MICHELIN SUSTAINABLE NATURAL RUBBER POLICY - REFERENCE DOCUMENT - 2021 Edition - Michelin Purchasing ...
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MICHELIN SUSTAINABLE NATURAL > RUBBER POLICY REFERENCE DOCUMENT - 2021 Edition
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
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
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."
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
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.
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
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.
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
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.
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
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.
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
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
< >
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
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
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
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 FactoriesWe 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
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=53We 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
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).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
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).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
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.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
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.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
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/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
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 toWe 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
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.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
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.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
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.
>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
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.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
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.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
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);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
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.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
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/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
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.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
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 providerWe 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
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 reportingWe 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
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.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
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.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
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;
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onvention 111 concerning discrimination;
• Montreal Protocol on Substances that Deplete the Ozone layer;
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onvention 110 concerning plantations;
• Due Diligence French Law (2017);
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onventions 97 and 143 concerning migrant workers;
• Global Platform for Sustainable Natural Rubber (GPSNR) Policy Framework (2020).
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onvention 141 concerning rural workers’ organizations (1975);
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onvention 169 concerning indigenous and tribal peoples (1989);
• United Nations Convention Against Corruption (UNCAC, 2003);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
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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