (ICESCR, 1966);
                                                                                                 • Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and
    • International Convention on Civil and Political Rights (ICCPR, 1966);
                                                                                                    Forests in the Context of National Food Security (VGGT, 2012);
    • International Convention on the Elimination of Racial Discrimination (ICERD, 1969);
                                                                                                 • Principles for Responsible Investment in Agriculture and Food Systems endorsed by
    • International Convention on the Elimination of all Forms of Discrimination against Wo-
                                                                                                    the Committee on World Food Security (2014);
       men (CEDAW, 1979);
                                                                                                 • The Tirana Declaration (2011) “Securing land access for the poor in times of intensified

<                                                                                                                                                                                                  >
    • UN Guiding Principles on Business and Human Rights (UNGP, 2011);
                                                                                                    natural resources competition”;
    • UN Declaration on the Rights of Indigenous People (UNDRIP, 2007);
                                                                                                 • Convention on Biological Diversity (CBD, 1992);
    • UN Declaration on the Rights of Peasants and Other People Working in Rural Areas
                                                                                                 • Convention on International Trade in Endangered Species of Wild Fauna and Flora
       (UNDROP, 2018);
                                                                                                    (1979);
    • ABC of Women Worker’s Rights and Gender Equality (ILO 2000);
                                                                                                 • New York Declaration on Forests of the United Nations (2014);
    • The main International Labor Organization conventions:
                                                                                                 • WHO Recommended Classification of Pesticides by Hazard;
         -C
           onventions 29 (and its 2014 Protocol) and 105 concerning forced labor;
                                                                                                 • International Code of Conduct on Pesticide Management (FAO);
         -C
           onventions 138, 146 and 182 concerning child labor;
                                                                                                 • Annex III of the Stockholm Convention on Persistent Organic Pollutants (POPS);
         -C
           onventions 87 and 98 concerning collective bargaining and freedom of association;
                                                                                                 • Annex III of the Rotterdam Convention on the Prior Informed Consent Procedure for
         -C
           onventions 100 and 131 concerning equal remuneration and minimum wage;
                                                                                                    Certain Hazardous Chemicals and Pesticides in International Trade;
         -C
           onvention 111 concerning discrimination;
                                                                                                 • Montreal Protocol on Substances that Deplete the Ozone layer;
         -C
           onvention 110 concerning plantations;
                                                                                                 • Due Diligence French Law (2017);
         -C
           onventions 97 and 143 concerning migrant workers;
                                                                                                 • Global Platform for Sustainable Natural Rubber (GPSNR) Policy Framework (2020).
         -C
           onvention 141 concerning rural workers’ organizations (1975);
         -C
           onvention 169 concerning indigenous and tribal peoples (1989);
    • United Nations Convention Against Corruption (UNCAC, 2003);
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                        Purpose        INTRODUCTION                                                                                                     Appendix
                                                         people               the environment   rubber farmers   natural resources   our Stakeholders

                                       Appendix 2:
                                  Reference documents

    B. GROUP REFERENCE DOCUMENTS
    The Group CSR reference documents (available on the Michelin website) fully
    apply to the natural rubber approach, in particular:

    • Michelin Performance and Responsibility Charter (2002);
    • Michelin Purchasing Principles;
    • Michelin Code of Ethics;
    • Anticorruption Code of Practice;
    • Groups’ Guidelines – Stakeholder Relations;
    • Universal Registration Document (yearly publication);

<   • Duty of Care Plan (yearly update).
                                                                                                                                                                   >
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