At the Group’s Capital Markets Day, Florent Menegaux, Managing Chairman, and Yves Chapot, General Manager and Chief Financial Officer, accompanied by all the members of the Group Executive Committee, presented Michelin in Motion, Michelin’s “All Sustainable” strategy for 2030.
Menegaux explained the Group’s “All Sustainable” vision, which is based on the constant search for the right balance between People, Planet and Profit.
He also presented the Group’s ambitions for 2030, based on twelve indicators covering its environmental, social, societal and financial performance. In particular, he emphasized the Group’s commitment to:
- Achieving an employee engagement rate of more than 85%
- Increasing the percentage of women in management positions to 35%
- Setting the global standard in workplace safety, with a TCIR of less than 0.5
- sharply reducing its CO2 emissions, in Scopes 1 and 2 (by 50% compared with 2010) and in transportation-related Scope 3, with the goal of achieving carbon neutrality in these scopes by 2050
- sharply increasing the sustainable raw materials contained in all its products to 40% by 2030, in line with its target of 100% by 2050
- driving sustained growth, with an average 5% increase per year in sales between 2023 and 2030, once the current Covid-19-related crisis is over
- deriving 20% to 30% of sales from non-tire businesses
- guaranteeing the creation of significant value, with a more than 10.5% ROCE between 2023 and 2030
New non-tire growth territories
Michelin will continue to expand, invest and innovate in its tire businesses. Post-Covid mobility trends and the accelerating growth of the electric vehicle market represent genuine growth opportunities for the Group, which has developed a technological leadership in the design and manufacture of tires purpose-engineered for EVs.
In the road transportation segment, the Group will selectively focus on creating value, while in Mining, Earthmover, Agricultural, Aircraft and other speciality tires.
Michelin is also looking to drive its expansion in five around and beyond tire business segments: Services & Solutions, flexible composites, medical devices, metal 3D printing and Hydrogen mobility.
- In Services & Solutions, the Group is going to broaden and deepen its portfolio of fleet solutions, in particular by leveraging smart objects and the value of its collected data.
- Michelin also hopes to expand significantly in the very fast-growing Flexible Composites market (conveyors, belts, coated fabrics, seals, etc.) by pursuing its value-creating mergers and acquisitions strategy and incubating new businesses.
- Medical Devices also represent a growth opportunity in the years ahead.
- In Metal 3D printing, the Group has developed an expertise that supports the ability of AddUp, its joint venture with Fives, to market a comprehensive range of tailor-made solutions for manufacturers.
- In Hydrogen Mobility, the Group is seeking to become a leader in hydrogen fuel cell systems through Symbio, its joint venture with Faurecia.