Corporate Responsibility

Goodyear has a long-standing commitment to corporate responsibility. We anticipate and respond to market trends, customer needs, supplier capabilities and investor interests and are focused on expanding our corporate responsibility transparency in response to stakeholder requests.

Goodyear Better Future, our corporate responsibility framework, was launched in 2018 following an extensive materiality assessment to identify Goodyear’s high-priority environmental, social and governance (ESG) topics. This framework’s governance structure helps ensure corporate responsibility is integrated into all levels of the organization, promotes communication and awareness and drives alignment with Goodyear’s corporate strategy and stakeholder priorities. The Better Future framework helps us drive innovation and operational excellence while creating value and helping us build a better future.

Goodyear’s Board of Directors (Board) and its Committee on Corporate Responsibility and Compliance (CRC), founded in 1976, are responsible for monitoring and providing recommendations on how Goodyear manages our business in a responsible manner, including our ESG objectives, policies, strategies, programs and performance. The CRC, comprised of no fewer than three members of the company’s Board and currently comprised of five members, meets three times a year to review and receive updates from management and Goodyear’s Vice President and Chief Sustainability Officer* related to ESG matters. The CRC fulfills the responsibilities delegated to it by the Board of Directors in its charter.

The Goodyear Senior Leadership Team acts as a steering committee for Goodyear’s sustainability strategy and performance. Each of the roles represented on the Senior Leadership Team has compensation metrics and goals that are linked to achieving certain sustainability-focused targets.

The Better Future Steering Committee, led by Goodyear’s Vice President and Chief Sustainability Officer*, and currently comprised of 17 cross-functional, global leaders representing each region, as well as corporate in the areas of Procurement, Technology, Risk, Legal, Manufacturing Operations, Communications, Government and Public Affairs, Human Resources, Strategy, Finance and Marketing, ensures functional goals are established for Goodyear’s high-priority sustainability topics, and aligned with corporate strategy.

The Committee also advances the company’s communication to internal and external stakeholders. Our VP and Chief Sustainability Officer* reports to the SVP, Global Operations and Chief Technology Officer, leads the Steering Committee and provides an annual update to the CRC, enhancing their collective knowledge and awareness of key sustainability issues.

The Better Future Working Group, initially established in 2018, is comprised of either leaders or program managers for Goodyear’s high-priority topics. They are responsible for developing goals and targets for their respective topics and reporting on strategies to ensure we are effectively managing our high-priority topics. Members are responsible for understanding the current state of their topic, developing and aligning appropriate goals and targets and ensuring Key Performance Indicators (KPIs)/metrics and strategies are in place for each goal. Performance is measured at least annually, and updates are shared internally and externally, as appropriate. Goodyear expects the role of the Better Future Working Group to evolve as our high-priority topics and focus areas have shifted based on our 2022 materiality assessment.

The Better Future Associate Council is a cross-functional group of associates that identifies and implements location-specific initiatives aligned to our high-priority topics. The Council launched at our corporate headquarters in Akron, Ohio, in 2019. The Council used 2022, following a temporary hiatus due to the pandemic, as a planning year to define its mission and outline priorities for 2023 and beyond. We hope to expand the Council to other global locations in the coming years.

Collectively, this governance structure is helping to grow internal awareness and engagement for our Better Future framework through quarterly town halls and other communication vehicles for associates, while enhancing our communication to key external stakeholders.

* Goodyear’s Vice President and Chief Sustainability Officer (VP, CS0) retired as of April 1, 2023. In the interim, our Director of Global Sustainability assumes the responsibilities held by VP, CSO.

Stakeholder Engagement 

Goodyear gathers stakeholder feedback throughout the year, building on information gathered during sustainability materiality assessments. We regularly speak with investors, customers, associates, distributors, suppliers, regulators and more, collecting sustainability-related requests, questions and feedback. This information is gathered and compiled by global functional business leaders and the Global Sustainability team to help inform strategies that are formulated and implemented at the functional level. Goodyear’s Global Sustainability leadership team provides this stakeholder feedback to the Board and CRC to inform their oversight.

To ensure we are managing our most significant environmental, social and governance (ESG) impacts, risks and opportunities, we continue to engage internal and external stakeholders who are knowledgeable in and value corporate responsibility. This summary to the right highlights our key stakeholder groups and the type and frequency of interaction.

Materiality

In 2018, Goodyear, under the leadership of Goodyear's Global Sustainability leadership team and assisted by third-party sustainability consultants, conducted a materiality assessment to identify and define our most significant environmental, social and governance (ESG) impacts, risks and opportunities.

The process began by reviewing industry studies on ESG impacts and ESG ranking and rating firm assessments of Goodyear and conducting customer research. Following the research and benchmarking phase, nearly 50 global, cross-functional Goodyear leaders came together to discuss and map ESG impacts, risks and opportunities across Goodyear’s value chain. In addition to this assessment, Goodyear gathers stakeholder feedback throughout the year.

For this materiality assessment, we identified a subset of stakeholders to interview—those with a significant interest in Goodyear and whose decisions affect Goodyear’s business and vice versa. To determine which stakeholders to include in the process, we selected organizations and individuals—both internal and external—across our various stakeholder groups and regions to find those with whom we have a significant relationship and who are knowledgeable in and value corporate responsibility. Internal and external stakeholders provided their perspective on the significance of various ESG topics and impacts, and Goodyear’s third-party consultant used a weighted scale to quantify the results. These results were presented to and discussed with Goodyear leaders, and the final results were confirmed. 

The assessment validated the importance of many topics to our organization and stakeholders and highlighted new opportunities. Following the assessment, Goodyear confirmed we had existing owners for the management of all high-priority topics, set goals and metrics and verified our internal- and external-facing communications.

Goodyear used our 2018 materiality assessment as guidance for the 2022 report, given that our double materiality assessment conducted in 2022 was completed near the end of the year.

In 2022, Goodyear, under the leadership of the Better Future Steering Committee, refreshed our materiality assessment using the double materiality process, which looks at both a company’s inward and outward impacts. This type of materiality assessment examines the full scope of a company’s value chain and product portfolio.

In early 2023, Goodyear aligned with our leadership on these updated high-priority topics and focus areas. During 2023, we plan to identify current goals, close any goal gaps and confirm and/or establish the ongoing management approach to these topics. We will report on our management of the updated high-priority topics in our 2023 Corporate Responsibility Report, which will be released in 2024.

Climate Strategy

In December 2021, we announced our climate ambition, which includes our goal to reach net-zero Scope 1 and 2 as well as certain Scope 3 greenhouse gas emissions by 2050, aligned with the Science Based Targets initiative (SBTi) and its new Net-Zero Standard. We also announced our commitment to achieve near-term science-based targets by 2030, including reducing Scope 1 and 2 emissions by 46% and certain Scope 3 emissions by 28%, as compared to a 2019 baseline. In December 2022, Goodyear submitted our science-based targets to SBTi for validation.

Our climate ambition includes several other important long-term sustainability goals, including our commitments to use 100% renewable electricity in all manufacturing facilities by 2030 and 100% renewable energy in all manufacturing facilities by 2040, develop a tire made of 100% sustainable materials by 2030 and replace all petroleum-derived oils in our products by 2040.

Decarbonization

In 2022, using Goodyear’s 2019 greenhouse gas emissions footprint, the baseline year for our science-based targets, we identified the value chain hot spots requiring decarbonization: purchased goods and services; energy; transport; and use phase. Use phase is an indirect-indirect emissions category for Goodyear. While use phase is not included in our science-based targets, Goodyear will continue to explore and evaluate use-phase elements that we can influence, for example, rolling resistance and tire weight.

For the three hot spots that are included in Goodyear’s science-based targets, hot spot owners identified strategies for reducing greenhouse gas emissions. Those strategies can be viewed below in Goodyear’s Decarbonization Roadmap. Goodyear hot spot owners and teams are in the process of building strategy-specific decarbonization roadmaps to 2030. 

When it comes to strategies to pursue for decarbonization, Goodyear utilizes Life Cycle Assessments (LCAs) to evaluate materials quantitatively through the entire life of the product—from the sourcing of raw materials to the end of the product’s life. Each LCA is performed using internationally recognized ISO frameworks that help provide a full picture of product impacts as well as opportunities for improvement that can be used in product development. Goodyear collaborated with the Tire Industry Project (TIP) to develop Product Category Rules (PCRs) for evaluating impacts from tires. LCAs assist Goodyear in determining lower-emissions materials to pursue.

One of Goodyear’s most significant emissions-reduction activities in 2022 was the advancement in acquiring additional renewable electricity in our operations. In 2022, Goodyear reached 34% renewable electricity at global manufacturing facilities and 100% renewable electricity at our manufacturing facilities in EMEA.

In 2022, Goodyear continued to build our climate ambition into key business processes, such as our capital planning process. This work will continue in 2023, further integrating our climate ambition into key corporate and functional processes.

Performance against Goodyear’s Climate Ambition

In 2021, combined Scope 1 and Scope 2 emissions decreased by more than 2% from our 2019 baseline. Energy efficiency projects and the increase of renewable electricity in our manufacturing operations led to a decrease in Scope 2 emissions.

Goodyear has developed strategies to address Scope 2 emissions from purchased electricity. Regarding Scope 1 and Scope 3 emissions, Goodyear is in the process of researching, evaluating and testing various strategies and crafting decarbonization plans related to our 2030 targets.

Goodyear will calculate our 2022 corporate greenhouse gas emissions footprint in the first half of 2023, which will be reported in our 2023 CDP report and next year’s Corporate Responsibility Report.

Adaptation and Resiliency

In 2022, Goodyear conducted a climate-related risks and opportunities materiality assessment, a qualitative scenario analysis and financial impact assessment to identify and prioritize climate-related risks and opportunities relevant to Goodyear’s value chain. Complete details can be found in Goodyear’s latest TCFD report, published in December 2022.

Goodyear’s climate-related risks and opportunities will be evaluated on an annual basis, led by Goodyear's Global Sustainability leadership, Chief Risk Officer and Chief Financial Officer. The aim is to ensure an up-to-date view of potential climate-related risks and opportunities in the short, medium and long term, and an understanding of the significance of impacts, including under different climate scenarios. Goodyear will evaluate and potentially adjust inputs, parameters, assumptions, data and analytical choices annually. Goodyear will use this analysis to evaluate our adaptation and resiliency strategies. Goodyear will continue to report the details of this analysis and strategic responses through our annual CDP and TCFD reports.

While strategy-specific decarbonization roadmaps are being built to 2030, various materials, energy and transport strategies are being implemented. For example, Goodyear is actively pursuing bio-based, recycled and carbon-neutral materials, further investing in energy efficiency projects and additional renewable energy, and evaluating and implementing emissions-optimized transportation and warehousing options.

Human Rights

The Goodyear commitment to acting with integrity, honesty and respect is the foundation for our commitment to human rights, embodied in our Policy on Global Human Rights.

At Goodyear, our commitment to human rights is a reflection of how we work. Our human rights policies and standards encompass our entire value chain. Goodyear’s human rights policy is incorporated in our Business Conduct Manual, Zero Tolerance Policy, Natural Rubber Procurement Policy, Sustainable Soybean Oil Procurement Policy, Retention of Identity Documents Policy, Responsible Recruiting Policy and Supplier Code of Conduct. Supporting these policies and standards are various due diligence processes, including vendor management programs and grievance and remedy mechanisms, like the Goodyear Integrity Hotline. Additionally, all Procurement, Legal, Human Resources and Internal Audit associates globally are provided annual training on human rights.

Reporting up through the Better Future governance structure, the Human Rights Steering Committee—formed in 2021, sponsored by our Chief Human Resources Officer and General Counsel and led by our Chief Risk Officer—is responsible for Goodyear’s human rights strategy. This strategy aligns with the UN Guiding Principles on Business and Human Rights and includes active workstreams focused on the following:

•         Educating our leaders and associates on human rights standards

•         Identifying and managing human rights risks throughout our value chain through due diligence and remedy processes

•         Communicating our efforts to address human rights

•         Aligning and working with key stakeholder groups to help carry out our work

The scope of this strategy includes evaluating potential risks and opportunities to reduce risk in Goodyear’s operations and supply chain, represented by the Better Future Framework pillars of Sustainable Sourcing, Responsible Operations, Advanced Mobility and Inspiring Culture.

NATURE AND BIODIVERSITY

Goodyear is committed to understanding the potential impacts our value chain may have on nature and our natural resources, including forests, land and water.

While Goodyear does not own any rubber tree plantations, we have taken actions to support sustainability as a purchaser of natural rubber, as noted in our Natural Rubber Procurement Policy. 

Goodyear is committed to working internally, with our supply chain and with external parties to promote a natural rubber supply chain that is environmentally and socially responsible, helping to minimize significant impacts on biodiversity. This includes supporting the livelihoods of smallholders, while promoting responsible acquisition and management of land that is free from deforestation.

Goodyear is an active member of the Global Platform for Sustainable Natural Rubber (GPSNR) and provides funding for the GPSNR Capacity-Building project. This project provides rubber farmers with good tapping practices to stem disease and training to make organic compost to act as a source of nutrients for the soil and a substitute for chemical fertilizers.

In our Sustainable Soybean Oil Procurement Policy, we outline how we will work internally, with our supply chain and with external parties to promote a soybean oil supply chain that is environmentally and socially responsible. This includes a supply chain that is free from deforestation and land grabbing, promotes conservation of important vegetation, minimizes impact on biodiversity and local communities and is economically viable.

In Goodyear’s Environmental, Health & Safety (EHS) Policy, we state that we will strive to reduce our environmental impact and conserve natural resources by minimizing waste, water usage and air and greenhouse gas emissions while reusing and recycling materials (where possible) and responsibly managing energy use through the life cycle of the tire.

Goodyear is also an active member of the World Business Council for Sustainable Development (WBCSD) and its Tire Industry Project (TIP). As a WBCSD member, we closely monitor the development of WBCSD’s guidance and the related global frameworks.

Looking ahead, Goodyear, guided by the leadership of the Global Sustainability Team, expects to engage in the WBCSD’s Nature and Nature-based Solutions Project to learn and inform our strategies. We also plan to conduct a risk mapping exercise to identify areas of impact and opportunity in our operations and supply chain. Finally, we plan to pinpoint current goals and close any goal gaps and confirm or establish the ongoing management structure for these topics.