Involving suppliers in the Group’s CSR approach
Michelin’s Corporate Social Responsibility (CSR) policy, as outlined in the Michelin Performance and Responsibility Charter, “A Better Way Forward”, is a reflection of our core values. It applies to our relations with our suppliers and their subcontractors, since we expect them to apply sustainable development principles and international standards to all their activities and sites, all around the world.
The Michelin Purchasing Principles reflect these commitments and the Group’s values. They guide our actions to ensure that our customers and other market stakeholders continue to trust our brand.
Michelin works in partnership with our suppliers in a joint approach to CSR progress.
Since purchasing represents close to 60% of Michelin’s sales, for the past several years the company has been taking a proactive approach towards responsible procurement with our suppliers. This means that we select goods and services that are produced in compliance with the highest social, ethical, and environmental standards, according to the Michelin Purchasing Principles.
This approach, which is implemented through a global network, is based on:
- Training of Purchasing staff
- Inclusion of sustainable development criteria in calls for tenders
- Management of CSR risks in the supply chain
Sustainable development criteria
The Purchasing department’s Total Cost of Ownership approach includes environmental, social, and ethical requirements in our specifications for our internal customers.
There are steps we can take throughout a tire’s lifecycle to reduce its impact on natural resources, energy, and matter. Michelin takes simultaneous action in four areas during the tire’s life cycle to provide a combination of solutions that use resources more efficiently. The criteria are defined as part of the 4R Circular economy strategy used by Purchasing staff, in compliance with regulatory standards:
- Recycle (recycling and regeneration projects)
- Renew (increase the use of renewable resources)
For example, preliminary studies have shown that both manufacturing efficiency and energy performance can be improved using photovoltaics (Le Puy plant), gas cogeneration (Michelin Italy sites), and the installation of a gas boiler in the Group’s new Brazilian plant.
CONFLICT MINERALS IN REGIONS AT RISK
As part of Michelin’s commitment to corporate social responsibility in its operations and supply chain, we are committed to purchasing materials and components that, directly or indirectly, do not finance or support armed groups in conflict zones. This applies to several minerals or their derivatives, such as tantalum, tin, tungsten, gold and cobalt.
In order to ensure compliance with these requirements and to verify the origin of these minerals in our supply chain, we ask some of our suppliers and their subcontractors to complete the “Conflict Minerals Reporting Template” available here to be returned to your usual contacts within the Purchasing Operations Department.
You will find the Michelin Policy on Conflict Minerals here
The training program for purchasing teams comprises a dedicated Sustainable Procurement module that is mandatory for buyers and encouraged for technical specifiers and key internal partners. About 85% of the current buyers have been trained. In all, it has been completed by 637 people worldwide since 2011.