Sustainable Natural Rubber Progress Report 2015-2020 | 1 Sustainable NaturalRubber ProgressReport2015 -2020 Report

Sustainable Natural Rubber Progress Report 2015-2020 | 2 Contents
 
Foreword 
Highlights 
Our Approach 
Governance and Organization 
− 
Sustainable Development and Mobility at Michelin 
− 
Organization of Michelin’s Natural Rubber Supply Chain 
Policy and Commitments 
Engaging and Assessing Our Suppliers 
− 
Tier 1 Assessments 
− 
Increasing Transparency of the Upstream Supply Chain 
Words in Action 
Conclusion 
 
3 
4 
5 
6 
6 
7 
8 
11 
11 
14 
21 
28

Sustainable Natural Rubber Progress Report 2015-2020 | 3 
Being a major player in the natural rubber industry, Michelin Group is fully cog-
nizant of the responsibility it has to ensure a sustainable natural rubber supply 
chain. It has long fostered close relationships with its natural rubber suppliers, 
focusing not only on ensuring quality but also pushing for environmentally 
sound processes.  
Through 2014, intentional and open conversation with its stakeholders con-
vinced Michelin that it was essential to garner strong commitment towards sus-
tainable environmental and social practices throughout the whole of its natural 
rubber supply chain and in the broader market.  
Michelin’s efforts toward sustainable natural rubber were catalyzed by its part-
nership with WWF France, which supported Michelin to craft out a set of com-
mitments relating to the sustainable procurement of natural rubber in 2015. 
These commitments where expanded on in 2016 with Michelin’s Sustainable 
Natural Rubber Policy, the first comprehensive policy relating to sourcing of 
sustainable natural rubber. 
Michelin has also been actively involved in promoting change throughout the 
industry, and has been a long time member of the IRSG Sustainable Natural 
Rubber initiative (SNR-i). WWF and Michelin also collectively participated in the 
creation and launch of the Global Platform for Sustainable Natural Rubber 
(GPSNR). 
The past five years have been spent laying important groundwork in an indus-
try where sustainability and assessment frameworks were novel and untested. 
Significant resources have been spent on championing the use of sustainability 
assessment tools across the industry and even on creating novel tools where 
they had not existed before. We have made much progress, but there is plenty 
of work to do to effect lasting change throughout the entire supply chain.  
This year 2020 has been especially challenging for Michelin, our suppliers and 
the millions of smallholder farmers that produce natural rubber, as the pan-
demic has stifled global demand. Nevertheless, we remain, more than ever, 
committed, and are continuing to work hard with our partners and global net-
work to build a truly sustainable natural rubber supply chain. Hélène Paul
 Michelin Group CPO
  Foreword: Laying the ground for a truly sustainable supply chain

Sustainable Natural Rubber Progress Report 2015-2020 | 4 Highlights
 
1.36m  
high-yielding seedlings 
produced and supplied* to 
farmers by Group and joint 
venture operations in 2020 
 
*including saplings sold at cost or 
economical prices 
100,000 
trees from 215 species have 
been planted over 270 ha of 
forest as part of restoration 
efforts in the Michelin 
Ecological Reserve  
58 
natural rubber factories in 
Michelin’s supply chain 
deploying the Rubberway 
solution in their upstream 
supply chains 
 
85% 
of supply (by spend) 
assessed on sustainability 
systems and performance 
by EcoVadis in 2020  
39,276 
smallholders have 
completed the Rubberway® 
questionnaire as of end-
2020  
3,180 ha 
area conserved and 
protected in the Michelin 
Ecological Reserve as part of 
Ouro Verde program in 
Bahia, Brazil

Sustainable Natural Rubber Progress Report 2015-2020 | 5 Our Approach 
 
Michelin’s sustainable natural rubber approach 
is driven by our Sustainable Natural Rubber 
Policy, which defines its commitments and set 
expectations for its suppliers. A key part of our 
approach has been to develop a framework to 
assess our natural rubber value chain. 
Significant resources have been spent to drive the 
wider industry to adopt these assessments and 
tools. The smallholder-dominated nature of natural 
rubber production has been particularly challeng-
ing, made even more complex by the fact that mul-
tiple tiers of intermediaries exist between small-
holders and natural rubber processing factories. To 
overcome this, Michelin developed a novel solution 
to facilitate smallholder risk-mapping at a jurisdic-
tional level: Rubberway®. 
Complementing this top-down approach of assess-
ments and risk mapping has been a commitment to 
effect change through direct action on the ground. 
This has been conducted through the Group’s joint-
ventures and partnerships, such as the Royal Les-
tari Utama project, an integrated natural rubber 
company aiming at producing climate smart, wild-
life friendly and socially inclusive natural rubber. 
Michelin is also working through a sector approach, 
believing that change needs to happen throughout 
the whole natural rubber industry. There should be 
a shared responsibility approach throughout the 
supply chain. To engage the whole industry and 
stakeholders along the value chain towards better 
practices, Michelin was one of the founding mem-
bers of the Global Platform for Sustainable Natural 
Rubber (GPSNR), a truly multi-stakeholder platform 
that includes tire manufacturers, rubber suppliers 
and processors, vehicle makers, smallholders and 
NGOs. 
ASSESSMENTS 
Natural Rubber Value  
Chain Assessments 
COMMITMENTS 
Sustainable Natural  
Rubber Policy 
WORDS IN ACTION 
Action on the Ground 
SECTOR APPROACH 
Stakeholders and GPSNR 
OUR SUSTAINABLE NATURAL RUBBER APPROACH

Sustainable Natural Rubber Progress Report 2015-2020 | 6 Governance and organization
 
 SUSTAINABLE DEVELOPMENT AND  
MOBILITY AT MICHELIN 
Michelin’s sustainable development governance is 
driven by the Group Management Committee, 
which has full oversight on direction and tracks pro-
gress on sustainable development and mobility 
with dedicated meetings held twice a year.  
Michelin has set up governance bodies dedicated to 
the Environment, Human Rights, Health and Safety, 
and Ethics to promote the Group’s culture, under-
pin the Group’s commitments, define the Group’s 
strategy and validate the Group’s programs rele-
vant to each subject to drive continuous improve-
ment. Each body is supported by the work of multi-
disciplinary Operational Committees. The Sustaina-
ble Development and Mobility (SDM) network is 
made up of the Sustainable Development and Mo-
bility team and contacts from the main regions, 
business, operational and corporate entities world-
wide. It is responsible for ongoing local promotion 
of sustainable development, reporting on imple-
mentation of the objectives defined by the govern-
ance bodies, and coordination of initiatives.  
During consultations with stakeholders, it was rec-
ognized that natural rubber sustainability repre-
sents a highly material topic within Michelin’s sus-
tainable development outlook. It was also noted 
that there would be a large body of work to map 
out supply chain risks and to work with stakehold-
ers to define and implement sustainability commit-
ments throughout Michelin’s natural rubber value 
chain. As a result of this feedback, Michelin appoint-
ed a sustainability manager in 2016 dedicated to 
sustainable development in natural rubber. 
A FOCUS ON NATURAL RUBBER 
The natural rubber sustainability manager is based 
out of Michelin’s natural rubber technical and 
procurement hub in Singapore and is part of the 
Purchasing node of the SDM network. In 2020 in line 
with the scaling up of supply chain assessment and 
tools, as well as Michelin’s increasing involvement 
with multi-stakeholder partnerships for sustainable 
natural rubber, Michelin appointed another 
sustainability officer for natural rubber sustainability. 
The natural rubber sustainability officers take part to 
the operational committees, directly or through the 
Purchasing sustainability manager

Sustainable Natural Rubber Progress Report 2015-2020 | 7 Governance and organization
 
ORGANIZATION OF MICHELIN’S NATURAL 
RUBBER SUPPLY CHAIN 
Michelin sources natural rubber primarily from in-
dependent suppliers. These suppliers can be inde-
pendent natural rubber processing factories, a 
group with multiple factories or traders (natural 
rubber wholesalers). In every case, Michelin con-
ducts on-site quality audits, which through a pilot 
have now been expanded to include environmental 
and labor aspects, on individual natural rubber pro-
cessing factories before they are added to an ap-
proved factory list. These audits are subsequently 
carried out every year (every two years for factories 
in West Africa). All suppliers, including groups and 
traders, have to abide by this list, meaning that all 
supply is known and traceable to the factory level. 
These are collectively known as ‘Tier 1’ suppliers.  
Michelin participates in a number of natural rubber 
joint ventures, in which it maintains a financial in-
terest but is a minority shareholder (or joint ven-
tures throughout this document). These include 
joint venture operations in Indonesia, West Africa 
(Côte d'Ivoire, Ghana, Nigeria and Liberia) and Thai-
land. Michelin maintains a presence on the boards 
of these joint ventures, including on environmental 
and social advisory boards when applicable. Michel-
in also provides technical assistance to its joint ven-
tures, particularly on agronomy, rubber processing 
and research and development. Michelin envisions 
its joint ventures to be leaders in sustainable and 
ethical practices, and as prime candidates for the 
development of new technologies that can reduce 
environmental impacts of natural rubber produc-
tion or processing. 
Michelin owns a limited number of natural rubber 
assets in Brazil. This includes a land bank in Bahia, 
Brazil that has been primarily dedicated for conser-
vation and restoration through the 3,180 hectare 
(ha) Michelin Ecological Reserve, which preserves a 
significant remnant of the southern Bahian Atlantic 
rainforest. It maintains 513 ha of active natural rub-
ber plantations, of which 208 ha is dedicated to re-
search and development of varieties resistant to 
pest and disease (total plantation area including 
inactive areas: 1,366 ha).

Sustainable Natural Rubber Progress Report 2015-2020 | 8 Policy and Commitments
 
Michelin published its Sustainable Natural Rub-
ber Policy in 2016, which served as a model 
and catalyzed the widespread adoption of sim-
ilar policies throughout the industry. 
In collaboration with stakeholders, Michelin devel-
oped and published its Natural Rubber Purchasing 
Principles in 2015, making it the first tire company 
to undertake commitments relating to the natural 
rubber supply chain. In 2016, it expanded on these 
commitments by publishing its Sustainable Natural 
Rubber Policy. The policy, written in collaboration 
with WWF France and arising out of learnings as 
part of the IRSG Sustainable Natural Rubber initia-
tive, was the first comprehensive natural rubber 
policy with a zero-deforestation commitment un-
dertaken by a tire maker.   
After a process of engagement with suppliers to 
help them understand the implications of the poli-
cy, the policy was attached to all purchasing con-
tracts in December 2016. Continued engagement 
with our suppliers on our policy requirements is 
carried out through our Supplier Relationship Man-
agement (SRM) exercise, which is a dedicated 1-day 
event with our main suppliers every year. The SRM 
exercise is also an opportunity to follow up on sus-
tainability gaps identified by supplier assessments 
or Michelin on-site audits, especially if suppliers are 
at that time implementing time-bound Corrective 
Action Plans. For our suppliers that are not part of 
the SRM scheme, continued engagement is embed-
ded in Long-Term Contract yearly meetings, where 
expectations are set, and the implementation of 
Corrective Action Plans is monitored.  
Michelin has been active in encouraging its suppli-
ers to adopt their own natural rubber policies which 
mirror the key pillars of Michelin’s own policy with 
particular attention to the policy items relating to 
zero-deforestation and Free, Prior and Informed 
Consent (FPIC). It has also encouraged this at the 
industry level, contributing to the GPSNR-led pro-
cess of developing a unified policy framework 
which standardizes policy requirements.  This policy 
framework was approved at the 2nd GPSNR Gen-
eral Assembly in September 2020 and is to be 
adopted by all members. Michelin will be aligning 
its policy to the GPSNR policy framework and will 
engage suppliers to do the same. 
Key Figures 
Policy binding to all natural rubber purchasing 
contracts 
100%  
of natural rubber contracts 
include the sustainable natural 
rubber policy 
100%  
of suppliers have been engaged 
on Michelin’s Sustainable Natural 
Rubber Policy 
Contribute to unified policy framework at the 
GPSNR 
Approved Policy component was approved 
at the GPSNR 2nd General 
Assembly and is to be adopted by 
all members

Sustainable Natural Rubber Progress Report 2015-2020 | 9 Policy and Commitments
 
ZERO-DEFORESTATION AND FREE-PRIOR AND INFORMED CONSENT 
(FPIC) IMPLEMENTATION 
Two key commitments embedded in Michelin’s Sustainable Natural Rubber Poli-
cy relate to zero-deforestation and FPIC. To implement these important commit-
ments Michelin has identified priority suppliers with large natural rubber planta-
tions for engagement towards the adoption and implementation of zero-
deforestation and FPIC clauses in their company policies. Michelin has also part-
nered with its joint ventures to take the lead in adopting widely acknowledged 
frameworks to implement zero-deforestation and FPIC commitments, including 
High Conservation Value (HCV) assessments and the High Carbon Stock Ap-
proach (HCSA), FPIC engagements and the adoption of grievance channels. 
Implementation of Zero-Deforestation and FPIC commitments in Joint  
Ventures 
In line with its adoption of zero-deforestation and FPIC commitments, Michelin 
has worked closely with its joint-ventures to practically implement these commit-
ments through internationally recognized frameworks such as HCV assessments 
and the High Carbon Stock Approach, integrated with selected FPIC methodolo-
gies. On top of meeting Michelin’s commitments, these efforts serve to demon-
strate to the wider industry that these frameworks can be practically applied at 
scale in the natural rubber industry.  
The Royal Lestari Utama (RLU) joint venture in Indonesia has been developing its 
land development plan incorporating both HCS and HCV assessments at scale 
for rubber plantation development, with its total concession area (88,761 ha as 
of 2019) having been assessed in 2015 and currently being re-assessed. As a re-
sult of the 2015 HCV & HCS assessment, around 28,000 ha of protected area has 
been delineated in both its Sumatra and Kalimantan production sites. The joint 
venture is also pursuing a landscape approach, with part of its protected area 
contributing to expand wildlife habitat through connection of its conservation 
zones to others protected areas including Bukit Tigapuluh National Park in Jambi. 
RLU is also conducting  a joint protection program with Bukit Tigapuluh National 
Park within the buffer zone of the national park and RLU’s concessions.

Sustainable Natural Rubber Progress Report 2015-2020 | 10 Policy and Commitments
 
In the Société Internationale de Plantations d'Hévéas 
(SIPH) joint venture in West Africa, four HCV/HCS as-
sessments have been carried out since 2015, cover-
ing 7,361 ha. SIPH is committed to conducting HCV 
and HCS assessments, together with FPIC processes 
when applicable, before any new development of 
plantations. 
Engagement with Priority Suppliers 
Michelin’s natural rubber supply chain is primarily 
supplied by smallholders (or outgrowers). In 2019, 
less than 11% of natural rubber volume1 originated 
from large plantations2. Of natural rubber volume 
sourced from large plantations, 76% of volume was 
purchased from suppliers which have publicly adopt-
ed their own comprehensive zero-deforestation and 
FPIC commitments and are publicly reporting evi-
dence of applying relevant actions on the ground 
(e.g. policy commitments, publication of HCV/HCS 
reports, transparency dashboards etc.). Michelin is 
committed to continuous engagement with the re-
maining suppliers to encourage publicly assessible 
reporting to demonstrate their implementation of 
zero-deforestation and FPIC. Michelin is planning to 
conduct a deforestation-risk assessment of its sup-
ply chain in collaboration with WWF France in 2021. 
[1] Where Michelin buys from a supplier that sources from both 
large plantations and smallholders/outgrowers, a proportional 
volume is assigned to sourced volume from large plantations vs. 
smallholders based on the supplier’s reported raw material sourc-
ing data when available.  
[2] Plantations with individual management units exceeding 500 
ha in area and thus prioritized for engagement. 
Risks 
Activities implemented 
Achievements and planned activities 
Suppliers may not 
understand the implications 
of Michelin’s Sustainable 
Natural Rubber Policy 
Engagement on commitments 
and requirements to fulfill 
policy expectations 
100% of suppliers have been engaged  on 
Michelin’s Sustainable Natural Rubber Policy as of 
2016 
No unified industry 
expectations on key 
sustainable natural rubber 
policy tenets 
Contribution to a unified policy 
framework through the GPSNR 
which sets expectations for 
sustainable natural rubber 
policies to be adopted by all 
GPSNR members. 
Policy component was approved at the GPSNR 2nd 
General Assembly in September 2020 and is to be 
adopted by all GPSNR members. 
  
Deforestation and human 
rights risks (including breach 
of FPIC) associated with the 
development of large-scale 
natural rubber plantations 
Identification of supply coming 
from large-scale plantations. 
  
Engagement with suppliers 
with large-scale plantations 
1. Supply originating from large plantations has 
been identified (11% of volume). Michelin will 
continue monitoring of the implementation of 
zero-deforestation and FPIC commitments of 
suppliers owning these plantations.  
2. Michelin is intending to conduct a global 
deforestation risk analysis in collaboration with 
WWF France  
Deforestation and human 
rights risks associated with 
sourcing other than large-
scale natural rubber 
plantations 
Jurisdictional-level risk 
assessment with the 
Rubberway tool (see pg. 15) 
1. 56 jurisdictions have been risk-mapped for 
environmental and social themes.  
2. Michelin is intending to conduct a global 
deforestation risk analysis in collaboration with 
WWF France  
Summary of Key Risks or Risk Factors Identified 
Michelin Natural Rubber Supply Breakdown (2019)

Sustainable Natural Rubber Progress Report 2015-2020 | 11 Engaging and Assessing the supply chain
 
Supply chain assessments are an essential 
means to ensuring the implementation of 
Michelin’s Sustainable Natural Rubber Policy. 
To that end, much resources have been spent 
on championing the adoption of assessment 
frameworks that can be scalable and able to be 
used by a large proportion of the industry.  
TIER 1 ASSESSMENTS 
For its Tier 1 suppliers, Michelin chose to leverage 
EcoVadis, a global business sustainability ratings 
provider. EcoVadis assesses the maturity of actions 
and systems related to sustainability. These assess-
ments help Michelin to understand relative risk 
among its supply base and identify suppliers with 
weaker performance so that they can implement 
improvement plans.  
Michelin initiated use of the EcoVadis assessments 
in the natural rubber industry in 2013 as part of a 
Group-level initiative for sustainable procurement. 
Through engagement with suppliers and champion-
ing of a common assessment framework for the 
industry, EcoVadis assessments have now become 
widely adopted in the natural rubber industry, with 
a number of tire makers using this tool to measure 
suppliers’ relative sustainability performance.  
EcoVadis assessments score the performance of 
suppliers in four themes (1) Environment (2) Labor 
and Human rights (3) Ethics and (4) Sustainable Pro-
curement. According to the EcoVadis scoring meth-
odology, a score of 45 and above indicates that a 
company has a ‘confirmed’ performance and is like-
ly to be engaged, with a ‘structured and proactive 
CSR approach’ and ‘having policies and tangible ac-
tions on major issues’.   
Where suppliers have scored below 45, Michelin 
requires them to develop and implement a correc-
tive action plan, with special attention paid to 
themes that have particularly low scores. The pro-
cess often includes a meeting with the supplier. 
Michelin has drastically increased coverage of its 
supply under assessment from 50.6% to 85.2% 
from 2013 to 2020. In 2020, 66.9% of its supply3 was 
assessed to be of ‘confirmed’ performance.  
[3] % of supply is measured as % spend (% of spend closely approximates % of supply volume, used for EcoVadis-related indicator as 
EcoVadis assessments are used across all purchasing domains  and % spend is used to measure coverage). Calculated using current year 
EcoVadis score and weighted by spend data from previous year (n – 1). 
Key Figures 
% supply3 assessed by EcoVadis assessments 
85.2%  
of supply3 scored 2020 
% supply3 assessed with score ≥45 (‘confirmed’ 
performance) 
66.9%  
of supply3 with ‘confirmed’ 
performance in 2020

Sustainable Natural Rubber Progress Report 2015-2020 | 12 
The EcoVadis platform is able to provide a high-level 
overview of supplier performance and allows us to 
identify priority suppliers for engagement quickly. At 
the same time, the platform also affords a high level 
of detail, and allows for a range of analysis which we 
utilize. Scores can be broken down by theme to iden-
tify the ones that require additional work. For exam-
ple, in early rounds of EcoVadis assessments, it was 
noted that ‘Sustainable Procurement’ scores were 
low, a reflection of the complex supply chains inher-
ent to natural rubber production.  
This helped to spur the development of the Rubber-
way® solution as a tool that would be helpful not 
only to Michelin but also to its suppliers; supplier 
adoption of the tool has since been reflected in the 
comparatively higher scores from those actively de-
ploying Rubberway in their supply chains. Other 
trends, such as the inconsistent level of maturity in 
Environment and Labor and Human Rights pillars, 
have spurred us to implement not only responsive 
actions such as corrective action plans, but other 
systems-based approaches to improve performance. 
One significant activity has been a pilot to expand 
the Michelin on-site supplier quality audits, which 
assess all supplier natural rubber processing facto-
ries every year (or every two years for factories in 
West Africa) to include environment and social as-
pects, such as wastewater treatment performance 
benchmarked against national or regional standards 
and a health and safety checklist. The pilot was 
launched in 2018 and in 2021 will be formalized and 
expanded to include additional environmental and 
social/labor aspects.  
 Engaging and Assessing the supply chain

Sustainable Natural Rubber Progress Report 2015-2020 | 13 
Summary of Key Risks or Risk Factors Identified Through EcoVadis and On-site Quality Audits 
Risks 
Activities implemented 
Achievements and planned activities 
Inconsistent level of maturity in 
environmental management 
systems (e.g. reporting of 
wastewater treatment results 
against national or regional 
standards). 
-Engagement with suppliers on best practices on 
environmental management systems and reporting 
 
-Inclusion of wastewater treatment performance 
against national/regional standards as part of a pilot 
launched in 2018 to expand the Michelin supplier audit; 
time-bound corrective action plans required when 
underperformance is found. 
-Average supplier score for environment pillar as assessed by 
EcoVadis improved from 42.6 points in 2015 to 54.8 points in 2020. 
 
-Inclusion of wastewater treatment performance in Michelin 
supplier audit, additional environmental aspects to be added and 
formalized as part of assessment criteria from 2021. 
Inconsistent level of maturity in 
health and safety management 
systems (e.g. lack of reporting on 
the implementation of risk 
assessments and mitigation 
measures). 
-Engagement with suppliers on best practices on health 
and safety management systems and reporting 
 
-Inclusion of health and safety standards as part of a 
pilot to expand the Michelin supplier audit; time-bound 
corrective action plans required when 
underperformance is found. 
-Average supplier score for labor and human rights pillar as 
assessed by EcoVadis improved from 41.3 points in 2015 to 54.3 
points in 2020. 
 
-Inclusion of health and safety checklist in Michelin supplier audit, 
additional labor and human rights aspects to be added and 
formalized as part of assessment criteria from 2021. 
Low ‘Sustainable Procurement’ 
scores due to a poor 
understanding of supply chain, 
particularly in countries where 
supply is dominated by 
smallholders selling through 
intermediaries (i.e. Thailand and 
Indonesia) 
Completed: 
-Development of Rubberway® tool to help suppliers 
map their supply chains, including networks of 
intermediaries and smallholders 
 
Ongoing: 
-Expanding adoption and deployment of Rubberway 
tool, embarking on risk mitigation projects to address 
risks from Rubberway findings 
-Rubberway® developed in 2016 and deployed by 55% of supply at 
2020 (see pg. 15). 
  
-Average supplier score in EcoVadis assessment pillar ‘Sustainable 
Procurement’ improved from 33.9 points in 2015 to 40.4 points in 
2020. Average score of suppliers deploying Rubberway is 
comparatively higher 
Additional risks and complaints 
made against suppliers as 
identified by EcoVadis 360 watch 
report. 
-Engagement with suppliers to submit follow-up 
reports when their scores have been impacted by 
EcoVadis 360 Watch Reports 
-Odor related to natural rubber processing has been identified as a 
material topic due to the incidence of complaints from a community 
in Thailand found in an EcoVadis 360 Watch Report. As part of its 
capacity building efforts, Michelin is planning to publish a guidance 
document relating to odor control in 2022. This guide is for 
application by factories likely to have an impact on surrounding 
communities. Engaging and Assessing the supply chain

Sustainable Natural Rubber Progress Report 2015-2020 | 14 Engaging and Assessing the supply chain
 
One of the biggest challenges facing the natural rubber industry on its journey 
toward sustainability is the highly fragmented natural rubber supply chain. The 
challenge arises not only in that fact that 85% of the global natural rubber supply 
originates from smallholder farms, but also through the multiple tiers of inter-
mediates that buy and sell natural rubber. In Indonesia and Thailand, it is com-
mon for natural rubber processing factories to source raw material through in-
termediary dealers three or more layers deep. This results in a very complex 
supply chain, with a single natural rubber processing factory having thousands 
(and sometime tens of thousands) of smallholder farmers in their supply shed, 
most of whom they have little to no direct interaction with.  
Developed to help tackle this challenge, Michelin developed Rubberway®, a digi-
tal solution to assess and map social and environmental risks throughout the 
natural rubber supply chain. Central to the solution is the Rubberway web-based 
mobile application, which leverages a device readily available to most factory 
staff and many farmers: a mobile phone. Using any web-capable mobile device, 
rubber suppliers and farmers can answer a structured questionnaire that sur-
veys them on environmental, social and agricultural practices. This is typically 
facilitated by a natural rubber processing factory, who can either survey farmers 
directly, or through engagement with intermediary dealers. 
From there, data points are then aggregated on a web-based dashboard, which 
generates risk scores from groups of data for statistical analysis. Data can be 
visualized at multiple scales, from a single factory’s supply shed, to an interactive 
world map that can identify risks at jurisdictional levels. This data can be used by 
individual natural rubber processing factories, or downstream actors like tire 
makers to better understand risks within their supply chain. The outcome is that 
stakeholders (tire makers, natural rubber processors, etc.) are equipped with the 
information they need to identify and mitigate risks with specific interventions.  
INCREASING TRANSPARENCY OF THE UPSTREAM NATURAL RUBBER SUPPLY CHAIN

Sustainable Natural Rubber Progress Report 2015-2020 | 15 Engaging and Assessing the supply chain
 
Rubberway has been operational since 2017 and is 
already used in the main rubber producing countries 
(including Thailand, Indonesia, Côte d'Ivoire, Nigeria, 
Ghana, Liberia and Brazil). More recently in 2019, 
amidst an industry-wider push for greater transpar-
ency in the natural rubber supply chain, Michelin, 
Continental AG, and Smag, a leading software devel-
oper for agriculture, have announced the creation of 
a joint venture to further develop this solution. This 
aims to create an independent solution that can be 
widely applied across the natural rubber supply 
chain and hopes to engage more actors to partici-
pate in the platform.  
Rubberway collects data from all actors in the supply 
chain, including natural rubber processing factories, 
large plantation operations, intermediaries and 
smallholder farmers. Michelin has been working 
with individual natural rubber processing factories 
to deploy Rubberway throughout their upstream 
supply chains, and provides training on raw material 
supplier and smallholder engagement. 
As of 2020, 55% of Michelin’s natural rubber volume 
is sourced from factories that are deploying Rubber-
way4. Michelin’s target to deploy Rubberway to cover 
80% of its natural rubber volume by 2020 has been 
postponed to 2021 as travel restrictions due to the 
Covid-19 pandemic have disrupted training of sup-
plier factories, as well as limited the ability of suppli-
ers to effectively reach intermediaries and farmers 
at scale due to intra-country movement restrictions 
in many countries. 
Using the mobile application, factories are enabled 
pursue an on-the-ground risk-mapping of their 
smallholder supply base. They can do this directly 
with farmers, or with the help of intermediaries. 
Rubberway uses a statistical methodology that ag-
gregates data at a jurisdictional level, and factories 
will have to reach a defined proportion of their theo-
retical smallholder supply shed (calculated based on 
delivery volumes, average yields and average farm 
size in the country). Upon completion, factories are 
provided with a risk assessment report with mitiga-
tion recommendations.  
As of 2020, 30% of Michelin’s natural rubber volume 
is sourced from factories that have had their small-
holder supply chains risk-assessed at a jurisdictional 
level5. In spite of difficulties in 2020, Michelin be-
lieves that it now has sufficient data to begin prelimi-
nary identification of priority areas for intervention 
and as of end-2020, is embarking on its first risk-
mitigation project, which is targeting selected juris-
dictions in Central Sumatra, Indonesia.  
Rubberway’s use-case as a tool for smallholders is 
particularly compelling due to the ease of its deploy-
ment in the field, and is a focus for Michelin. Today, 
Rubberway has generated 1.8 million datapoints, 
and has collected data from almost 40,000 small-
holders, meaning that it hosts the most comprehen-
sive dataset relating to natural rubber smallholders. 
Key Figures 
Rubberway® deployment 
58 
Number of NR processing factories 
that are deploying Rubberway 
56 
in six 
countries 
jurisdictions where Rubberway 
questionnaire have been completed 
(≥50 respondents) 
39,276 
smallholder questionnaires 
completed (cumulative) 
55% 
of supply deploying Rubberway 
solution4 
30% 
of supply where source has been 
risk-assessed at a jurisdictional level 
(Rubberway)5 
[4] suppliers are considered to be deploying Rubberway when they have implemented a number of Rubberway questionnaires equal to 80% 
of the number of their direct suppliers.  
[5] suppliers are considered to have their source risk-assessed at a jurisdictional level when they have implemented Rubberway question-
naires with at least 5% of their theoretical smallholder supply shed. Full definitions for [4] and [5] can be found in the Sustainable Natural 
Rubber Roadmap 2020-2025

Sustainable Natural Rubber Progress Report 2015-2020 | 16 Engaging and Assessing the supply chain
 
Rubberway® Risk Mapping Themes 
Rubberway® assesses smallholders based on a questionnaire that covers four themes (15 including sub-themes). Based on the farmers aggregated responses by 
jurisdiction, risk scores can be assigned to the themes. Higher risk scores do not necessarily indicate poor practices but are an indication of the relative potential for 
negative environmental or social outcomes. For example, a jurisdiction with a high proportion of farmers hiring workers have a higher risk of labor issues compares 
with a jurisdiction with farmers that do not hire workers, although the score does not directly communicate malpractice. 
Theme (subtheme) 
Theme description 
Respecting people 
Consolidation of subthemes on labor and human rights aspects 
(Employment status) 
Regarding the labor structure of the farm. (e.g. presence of workers, job scope of workers, availability of formal contracts) 
(Decent and minimum wage) 
Revenue generated by rubber production. Does the farm owner and his/her workers earn the minimum wage from their production? 
(Working hours) 
Duration of workday for farmers and workers. Duration of rest. 
(Workers entitlement to rest) 
Workers entitlement to rest days and leave. 
(Migrant workers) 
Employment and practices relating to migrant worker management (e.g. equal salary, documentation) 
(Child labor) 
Involvement of children in farm work. Type and duration of work (e.g. outside school hours, seasonal). 
(Health and safety) 
Health and safety training and experience. Use of personal protective equipment. 
(Grievance systems) 
Mechanism for labor-related feedback between workers and farm owners. 
Protecting the Environment 
Consolidation of subthemes on environmental management and land use. 
(Environmental Management) 
Queries farmer on negative feedback received on pollution and odor from the surrounding community. 
(Biodiversity and Deforestation) 
Biodiversity risks correlated with chemical pesticide and herbicide use, deforestation risk correlated with farm age and farm expansion. 
(Land Ownership) 
Availability of official or other forms of land titles. 
Agricultural Training 
Sources of training received on agricultural techniques, frequency of training and use of productive varieties. 
Commercial Transparency 
Knowledge of market value of produce, price, invoice and business transparency provided by buyers (e.g. receipts).

Sustainable Natural Rubber Progress Report 2015-2020 | 17 
Rubberway Jurisdictional Level Summary of Smallholder Risk Mapping Scores 
Within Michelin’s supply chain, smallholder risks have been mapped across 56 jurisdictions (where respondents number 50 or more) over six countries. The results6 
are presented below and summarized by country, where each grid-square indicates the risk scores of a single jurisdiction. Jurisdictions are administrative divisions in 
each country that in general correspond to a 100km by 100km square. Engaging and Assessing the supply chain
 
[6] Results presented in this figure are as of 30 November 2020

Sustainable Natural Rubber Progress Report 2015-2020 | 18 
Rubberway Jurisdictional Level Summary of Smallholder Risk Mapping Scores 
Within Michelin’s supply chain, smallholder risks have been mapped across 56 jurisdictions (where respondents number 50 or more) over six countries. The results6 
are presented below and summarized by country, where each grid-square indicates the risk scores of a single jurisdiction. Jurisdictions are administrative divisions in 
each country that in general correspond to a 100km by 100km square. Engaging and Assessing the supply chain
 
[6] Results presented in this figure are as of 30 November 2020

Sustainable Natural Rubber Progress Report 2015-2020 | 19 
Risks or Risk Factors Identified by the Rubberway Solution Summarized by Country 
Country 
Findings 
Activities/Planned activities 
Côte 
d'Ivoire  
• 
Employing workers is a common practice in most jurisdictions. While there 
is low risk regarding working hours and entitlement to rest, there seems to 
be a lack of formal grievance platforms for workers.  
 
• 
A number of jurisdictions have medium risk scores for the ‘Biodiversity and 
Deforestation’ environment subtheme. This is in part due to relatively 
young (< 10 years and <25 years old)   farms, which warrants further study 
on land cover prior to farms establishments. Indications of chemical use 
also contribute to the medium risk scores, due to the use of paraquat and 
glysophate as herbicides. 
 
• 
Moderate risk scores are common among jurisdictions for the land 
ownership sub-theme. Structurally, access to official land titles remains a 
practical challenge for smallholders across the country, and therefore 
community or equivalent titles are more common.  
 
• 
Buyer-farmer relationships are in general, well established in the West Africa region. 
Training on agriculture practice and health and safety is commonplace. Michelin is 
seeking to work with the SIPH joint venture operating in West Africa to expand training 
to include aspects relating to labor management and labor rights. 
 
• 
Detailed analysis was conducted on the ‘Biodiversity and Deforestation’ subtheme, and 
the data indicated low risk scores for land cover prior to development for most 
jurisdictions (i.e. respondents indicated that previous land cover was open land, 
brownfield or other crops). 
• 
Michelin will work with the SIPH joint venture to conduct further on-the-ground 
surveys on the two jurisdictions with medium risk scores relating to land cover 
prior to establishment.   
• 
Trials on drastically reducing pesticide use are ongoing in a joint venture 
plantation operation in West Africa. Practices will be disseminated to farmers to 
reduce the use of pesticides based on these learnings, through well-established 
agricultural training bodies and frameworks.   
 
• 
Michelin is engaged as part of a discussion with a group of local partners in West Africa 
and government agencies to explore pragmatic solutions to help farmers improve 
security regarding land tenure, input includes learnings from the SIPH joint venture’s 
similar project in Ghana.  
Ghana 
• 
Employing workers is a common practice in most jurisdictions. While there 
is low risk involved regarding working hours and entitlement to rest, there 
seems to be a lack of formal grievance platforms for workers   
 
• 
A number of jurisdictions have medium risk scores for the ‘Biodiversity and 
Deforestation’ environment subtheme. This is in large part contributed by 
data showing relatively young (<10 and <25 years old) farms throughout all 
jurisdictions. This finding is not surprising as the rubber industry is 
relatively young in Ghana. Forest protection laws are relatively strong in 
Ghana, but further study on land cover prior to farm establishment is 
warranted. Chemical use, including herbicides such as paraquat and 
glysophate, also contribute to the medium risk scores in this subtheme . 
 
• 
Only four districts have medium risk scores for the ‘land ownership’ 
subtheme. The relatively low risk scores are explained in part by an on-
going program organized by the SIPH joint venture in Ghana that works 
with farmers (outgrowers) to secure official land titles in collaboration with 
the government. New farmers continue to be enrolled in the program .  
 
• 
Buyer-farmer relationships are in general, well established in the West Africa region. 
Training on agriculture practice ad health and safety is commonplace. Michelin will seek 
to work with the SIPH joint venture operating in West Africa to expand training to 
include aspects relating to labor management and labor rights . 
 
• 
Detailed analysis was conducted on the ‘Biodiversity and Deforestation’ subtheme, and 
the data indicated low risk scores for land cover prior to development across all 
jurisdictions . 
• 
Trials on drastically reducing pesticide use are ongoing in a joint venture 
plantation operation in West Africa. Practices will be disseminated to farmers to 
reduce the use of pesticides based on these learnings, through well-established 
agricultural training bodies and frameworks. 
 
• 
Program with outgrower farmers to secure official land titles by the SIPH joint venture 
will continue to enroll new farmers.  Engaging and Assessing the supply chain

Sustainable Natural Rubber Progress Report 2015-2020 | 20 
Risks or Risk Factors Identified by the Rubberway Solution Summarized by Country 
Country 
Findings 
Activities/Planned activities 
Thailand 
• 
Relatively low risk scores across jurisdictions likely reflect a long tradition of 
smallholder rubber farming and strong support by the government and 
agricultural agencies. Farmers generally have small farms and a not many 
employ workers or employ few workers. 
 
• 
There are a number of jurisdictions showing high risk scores for the 
‘grievance systems’ subtheme, however, data may not be representative as 
there are a low number of respondents; few farmers hire workers to begin 
with. It was noted during on-the-ground interviews that individual farm 
management structures are relatively hierarchical and may not promote 
feedback between workers and farm owners, and this warrants further 
study. 
 
• 
Two jurisdictions show medium risk scores relating to the ‘Deforestation 
and biodiversity’ subtheme. Farms in these two jurisdictions are relatively 
younger compared to other jurisdictions and warrant further study.  
 
• 
We plan to engage with Thailand’s rubber governmental agency to share Rubberway 
findings, especially those relating to labor subthemes (e.g. grievance mechanisms), and 
discuss potential action plans that can be collaboratively implemented. 
 
• 
Further study on farm establishment and prior land cover is warranted for the two 
jurisdictions with medium risk scores in the ‘deforestation and biodiversity’ subtheme. 
Michelin plans to conduct a follow-up study on these two districts in collaboration with 
Rubberway on the circumstances of farm establishment in these two jurisdictions. 
Indonesia 
• 
A number of jurisdictions show medium risk scores for ‘minimum and 
decent wage’, ‘health and safety’ and ‘grievance systems’.   
 
• 
Agricultural practices show medium and high-risk scores across a large 
number of jurisdictions, which arise from infrequent or lack of training and 
the use of less productive varieties. The low scores here seem to correlate 
with, and possibly have an impact on, the performance in other subthemes 
(e.g. agricultural training often includes health and safety aspects and crop 
productivity leads to higher income). 
• 
Noting a cluster of jurisdictions located in central Sumatra with relatively low scores 
across a few themes, Michelin, with its partners, has decided to develop a project 
targeting smallholder farmers in the central Sumatra region. Named Project CASCADE 
(Committed Actions for Smallholders Capacity Development), the project aims to control 
sustainability risks linked to natural rubber production in the target communities, 
through a holistic capacity building program that empowers farmers to adopt good 
practices. The project aims to address income generation, worker’s rights, health and 
safety, and environmental practices. It also aims to create opportunities for livelihood 
diversification through intercropping and agroforestry models.  Engaging and Assessing the supply chain
 
*Nigeria and Brazil have been excluded from this table pending further deployment and as more jurisdictions are risk mapped.

Sustainable Natural Rubber Progress Report 2015-2020 | 21 Words in ACtion
 
In addition to supplier engagement with its policy and assessment tools, 
Michelin is also committed to concrete actions on the ground. In the last 
five years, it has sought to apply the knowledge gained from its own op-
erations and its long-standing partnerships to an ambitious project in In-
donesia to demonstrate the sustainable production of natural rubber 
which contributes to environmental and social outcomes in the land-
scape context. Michelin remains committed to promoting and facilitating 
the transfer of learnings from these projects across the industry and in 
application to smallholder farmers. 
A STRONG FOUNDATION: OURO VERDE BAHIA PROJECT AND THE 
MICHELIN ECOLOGICAL RESERVE 
Michelin believes that rubber cultivation can be done in a way that balances envi-
ronmental, social and economical outcomes. It has pursued this in Brazil, as part 
of its Ouro Verde Bahia project, which was set up in 2005. With this project, a 
large part of the land previously owned by Michelin in the region was transferred 
over to a cooperative that pursued an agroforestry approach, to plant rubber 
and cocoa, retaining jobs for thousands of jobs in the region. Michelin retained a 
small plantation area, primarily dedicated to the research and development of 
new varieties resistant to pest and disease. In addition, a large block was set 
aside as the Michelin Ecological Reserve, in order to preserve a significant rem-
nant of the southern Bahian Atlantic rainforest. In 2017, the reserve was extend-
ed to include an additional 350 hectares, making the Pachanga River valley the 
only one in the region with no economic or agricultural activity and bringing the 
total area conserved to 3,180 hectares.  
On top of protecting existing forest cover, the reserve also undertook an ambi-
tious restoration program that incorporated land previously occupied by rubber 
groves, so as to expand available habitat. A comprehensive ranger patrol pro-
gram has allowed wildlife to flourish and remain protected. As a result of a broad 
range of partnership with scientist and research institutions, 16 new species of 
flora and fauna have been discovered at the site. 
 
Agro- 
foresty 
approaches to diversify income 
and enable cooperatives to retain 
thousands jobs 
80% 
reduction in hunting pressure 
since 2011 through ranger 
patrol programme 
100,000 
trees from 215 species have 
been planted over 270 ha of 
forest program

Sustainable Natural Rubber Progress Report 2015-2020 | 22 Words in Action
 
A key goal of the Michelin Ecological Reserve is to 
allow for further scientific study to inform conserva-
tion management especially in areas where there 
exist a mix of rubber plantations and natural forest. 
In the past five years, methodological monitoring of 
activities (e.g. ranger patrols and restoration activi-
ties) and of biodiversity have led to an increased 
understanding of the role industrial rubber planta-
tions can play in a landscape matrix alongside natu-
ral forest blocks, some key findings from the team 
are summarized here: 
• 
Guard patrols are essential for the recuperation 
of the fauna and for understanding wildlife 
adaptability to industrial rubber landscapes 
outside large forest blocks. We have seen a con-
tinued recuperation of the fauna over these 
past five years that has changed our under-
standing of which species of animals can adapt 
to a mosaic of rubber plantation with narrow 
riparian corridors of pioneer vegetation. Animal 
species that we previously believed were not 
capable of inhabiting these impoverished for-
ests and rubber groves have expanded their 
ranges into this part of the landscape due to 
the significant reduction of hunting pressure 
resulting from the guard patrols. 
• 
A protected fauna facilitates regeneration of 
more complex forest structures in the degraded 
pioneer forests typical of small forest remnants 
and riparian forests on industrial rubber planta-
tions. Over these past five years, we have been 
actively restoring native forest trees and at the 
same time monitoring fruiting phenology in the 
large forest blocks, productive rubber groves 
and in the pioneer vegetation in the rubber 
groves. We have seen increasing evidence that 
the protected fauna is actively dispersing seeds 
into these habitats far from the large forest 
block, helping to regenerate forest structure 
seen in primary forest remnants. 
• 
Studies continue to increase our understanding 
of the role rubber plantations can play in 
the   preservation of biodiversity if properly 
managed. The results indicate that this role can 
be significant, and while plantations will never 
take the place of state and federal reserves, 
they can supplement the reserve networks in a 
critical and significant manner, especially in bio-
diversity hotspots were these ecosystems are 
acutely threatened. 
Over the past five years, the ecological research 
program has continued at full steam with 8-12 new 
projects each year and 5-7 sponsored field courses. 
In addition to our own research programs, we con-
tinue to provide scientists in conducting research in 
the reserve with an excellent and well-maintained 
infrastructure, food and lodging, security, all free of 
charge. We continue accepting research projects of 
any organism as long as the study is well designed. 
Studies over the past five years have looked at: bird 
habitat use, bird evolution, social spiders behavior 
and evolution, dragonflies, mayflies, amphibian re-
productive behavior and diet, snakes, snails, fungi, 
botany, bromeliad taxonomy and fruiting/flowering 
phenologies, pollination network studies with hum-
mingbirds and bees and soil carbon sequestration 
among others.

Sustainable Natural Rubber Progress Report 2015-2020 | 23 Words in ACtion
 
EMPOWERING SMALLHOLDERS AND IMPLEMENTING COMMITMENTS 
IN THE WEST AFRICA REGION 
At the Société Internationale de Plantations d'Hévéas (SIPH) joint venture, Mich-
elin contributes actively to the ongoing programs empowering smallholders in 
the West Africa region (Côte d'Ivoire, Ghana, Nigeria and Liberia) and building 
their capacity through the relaying of agricultural expertise through its technical 
agricultural teams.  
SIPH was one of the first natural rubber companies to deploy the Rubberway 
tool at scale, aided by the fact that they have long forged close relationships with 
their smallholder suppliers as part of outgrower programs. The outgrower pro-
grams include agricultural training as well as health and safety training and as-
pects of environmental management. In Ghana, in coordination with the govern-
ment, the outgrower program also aims to assist farmers in securing official land 
titles. SIPH also supplies over one million saplings of high-yielding varieties to 
smallholders a year, helping to ensure good yields and promoting sustainable 
livelihoods for the long term. These are sold either at cost price, or at reasonable 
prices that are economical for farmers, and financing is available in some coun-
tries to ease farmers’ cash flows. 
The SIPH joint venture has also readily committed to zero deforestation and FPIC 
commitments, launching its own sustainability policy in 2016. Since 2015, four 
HCV/HCS assessments have been carried out, covering 7,361 ha. In total, SIPH 
sets aside 3,840 ha for conservation.  
In addition, its commitment to protect the environment, SIPH also aims to show-
case the positive impacts businesses can have on the communities around them 
and has built or renovated 47 schools and 37 clinics, facilitating access to educa-
tion, and healthcare for local communities. Today, these contribute to the educa-
tion of 12,000 students and the health centers provide 120,000 consultations per 
year. In 2019, community development project included scholarship awards for 
local students, medical assistance and equipment sponsor initiatives, support for 
construction of community infrastructure including townhalls and direct assis-
tance to schools including subsidies for vacation classes .

Sustainable Natural Rubber Progress Report 2015-2020 | 24 Words in ACtion
 
ROYAL LESTARI UTAMA: LEADING THE WAY FORWARD IN  
SUSTAINABLE, NATURAL RUBBER PRODUCTION 
The Royal Lestari Utama (RLU) partnership offered Michelin a unique opportuni-
ty to participate in a joint venture that could demonstrate the application of its 
commitments to sustainable natural rubber production at scale. Established in 
2015 in Indonesia through a joint venture between Barito Pacific Group and 
Michelin Group, RLU has the vision of building “Integrated Sustainable Natural 
Rubber Plantations in Sumatra and East Kalimantan”.  
These would promote ecosystem friendly rubber plantation practices in a land-
scape that had been highly deforested and degraded in the past in the region of 
Sumatra especially. The project also sought to address social challenges includ-
ing illegal logging, high encroachment, agricultural conversion and as well as 
managing increased conflicts between humans and wildlife. The project was a 
culmination of the experiences Michelin has so far gained in biodiversity and 
conservation management in its Ouro Verde project and agricultural experience 
and farmer empowerment in the West Africa region.  
Adopting a landscape approach in its operating area in Jambi, RLU’s has a signifi-
cant amount of its area set aside as part of a network of protected areas to en-
sure that wildlife, including the Sumatran elephant are protected and can flour-
ish. A 9,700 ha of Wildlife Conservation Area (WCA)7, together with concession 
blocks managed by other actors in the area, serves as a conservation buffer zone 
to help protect the Bukit Tigapuluh National Park and expand available habitat 
for wildlife. Following HCV and HCS assessments in 2015, 28,353 ha has been set 
aside for conservation and biodiversity7. This constitutes 25% of the concessions 
in Jambi and 50% of the concession blocks in Kalimantan. In Kalimantan, large 
set-aside forest blocks maintain critical wildlife habitat for orangutans, and RLU 
has partnered with the Ecology and Conservation Center for Tropical Studies 
(Ecositrop) to conduct an orangutan and wildlife study to inform conservation 
management efforts. 
[7] Figures as reported in RLU’s 2019 Sustainability Report and 2019 Annual ESG Report 
9,700 ha 
Wildlife Conservation Area 
which expands available 
habitat for wildlife like the 
Sumatran elephant7 
50,000 
Target number of local 
livelihoods improved 
through the creation of 
direct and indirect jobs 
 
28,353 ha 
total area set-aside for 
conservation and biodiversity7

Sustainable Natural Rubber Progress Report 2015-2020 | 25 Words in ACtion
 
The project also includes social aspects including a 
goal to enhance the livelihoods of 50,000 locals 
through the creation of direct employment, indirect 
employment, and the training of farmers including 
rubber and diversified crops under the integrated 
farming program.  
Social conflicts relating to land use remain a major 
challenge in the region, and a key learning from the 
RLU partnership is that FPIC is a long term and con-
tinual process. In 2017, in line with findings and rec-
ommendations by the Environmental and Social Due 
Diligence study (ESDD) and another study by Wana 
Aksara Institute on potential conflict mapping, RLU 
has started to initiate a Community Partnership Pro-
gram (CPP). The program aims to develop a forestry 
partnership scheme with smallholders cultivating 
land inside RLU’s concessions in line with govern-
ment regulations.  
Further land tenure study was also conducted by 
independent experts from Rimba Bungaron Indone-
sia (RBI) to map communities including Orang Rimba 
(indigenous group) in RLU’s Wildlife Conservation 
Area (WCA). As a result, an Indigenous People En-
gagement Framework and Community-based Frame-
work Action Plan was developed as part of the find-
ings to reach agreement with communities for the 
long-term protection of this conservation area. As of 
October 2020, >80% of community land claimants 
have been approached through dialogues and en-
gagement activities within the Wildlife Conservation 
Area. Progress reports on the CPP and WCA are 
made available at the RLU transparency platform. 
[8] as of 2020 
Key Figures 
Area of environmentally and biologically important areas conserved and protected in own operations 
3,180 ha  
through the Michelin Ecological Reserve as part of the Ouro Verde Bahia 
project in Brazil8 
Area of environmentally and biologically important areas conserved in partnership with joint ventures 
28,353 ha 
in partnership with Royal Lestari Utama7 
3,840 ha 
in partnership with Société Internationale de Plantations d'Hévéas8 
High-yielding certified saplings produced and supplied to farmers by Group and joint ventures  
1.36m 
In 2020; including saplings sold at cost or economical prices

Sustainable Natural Rubber Progress Report 2015-2020 | 26 Sector and stakeholder engagement
 
SECTOR APPROACH, MULTI-STAKEHOLDER 
PLATFORMS 
Michelin has been actively involved in promoting 
change throughout the industry and has been a long
-time member of the Tire Industry Project (TIP) and 
was instrumental in the formation of the IRSG Sus-
tainable Natural Rubber initiative (SNR-i). Michelin 
and WWF collectively participated in the creation and 
launch of the Global Platform for Sustainable Natu-
ral Rubber (GPSNR) in October 2018. Michelin was 
elected as the first co-chair of GPSNR executive com-
mittee (re-elected for a second year term in Septem-
ber 2020) and has keenly contributed through active 
involvement in four of the five working groups. 
STAKEHOLDER ENGAGEMENT 
Michelin maintains an active engagement approach 
with its stakeholders. To canvass feedback and facili-
tate exchange on Michelin’s activities relating to nat-
ural rubber, it holds biennial stakeholder dialogs in-
volving civil society. In the 2020 stakeholder dialog, 
15 organizations were represented, and the dialog 
was led by an independent facilitator. The feedback 
received helped further define priorities and were 
especially useful in further developing the 2020 – 
2025 Roadmap. The key takeaways were summa-
rized and have influenced and continue to influence 
Michelin’s activities (see table on pg. 27). On top of 
the biennial stakeholder dialogs, Michelin regularly 
engages with NGOs, research and government bod-
ies on topic relating to natural rubber sustainability. 
Such engagement was done during the update of 
our Sustainable Natural Rubber Policy as well as for 
the 2020 – 2025 Roadmap.  
Key Figures 
Stakeholder dialog regarding sustainable natural rubber 
2 
during the period of 2015 - 2020 
Participation in GPSNR working groups 
4 
working groups in which Michelin is actively participating as 
of end-2020

Sustainable Natural Rubber Progress Report 2015-2020 | 27 Sector and stakeholder engagement
 
Michelin continues to report on progress of EcoVadis 
assessment and Rubberway risk scores on the pur-
chasing website. In 2021, Michelin will expand on 
reporting relating to the implementation of its sus-
tainable natural rubber policy through a natural rub-
ber dashboard on the Michelin purchasing website. 
It will include a jurisdictional level summary of the 
Rubberway upstream (smallholder) supply chain risk 
mapping and various metrics (KPIs).  
For avenues relating to stakeholder and community 
feedback, Michelin is working with its joint ventures, 
especially through its position on supervisory board, 
to encourage the development of grievance mecha-
nisms. Michelin currently has a Group wide ethics 
reporting hotline available, and in 2021 will embark 
on a review to determine how best to supplement it 
to achieve an accessible grievance mechanism con-
sistent with UNGP effectiveness criteria and OECD 
guidelines. 
Feedback 
Response/Actions 
General: Today's main challenge is 
deforestation, and tackling deforestation can 
only be done through collective action, based 
on landscape approaches 
Michelin has continued to seek opportunities for cross-organization and 
landscape-level collaboration. The pilot project through its joint venture 
in RLU is pursuing a landscape approach for protection of forest and 
wildlife in public-private partnerships. To scale up the adoption of risk 
mapping for the complex smallholder supply chain, Rubberway, 
originally developed by Michelin, is now an independent start-up with 
the purpose of scaling up wider adoption and further development of 
Rubberway: Michelin should develop a 
detailed impact assessment methodology to 
better evaluate its actions. 
Michelin has launched an intervention project in the island of Sumatra 
relating to smallholder farmer practices as a result of findings related to 
Rubberway. A key part of the project will be to develop structured 
impact assessment methodologies to measure the impact of the 
interventions over time. Michelin is working with a partner that 
specializes in environmental and social impact projects to develop and 
implement these methodologies. 
Rubberway: Link with other existing tools: 
Michelin should further explore opportunities 
to link Rubberway® with other existing tools 
especially in order to better identify 
deforestation risks. 
Rubberway is now an independent start-up aiming to scale up its 
adoption throughout the natural rubber supply chain. It is engaged in a 
number of collaborations, including with academic institutions and 
research centres, to explore how the data collected can be further 
leveraged on, including deeper analysis of the raw data and cross 
analysis with other datasets. Michelin is intending to conduct a global 
deforestation risk analysis and will seek synergies to link Rubberway 
results with that analysis. 
Rubberway: Action plan in case of identified 
high risk areas / non-compliant stakeholders 
should build a strong action plan to deal with 
high risk areas / non-compliant stakeholders 
Michelin has launched an intervention project in the island of Sumatra 
relating to smallholder farmer practices as a result of findings related to 
Rubberway. Michelin, together with its partners, intends to communicate 
on the specific interventions on the project, as well as to develop impact 
indicators for reporting. 
Due diligence: Risk mapping is key to nurture 
an efficient strategy. Participants highly 
suggested that Michelin explores solutions for 
sophisticated risks mapping. 
Michelin is deploying Rubberway on an increasing proportion of its 
upstream supply chain, in tandem with direct supplier assessments 
through EcoVadis. This is part of our due diligence strategy, as a 
powerful and pragmatic way to identify risk at a jurisdictional level. 
Sustainable Natural Rubber Roadmap 2020-
2025: establish clearer linkage between 
actions, the roadmap and Michelin’s 
commitments 
Feedback received resulted in Michelin significantly revamping the 
Roadmap, including to disaggregate our roadmap pillars according to 
our policy sections so that progress toward policy items could be better 
tracked and monitored. 
Feedback Received During 2020 Stakeholder Dialog and Response

Sustainable Natural Rubber Progress Report 2015-2020 | 28 
The past five years have been an exciting, yet challenging journey of generating 
momentum throughout the natural rubber industry. Michelin has focused its 
efforts on establishing frameworks and creating tools to understand gaps and 
risks. These efforts have extended not only to our suppliers, but also to their 
own upstream supply chains. The on-boarding of our suppliers in this journey 
was especially challenging, as concepts relating to sustainable sourcing 
(especially relating to sourcing from smallholder farmers) were not typically un-
derstood to be within the scope of many natural rubber processing companies. 
To address this, capacity building and continued engagement was essential, as 
was the development of tools such as Rubberway®, so that our suppliers could 
practically undertake sustainability commitments. More recently, industry-wide 
shifts towards the adoption of strong sourcing commitments, together with 
multi-stakeholder platforms like GPSNR, have undoubtedly help start a greater 
shift in perspectives across the supply chain.  
In light of the highly fragmented and dynamic nature of the natural rubber sup-
ply chain, Michelin believes that an impact-driven model, that uses a risk-based 
approach, is key to result in large scale change.  Such a model should also pro-
mote continuous improvement in order to leave no one behind. Through Rub-
berway, four years of canvassing smallholder farmers on-the-ground, in part-
nership with our suppliers, has resulted in the richest dataset relating to risks in 
the upstream segment of the supply chain. The dataset is not only allowing us 
to prioritize interventions tailored to specific jurisdictions, but is also being uti-
lized by academic institutions and researchers to better understand the natural 
rubber supply chain.  
We are excited to extend our work on the ground with smallholders, and plan 
that our newly launched CASCADE project will be a useful model to channel re-
sources where they are needed most.  
To help guide the next five years of our work, we are launching our Sustainable 
Natural Rubber Roadmap for 2020 – 2025, which charts our course toward con-
tinued transformation of the natural rubber supply chain.  
Our constant efforts to pave the way towards a truly sustainable natural 
rubber supply chain demonstrate that Michelin cares about offering every-
one a better way forward.  Conclusion

Sustainable Natural Rubber Progress Report 2015-2020 | 29 
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