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Michelin governance structure sustainability integration

Added on 02-06-2013

Company

Michelin

Network

CSR Europe

Year

2013

Business challenge

In 2013, Michelin’s sustainable development governance system has been reorganized to make it more efficient and to integrate it more effectively at every level and in all of the company's businesses. The ultimate goal is to embed Michelin’s sustainable development approach in the corporate strategy.

The reorganization had not been a challenge as such. After reviewing the first 10 years of Michelin’s sustainable development approach, the CEO expressed his willingness to breathe new life into the process. The idea was to develop a long-term vision, create better processes and increase Michelin’s long-term objectives. The CEO’s involvement was key to make the process work quickly and efficiently.

The real challenge is:

  • to better manage and better measure Michelin’s commitments to sustainability in order to embed them firmly in the corporate strategy and culture.
  • To establish appropriate governance mechanisms ensuring that Michelin’s sustainable goals are formulated, embraced, resourced and monitored effectively.

Description

Michelin consolidated the governance structure, by creating an 11-member Sustainable Council chaired by the CEO, a Sustainable Operating Committee and an internal global network. In addition, the company sets six quantifiable targets for 2020 in order to intensify its efforts to promote sustainable mobility.

Michelin’s Sustainable Council, consisting of the CEO and ten of his direct reports, provides oversight of the sustainability vision, implementation and performance.

To supplement the Sustainable Council, Michelin’s Operating Committee recommends goals, metrics and targets, and coordinates and monitors progress against them. Each Council member is represented on the Michelin’s Operating Committee by one of her/his direct reports. The internal global network comprises representatives from zones and/or countries, whose role is to coordinate with the Sustainable Committee and the Sustainable Team to advocate for Michelin’s commitments at the zone/country level.

In 2014, The Supervisory Board appointed as one of its members, Pat Cox, former President of the European Parliament, to oversee Michelin’s sustainable development approach. He will make sure that the direction and implementation is fully aligned with the company's strategy. He will report on the sustainable approach and Goals to the Supervisory Board.

Impact

The consolidated governance structure has enabled a better coordination and follow-up as far as progress is concerned. It is also the best way to identify potential shortcomings and take the appropriate actions. As a result, Michelin’s long-term objectives have been embraced by everyone, at every level, in every job and deployed in every country with clearly defined, regularly measured targets.

The supervision of the sustainable approach by the Supervisory Board has given a new impetus to its implementation. It is also the best way to ensure that the sustainability approach is aligned with the corporate strategy and moves forward in the right direction.

Challenges/Lessons learned:

The CEO’s involvement has been key to make the process works quickly and efficiently.

We did not really face challenges to implement this new governance structure. The adoption of new sustainability ambitions by 2020 has been the real lever to involve all employees and departments within the company. The new structure is helping to pilot those ambitions and take the decisions needed in a timely and efficient manner.

Involving the Supervisory Board helps the company to open up and move forward in its sustainability agenda.

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