Corporate Responsibility

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 environmental, social and governance objectives, policies, strategies, programs and performance. The CRC fulfills the responsibilities delegated to it by the Board in its charter. The CRC, composed of no fewer than three members of Goodyear’s Board and currently composed of five members, meets at least three times a year to review and receive updates from management on sustainability-related topics, which includes reports and updates from Goodyear’s Vice President and Chief Sustainability Officer (CSO). The full Board regularly receives a report following each committee meeting. In addition, members of the CRC pursue continuing education opportunities relevant to their responsibilities, either through in-house presentations by recognized experts in their field or attendance at outside educational programs. A list of guidelines for the Board can be found here. The full Board is aware of and supportive of Goodyear’s sustainability strategy.

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 CSO, and currently composed of 15 cross-functional ,global leaders representing each region, as well as corporate in the areas of Procurement, Technology, Risk, Legal, Quality, Manufacturing Operations, Supply Chain, Communications, Government and Public Affairs, Human Resources, Finance and Marketing—provides strategic direction for Goodyear’s high-priority sustainability topics to ensure functional goals are aligned with corporate strategy. Additional responsibilities include:

•          Overseeing our materiality process

•          Foreseeing and addressing risks and opportunities

•          Providing oversight for the Better Future governance structure to ensure all high-priority topics are properly managed

•          Responding to sustainability-related market trends and regulations

•          Overseeing risk management

•          Providing strategic direction on progress against our maturity model

•          Helping to advance Goodyear’s communication to internal and external stakeholders

The Better Future Working Groups are composed of leaders and subject matter experts for Goodyear’s high-priority topics. They are responsible for developing goals and targets for their respective topics and reporting on strategies and progress 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 KPIs/metrics and strategies are in place for each goal. There is a Better Future Working Group for each of our high-priority topics. The individual working groups ladder up to the Better Future Steering Committee, which has a senior leader responsible for each high-priority topic and for routine governance updates. Performance is measured regularly, and updates are shared with a broader internal and external audience, as appropriate.

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

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 CSO provides this stakeholder feedback to the Board and CRC to inform their oversight.

To ensure we are managing our most significant sustainability impacts, risks and opportunities, we continue to engage internal and external stakeholders who are knowledgeable in and value corporate responsibility. The summary below highlights our key stakeholder groups and the type and frequency of interaction. We have also included feedback from various stakeholder groups within this report.

^{*Customers include OE, fleet and commercial customers, as well as distributors.}

Materiality

In 2022, Goodyear, under the leadership of the Better Future Steering Committee and in collaboration with a third party, conducted our latest materiality assessment to identify and define the sustainability topics that are viewed as high priority to Goodyear and our stakeholders. Our 2022 double materiality assessment was conducted in alignment with GRI standards. We plan to continue conducting materiality assessments and stakeholder engagement sessions periodically as our business and the market evolve.

For our 2022 materiality assessment, Goodyear followed the double materiality assessment process—aligned with the GRI materiality principle—that looks at both inward and outward impacts. Take climate for example: an inward impact is how climate is impacting Goodyear, and an outward impact is how Goodyear impacts climate. An impact can refer to positive, negative, actual, potential, direct, indirect, short-term, long-term, intended or unintended impacts. Impacts are considered for their severity, likelihood, scope and relationship to the organization.

Goodyear’s double materiality process followed four distinct phases outlined below.

Throughout this process, we examined the full scope of our value chain and product portfolio to reflect the global nature of our business. We interviewed or surveyed more than 150 internal and approximately 50 external stakeholders to assess inward and outward impacts of relevant impacts, risks and opportunities. 

Based on the results of these activities, sustainability topics were evaluated and measured on their significance to Goodyear’s stakeholders and business. The research pointed to more than 20 highly relevant sustainability topics for Goodyear that were then prioritized based on stakeholder evidence speaking to the significance of the topic and its impacts to Goodyear and/or on the environment and society.

Climate—Decarbonization Adaptation and Resiliency; Circularity; Human and Labor Rights; and Supply Chain Governance and Transparency were identified as our high-priority topics.

The assessment validated the importance of many topics to both 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, looked at current policies and management practices, and determined if we needed to establish any new policies, management practices, goals and/or metrics for any of our topics and focus areas based on external benchmarking and evaluation of our maturity.

Many of our topics from previous materiality assessments have been carried forward, being framed in ways that are important for today and the near future, while some new topics have become higher priority. For those new topics and focus areas, for example, circularity, Goodyear is working through the goal-setting process and will not be disclosing goals in this report. However, we plan to share the established goals and report on progress against them in future reports.

In 2024, we will be performing a double materiality assessment using the CSRD framework to refresh materiality and prepare for our upcoming CSRD reporting.

Climate Strategy

In December 2021, we announced our climate ambition, which includes our goal to reach net-zero Scope 1, 2 and certain Scope 3 greenhouse gas emissions by 2050, as well as 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. Both our near- and long-term climate targets were validated by SBTi in September 2023.

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.

Goodyear looks at climate from three different standpoints—decarbonization, resiliency and adaptation.

Decarbonization

In 2022, using Goodyear’s 2019 greenhouse gas (GHG) 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 continues to evaluate use-phase elements that we influence, for example, rolling resistance and tire weight, and sets use-phase goals.

Goodyear has identified owners for each of our hot spots, and strategies have been identified for each. These strategies are outlined in Goodyear’s Decarbonization Roadmap.

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.

Goodyear looks at three levers when it comes to reducing GHG emissions from purchased goods—utilize innovative low-GHG-emission materials, reduce material consumption and engage our suppliers. Working with our current supply base as well as potential suppliers, a cross-functional working group researches materials that could possibly have a low-emissions impact, evaluating emissions-reduction potential, cost and availability.

Another focus area is the reduction of material consumption, both in our tire design by using lightweight materials, such as thinner, but stronger steel cord to reduce the amount of steel cord per tire and the reduction of waste generated in our operations.

The third focus area is engaging our suppliers in climate targets and actions. In 2023, we performed an emissions impact analysis by material group and supplier to identify key hot spots. At the completion of this analysis, we assigned a maturity score to our suppliers based on their third-party scoring, their external reporting and whether they had made an SBTi climate commitment. From there, we initially selected 17 suppliers representing approximately 45 percent of our Scope 3 emissions from purchased goods with whom we will develop detailed supplier-specific roadmaps in 2024 and 2025. These roadmaps will initially focus on our suppliers’ Scope 1 and 2 emissions. In this process, we are also encouraging our suppliers to engage their supply base to reduce their own Scope 3 GHG emissions.

Additionally, in September 2023, we launched our supplier engagement program with more than 400 of our raw material suppliers requesting they complete the following by December 2024:

•          Set and publicly commit to near-term and net-zero science-based targets aligned with SBTi guidelines

•          Set a goal to operate at 100 percent renewable electricity by no later than 2030

•          Set a goal to operate at 100 percent renewable energy by no later than 2040

•          Work and engage with their own supply base to establish climate targets to reduce GHG emissions coming from their supply chain

•          Publicly report on their progress and share product-level GHG emissions footprint data with Goodyear

Our energy optimization program is focused on five key areas including energy management, energy efficiency, renewable energy, fuel switching and technology development. Each of these areas has strategic action items associated with them to reduce emissions, improve energy efficiency and increase the use of renewable energy.

In 2023, we developed a renewable electricity roadmap, which includes onsite renewable energy, power purchase agreements (PPAs), green tariffs and energy attribute certificates (EACs). We have already implemented three pieces of this strategy—onsite renewable energy, green tariffs and EACs. Our long-term plan is to utilize corporate PPAs for electricity procurement. This will ensure that Goodyear can maintain our decarbonization and add new power generation to the grid. To advance this work, we have established both a steering and operating committee—with representation from Global Engineering, Sustainability, Finance, Legal, Manufacturing and Procurement—to identify how we will execute on this strategy in both North America and EMEA, with the expectation to expand PPAs globally.

At the end of 2023, we are using 37% renewable electricity globally through procurement and on-site generation. Goodyear is on target to reach 100% renewable electricity in all our manufacturing facilities by 2030.

Goodyear’s corporate GHG footprint results point to the product use phase as the greatest opportunity to reduce GHG emissions, so we design for a more efficient tire from an overall energy-use standpoint. Energy use is affected by many design factors including tire rolling resistance, tire weight and tire aerodynamics. Goodyear can foster energy efficiency through our tires’ rolling resistance, weight and aerodynamic impacts.

A tire with low rolling resistance and a vehicle with less weight consume less energy and emit fewer GHG emissions. We have established and report on a goal of reducing rolling resistance by 40% in our global consumer tire portfolio by 2025 from a 2005 baseline. In 2023, we moved closer to achieving this goal by reducing rolling resistance by 35.5%.

Performance against Goodyear’s Climate Ambition

Overall, Goodyear’s Scope 1 and 2 emissions are trending downward, and we have a walk path to our 2030 target. While Scope 3 is still trending upward, Goodyear is building plans and implementing strategies to reach our 2030 target.

_{*This is restated from our 2022 Corporate Responsibility Report and CDP report. In 2023, we improved our methodology for calculating Scope 1, 2 and 3 GHG emissions. GHG emissions data for 2021 and 2022, as well as our 2019 baseline, is restated to reflect this updated methodology. See GRI 305-1, 305-2, 305-4, and 305-5.}
**Pending Scope 3 completion. This will be reported in Goodyear’s 2024 CDP response later this year.

Goodyear’s Scope 1 reduction is primarily due to transitioning from coal to biomass at our Aurangabad, India, and Bogor, Indonesia, facilities and by reducing the consumption of fuels. Goodyear’s Scope 2 reduction is driven by our increased use of renewable electricity and the reduction of electricity and purchased steam through energy efficiency projects.

For Scope 3 emissions, Goodyear is researching, evaluating and implementing various decarbonization strategies. This includes materials, waste and transport strategies and supplier engagement.

Resiliency

In 2023, Goodyear conducted our annual 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. Details can be found in Goodyear’s latest CDP report, published in 2023. 

Goodyear's climate-related risks and opportunities are evaluated on an annual basis, sponsored by Goodyear's Chief Sustainability Officer, 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 then evaluates and potentially adjusts inputs, parameters, assumptions, data and analytical choices annually. Goodyear uses 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 reports and upcoming ISSB reports.

Goodyear is exposed to risks of weather events interrupting our operating facilities around the world. Costs can be incurred in managing interruptions from these events, including sourcing of raw materials, transport of finished goods and property-related repairs. Goodyear can also experience lost revenue where sourcing, manufacturing and transport are compromised.

Goodyear has implemented a robust Business Continuity (BC) strategy focused on supporting the company’s operational resilience—minimizing disruptions and impacts from major risk. We use our BC process to minimize impacts and resume operations as quickly as possible. By proactively identifying risks and critical processes, Goodyear can take steps to speed up response and recovery when incidents occur.

Human Rights

Goodyear promotes the protection of individuals‘ social and economic well-being through responsible labor practices, protection of human rights within the supply chain and workplace, and prevention of abuse, exploitation and trafficking of humans of any age.

The Goodyear commitment to acting with integrity, honesty and respect reflects how we work and serves as the foundation for our duty to protect and promote human rights across our value chain. Our protection and upholding of human rights are core company values. Goodyear is committed to respecting, safeguarding and supporting fundamental human rights, in line with internationally recognized human rights standards including the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the International Labour Organization’s Declaration of Fundamental Principles and Rights at Work and related conventions.

Our approach to human rights is informed by our understanding and evaluation of the potential risks and challenges as well as opportunities to reduce risk in our operations and value chain. Our human rights policies and standards reflect our expectations across our value chain. All Goodyear stakeholders, including suppliers and other third parties, are expected to act with respect for human rights, consistent with our human rights policy and standards.

In March 2023, Goodyear implemented our updated Global Human Rights Policy. This policy illustrates that we are fully committed to maintaining an inclusive workplace and value chain that is free of harassment based on a person’s gender, race, age, religion, disability, ancestry, national origin, sexual orientation or other characteristics protected by applicable law. The policy also outlines Goodyear’s commitment to the UN Guiding Principles on Business and Human Rights.

In late 2022, we implemented our Policy on Policy Governance process, which outlines the process by which we prepare, revise, review, approve and make available our company policies. As such our 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.

NATURE AND BIODIVERSITY

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

Goodyear is an active member of the WBCSD and TIP. As a WBCSD member, we closely monitor the development of WBCSD’s guidance and the related global frameworks. In 2023, Goodyear participated in the WBCSD’s Nature Positive Roadmap workstream to learn and inform our strategies.

Goodyear conducted sector-based research to inform our future nature impact assessment using various tools, including ENCORE, Science Based Targets for Nature’s (SBTN) materiality assessment, and World Wildlife Fund’s (WWF) Biodiversity Risk Filter tool, which determined upstream and operations to have potential nature-related impacts.

Nature and biodiversity tie into many of our other high-priority topics discussed in this report—Climate, Circularity and Supply Chain Governance and Traceability. We will work to further integrate nature and biodiversity assessment insights, governance, strategies and metrics into these other topic-related governance structures.

Goodyear’s Global Sustainability team created a Nature and Biodiversity working group, reporting through the Better Future Steering Committee, that will leverage this information to inform the company’s full nature impact assessment that uses the Taskforce on Nature-related Financial Disclosures’ (TNFD) LEAP approach. This impact assessment will identify Goodyear’s nature-related impacts and dependencies as well as areas of risks and opportunities within our operations and supply chain. We plan to use the assessment results to set goals and ensure we have the proper ongoing management structure for these topics. This working group plans to work cross functionally with teams such as Procurement, Operations, Engineering and EHS.