MICHELIN TOPS THE 2021 SPOTT ASSESSMENT ON ESG TRANSPARENCY IN NATURAL RUBBER INDUSTRY

Thursday 28 April 2022 11:41
Michelin, the world's leading tyre company, was ranked number one in the 2021 assessment of the natural rubber sector by SPOTT. This analysis covers the companies' public policies and commitments relating to environmental, social and governance (ESG) issues, supporting the financial sector and supply chain stakeholders to manage ESG risk.
MICHELIN TOPS THE 2021 SPOTT ASSESSMENT ON ESG TRANSPARENCY IN NATURAL RUBBER INDUSTRY

SPOTT (Sustainability Policy Transparency Toolkit) - an assessment framework created by international conservation charity, ZSL (Zoological Society of London) - assesses commodity producers, processors and traders on their public disclosure regarding their organization, policies and practices related to environmental, social and governance (ESG) issues. SPOTT scores tropical forestry, palm oil and natural rubber companies?annually against over 100 sector-specific indicators to benchmark their progress over time.

The latest SPOTT assessment, published in March 2022, assessed 30 natural rubber companies, including the world's largest tyre manufacturers and natural rubber producers. Against an industry average of 39.3%, Michelin outclassed its peers to score highest of all with 81.8%. This demonstrates Michelin's leadership in sustainability disclosures and transparency.

"ZSL is calling on companies to regularly disclose clear and accurate ESG information on their websites and to encourage their suppliers to follow suit. Transparent reporting from across the supply chain allows the tracking of progress towards a scenario where natural rubber production becomes sustainable and equitable." said Sam Ginger, ZSL's lead analyst on the study.

"This ranking is a proud testament of Michelin's long-standing commitment to sustainable mobility and continuous engagement with its stakeholders. We are implementing our sustainable natural rubber policy by ramping up action on the ground, engaging with our supply chain to assess and mitigate ESG risks, and empowering smallholders through capacity building projects for improved livelihoods and environmental practices. This includes the CASCADE project that will empower 1,000 smallholders in Indonesia, where its specific interventions have been directly informed through our RubberWay risk mapping tool. Transparency is a key part of our approach, as an essential link to our stakeholders which keeps us accountable to our commitments. We strive to do better, setting a new standard for the overall tyre industry, so that together we can make a more positive difference to the world we live in." said Mr. Segsarn Trai-Ukos, Managing Director of Societe des Matieres Premieres Tropicales Pte Ltd (SMPT), a subsidiary of the Michelin Group which functions as its natural rubber procurement and technical hub.

Source: Michelin Siam

MICHELIN TOPS THE 2021 SPOTT ASSESSMENT ON ESG TRANSPARENCY IN NATURAL RUBBER INDUSTRY