A Better Way Forward

Thanks to Michelin’s commitment to environmentally conscious manufacturing, the East Asian ecosystem has a better chance than ever of bouncing back.

Like many retailers -- in industries ranging from fashion to food -- tire manufacturer Michelin has recently come under scrutiny for its unethical sourcing and labor practices. A change is afoot, however, as Michelin has renewed its efforts to make good on its trademark promise of finding “a better way forward.”

But how is Michelin taking action? As Public Radio International points out, the company isn’t reinventing the wheel -- rather, they’re reinventing the rubber supply chain.

Taking a Stand Against Deforestation

For some, it might be surprising to learn that rubber really does grow on trees. Unfortunately, as a result of mass production, those trees are dwindling in number. South East Asia, which is home to 90% of the world’s rubber production, has lost hundreds of millions of acres of natural forest since the 1970s. While 53 major companies agreed to eliminate deforestation from their supply chains at the 2014 Climate Summit in New York, none of those companies represented big rubber.

All of that changed, however, with Michelin’s announcement of a new zero deforestation policy. According to their policy, the end goal is to create an optimized supply chain that can provide a “neutral, and potentially positive, carbon footprint.” “The [Michelin] Group,” they go on to state, “undertakes not to contribute voluntarily, directly or indirectly, to actions which might lead to the illegitimate appropriation of land to the detriment of local communities or populations.”

In short, Michelin is “keen to protect natural forests” -- and it shows. In light of their new land management policy, many environmental groups are lauding Michelin’s commitment to change. Greenpeace France, for example, is thrilled, noting that “the announcement by the Michelin group to commit to a zero deforestation natural rubber procurement policy sends a strong signal to the entire rubber sector: it will soon be more difficult to sell natural rubber that contributes to deforestation.”

Disrupting the Rubber Industry

As Greenpeace noted, while Michelin’s new sustainability policy is big news, its potential implications for the rubber industry as a whole are even bigger. After all, there’s no denying the influence that the Michelin group wields -- not only as a supplier of rubber, but as a staple of American industry. Since arriving in North America more than 40 years ago, Michelin has invested billions of dollars and created tens of thousands of jobs. Translation: where Michelin leads, the industry follows.

Of course, there are still important changes to be made. Sustainable production practices can’t be perfected overnight; and while preliminary steps have been made towards protecting our natural resources, they’re still dwindling at an alarming rate. Even so, Michelin’s commitment to sustainability is certainly a step in the right direction: having invested over 3 billion in sustainable growth strategies since 2011, there’s no doubt that Michelin is committed to making a difference. With this precedent set, companies that rely on dubiously-sourced rubber may no longer have a leg to stand on.