Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap
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Sustainability Driven:
Accelerating Impact with the
Tire Sector SDG Roadmap
Tire Industry
Project
Contents
Foreword | 3
1 Executive summary | 6
2 The SDGs and the tire sector | 9
3 Impact pathways | 21
4 The road to 2030 | 43
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 2
Foreword
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 3
Foreword
The Sustainable Development industry transformation on the that our industry continues to
Goals (SDGs) lay out a road to 2030 and beyond. grow. We want to demonstrate
global agenda to tackle the leadership, apply our creativity,
world’s most pressing social, Formed in 2005, the World share our knowledge and provide
environmental and economic Business Council for Sustainable innovative solutions to achieve
challenges by 2030. Development’s (WBCSD) Tire a sustainable, resilient and
Industry Project (TIP) is the inclusive future.
It is well-accepted that business primary global forum for the tire
leadership and action are key industry on sustainability issues. With this Roadmap, TIP offers
to realizing this ambitious TIP’s mission is to proactively a framework for action that
agenda. Companies that take identify and study the potential outlines impactful pathways for
an active role in leading this human health and environmental the entire sector to contribute to
transformation and position the impacts associated with the the ambitions of the SDGs. The
SDGs at the heart of operational life cycle impacts of tires to Roadmap aims to guide, inform
decisions will ultimately be better contribute to a more sustainable and support decision-making
equipped to harness market future. With a membership along the value chain, encourage
opportunities and manage risks. of leading tire manufacturers stakeholder dialogue and inspire
The Business and Sustainable that represent more than 60% action-oriented initiatives among
Development Commission’s of global tire manufacturing industry peers and beyond.
Better Business, Better World1 capacity, TIP is well-positioned
report makes a compelling case to develop this Roadmap as a
for companies to align with the resource that the sector-at-large
SDGs. The report outlines that can use. Tire Industry
Project
sustainable business models
could unlock more than USD $12 As business leaders, we want
trillion in new market value and to work together with sector
create up to 380 million jobs by peers and other stakeholders
2030. Furthermore, the report to help the tire sector navigate
emphasizes the critical role of the sustainability challenges
sectoral partnerships to drive that lie ahead, and ensure
Shu Ishibashi Christian Kötz Brad Hughes Richard Kramer
Global CEO and Representative Member of the Executive President & CEO Chairman, CEO & President
Executive Officer Board Continental AG Cooper Tire & Rubber Company The Goodyear Tire & Rubber Company
Bridgestone Corporation Head of Continental Tires
Lee, So Il Il-Taik Jung Florent Menegaux Marco Tronchetti Provera
President & CEO CEO, Kumho Tire CEO, Michelin Pirelli Executive
Hankook Tire & Technology Co., Ltd. Vice Chairman & CEO
Satoru Yamamoto Takashi Shimizu Masataka Yamaishi
President and CEO, President & CEO Yokohama President, Chairman
Representative Director Toyo Tire Corporation of the Board
Sumitomo Rubber Industries, Ltd.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 4
The Roadmap translates the industry’s vision for sustainable mobility into
action, leveraging TIP’s 15 years of success to identify key opportunities
to positively impact people and society as a whole. The tire industry and its
stakeholders have high expectations for the Roadmap and the future that –
together – it will help us create.
Shu Ishibashi
Global CEO and Representative Executive Officer, Bridgestone Corporation
TIP members value the opinions of stakeholders. The Roadmap reflects this,
with actions shaped through consultation with industry, non-governmental
organizations, international organizations and other groups that have roles to
play in improving the sustainability of the tire value chain.
Richard Kramer
Chairman, Chief Executive Officer and President, Goodyear
The Roadmap aims to become a key reference for any tire-value-chain
stakeholder that aspires to sustainable business. For people and planet, the
Roadmap offers inspirational actions and case studies toward a future of
sustainable mobility.
Florent Menegaux
Chief Executive Officer, Michelin
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 5
1 Executive summary
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 6
1 Executive summary
Since their launch in 2015, the the transition to a low-carbon, production) mapping against the
17 Sustainable Development resilient and resource-efficient Roadmap actions most frequently
Goals (SDGs) and the 169 time- economy, in line (Figure 1).
bound targets underpinning with the SDGs.
them have provided all IMPACT PATHWAYS
stakeholders – the private sector APPROACH We identified seven opportunities
included – with a lens through TIP followed the three-step to maximize positive impact and
which to translate global needs process outlined in WBCSD’s minimize negative impact across
and ambitions into business SDG Sector Roadmap Guidelines three main themes: supply chain,
solutions. Companies and to explore, articulate and realize operations, and products and
sectors that apply their creativity a shared vision for the sector services (Table 1). We developed
and innovation to develop these to contribute to the SDGs. impact pathways for each
solutions will be in a position to This process brought member opportunity with a series
better manage risks, anticipate companies together to identify of actions.
consumer demand, capture how the tire sector interacts
growth markets and strengthen ROAD TO 2030
with the SDGs across the value Achieving the SDGs is beyond
supply chains in line with the chain; areas where the sector
sustainability needs outlined by the reach of any one company
can have the most significant and TIP members recognize
the SDGs. impact; and key actions to scale the integral role they have in
and accelerate contributions driving forward the actions in
PURPOSE
to the SDGs. We consulted a this Roadmap. TIP’s own work
In an effort to drive the
range of global stakeholders program will have the Roadmap at
transformation needed to
from industry associations, its core, including a commitment
achieve the SDGs, the 11
non-profits and subject to develop additional indicators
member companies of the Tire
matter experts throughout the to measure progress by 2023 and
Industry Project (TIP), which
development process. to produce a progress report by
operates under the umbrella
of World Business Council for PRIORITY SDGs 2026 to reflect advancements
the Sustainable Development The tire sector interacts with all and optimize delivery. We
(WBCSD), came together to 17 SDGs; however, this Roadmap encourage all members of the
develop Sustainability Driven: focuses on areas where the sector (including those who
Accelerating Impact with a Tire sector has the greatest potential are not members of TIP), along
Sector SDG Roadmap. The to lead, influence and accelerate with customers, consumers,
Roadmap presents a series of action to make progress on suppliers, governments, academia
ambitious impact pathways the 2030 Agenda. As such, and NGOs, to engage with
outlining how the sector can we identified eight SDGs as the Roadmap. In addition, we
contribute to the 2030 Agenda. priorities and where the sector encourage interested parties to
The Roadmap is intended to can have the highest impact contact TIP with questions and
be an inspirational tool that through multi-stakeholder ideas on how to initiate projects
the sector can use to build a action - with SDG 8 (decent work or strengthen partnerships to
unified response to sustainability and economic growth) and 12 accelerate SDG impact.
challenges, while navigating (responsible consumption and
Figure 1: SDG impact - We identified eight SDGs as priorities and where the sector can have the highest impacts; we identified
SDG 8 and 12 the most frequently.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 7
Table 1: Impact opportunities - Identifying pathways for action
THEME IMPACT OPPORTUNITY
1. Accelerate and scale activities to achieve a fair, equitable and environmentally sound natural rubber
value chain – including ensuring decent work and upholding human rights.
Supply chain
2. Implement sustainable procurement practices and establish environmental, social and governance
(ESG) responsibilities throughout the supply chain, including the promotion of transparency and
traceability.
3. Develop pathways to decarbonize operations, reduce emissions and ensure the sustainable use of
natural resources.
Operations
4. Ensure safe and inclusive working environments and equal opportunities for all employees.
5. Further leverage multi-stakeholder efforts to achieve evidence-based solutions that address tire and
road wear particles (TRWP).
Products and 6. Accelerate the sustainable mobility transition by raising awareness of the impact of user behavior,
services designing connected and intelligent tires, and providing innovative digital solutions.
7. Advance innovation in product, service and business model design to enhance low-carbon and
circular solutions while ensuring sustainable management of end-of-life tires (ELT) around the world.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 8
2 The SDGs and the tire sector
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 9
2 The SDGs and the tire sector
2.1 INTRODUCTION critical role to play in realizing optimize impact by 2030.
SDG-related opportunities The Roadmap aims to guide
Adopted unanimously by the that overcome obstacles and focused action and provides a
United Nations (UN) in 2015, the scale solutions. means to communicate relevant
17 SDGs provide a blueprint to sustainability activities and
Against this background, it is initiatives to key stakeholders.
ensure peace and prosperity for crucial that companies identify
people and the planet, now and ways in which they can innovate
into the future. The 2020 UN Sustainable
and drive meaningful action in
Development Goals
In recognition of the need for their own operations and value
Report2 highlights the
an extraordinary leap forward chains. In its Better Business,
progress made in a
to realize the ambitious SDG Better World1 report, the Business
number of areas since
targets, the UN called for a and Sustainable Development
the launch of the SDGs
“Decade of Action” in 2020. Commission recommends that
in 2015. In particular,
Achieving the 169 targets by players in all industries produce
it highlights progress
2030 will require stakeholders detailed roadmaps – to further
such as expanding
to work together to transform guide sectors and companies
access to electricity
economic and social systems toward sustainability in line with
(SDG 7) and increasing
that can respond to the the SDGs.
women’s representation
ever-changing landscape The 11 TIP member companies in government (SDG 5).
of megatrends and global have joined efforts to develop this However, overall progress
challenges, including those like Roadmap, to explore, articulate has not advanced at the
the COVID-19 pandemic. and ultimately realize the potential speed or scale required to
of the sector to drive innovation achieve the SDGs by
The SDGs provide a ready-
that will significantly contribute to 2030 – and in some areas
made, universal framework
the SDG agenda. there has been regression.
that all stakeholders – the
For instance, global
private sector included – can The Roadmap identifies areas economic growth has
use to renew and focus their where the sector can have slowed (SDG 8), income
efforts to achieve social and the most impact on the SDGs equality is falling in some
environmental progress. As an by maximizing those that countries (SDG 10) and the
engine of economic growth and are positive and minimizing global material footprint has
employment, a source of finance negative impacts and explores increased (SDG 12).
and a driver of technology and key ways to accelerate and
innovation, business has a
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 102.2 THE TIRE SECTOR Mobility innovations such For the purposes of this
VALUE CHAIN as clean, connected and Roadmap, “the tire sector” refers
autonomous vehicles have to all companies worldwide
Tires keep the world moving. transformed transport systems; that are engaged directly in
The tire sector and its value and the rise of fleets, shared manufacturing tires or related
chain have a vital role in creating mobility and mass transit will products and services, including
a future with environmentally lead to further business model tire installation, maintenance
friendly, safe, efficient and transformation across and repair, retreading and
accessible mobility for all. The the value chain. fleet monitoring.
sector continues to research and These companies operate in
These mobility trends present
develop products and services different ways across the full
new opportunities for the tire
that contribute to improved safety range of the value chain, from
sector to develop products and
and environmental performance, raw material production and
services that minimize negative
including increased wet grip, sourcing, through design and
impacts, protect the environment,
improved tread wear, and reduced manufacturing, to customer use
promote social progress, and
rolling resistance. and end-of-life options (Figure 2).
support economic growth.
Figure 2: The tire sector value chain and its stages
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 11Figure 3 provides an overview of key industry statistics, and Figures 4 and 5 reveal the composition and
internal structure of tires typically used for passenger vehicles or light trucks.
Figure 3: The global tire industry at-a-glance (approximate figures, 2019)
USD $167 740,000
billion
ANNUAL GLOBAL TIRE SALES
>USD
PRODUCTION WORKERS IN TIRE
MANUFACTURING PLANTS GLOBALLY
$4 billion
1.7 billion YEARLY INVESTMENT IN
RESEARCH & DEVELOPMENT
TIRES PRODUCED
PER YEAR
1.5 billion
passenger
+ 198 million
truck and
and light bus tires
trucks tires
25% supplied to original 75% supplied to the
equipment manufacturers replacement market
A total global
workforce of more than 950,000
REGIONAL TIRE SALES SPLIT (BASED ON NUMBERS OF UNITS)
22% 5% 25% 37% 11%
North America Latin America Europe Asia rest of the world
Source: Tire sales in USD, number of employees, R&D investment - Tire Business, 2020; Tires produced, regional sales - LMC, 2020
Figure 4: Tire composition - A representation of the material composition of a typical passenger vehicle or light truck tire.
The composition of tires differs according to tire type and tire application.
26% Fillers
14% Antioxidants, antiozonants,
curing systems
19% Natural rubber
24% Synthetic polymers
12% Steel
4% Textile
Adapted from U.S. Tire Manufacturers Association (USTMA)
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 12Figure 5: Tire structure - A representation of the structural composition of a typical passenger vehicle or light truck tire.
The structural composition of tires differs according to tire type and tire application.
Belts
Sidewall
Body ply
Inner liner
Bead filler
Bead
Tread Belts Body ply
Tread rubber compound and tread Belts with steel cords laid at opposing Body plies are typically comprised of
pattern provide grip for traction and angles provide stability to the tread polyester, rayon or nylon cords within
abrasion resistance against treadwear. area of the tire and contributes to a rubber layer. Body plies contribute to
managing wear, handling and traction giving structure to the tire and provide
performance. strength to contain inflation pressure.
Inner liner Bead Sidewall
A rubber compound used to retain the Tire bead bundles are usually strands A rubber compound used to cover the
inflation pressure inside the tire. of wire and work to secure the tire to body plies on the sides of the tire that
the wheel. provides abrasion, scuff and weather-
ing resistance.
Bead filler
A rubber compound wrapped around
the bead to tune ride and handling
characteristics.
Adapted from U.S. Tire Manufacturers Association (USTMA)
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 132.3 SUSTAINABILITY sustainable development to sustainability. Here are some
MILESTONES AND progress within the industry. TIP’s TIP examples that indicate
MEGATRENDS work to improve understanding how members of the sector
of potential human health and have worked to understand
TIP has been operating for more environmental impacts of tires and address potential life cycle
than 15 years. Prior to the SDGs, throughout their life cycle is an impacts of tires (Figure 6).
several key milestones influenced example of the sector’s approach
Figure 6: TIP sustainability milestones
2005
The creation of TIP and work
streams dedicated to building and
sharing scientific knowledge on the
potential impacts of tires
throughout their life cycle.
2008
Publication of TIP’s first report on
global end-of-life tire (ELT)
management, offering a global
state of knowledge on regulation,
management systems and
impacts of recovery and 2010
technologies. TIP continues to
Publication of the first of a growing
report on global ELT
body of TIP-sponsored peer-
management, issuing updated
reviewed scientific studies
reports in 2010, 2018 and 2019.
focused on tire and road wear
particles (TRWP). Between 2010
and 2020, 11 TIP-sponsored
2014 studies have been published in
Supported the publication of the scientific journals.
Organisation for Economic
Co-operation and Development
(OECD) Nanotechnology and
Tyres: Greening Industry and
2016
Transport report and committed to
continued cooperation with the Publication of the first annual
OECD on this topic. environmental key performance
indicators (KPIs) by TIP, providing a
common set of measurements
that can be used to assist
individual company efforts to
2017 improve tire manufacturing
environmental performance.
Publication of Product Category Regularly updated with new annual
Rules (PCR) for preparing an statistics, 2020 saw publication of
Environmental Product the fourth edition of the report.
Declaration (EPD) for tires. A first
of its kind, the PCR is technically
comprehensive, global in scope,
and enables consistency in 2018
evaluation of the potential Initiation and launch of the Global
environmental impacts of tires. Platform for Sustainable Natural
Rubber (GPSNR) – a
stakeholder-driven platform that
aims to drive sustainability in the
2020 natural rubber value chain.
TIP coordinates expert tire-sector
contribution to an OECD report
on approaches for more
sustainable nanomaterials and
nano-enabled products.
2021
TIP launches Sustainability Driven:
Accelerating Impact with the Tire
Sector SDG Roadmap, outlining how
the sector- at-large can contribute to
the sustainability agenda.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 14Despite continued sustainability business community, four are This Roadmap is a tool that the
progress, megatrends (trends particularly relevant to the tire sector can use to build a unified
that have an effect on a global sector within the wider context of response to these megatrends
scale) encompassing significant sustainable development. These while navigating the transition
environmental, social, economic megatrends are drawn from to a low-carbon, resilient and
or technological changes have expert stakeholder interviews, resource-efficient economy
the potential to disrupt business research and workshops that in line with the SDGs. Table 2
and society as a whole and took place during the Roadmap’s summarizes the megatrends
will likely continue to do so development and were used to most integral to the sustainability
for decades to come. Of the inform the development of the context for the sector.
key megatrends presenting Roadmap’s impact pathways.
significant challenges for the
Table 2: Sustainability megatrends and their potential impact on the tire sector
MEGATREND IMPACT ON THE SECTOR
Burgeoning populations in emerging markets and increased urbanization globally
Circular innovation to tackle are encouraging a rise in mobility. The resource challenges that can result from
resource scarcity growing demand present the opportunity for the emergence of new business
models such as those based on the circular economy.
Progress to reduce greenhouse gas (GHG) emissions, adapting to the physical
Climate and nature crises to
impacts of climate change and halting biodiversity loss remains slow and
accelerate the low-carbon energy
insufficient. However, new regulations, investor pressure and citizen power have
transition
created momentum to which the business community must respond.
Rapid digitalization and automation across industries is driving improved
productivity, efficiency and safety – but could lead to widespread and disruptive
implications for employment and workforce skills if not appropriately managed.
Technologies, including artificial intelligence, internet of things and 5G, alongside
Industry 4.0 to allow systems
autonomous, connected and electric vehicles, offer significant opportunities to
transformation
organizations ready to embrace them. The adoption of such technologies must
come with efforts to address rising cybersecurity and data privacy concerns
and to manage the potential environmental impacts from material and energy
consumption.
Rising inequality is driving continued dissatisfaction with current political and
Human rights, safety, well-being economic models and global civil protests on issues relating to diversity and
and equal opportunities – across inclusion. Companies are increasingly expected to take strong positions on
the value chain – are essential to human rights and other social issues – including protecting employee well-
building resilience being, promoting workplace safety and improving supply chain due diligence and
transparency – to ensure long-term business resilience.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 152.4 THE ROADMAP Acknowledging that all SDGs are articulate and realize a shared
DEVELOPMENT PROCESS important and interconnected, vision for their industry to
this Roadmap aims to focus on contribute to the SDGs.
The tire sector, as a sustainable where it can maximize impact by The 12-month development
mobility actor, has a unique role identifying the areas where the process for this Roadmap
in enabling sustainable transport sector has the greatest ability brought together industry
solutions that are essential to to lead, influence and experts and diverse stakeholders
achieving the 17 SDGs. TIP accelerate actions. to develop impact pathways
members have developed this through the three main steps
TIP applied the WBCSD’s SDG outlined in Figure 7.
Roadmap for the tire sector and Sector Roadmap Guidelines,3 a
its stakeholders in view of the framework that leads companies
challenges and opportunities from the same sector through a
presented by sustainable systematic process to explore,
development.
Figure 7: Roadmap development process
Identify key opportunities
Establish current position 1 2 Call to action 3
for impact
Understanding the sector’s Where and how the sector can have Inspiring and engaging sector peers,
interactions with the wider SDG the most significant impact in value chain partners and others who
agenda and which SDGs it can realizing the SDGs can help deliver success
impact the most
Step 1. Establish current position Step 2. Identify key Step 3. Call to action
Through TIP member and external opportunities for impact TIP consulted key tire sector
stakeholder interviews, literature A series of virtual workshops and stakeholders throughout the
review, corporate disclosure review deep-dive calls with subject matter Roadmap development process
and SDGs value chain mapping, TIP experts identified where and how the to ensure the capturing of diverse
explored the sector’s interactions sector can make the most significant perspectives to appropriately
with the wider SDGs agenda and contribution to the SDGs. The result reflect the sector. Section 4, Road
which SDGs the tire industry can of this is a series of impact pathways to 2030, outlines how sector
impact the most. presenting opportunities where peers and partners can engage
the sector can minimize negative with the Roadmap and how TIP
impact and maximize positive impact plans to catalyze impact through
alongside actions to help achieve implementation of the Roadmap.
each opportunity.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 16Based on this three-step impact through collective consumption and production)
process, TIP identified 8 SDGs multi-stakeholder action. SDG map against the Roadmap
as those where the sector has 8 (decent work and economic actions most frequently
the potential to have the highest growth) and 12 (responsible (Figure 8).
Figure 8: Priority SDGs for the tire sector
The impact pathways also All impact opportunities The SDG targets with the most
support the achievement of and actions need inclusive direct links are highlighted
other SDGs, most notably partnerships and collaborations to help further focus SDG
SDG 11 (sustainable cities and to succeed; and the importance prioritization but this does not
communities) and SDG 15 (life of scaling action in developing indicate that this SDG target has
on land). In addition, while SDG countries is also recognized. the most opportunity for impact.
17 (partnerships for the goals) Figure 9 presents a summary
was not specifically identified as The impact pathways described of the targets against the eight
a priority goal for the sector, it is a in Section 3 map each action priority SDGs.
recurring theme throughout against the SDG targets where
this Roadmap. there is the greatest potential
to contribute.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 17Figure 9: Identified priority SDGs and targets with the greatest potential for tire sector contributions
3.6
By 2030, halve the number of global deaths and
injuries from road traffic accidents.
4.5
By 2030, eliminate gender disparities in education
and ensure equal access to all levels of education
and vocational training for the vulnerable,
including persons with disabilities, indigenous
peoples, and children in vulnerable situations.
5.5
Ensure women’s full and effective participation
and equal opportunities for leadership at all levels
of decision-making in political, economic and
public life.
6.4
By 2030, substantially increase water-use
efficiency across all sectors and ensure
sustainable withdrawals and supply of freshwater
to address water scarcity, and substantially
reduce the number of people suffering from
water scarcity.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 188.4
Improve progressively through 2030 global
resource efficiency in consumption and
production, and endeavor to decouple
economic growth from environmental
degradation in accordance with the
10-year framework of programs on
sustainable consumption and production
with developed countries taking the lead.
9.4 9.5
By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, with
increased resource use efficiency and greater
adoption of clean and environmentally sound
technologies and industrial processes, all
countries taking action in accordance with their
respective capabilities.
Enhance scientific research, upgrade the
technological capabilities of industrial sectors in
all countries, in particular developing countries,
including, by 2030, encouraging innovation and
substantially increasing the number of research
and development workers per 1 million people
and public and private research and
development spending.
10.3 10.4
Ensure equal opportunity and reduce inequalities
of outcome, including through eliminating
discriminatory laws, policies and practices and
promoting appropriate legislation, policies and
actions in this regard.
Adopt policies especially fiscal, wage, and social
protection policies and progressively achieve
greater equality.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 1912.2 12.4 12.5 12.6 12.8
By 2030, achieve the sustainable management
and efficient use of natural resources.
By 2030, achieve the environmentally sound
management of chemicals and all wastes
throughout their life cycle, in accordance
with agreed international frameworks, and
significantly reduce their release to air, water
and soil in order to minimize their adverse
impacts on human health and the environment.
By 2030, substantially reduce waste generation
through prevention, reduction, recycling
and reuse.
Encourage companies, especially large and
transnational companies, to adopt sustainable
practices and to integrate sustainability
information into their reporting cycle.
By 2030, ensure that people everywhere
have the relevant information and awareness
for sustainable development and lifestyles in
harmony with nature.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 203 Impact pathways
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 213 Impact pathways
TIP identified seven impact and contribute to the products and services (Figure 10).
opportunities where the tire SDGs across three main themes:
sector can have transformative supply chain, operations, and
Figure 10: Impact opportunities for the tire sector
Impact opportunity
1 Accelerate and scale activities to achieve a 2 Implement sustainable procurement practices
fair, equitable and environmentally sound and establish environmental, social and
natural rubber value chain - including ensuring governance (ESG) responsibilities throughout
decent work and upholding human rights. the supply chain, including the promotion of
transparency and traceability.
Supply chain
Develop pathways to decarbonize operations, 4 Ensure safe and inclusive working environments
3
reduce emissions and ensure the sustainable and equal opportunities for all employees.
use of natural resources.
Operations
5 Further leverage 6 Accelerate the sustainable 7 Advance innovation in product,
multi-stakeholder efforts to mobility transition by raising service and business model
achieve evidence-based awareness of the impact of design to enhance low-carbon
solutions that address tire and user behavior, designing and circular solutions while
road wear particles (TRWP). connected and intelligent ensuring sustainable
Products & services tires, and providing innovative management of end-of-life
digital solutions. tires (ELTs) around the world.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 22To realize these opportunities, TIP developed impact pathways comprising a series of tangible actions
mapped against several variables (Table 3).
Table 3: Impact pathways and their actions
Level of potential Time frame Level of contribution SDG target Stakeholders
impact and control
Level of potential Time frame by which Level of contribution and Links with Stakeholders
impact that each action the action will begin control the tire sector has SDG targets
can have on the SDGs to show expected to progress the action
outcomes
L Low S Short-term Lead Each action is The
The action will 1 to 3 years The sector has a high mapped against partners and
have a small, but degree of control and the SDG targets stakeholders
necessary, role in can make a significant where there is who must be
M Medium-term greatest potential involved to
contributing to the contribution
identified SDGs 4 to 6 years for contribution achieve high
impact
Accelerate
L Long-term The SDG targets
M Medium The sector has medium
The action will have 7 or more years control and can directly with the most direct
a significant role in contribute and/or links are highlighted
contributing to the accelerate current actions to help further focus
identified SDGs SDG prioritization
but this does not
Influence indicate that this
H High The sector has little control SDG target has the
The action will have and can mainly contribute most opportunity
a pivotal role in by influencing the action for impact
contributing to
the SDGs
The seven impact pathways are laid out in tables across the following pages alongside illustrative
examples from TIP members that provide insights on concrete actions that are already underway to
deliver on the ambitions at the heart of the SDGs.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 23IMPACT PATHWAY 1: Supply Chain - Accelerate and scale activities to achieve a fair, equitable
and environmentally sound natural rubber value chain – including ensuring decent work and
upholding human rights.
Natural rubber, primarily sourced Natural Rubber (GPSNR). In addition to supporting and
from the rubber tree (Hevea GPSNR works to achieve its leveraging GPSNR activities, the
brasiliensis), is an important raw vision of a fair, equitable and tire sector has an opportunity
material for the manufacturing environmentally sound natural to further scale and accelerate
of tires. Over 70% of natural rubber value chain and in doing efforts to tackle complex
rubber is used by the tire so actively contributes to the environmental and socio-
sector4 globally and 85% of fulfillment of the SDGs. The first economic issues in the natural
the global natural rubber is 18 months of GPSNR operations rubber value chain, such as
produced by more than 6 million saw the platform welcome over access to education and
smallholders.5 With increasing 90 members, including natural sustainable livelihoods for the
global demand for natural rubber producers (including millions of smallholder producers
rubber, this is a commodity smallholders from Brazil, Côte on which it depends (Table 4).
where without proper controls d’Ivoire, Ghana, Indonesia,
and standards, there can Myanmar, Thailand and Vietnam),
be negative impacts in the processors and traders, tire
supply chain both socially and makers, other rubber makers
environmentally. and buyers, car makers, other
downstream users, and financial
In 2017, TIP CEOs committed to institutions and civil society
improving the sustainability of organizations.
the natural rubber value chain. In
2018, TIP members initiated the
Global Platform for Sustainable
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 24Table 4: An overview of the actions identified under impact pathway 1
SDG impact
Actions Level of Time frame Tire sector SDG target
impact contribution contribution
on SDGs
1.1 Enhance efforts to ensure sustained, inclusive H S Accelerate 8.4
and sustainable economic growth of the natural 8.8
rubber value chain through alignment and 10.1
commitment to the Global Platform for 12.2
Sustainable Natural Rubber (GPSNR) policy 13.3
framework (refer to the business example that 15.1
follows for more detail on components of the 15.2
policy framework). 15.5
1.2 Take a risk-based approach to continually H M Accelerate 8.4
improve the sustainability of natural rubber and 12.2
align to the GPSNR Implementation Guidance 13.3
(under development), which will outline policy 15.1
implementation actions for players at different 15.2
supply chain stages. 15.3
15.5
1.3 Improve access to and quality of all levels H M Accelerate 4.5
of education and vocational training for 8.6
women, youth and vulnerable groups across
the natural rubber value chain. Supporting
the equitable inclusion of women across
natural rubber operations.
1.4 Enable smallholders to access advanced farming H L Accelerate 2.3
techniques and knowledge on best practices 2.4
to increase rubber yields, halt biodiversity loss, 4.7
preserve future soil health and secure income. 8.2
8.4
10.1
12.8
15.1
15.2
15.3
15.5
Low L Medium M High H Short S Medium M Long L
STAKEHOLDERS
The following stakeholders will natural rubber; suppliers; industry manufacturers; smallholder
need to be involved to ensure associations; governments of farmers; plantation owners
the success of the actions key producing countries; Chinese and operators; and related
outlined in this pathway: GPSNR; stakeholders; global and local NGOs; associations.
companies worldwide that use customers and original equipment
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 25BUSINESS EXAMPLES
The initiation of a global platform to achieve a sustainable natural rubber value chain
GPSNR is committed to promoting 6. Systems and processes to in Asia, Latin America and
the uptake of sustainable natural drive effective implementation West Africa, culminated in the
rubber globally by addressing of policy components; creation of a GPSNR membership
forest and other ecosystem con- 7. Supply chain assessment, category for smallholder
version, biodiversity loss, human traceability, and management producers, with over 40 members
and labor rights violations and 8. Monitoring and reporting on and three representatives at
inequality in the natural rubber progress on, and executive committee-level,
supply chain. conformance with policy providing smallholders with
components. equal representation and a role
In September 2020, GPSNR
in platform decision-making.
published a policy framework As part of membership
Smallholders and small natural
that outlines a series of policy requirements, members are
rubber growers (i.e., natural rubber
components that company required to adopt a policy or
plantations of no more than
members are required - as part other documents that include
50 hectares) and small trader
of their commitments as the GPSNR policy components
members are not required to
members - to include in their adapted to the particular context
develop and implement a formal
sustainable production and and supply chain position in 2021.
policy, although they are
purchasing policies and The components are aligned with
required to adhere to buyers’
other documents. the principles and guidelines laid
policies, and if they are members,
out in the UN Global Compact,
The policy components are they are required to sign the
the UN Guiding Principles for
spread across eight themes with GPSNR Founding Members
Business and Human Rights,
commitments to: statement that includes the 12
the International Bill on Human
GPSNR principles.
1. Legal compliance; Rights, and the International
2. Healthy, functioning Labour Organization Fundamental More information on GPSNR, the
ecosystems; Conventions. policy components and implemen-
3. Respecting all human rights; tation guidance can be found at
Securing smallholder
4. Community livelihoods; https://sustainablenaturalrubber.org/.
representation was a platform
5. Increased production
priority. A series of outreach
efficiency;
activities, including workshops
Traceability and sustainability in the rubber supply chain: A Continental and GIZ project in
West Kalimantan
Since 2018, Continental The supply chain is documented the expected and actual volumes
has worked with the German with a digital traceability system of natural rubber and engage in
development agency, Deutsche where the production areas are dialogue with farmers.
Gesellschaft für Internationale mapped by GPS. The app-based
This approach facilitates
Zusammenarbeit (GIZ), to provide system documents raw rubber
sustainable rubber cultivation and
tailored training programs for deliveries and sale prices upon
directly supports improvements in
local natural rubber farmers in delivery, which helps to prevent
small-scale producer productivity
the Indonesian province of West rubber from entering the supply
and incomes, resource efficiency,
Kalimantan, Borneo. The project chain from non-registered areas,
and protection of biodiversity and
delivers training on sustainable such as illegally deforested
natural habitats.
cultivation practices and has areas, by indicating if the quantity
helped improve the quality of the received exceeds the expected www.giz.de/en/html/index.html
natural rubber produced, allowing production volume. www.youtu.be/uVsd3o0TDCU
local producers to increase their
In cases of significant oversupply,
revenue on average by 10-15%.
the app notifies field agents who
proceed to clarify the gap between
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 26IMPACT PATHWAY 2: Supply Chain - Implement sustainable procurement practices and
establish environmental, social and governance (ESG) responsibilities throughout the supply
chain, including the promotion of transparency and traceability.
Tires can contain more than 100 performance characteristics.6 issues. Sustainable supply chain
different materials, including natural The tire sector has a significant programs should be developed
and synthetic rubbers, carbon opportunity to scale impact far inclusively with suppliers and
black and silica, metal cables beyond the boundaries of its relevant stakeholders and build on
and textile reinforcements, and own operations by implementing existing initiatives to maximize reach
specific chemical ingredients – all sustainable procurement practices and impact (Table 5).
of which give tires their necessary that identify and tackle material
Table 5: An overview of the actions identified under impact pathway 2
SDG impact
Actions Level of Time frame Tire sector SDG target
impact contribution contribution
on SDGs
2.1 Develop and drive effective implementation M S Lead 8.7
of corporate sustainable sourcing policies and 8.8
practices, including: environmental and 12.6
social/human rights due diligence, effective
governance, transparency and
disclosure standards.
2.2 Improve transparency, traceability and H M Accelerate 8.4
sustainable production of materials in the 8.7
sector’s supply chain through identification, 8.8
prioritization and management of risks 12.2
and opportunities.
2.3 Advance supplier performance through H M Lead 7.2
engagement and participation in multi- 7.3
stakeholder efforts to sustainably manage the 8.4
use of natural resources and reduce operational 12.2
impacts on the environment, including suppliers’ 12.4
own GHG emissions. 12.5
15.1
STAKEHOLDERS
The following stakeholders will trade associations; regional and peer companies from other
need to be involved to ensure the institutions and governments; sectors that have similar supply
success of the actions outlined in suppliers; research institutions and chain materials or issues.
this pathway: responsible supply academia; NGOs, customers and
chain and materials associations; original equipment manufacturers,
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 27BUSINESS EXAMPLES
Reducing supply chain GHG emissions
Recognizing the opportunity Pirelli has SBTi-approved GHG to engage their leading raw
that the supply chain presents reduction targets that have been materials suppliers, pinpoint
to reduce GHG emissions, TIP set in line with maintaining climate risks and identify emissions
members engage suppliers to warming well below 2°C. reductions opportunities. This
drive climate action. process has played an important
This includes cutting the absolute
role in driving effective action
Michelin has GHG reduction CO2 emissions linked to the
across the supply chain by
targets approved by the Science acquisition of raw materials
encouraging the deployment
Based Targets initiative (SBTi) by 2025 by 9% compared to
of best practices to reduce
and has also encouraged its 2018. Pirelli is working with its
GHG emissions. Additionally,
main raw material suppliers to set suppliers to reduce their carbon
the CDP Supplier Engagement
science-based targets for GHG footprints using mechanisms that
Rating Leaderboard highlights
emissions reductions, with the consider potential impacts and
Bridgestone, Continental and
objective that, by 2024, suppliers opportunities, including material
Michelin as they play a crucial
responsible for 70% scope 3 life cycle assessments and direct
role in the transition to the net-
emissions related to purchased engagement.
zero sustainable economy by
goods and services will have
Michelin, Pirelli and Yokohama engaging their suppliers on
set targets.
Rubber use the Carbon Disclosure climate change.
Project (CDP) Supply Chain Program
www.cdp.net/en/supply-chain
Improved assessment of the potential environmental impacts of tires: Raw materials
A Product Category Rule (PCR) is The standardized approach taken to the manufacturing of
an agreed-to, industry-specific by a PCR can give consumers the raw materials used in
guideline used to determine confidence in the information tire production. These new
the environmental impacts of a disclosed by the tire industry on guidelines will strengthen the
product. It allows manufacturers the environmental impacts of its PCR by providing increased
to develop Environmental tire products. consistency and contribute
Product Declarations (EPDs), to dialogues between
By improving awareness of
which are an internationally supply-chain actors on the
potential environmental impacts,
recognized way to verify the sustainable sourcing and use
the PCR for tires contributes to
potential environmental impacts of raw materials.
industry efforts to improve the
of a product, including the
sustainable performance
establishment of product life
of tire products.
cycle assessments (LCAs).
In 2020, TIP initiated an
TIP developed a PCR for tires
update of the PCR with
in an important proactive step
the intent to incorporate
in developing internationally
guidelines to calculate the
useful guidelines to measure the
environmental impacts linked
environmental impacts of tires.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 28IMPACT PATHWAY 3: Operations - Develop pathways to decarbonize operations, reduce
emissions and ensure the sustainable use of natural resources.
The World Economic Forum and 8 US states8 having efficiency and protect nature
Global Risk Report highlights made net-zero pledges, more present an opportunity for all
environmental concerns as urgent action and ambition industrial sectors, including
the top issues for the first is needed to keep global the tire sector, to demonstrate
time in history, including risks warming below 1.5°C and to leadership through
such as extreme weather, ensure a stable, inhabitable continuous improvement
climate action failure, natural planet for everyone. Increasing and implementing practices
disasters, biodiversity loss, and demands from investors, to scale innovations that
human-made environmental consumers and civil society will improve environmental
disasters. Despite at least to use science-based performance (Table 6).
177 companies,7 67 countries approaches, optimize energy
Table 6: An overview of the actions identified under impact pathway 3
SDG impact
Actions Level of Time frame Tire sector SDG target
impact contribution contribution
on SDGs
3.1 Expand the use of low-carbon energy sources M L Lead 7.2
and optimization practices to mitigate emissions 7.3
and move towards net-zero emissions for scope 9.4
1 and 2 by 2050.
12.2
Note: The scope 3 categories that are most 13.3
material to the sector are addressed in the supply
chain (IP2.3) and product (IP7.5) impact pathways.
3.2 Accelerate and scale best practices to optimize M M Accelerate 12.2
distribution and logistics operations by using 13.3
alternative fuels and implementing technologies that
improve fuel efficiency, load optimization and routes
(and cascade these best practices to suppliers if
they manage logistics).
3.3 Upgrade and retrofit infrastructure to increase M L Lead 8.4
resource-use efficiency and greater adoption of 9.4
sustainable technologies and industrial processes, 13.3
including building capability and incentivizing the
sharing of best practices.
3.4 Apply risk management concepts to drive water L M Lead 6.4
stewardship efficiency and address physical, 12.2
regulatory and operational risks.
3.5 Reduce operational waste and emissions to air, H L Lead 9.4
water and soil, with a particular focus on volatile 11.6
organic compounds (VOCs) and chemicals of 12.4
potential concern.
12.5
14.1
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 29STAKEHOLDERS
To ensure the success of and other sectors operating in the For Action 3.5: governments; trade
each action outlined in this same locations. For Action 3.3, associations; NGOs; Global New
pathway, the following groups communities; governments and Car Assessment Programs; original
of stakeholders will need to be municipalities; other sectors with equipment manufacturers; vendors;
involved. For Action 3.1, suppliers the same challenges. For Action customers; suppliers.
and electric utilities. For Action 3.4, companies, organizations
3.2, suppliers; distribution and and sectors linked to a specific
logistics providers; customers; watershed.
BUSINESS EXAMPLES
Decarbonizing operations
As described in the 2020 heat loss. Similarly, Goodyear and the use of absorption
TIP’s Environmental Key commissioned third-party audits at chilling. For example, the
Performance Indicators for 18 manufacturing plants, resulting Hankook plant in Daejeon,
Tire Manufacturing 2009-2019 in the identification of more than South Korea, made the
report, the weighted average 500 projects with potential savings switch to low-carbon steam,
CO2 intensity (CO2 per ton of of approximately USD $15 million, reducing GHG emissions by
production) for TIP members including the installation of energy- approximately 25,000 tCO 2 -eq
decreased by 6% between 2015 saving solutions such as efficient per year. Several TIP members
and 2019. The implementation air compressors, heat pumps and have joined international
of decarbonization measures LED lightings. global initiatives to reinforce
and the adoption of an energy their efforts to decarbonize.
TIP members such as Kumho Tire,
mix with a greater share of For example, Pirelli has
Yokohama Rubber and Hankook
renewable sources drove committed to achieving group
are targeting a switch to renewable
this reduction. carbon neutrality by 2030, a
energy and have installed
commitment underpinned
To limit energy loss and photovoltaic solar panels at plant
by the company’s goal to use
optimize the efficiency of facilities. TIP members are also
100% renewable electrical
their plant facilities, Kumho transitioning from the use of heavy
energy by 2025.
Tire and Toyo Tires have fuel for heat generation to natural
conducted regular audits to gas, low-carbon steam, including
detect and prevent air and thermal energy from biomass,
Complementing decarbonization with offsetting
Carbon offsetting has been Kumho Tire initiated the Carbon Yokohama Rubber planted
employed to complement Offset Forestation Project in 2015 more than 900,000 trees
industry efforts to achieve in collaboration with the Seoul through its Forever Forest
the decarbonization of Municipal Government. The project project. In addition to carbon
operations. Contributions to saw the planting of 20,000 trees offsetting, the trees are
the development of carbon in the northern part of Seoul, expected to contribute to
sinks and the financing of which are expected to absorb disaster prevention and the
sequestration projects remain approximately 1,380 tons of carbon promotion of biodiversity
practical means to drive action dioxide over the next 30 years. through the provision of new
to achieve net-zero. habitats. Yokohama Rubber
aims to plant 1.3 million trees in
17 countries by 2030.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 30Mitigating risk in water-stressed areas
Water optimization projects led The company contributes to to replicate this success at its
by TIP members help reduce relieving local water stress at factory in Changshu, China. By
water consumption and mitigate its facility in El Salto, Mexico, by 2019, Sumitomo had achieved
risk in water-stressed areas. All treating industrial and sanitary a year-on-year 2.5% reduction
TIP members have set targets wastewater that is then used in global water usage. The
for their manufacturing sites for irrigation. Sumitomo group makes use
to reduce water withdrawal of the WBCSD Global Water
Sumitomo Rubber aims to achieve
and use and to increase water Tool and the WRI Aqueduct
a wastewater recycling rate of
recycling volumes. Leak Risk Assessment tool, and will
100% at all of its 26 factories
prevention and water reuse continue to implement recycling
by 2050. In 2018, Sumitomo
and recycling are common technologies across its
implemented water recycling
features of strategies to manufacturing sites to achieve
measures at its manufacturing
reduce abstraction. its long-term wastewater
plant in Cankiri, Turkey, which
recycling rate objective.
Cooper Tire completes is located in a region of high
water stress studies globally water stress. By the end of 2019,
at manufacturing locations the factory was able to recycle
on a regular basis using 100% of its wastewater for use in
Aquastat, the World Resources applications including the watering
Institute (WRI) Aqueduct Risk of trees located on factory grounds.
Assessment tool and the By 2021, Sumitomo Rubber aims
Growing Blue Tool.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 31IMPACT PATHWAY 4: Operations - Ensure safe and inclusive working environments and
equal opportunities for all employees.
Significant growth, responding to customers. TIP consider local cultural
productivity and performance members acknowledge that context, the tire sector has the
improvements are available companies have a responsibility opportunity to contribute to
to companies that commit to ensure decent work and to increased diversity in technical
to improving all aspects of respect and remedy human schools and functions, recruit
diversity and inclusion in rights – including ensuring safe and retain top talent, and
policies and practices9 - and working conditions, acceptable establish a pipeline of future
evidence suggests that job quality11 and that employee candidates with diverse
diverse organizations are health and well-being is skills, opinions and
more attractive to prospective paramount. By establishing backgrounds (Table 7).
employees10 and better at progressive practices that
Table 7: An overview of the actions identified under impact pathway 4
SDG impact
Actions Level of Time frame Tire sector SDG target
impact contribution contribution
on SDGs
4.1 Adopt policies, especially employee well-being, H S Lead 8.5
occupational health, fiscal, wage and social 8.8
protection policies, and progressively achieve 10.3
greater diversity, inclusion and equality.
10.4
4.2 Ensure women’s full and effective participation and H M Accelerate 4.5
equal opportunities for leadership at all levels. 5.5
10.3
4.3 Build capabilities to increase diversity and inclusion M M Accelerate 4.4
of all into the talent pool for the sector, including 4.5
driving access to higher education institutions. 10.2
10.3
STAKEHOLDERS
To ensure the success of each to be involved: other sectors and governments and research
action outlined in this pathway, the peers with similar challenges, trade institutes, and academia for the
following stakeholders will need associations, local communities, Action 4.3.
Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap 32BUSINESS EXAMPLES
Closing the gender gap
The tire industry has significant doubled the number of women in was expanded to a “Diversity
opportunities to increase the management positions between Promotion Taskforce” to
representation of women within 2014 and 2020. Yokohama promote diverse workstyles
the workforce and corporate Rubber established a taskforce that will enable not only women,
leadership. Recognizing this, to support the advancement of but also foreign employees,
TIP members have set targets women’s careers, through training, employees with disabilities
to increase the number of flexible working arrangements, or LGBTQ employees to have
women leaders within their and job-return and rehire policies. equal opportunities within
companies. Sumitomo Rubber In 2019, the taskforce’s scope the company.
Social inclusion
Through participation in the operators that is designed to were hired, with diversity fully
French Government’s urban assess the agility and potential respected in the recruitment
renewal initiative – Pacte Avec of candidates rather than their process. In April 2019, the
les Quartiers pour Toutes les experience. Michelin also supports company was honored with the
Entreprises (PAQTE) – Michelin inclusive procurement and Prime Minister’s Citation at the
France demonstrated its spent EUR €1.5 million in 2020 2019 Inclusive Employment
commitment to social inclusion on the products and services Awards in recognition of its
through a series of actions of companies that the French efforts to promote stable
delivered through purchasing, Government recognizes as active and desirable employment
recruitment and training and specialized recruiters of people opportunities for people with
practices. Actions included the with disabilities. Learn more: disabilities. It will continue to
hosting of groups of students www.paqte.fr/entreprise/michelin/ expand the program.
and young school-leavers for
Hankook established Hankook
a week of immersion in the
Donggeurami Partners in 2015
company. The program also
to provide opportunities to the
saw 14 refugees complete
underprivileged and contribute to
16 months of training to
the growth and development of
become factory-maintenance
local communities. The company is
agents and the hiring of 20
a service provider for Hankook Tire
young people from deprived
& Technology’s welfare business
neighborhoods. Additionally,
operations and administrative
Michelin uses a simulation-
support areas. In 2019, a total
based process to recruit
of 159 people with disabilities
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