GHG (Green House Gas) Definition of the protocol
1 - SCOPE 1 Direct GHG emissions from sources belonging to or controlled by the company, whether the sources are fixed or mobile
SCOPE 2 GHG emissions from the production of purchased electricity, steam and heating/cooling used by the company.
2 - SCOPE 3 Emissions generated by the company’s operations, but whose sources are neither held nor controlled by the company. These activities are organized into 15 categories, eight of which represent the upstream value chain and seven the downstream value chain.
3 - GHG A greenhouse gas (GHG) that absorbs and emits radiant energy in the thermal infrared range, generating the greenhouse effect. CO2 is a greenhouse gas.
4 - Science Based Targets initiative (SBTi): The Science Based Targets initiative (SBTi) is a leading independent international organization that encourages participating companies to set greenhouse gas (GHG) emissions reduction targets. SBTi partners: United Nations Global Compact (UNGC) | Carbon Disclosure Project (CDP) | World Resources Institute (WRI) | WWF (World Wildlife Fund).
5 - Michelin's commitment to net-zero emissions***, under the SBTi Corporate Net-Zero Standard***, means reducing CO2 emissions from its own operations and those of its value chain by 90% and preparing for the longer-term capture and permanent storage of a volume of CO2 equivalent to the residual emissions each year.
(1) Mileage and financial cost provided by way of example to model the CPK approach.
MICHELIN Single-life: 100% purchase cost & 100% mileage, i.e. CPK = €1.00 / km;
MICHELIN Multi-life: 100% new tire purchase cost + 10% regrooving + 60% retreading + 10% regrooving = 180% & mileage
100% new tire + 25% regrooving + up to 100% retreading + 25% regrooving = up to 250%, i.e. CPK: €0.72 / km
or up to 28% saving for multi-life tires vs. single-life tires.
(2) Source: Michelin internal analysis. Figures based on average costs, regardless of usage, vehicle types/makes and the fleets’ location in Europe.
(3) * 0.8l is the average difference measured (VECTO value) between two labeling letters (B as against C) with a new tyre. Simulated average fuel saving over a tyre’s lifetime is 0.6 liter per 100km between a B-label tyre and another C-label tyre, achieved by a vehicle traveling 150,000 km/year, for a total fleet of 50 vehicles, based on a price per liter of €1.45.
* CPK: Cost Per Kilometer
** TCO: Total Cost of Ownership
*** Michelin aims to achieve net-zero emissions by 2050 for Scopes 1, 2 and 3, with the priority initially being to reduce emissions
from all its production facilities, its transport operations and its raw materials and component supply chain. In July 2021, Michelin
joined the "Race to Zero" campaign and made a commitment supported by the international consortium Science Based Targets
initiative (SBTi), the United Nations Global Compact and We Mean Business to set short-term (between 2024 and 2034) and long-term (between 2035 and 2050) reduction targets for all three Scopes, excluding the use phase, and to neutralize residual emissions
each year in order to achieve net-zero emissions no later than 2050.
The 3 scopes are defined in the Greenhouse Gas Protocol (see https://ghgprotocol.org/).
