Goodyear’s Chief Procurement Officer leads our Procurement team, which manages Goodyear’s sourcing for the materials and services we use globally. Together with other Goodyear teams, our Procurement team oversees and implements policies, programs and supplier assessments and audits. The team also provides associate training on topics such as human trafficking, forced and child labor, anticorruption, compliance and strategic sourcing processes. First-year Procurement associates receive more than 40 hours of procurement-specific training, and all team members receive an annual refresher training. Training includes content that helps associates identify potential issues and provides them with the skills and resources to respond appropriately.
We require our suppliers to comply with Goodyear’s Supplier Code of Conduct or have their own equally substantial code of conduct, and we may deny or terminate a business relationship should a supplier not do so. Topics covered in the Supplier Code of Conduct include child labor and other working condition regulations, environmental practices and anti-corruption.
Goodyear’s Business Continuity and Procurement teams annually conduct an all-category and commodity risk assessment that identifies top raw material supplier risks across our global supply chain. This annual survey considers a wide range of factors, including: procurement spend and volume; supply or supplier alternatives; geographic spend; geopolitical concerns; and emerging laws and regulations. Goodyear reserves the right to request information or access to suppliers’ facilities at any time to confirm compliance, including and especially as it relates to human trafficking and modern slavery. In the event of violations, our Procurement team pursues appropriate responses, which may include working with suppliers to create corrective action plans or, in appropriate cases, terminating the relationship. We include audit and corrective action results in our sourcing strategy discussions.
Our existing screening process includes an environmental, social, governance (ESG) survey and requires raw material suppliers—new and existing—to respond to the survey or provide answers to a similar assessment. In 2022, we completed an assessment for 94% of our raw material spend. Through this process, covered suppliers are required to provide information on policies and programs pertaining to, but not limited to, human rights; employee training; environmental, health and safety; chemical management; hazardous material controls; and waste management. These survey results help position us to take effective action as we determine supply chain opportunities and strategies, as well as to create and implement action and improvement plans when appropriate.
In 2023, we plan to continue to work with suppliers as needed to develop agreed-upon improvement plans as well as introduce a pilot program for strategic indirect suppliers to be included in our ESG assessment process.