GENEVA — The Tire Industry Project (TIP) has published an expanded report on the sustainability performance of its tire manufacturer members, including a 10% reduction in absolute CO2 emissions, a 31% increase in renewable electricity consumption and a 90% rate of adoption of responsible sourcing policies.
The report, "Sustainability Driven: Key Performance Indicators for the Tire Sector, 2019-22," has added key performance indicators (KPI) and qualitative information relevant to the sustainability performance of tire industry operations beyond manufacturing.
The report discloses the performance of TIP's members against KPIs linked to environmental, social and governance (ESG) themes, while continuing to report on established indicators such as energy consumption, CO2 emissions, water use, waste generation and ISO 14001 certification.
Newly introduced KPIs include the rate of adoption of responsible sourcing policies, the percentage of members with validated science-based targets, the share of water withdrawals from water stressed areas and the share of female representation in the workforce and on boards of directors.
TIP includes 10 major tire companies that represent more than 60% of the world's tire manufacturing capacity, including Bridgestone Corp., Continental A.G., Goodyear, Hankook Tire & Technology, Kumho Tire Co. Inc., Michelin Group, Pirelli & C. S.p.A., Sumitomo Rubber Industries Ltd., Toyo Tire Corp. and Yokohama Rubber Corp.
"The KPIs provide a common set of measurements that can be used by tire manufacturers to assist their individual company efforts to improve their sustainability performance. With this report, we underline our commitment to improving the sustainability of the tire industry, and acknowledge that monitoring TIP member company progress, individually and collectively, will be critical to ensuring that the sector optimizes its contributions to the UN Sustainable Development Goals (SDGs)," TIP Executive Director Larisa Kryachkova said.
"The new KPIs were selected, in part, to align with the tire industry's strategic sustainability roadmap."
The Roadmap — "Sustainability Driven: Accelerating Impact with the Tire Sector SDG Roadmap" — outlines seven Impact Pathways for tire manufacturers and serves as a guiding tool for the industry to individually and collectively address sustainability challenges while transitioning to a low-carbon, resilient and resource-efficient economy in alignment with the SDGs.
As part of ongoing efforts to identify, monitor and encourage sustainability actions, TIP said it will define additional KPIs relevant to the Roadmap's Impact Pathways and include them in future editions of the KPI report.
Formed in 2005, TIP is a voluntary CEO-driven initiative with a mission to address global environmental, social and governance (ESG) issues relevant to the tire industry and its value chain.
TIP operates under the umbrella of the World Business Council for Sustainable Development, which includes leaders from over 200 of the world's major businesses.