Shared Value: Caring for our Environment and Communities
We are committed to caring for our environment and communities...large and small. Our environment is not only the natural world around us but also our factories, stores, offices and other places of business. Our communities are where we live and work, volunteer and help.
Goodyear has a comprehensive, well-defined environmental, health and safety (EHS) system that brings our shared values to life and strives to deliver best-in-industry performance. Our global EHS team works with all facets of our operations, and our strategies and programs are constantly evolving to allow our company to become more sustainable. Goodyear's EHS Policy, our performance in 2011, and the goals we have set for 2012 are outlined here.
- 2012 EHS Policy -- PDF (324KB)
Two of Goodyear's shared values - encouraging wellness and safety both on the job and at home, and caring for our environment and our communities - are the key drivers for our EHS and sustainability efforts. We have a formal EHS organization that is responsible for safety, compliance, sustainability and product stewardship. This organization leads a strategy to promote safety in everything we do, reduce our environmental impact across our product life cycle, and benefit our associates, customers and communities. The six elements of our strategy are materials, products, consumers, operations, investors and associates.
Our strategy to reduce our environmental impact begins by optimizing materials. We continuously evaluate the raw materials we use, including material characteristics, energy composition, social and regulatory activities, and alternatives. All evaluations and future uses are established by the Product Stewardship Steering Group, a group of senior managers. Efforts have also been initiated with select suppliers to develop more sustainable materials. Goodyear's new supplier development activities include an assessment of their material sustainability performance and material innovation. We have fundamental research and development activities focused on renewable materials and material reduction, reusability, and recyclability.
The product component of our EHS strategy refers to the optimization of a tire's footprint, which requires three simultaneous considerations during product design. First, we measure a tire's wet grip to determine its ability to safely provide transportation under adverse conditions. Secondly, we design products that minimize material usage and reduce rolling resistance for reducing fuel use and minimizing fuel costs. Finally, optimizing treadwear is also an important consideration, which helps decrease material usage by reducing the frequency of tire changes.
Another significant component of our strategy is to inform our consumers about our products, including safe use and best sustainability practices, as well as the efforts we make to ensure their tires provide maximum value to them. A special focus is placed on novice drivers, such as first-generation drivers in emerging markets. Besides the information shared by our professional tire technicians during a tire purchase, Goodyear promotes consumer events that encourage safe driving and good tire maintenance habits. We also want consumers to know about our efforts to minimize our impact on the environment as we produce their tires. We do this through store signage, marketing programs, publications such as our annual corporate responsibility report and this website. We also communicate with environmental groups and NGOs (non-governmental organizations) to get their feedback on our efforts.
In our operations, we aim for efficiency while manufacturing our products with maximum safety and minimum energy, emissions, waste, and water. For years, we have concentrated our EHS efforts among these areas and have achieved industry-leading results.
We communicate our strategies and benefits to investors through our corporate responsibility report and annual report, and by participating in the Carbon Disclosure Project and other periodic surveys such as the Newsweek 500 Greenest Companies. Individual requests for information on our EHS sustainability efforts are addressed through our EHS staff.
One of our most important tasks is to communicate to our associates so they understand our sustainability strategy and expected behaviors. To engage all associates in our sustainability efforts, an educational program is underway to ask associates to strive to conserve energy, minimize the use of resources (reduce, reuse, recycle), work safely and collaboratively, pursue personal wellness, and follow all work rules and regulations.
Goodyear has a long history of following sustainability practices and working hard to be a responsible neighbor in every community in which we operate. One of the first internal awards created by the company was a conservation award introduced in 1947 to encourage environmentally sound soil management. In the company's early years, our sustainability efforts focused on establishing parks and recreation areas in local neighborhoods and actively participating in civic organizations and leadership groups.
In the early 1970s, Goodyear established a formal energy conservation program and began energy reduction activities at every company location. We added greenhouse gas (GHG) emissions to our standard monthly report in the late 1980s and, in the 1990s, began releasing annual reports on our activities and progress in the area of EHS. In 2006, we expanded our Corporate Responsibility Report to its current format, and continue to improve its content and increase our transparency annually.
Our long-established safety and environmental programs make our work places and communities safer and healthier. The programs have evolved as we focus on continually improving our performance.
Consistent with our EHS policy, Goodyear complies with the applicable environmental and safety requirements in the countries and communities in which we operate. The regulatory landscape continues to be demanding and complex, but we monitor existing, new and proposed legislation with the goal of flawlessly executing the requirements. While we did not achieve our goal of zero nonconformances and fines in 2011, any releases were quickly controlled and had minimal or no impact to the environment. Reportable releases to the environment decreased 61 percent from 18 in 2010 to 7 in 2011. We received 12 environmental notices of violations in 2011, on par with the 11 we received in 2010. For safety compliance, Goodyear received significantly fewer notices of violations in 2011 than in 2010. Goodyear conducted 335 EHS audits (including regional, ISO, compliance and self-audits) at our facilities in 2011, and we continue to diligently identify and correct any nonconformances with the expectation that our compliance goals in 2012 will be met.
Ongoing Initiatives to Reduce our Environmental Footprint:
Since 2008, Goodyear has not sent any manufacturing waste to landfills anywhere in the world. This initiative was started in 2006 to reduce our environmental impact by requiring all plants to reduce, reuse and recycle manufacturing waste. We not only work to find the most efficient outlets for reusable scrap material, we also strive to achieve the most beneficial use. As a result of the program, more material is being recycled or used as fuel. The sale of these by-products returns revenue to the manufacturing process, which helps fund further improvements. Goodyear's corporate goal is to maintain our Zero Waste to Landfill policy while continuing to reduce the amount of waste incinerated or used for heat recovery.
Goodyear's manufacturing plants work hard to meet and exceed environmental goals and objectives, with associates demonstrating their concern for the environment through recycling. At Goodyear's plant in Lawton, Oklahoma, recycling efforts increased 34 percent in 2011, with some months seeing impressive amounts of more than 4,000 pounds of paper and 1,000 pounds of aluminum cans collected for recycling.
Goodyear continues its company-wide effort to eliminate solvent usage and, consequently, solvent emissions. In the past, solvents have been used in our manufacturing process and maintenance activities. Multifunctional teams have developed process changes that eliminate solvents, find material alternatives or implement other shared best practices from plant to plant. In 2011, company-wide solvent usage was reduced to 0.97 pounds per ton of product, a 15.6 percent reduction compared to 2010. Fourteen Goodyear plants achieved zero solvent use, and eleven others used less than 0.1 pounds per ton of product. Overall, Goodyear has reduced solvent usage by more than 56 percent since 2007. Our activities in 2012 will continue the drive toward solvent elimination in radial passenger and truck tires, while achieving "best practice" levels in bias and other production lines. In so doing, we will achieve an overall solvent reduction of 19.5 percent.
Goodyear's manufacturing plants, such as the one in Lawton, Oklahoma, work hard to decrease the use of solvents. Goodyear Lawton was among our best performers and reduced solvent use by 25 percent in year-over-year performance.
Through a variety of local initiatives, Goodyear associates are encouraged to be environmentally aware of the need to conserve resources and support opportunities to improve biodiversity in their communities. All facilities are encouraged to reduce, reuse and recycle. This is of special importance when operations are situated in areas with specific natural resource concerns.
In 2011, Wingfoot Lake State Park and Wildlife Area was opened in Ohio as a green space for both public enjoyment and wildlife preservation. In 2010, Goodyear and the State of Ohio completed a phased agreement, enabled by the Trust for Public Land, to ensure the formerly private employee park would remain both a valuable wildlife habitat and a recreational and educational area for the general public, including school children. As a result of the agreement, ownership of the 569-acre wildlife area was transferred to the Ohio Department of Natural Resources. This area lies 9.7 miles east of the city of Akron, in Portage County. Such green space, in juxtaposition to developed areas and a large population of people, is invaluable to the local biodiversity.
The park primarily comprises a lake (262 acres) and marshland (128 acres) with about 179 acres of associated uplands and forested habitat. As part of the agreement, Goodyear restored portions of the area to prime wildlife habitat from previous employee uses. The habitat is ideal for small mammals, such as rabbits, skunks and opossums, as well as such upland species as deer and coyote. Mink, muskrat, raccoon, and beaver are commonly encountered among the wetlands. A diversity of raptors, including bald eagles, owls and hawks, frequent both the upland and wetland areas, while the lake and marshlands attract and support a variety of herons and migratory waterfowl, including mallards, wood ducks, and geese. Diving duck species including scaup, ring-neckeds, buffleheads, and canvasbacks, use the adjacent open waters of the lake during late fall and winter.
Also in Ohio, the building for Goodyear's corporate headquarters is under construction in Akron. The new building is designed to achieve the silver rating for Leadership in Energy and Environmental Design (LEED). Developed by the United States Green Building Council (USGBC), the rating system evaluates the environmental performance and sustainable design of new buildings.
The new building, which will connect with Goodyear's existing Innovation Center, will be efficient in terms of both resources and space, and is designed to encourage manifestation of the company's corporate values, including sustainable behaviors. It will be completed in 2013, at which time Goodyear will relocate 2,000 associates into the building, and it will serve as headquarters for the company's global operations and North American Tire business.
Goodyear's facility in Americana, Brazil, is one of the company's leaders in sustainability efforts. In fact, Goodyear Brazil was recognized as one of the most sustainable companies in Brazil by Imprensa Magazine, a Brazilian publication. Annually, the organization embraces environment week in September and holds a tree-planting celebration (PHOTO). Associates also participated in the "Praia dos Namorados" dam cleanup as part of World Coastal Cleanup Day 2011. Throughout the rest of the year, all Americana associates received training in sustainability concepts, such as resource conservation and how to be "green" at work and home. The team continues to focus on resource conservation and strives to improve their performance.
To honor long-term associates and the environment, Goodyear Adapazari in Turkey started a biodiversity initiative in February 2011. Whenever an associate retires, a seedling is planted on the facility's campus in his or her honor. The Adapazari team believes that retired associates continue to be a part of the Goodyear family, and their names will remain with these trees as a reflection of long-term service to the company. In addition, the Goodyear retiree grove stands as a visible sign of associates' commitment to build better environmental conditions for future generations.
Goodyear Dunlop Sava Tires has continued working with partners to educate teenagers in Slovenia about the environment and encourage them to recycle. The campaign, launched in 2010, engaged 7,000 high school students in 2011 with information on proper waste management.
Associates from Goodyear Colombia participated in a local tree-planting celebration. The "Plant a Tree, Plant Life" campaign, led by environmental authorities, focused on protecting the mountain area of Cali. Hundreds of tulip, guayacan, and bamboo trees were planted in a concerted effort to restore the local habitat. Goodyear Switzerland also planted trees in an effort to protect local communities from natural disasters. Designed to reduce ground water overflow, the protection forest planted by Goodyear Dunlop associates will better protect valley communities from mud slides, floods and avalanches.
Associates at Goodyear's facility in Peru participated for the third year in a row in a coastal cleanup campaign. They cleaned the beach and a small island nearby, removing trash and collecting recyclables.
A child-friendly event promoting energy-efficient "green" living was made possible through a partnership between Goodyear Venezuela and The Company of Administration and Electrical Fuel (CADFE). Both children and families of Goodyear associates were invited to celebrate this partnership at a festival featuring plays, dances and songs. Children from local school districts presented projects demonstrating various energy-saving techniques and the benefits of "green" technologies.
Caring for the environment and the communities in which Goodyear operates was a main tenant of this summer's celebration of World Environment Week. Associates at plants in both Aurangabad, India, and Izmit, Turkey, participated in the project, which was founded by the United Nations. Under the banner of "reduce, reuse, recycle," associates participated in educational events that emphasized the benefits of an environmentally conscious workplace.
At all of Goodyear's manufacturing facilities, we used 2,941 gallons of water per ton of production in 2011, an improvement of 5.5 percent compared to usage in 2010. We are committed to a 15-percent reduction in water use by 2015.
Goodyear sources its water from public utilities, wells, lakes, and streams. Forty-nine percent is from public utilities and 51 percent from surface waters. Water is used for cooling, steam generation, cleaning and sanitary services. Most of Goodyear's manufacturing facilities are in areas that are unaffected by water scarcity concerns.
As part of Goodyear's strategy to conserve and recycle water, almost all facilities utilize closed-loop cooling systems when water is used for cooling materials and equipment. Systems are also in place to capture and return process water and steam condensate for reuse, reducing the need for additional fresh water. The majority of water used for steam and cooling is returned to waterways, minus any evaporation that occurred. All water used for domestic purposes is treated on site or at publicly owned treatment plants according to all applicable requirements, and is then returned to waterways.
In 2011, Goodyear created a global energy leadership position within the sustainability team and each of the strategic business units, and also established a global energy management system. With the goal of reducing energy rates by 15 percent over five years, 2011's results were on target and represent a successful start to an important effort.
Goodyear's energy management system is based on Lean Six Sigma continuous improvement methodologies. Continuous improvement is a major facet of the system and a key driver for creating greater energy efficiency at local facilities. The DMAIC (Define, Measure, Analyze, Improve, and Control) methodology defines (D) the opportunities, provides the tools to measure (M), collects necessary data to analyze (A), and implements (I) the appropriate projects and initiatives in each plant. The control (C) phase is crucial in maintaining a feedback loop to this process.
As part of this system, more than 25 Goodyear associates have become certified energy managers (CEMs) at the regional and plant levels with help from the Association of Energy Engineers. Automated energy monitoring systems have been installed in all regions to connect thousands of metering points to central servers. These systems allow for robust tracking and reporting, optimize improvement efforts and help us to develop standards.
In 2011, each plant had at least one associate trained to design lighting using advanced software that can model lighting levels, technologies and power density before a major lighting project is begun. This enables us to integrate new technologies, such as LED lighting, into our global lighting standards.
Energy reviews were completed at most major global operations by a team consisting of global, regional and plant energy associates with the purpose of sharing best practices and initiatives among the plants. The review helps to verify baselines and implement the new global energy and greenhouse gas (GHG) strategy. Participating in the reviews at each facility was the local energy committee, led by the plant energy coordinator and one energy champion. The committee spends 10-30 percent of its time on energy and GHG initiatives.
In 2011, Goodyear installed condensing economizers in two plants to recover the heat from boiler stacks and preheat the boiler makeup water. The cost of these projects was more than $1.5 million with an estimated payback time of less than three years. Plans are in place to install an additional condensing economizer in 2012.
In 2011, Goodyear began an effort to identify and secure opportunities for using renewable energy sources. A global, third-party consultant is providing assistance.
Goodyear's facility in Americana, Brazil, converted approximately 20 percent of its lighting from inefficient T12 fluorescent lamps to LED-efficient technology with an estimated energy reduction of more than 70 percent. A plan is in place to complete the conversion and adopt this practice in other plants around the globe.
The design of our newest plant in Pulandian, China, incorporates skylights to allow natural lighting and reduce the lighting electrical load during the day. Solar tube technology is also used to provide lighting without the need for electricity.
Goodyear's manufacturing efforts to reduce GHG emissions include our energy-efficiency efforts, energy sourcing, and identification of renewable energy alternatives. As a result of these activities, we reduced GHG emissions by two percent from 2010. These results have us on track toward our goal of reducing emissions by 15 percent over 5 years.
Goodyear uses the World Business Council for Sustainable Development (WBCSD) and World Resources Institute protocol for calculating greenhouse gas emissions. Reported emissions include all Goodyear manufacturing locations and detail direct and indirect sources. These sources include electricity and steam — generated on and off site — and all fuels used in boilers and other combustion equipment. Emissions are reported in terms of carbon dioxide equivalents, which include CO2, CH4, and N2O, the three main gases responsible for global warming. Fifty-seven percent of emissions are indirect and 43 percent are direct.
Part of Goodyear's strategy to reduce greenhouse gas emissions is to address the entire life cycle of our products. Goodyear is working to reduce emissions from supplied materials through manufacturing, use and final disposal of our products. We also evaluate projects for their potential reductions and cost effectiveness. Our products can also have an impact, such as our low-rolling-resistance tires, which can reduce greenhouse gas emissions and energy consumption during use.
In the U.S., the EPA issued a rule that requires manufacturers of a certain size to report their greenhouse gas emissions. Goodyear had a number of applicable facilities and successfully reported their emissions.
Since 2008, Goodyear has participated in the EU's Emissions Trading Scheme. Plans designed to address the next phase of emissions trading in 2013 were validated by a third-party audit in 2011. Operations in our Europe, Middle East and Africa Tire region represent 26 percent of Goodyear's scope 1 (direct fuel usage) and scope 2 (purchased energy) GHG emissions.
As a member of the World Business Council for Sustainable Development (WBCSD), Goodyear has accepted the challenge to significantly reduce energy use at non-manufacturing facilities by 2020. In Latin America, a program was piloted to identify and measure energy use at all non-manufacturing operations, including leased facilities. In North America, energy-efficiency programs, including lighting and compressed air, have been implemented in our retail and commercial tire service facilities. As these programs mature, they may be expanded globally.
Goodyear has a long history of corporate philanthropy and sponsorship of regional outreach programs. Our charitable giving reflects our corporate values, and our funding concentrates primarily on safety, children and families, education and health services.
- Goodyear's continued financial support of the Port Elizabeth Early Learning Centre (PEELC) in South Africa helped 19 women complete their two-year training course to become Early Childhood Development practitioners.
- With a goal of inspiring young women to pursue careers in the fields of engineering, science and technology, Goodyear hosted the 11th annual Engineering Career Day for Young Men and Women in 2011. Interactive, hands-on activities were held for students at Firestone High School in Akron, Ohio. Goodyear also awarded scholarships to students pursuing an education in engineering.
- Engineering students from eight top universities across the country headed to the Akron Proving Grounds to compete at the 2011 Goodyear Formula Society of Automotive Engineers Shootout competition during the fall of 2011. The day-long competition consists of autocross and endurance races. Through hosting this event, Goodyear supports young engineers and helps students understand the important role tires play in a vehicle's performance.
- The "Spirit of Kidpower" met the Spirit of Goodyear blimp this past summer in Akron, Ohio. A replica blimp was designed, built and installed by the Goodyear blimp crew and pilots. Children visiting the station were invited to turn a hand crank, which would help turn their effort into electricity with every cycle, lighting up the blimp's LED message board with the words "Kidpower." These seasonal exhibits were located on the grounds of Stan Hywet Hall and Gardens, not far from the house built by Goodyear co-founder F.A. Seiberling between 1912 and 1915.
- In a recent ceremony held in Dalian, China, representatives of local government, Goodyear associates and members of the local community gathered to mark the official opening of the Goodyear Hope School. Financed by Goodyear, the Hope School is supported by the local government and China Youth Development Foundation. The new school offers facilities to educate 200 pupils from nearby villages. In addition to having the honor of naming the school, Goodyear was also acknowledged by the Pulandian government for its contribution to the lives of these students.
- For more than 13 years, Goodyear associates in Akron have participated in Akron Reads, a program designed to help students academically and socially. In 2011, more than 50 associates volunteered to tutor third graders at Barrett and Mason Elementary schools, both located near Goodyear's corporate headquarters.
- For more than a decade, Goodyear has supported the SOS Children's Village in Port Elizabeth, South Africa, a permanent home for orphaned and abandoned children. Our 2011 financial support provided teaching aids for 80 children, helped to establish a preschool in Westville, aided the repairs of a building to house the school during the week, and purchased educational materials, toys and equipment.
- Goodyear associates in South Africa have again donated their used safety shoes and boots in good condition to less fortunate people in the Port Elizabeth, Uitenhage and Despatch areas. Associates get new work shoes each year and kindly donate their old shoes to a local agency to distribute.
- In collaboration with the Indonesia Red Cross, Goodyear Indonesia facilitated a blood donation program to honor the city of Bogor's 529th anniversary. Goodyear was honored to accept a personal invitation of involvement from the mayor of Bogor, and the event collected 112 donations in its first three hours.
- Goodyear Indonesia participated in the third installment of National Vaccine Week, which was held simultaneously in 18 provinces throughout Indonesia and lasted two weeks. More than 1,600 children under five years old live in these areas. The free vaccination program is supervised by 124 local officers in 17 medical centers. Each month, Goodyear Indonesia also contributes to the Children Nutrition Improvement Program by donating milk, beans and other nutritional products to Pos Pelayanan Terpadu Comprehensive Service Centers for Children.
- In a joint project, Goodyear and NASCAR developed a special program in Mexico in 2011. The "Goodyear 240 km Race for Puebla's Kids" project aims to improve meals for more than 300 children from low-income families.
- For a sixth consecutive year, Goodyear Malaysia has supported St. John Ambulance Malaysia (SJAM) through a donation of 36 tires.
- During the wildfires that devastated part of Texas in 2011, Goodyear offered its San Angelo proving grounds as a staging area for fire companies battling the fires. While there, Goodyear noticed that the equipment was in need of new tires and wheels. With a donation worth more than $45,000, Goodyear supplied 10 volunteer departments with 102 tires and 24 wheels.
- In Germany, Goodyear collaborated with Lebenshilfe Giessen-an organization that supports integration projects for people with disabilities-to restore a fifty-year-old Mercedes-Benz transporter in historical Dunlop design. The transporter is used at events to collect donations for Lebenshilfe. The restored transporter won the 2011 "Golden Classic Steering Wheel," a prestigious award sponsored by Auto Bild Klassik, an automotive magazine in Germany.
- Through a partnership with Habitat for Humanity, associates in Goodyear's Asia Pacific Tire region had the opportunity to provide aid to the earthquake-stricken Sichuan province of China. During a two-day reconstruction event, volunteers worked to restore the foundations and frames of homes destroyed by the earthquake. The entire reconstruction process was finished in May 2011, providing all displaced families with the opportunity to move home by June.
- Associates gave back to their communities during the S.O.S. campaign held at the Americana and Santa Barbara D'Oeste plants in Brazil. Eight tons of food, clothing and hygiene products were donated to citizens in the nearby areas of Sumare and Rio de Janeiro, both of which had recently been devastated by a series of floods.
- After a series of floods in the Australian state of Queensland, Goodyear provided emergency service assistance to municipal vehicles in the impacted communities.
Goodyear facilities around the United States continued their strong support for the United Way. With continued high unemployment in 2011, the charitable organization remained a critical resource for many families. Financial donations enable the United Way to provide basic emergency needs for food and shelter, as well as long-term commitments to strengthen communities through education, training and health programs.
As a corporation, Goodyear donated nearly $1.4 million to the United Way of Summit County, Ohio, in 2011, continuing its longstanding role as the region's top corporate donor. Associates at Goodyear's facility in Lawton, Oklahoma, set a record for financial support of their local United Way agency with a 2011 contribution of $750,282.
Goodyear's support of the United Way doesn't end with financial donations. Associates at the corporate headquarters in Akron have a long-held tradition of volunteering during the United Way's annual Day of Action. In 2011, more than 150 associates, retirees and their family members volunteered to help prepare Camp Y-Noah for the 2,000 children who will spend the summer there. The YMCA camp provides a secure, social environment where children can enjoy hands-on, outdoor classes that cover the subjects of science, nature, and the environment. For two days, Goodyear associates spread out over the camp's 290 acres to pull weeds, paint cabins, cut firewood, construct a new fence at the petting zoo, build buddy boards for the docks, construct two handicap-accessible ramps, and repair and resurface the basketball court.
Since 1925, Goodyear blimps have adorned the skies as our corporate icons. Today, our fleet of aerial ambassadors in the United States consists of the Spirit of Goodyear (based in Akron, Ohio), Spirit of America (Carson, California) and Spirit of Innovation (Pompano Beach, Florida).
The blimps make frequent appearances on television, serving as a promotional tool for Goodyear as they deliver aerial HDTV coverage of entertainment, news and sporting events. In addition, the blimps devote much of their time to supporting charities and raising support for the victims of natural disasters, such as in 2011, when the blimps ran messages encouraging people to donate to the Salvation Army or the American Red Cross to aid those devastated by tornados. Through the blimps' busy schedules, public service announcements running on their signs day and night can reach hundreds of thousands of people each year.
Some of the public service announcements that ran during 2011 included support for the American Red Cross, March of Dimes, United Way, Shriners Hospitals for Children, and Support Our Troops. Other messages encouraged the use of seat belts while driving or riding in vehicles.
The Goodyear blimps also support local charities by donating blimp rides that the charities can auction off to raise money. Together, the three airships donated 574 rides to charity in 2011.
Goodyear's blimp in China, Navigator, was introduced in 2006 and, for several years, flew over China to raise awareness about tire maintenance and road safety.
For more information on Goodyear's blimps: www.goodyearblimp.com