2024
Michelin
Year
Sector
Industrie légère
ACT assessment methodology
Generic
Performance Score
Michelin has set science-aligned targets across its 3 scopes. However, its scope 3 target does not cover the use of its products. In addition, the company does not have a long-term scope 3 objective. Michelin quantifies its scope 1&2 decarbonization levers, but they are nevertheless largely based on the purchase of renewable electricity. The company's scope 3 emissions are falling, in line with the trajectory of its target. The company has a concrete action plan on its main emission items, specifically concerning transport and raw materials. The company mentions large R&D budgets but does not provide any figures on the climate-related part.
Michelin integrates climate issues in a structuring way within its hierarchy. However, the person in charge of the company's environmental strategy, the Chief Sustainability Officer, does not have any training or experience in climate matters. An internal carbon price has been integrated into the company's decision-making in investments. Regarding the commitment of its value chain, Michelin has structured a relevant supplier strategy, with the objective of having 70% of its suppliers (in terms of GHG emissions) committed to the SBTi by 2024.
The company states that 13% of its sales are aligned with the EU taxonomy. The company's main business model change is to position itself in the emerging markets for electric and hydrogen vehicles. Michelin estimates that by 2030, 45% of sales will be electric vehicles. However, Michelin does not specify the current share of its tire sales that supply electric vehicles. The company does not mention any desire to exit its most carbon-intensive activities.
Michelin integrates climate issues in a structuring way within its hierarchy. However, the person in charge of the company's environmental strategy, the Chief Sustainability Officer, does not have any training or experience in climate matters. An internal carbon price has been integrated into the company's decision-making in investments. Regarding the commitment of its value chain, Michelin has structured a relevant supplier strategy, with the objective of having 70% of its suppliers (in terms of GHG emissions) committed to the SBTi by 2024.
The company states that 13% of its sales are aligned with the EU taxonomy. The company's main business model change is to position itself in the emerging markets for electric and hydrogen vehicles. Michelin estimates that by 2030, 45% of sales will be electric vehicles. However, Michelin does not specify the current share of its tire sales that supply electric vehicles. The company does not mention any desire to exit its most carbon-intensive activities.
Narrative Score
Business model and strategy: The company is still globally dependent on carbon-intensive combustion cars, but is repositioning itself by investing in the emerging electric and hydrogen vehicle markets.
Consistency and credibility: The company's reduction targets are well aligned with its action plan and there is an incentive to achieve these targets among employees up to the highest level.
Data quality: The company did its GHG assessment following the GHG Protocol but no mention of a third-party auditor was found in their DEU. Its 2019 emissions are slightly different between two tables of the 2024 DEU (3.2 MtCO2e then 3.4 MtCO2e).
Reputation: An investigation revealed that a sustainable rubber project (RLU) launched in 2015 by Michelin and Barito Pacific in Indonesia was actually based on the industrial deforestation of thousands of hectares of forests. About a third of the plantations financed by the 2018 green bonds are located in these deforested areas, which calls into question the credibility of Michelin's commitment. Faced with this accusation of greenwashing, Michelin does not seem to have made a mea culpa, but simply reimbursed the sum of the green bond without explanation. The company still presents the project as positive from an ecological and social point of view.
Risks: The company remains largely dependent on fossil fuels, but its decarbonization plan highlights electrification and equipment conversion actions to move away from fossil fuels. The company depends for a large part of its scope 1&2 target (about 50% of the announced reduction) on the purchase of energy attribute certificates. It is possible that supply will not keep up with demand in the coming years. In the same way, to decarbonize its scope 3, the company will have to procure a growing share of renewable or recycled materials, or even low-carbon products that do not yet exist.
Consistency and credibility: The company's reduction targets are well aligned with its action plan and there is an incentive to achieve these targets among employees up to the highest level.
Data quality: The company did its GHG assessment following the GHG Protocol but no mention of a third-party auditor was found in their DEU. Its 2019 emissions are slightly different between two tables of the 2024 DEU (3.2 MtCO2e then 3.4 MtCO2e).
Reputation: An investigation revealed that a sustainable rubber project (RLU) launched in 2015 by Michelin and Barito Pacific in Indonesia was actually based on the industrial deforestation of thousands of hectares of forests. About a third of the plantations financed by the 2018 green bonds are located in these deforested areas, which calls into question the credibility of Michelin's commitment. Faced with this accusation of greenwashing, Michelin does not seem to have made a mea culpa, but simply reimbursed the sum of the green bond without explanation. The company still presents the project as positive from an ecological and social point of view.
Risks: The company remains largely dependent on fossil fuels, but its decarbonization plan highlights electrification and equipment conversion actions to move away from fossil fuels. The company depends for a large part of its scope 1&2 target (about 50% of the announced reduction) on the purchase of energy attribute certificates. It is possible that supply will not keep up with demand in the coming years. In the same way, to decarbonize its scope 3, the company will have to procure a growing share of renewable or recycled materials, or even low-carbon products that do not yet exist.
Trend score
The group takes climate externalities into account quite satisfactorily, and the objectives set seem achievable. Its business model is diversifying, and it seems that its dependence on the automobile is tending to decrease.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
53
Disclosure score (/100)
91
ℹ️
Narrative Score (A > E)
B
Trend Score (- = +)
+
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 26%
Material Investment Score : 63%
Intangible Investment Score : 0%
Sold Product Performance Score : 72%
Management Score : 67%
Supplier Engagement Score : 72%
Client Engagement Score : 69%
Policy Engagement Score : 32%
Business Model Score : 24%
Indicator weight by module