Environmental
Key Performance Indicators
for Tire Manufacturing
2009-2019
Tire Industry Project
2020
1

The data presented in this report was collected by Deloitte, on
behalf of the World Business Council for Sustainable
Development (WBCSD) Tire Industry Project (TIP).
2

Contents
Introduction

4

State of Play: Policies, Strategies and Targets

5

Key Performance Indicators
Summary of absolute KPIs

7

Summary of intensity KPIs

8

Energy9Energy – focus on the energy mix

11

CO2 emissions

12

Water intake

14

ISO 14001 compliance

16Company examples

18

Discover more

19

Appendix
Methodological note21

Contact

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3

Introduction
Formed in 2005, the Tire Industry Project (TIP) serves as a
global, voluntary, CEO-led initiative, undertaken by 11 leadingtire companies* with an aim to anticipate, identify, analyze andaddress the potential human health and environmental impacts
associated with tire development, use and management
through end of life.
TIP member companies operate under the umbrella of the World
Business Council for Sustainable Development (WBCSD) and work
together to improve understanding of these challenges and develop
potential solutions for a more sustainable future.
The tire industry leaders recognize that there are both opportunities
and challenges associated with tire manufacturing and sustainable
development.
Over the past five years, WBCSD has commissioned an
independent third party (Deloitte) to identify environmental key
performance indicators (KPIs) that measure operational impacts ofthe tire industry related to manufacturing operations (energy
consumption, CO2 emissions, water intake and ISO 14001
certification) by means of interviews with TIP members to define acommon methodological framework for the collection andcompilation of data. Three sectorial performance reports werealready published, the latest, in 2019, covered the period 2009-2018.
2019 data was collected in early 2020 to provide this updated report.
This report on environmental KPIs aims to present an up-to-datevision of the evolution of the sector’s environmental performance for
its tire manufacturing operations by disclosing both absolute andintensity KPIs, during the years of 2009-2019.
This report provides a general overview of the performancedevelopment of the TIP member companies. The qualitative
information reported is not exhaustive and the implementation of
measures can vary both between and within companies.
For detailed, company-specific information, please consult publicly
available company reports.

*Members of the WBCSD Tire Industry Project
•
•
•
•
•

Bridgestone Corporation
Continental AG
Cooper Tire & Rubber Company
The Goodyear Tire & Rubber
Company
Hankook Tire & Technology Co.,
Ltd.

•
•
•
•
•
•

Kumho Tire Company Inc.
Manufacture Française desPneumatiques Michelin
Pirelli Tyre S.p.A.
Sumitomo Rubber Industries, Ltd.
Toyo Tire Corporation
The Yokohama Rubber Co., Ltd.

4

State of play: Policies, Strategies and Targets
Based on publicly available data and information provided to Deloitte by each member company, all TIP member companies have taken
steps to reduce the environmental impact of their manufacturing operations.
Policies

Targets

All TIP companies reported that environmental issues are
considered at a high level across all operations in varying degrees of
implementation and integration. As such, two types of policies
emerge:Quantitative targets are recognized as leading factors ofimprovement and are expected, if not required, by external
stakeholders. Most TIP companies have set targets on energy,
carbon and water topics. While they vary in scope, targets werepreviously fixed for an average period of 10 years and for the
majority will end in 2020. As this period comes to an end and theresults are encouraging, new targets have been set by most TIP
member companies (see targets for each topic in the different
sections below). The establishment and delivery of specificroadmaps is important for the companies to achieve these targets
and for the continued improvement of performance indicators in the
coming years.

1.

2.

Global policies, that are generally concerned with both
environmental and safety issues and tend to describe
overarching principles but do not include quantitative insights
into corporate strategy. These policies are mostly part ofbroader company-level strategies based on the United
Nations’ Sustainable Development Goals (SDGs) as a basis
for international sustainability guidelines. These strategies canencompass broader operations, including for e.g. the supply
chain, the sourcing of natural rubber, and the product’s end-oflife.
Independent policies that target specific environmental topics(i.e. water, waste, greenhouse gas (GHG) emissions, energy)
with more detailed roadmaps.

Governance
Environmental topics are typically discussed at the highest levelwithin member companies: Presidents or CEOs (depending on theorganization) are included in the councils or committees discussing
the issue and defining the strategies of most members.

5Key Performance Indicators

6

Summary of absolute KPIs
This graph illustrates the overall evolution of the different manufacturing
environmental KPIs compared to the variations of the production level.
The production level strongly increased at the beginning of the period
and peaked in 2011. A slight decrease in production levels between
2018 and 2019 follows a period of sustained growth that started in
2012.

Absolute environmental indicators(manufacturing) (2009 value = 100%)%

Globally, the absolute KPIs followed the same trends as the productionlevel through 2013: it is particularly visible in 2019, where a decrease of
all absolute indicators is noticeable. However, from 2014, while energy
consumption continuously followed the production’s variations, CO2
emissions began to slightly decrease, and water intake significantly
decreased.
The sector’s CO2 emissions are strongly correlated with its energy
consumption until 2014, showing the absence of any major change interms of energy sources used or carbon mix over the studied period.
From 2014 onwards, TIP members began to dissociate the CO2
emissions from the energy consumption. The increased use ofrenewable energy will continue to drive this trend. This result is due toan improvement (decrease) of the countries’ emission factors where thecompanies operate and from a change in TIP companies’ energy mix.

%
%

%

2

Exact data for all years and all indicators is presented on slide 22.

7

Summary of intensity KPIs
The analysis of intensity* KPIs (ratio of the absolute indicator by unit ofproduction) enables the comparison of the performance without theinterference possibly caused by important production variations.

Environmental Intensity indicators(manufacturing) (2009 value = 100%)%

The production levels decreased by 0.5% from 2018 to 2019 for the firsttime since 2012, despite the increasing number of sites in the reporting
scope. The growing number of sites and the decrease in the total
production amount reflects a decrease in the production per site.
The number of sites covered by the sectorial reporting is the highest
observed over the studied period. There were 210 sites under thereporting scope in 2010 compared to 241 in 2019.
All intensity indicators decreased during the reporting period 2009-2017.
It is interesting to note that energy and CO2 KPIs slightly increased
between 2017 and 2019 after a continuous decrease over the past 5
years. In 2019, the intensive indicators slightly increased whereas
production decreased. This can be explained either by additional lessefficient production sites integrated in the reporting in 2019, or byadditional new more efficient but not at full capacity sites in the reporting
scope.
Despite the 0.5% decrease on average in absolute values, the intensity
KPIs slightly increased from 2018 to 2019.

%81.4 %%

2*Unit of energy, water withdrawal or CO2 emission per unit of production.

Exact data for all years and all indicators is presented on slide 22.

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Total energy consumption on the manufacturing sites increased
significantly between 2009 and 2010 (+11%) and appeared to havestabilized after this date until 2018 (+4%). The total amount ofenergy consumed remains constant in 2019 as compared to 2018
levels, greater than in previous years.
Energy intensity significantly decreased between 2009 and 2010
benefiting from the capacity optimization effect related to
production increase.
From 2013 to 2017, the global energy intensity continuously
decreased, to slightly increase again in 2018 and 2019, remaining
around 3% below the 2010 levels. The 2018 and 2019 increase isattributed to the integration of several energy intensive production
plants (either new plants that were not at full capacity or older
plants with less efficiency).

Total energy consumption (manufacturing)(PJ NCV) Peta Joules Net Calorific Value

EnergyEnergy intensity
GJ/ton

It is important to note that intensity does not increase as much as
absolute energy consumption. This reflects TIP members’ efforts toimprove resource efficiency of their manufacturing operations.
Weighted average energy intensity: total energy consumption for 11 TIP members / total
production volume of these companies.

9Energy policies and outstanding projects
Management and strategy
TIP companies implemented efficiency programs with a focus onenergy. To reduce their impact and shift to a more sustainable way of
manufacturing, TIP members’ focus on reducing energy consumption
in their manufacturing sites, increasing energy efficiency of theequipment and developing renewable energies.
Companies have programs that include employees to improve theirprocesses, using cross-functional teams working on energy efficiency
and training their employees to identify opportunities for
improvement.

Involving staff members to reduce energy losses
Toward increasing the efficiency of their operations, a few TIP members
conducted assessments of the different energy losses that can occur in allareas of the manufacturing facility (steam use, utility costs, heating, coolingand electric use efficiency, etc.). To do so, they involved staff members bydeveloping their ability to recognize and implement energy-saving
opportunities, by developing a “zero-loss” culture, or by creating a global
energy project catalog to share best practices between their sites. They also
conducted third-party audits resulting in the identification of multiple projects
with potential savings.

Targets
A few TIP members have set specific long-term energy intensity
goals (those longer than 10 years). The deadline for these targets set
during the previous years are 2020 and 2023. Several companies
have fixed yearly targets which are set at corporate-level while thechallenges to achieve them are addressed at regional or site-specificlevels; each business location has responsibility to implement
measures toward group targets.

Investing in energy efficiency projects
Many companies set optimization projects including:• Online monitoring for leak detection and rapid reaction• Installation of new equipment (e.g. heat pumps) with higher efficiency rates• Lighting optimization programs such as LED lighting equipment installation

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Energy – focus on the energy mix
Analysis of the energy mix of the sector shows a voluntary change from morecarbon intensive energy, mainly fuel oil and coal, to less carbon intensive sourcesof energy, such as electricity and natural gas, from 2009 to 2019, and particularly
since 2015. The addition of renewable electricity in the total purchased electricity isclearly visible, as well as the decrease of the consumption of fossil fuels such asfuel oil.
The share of electricity consumption grew by 3%, driven by power purchaseagreements and renewable electricity certificate purchased by several
companies of the sector. Many of the companies also installed solar panels orother renewable energy generating sources on their sites and consumed theelectricity produced directly on site (part included in the renewable electricity
consumption). However, in 2019, the self-generated and consumed electricity onsite represented less than 1% of total renewable electricity consumed. This low rateis partly due to the fact that not all generated renewable electricity is consumed onsite by these companies as it is sold back to the grid, and therefore it is not
represented on the graph.
Over the reporting period, TIP members usually replaced high-carbon energy withmore low-carbon power sources and renewable energy through local action plans.
The change in energy sources included harnessing steam power from renewablefuels, increasing natural gas consumption and shifting to electric devices, such as
forklifts for example.

*diesel, propane,
petrol, other.

Evolution of the energy mix of the sector
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TIP members’ CO2 emissions are directly related to their energy
consumption. CO2 intensity levels decreased by 6% between 2015
and 2019. Three key factors drove this decrease:•

An evolution in the energy mix: over this period, the sector
switched from coal and fuel oil to natural gas and purchased
electricity (See page 11 on energy mix).

•

Lower Scope 2* emission factors with regards to purchased
electricity: most of the countries where companies operate havechanged their own energy mix over the years, positively
impacting the sector’s overall performance.

•

Implementation of decarbonization measures (examples are
given on the following page): dividing total CO2 emissions bytotal energy consumption reveals an 8% decrease in average
emission factor (in tons of CO2 per GJ) between 2010 and 2019.

Total CO2 emissions (manufacturing)
Million t CO2

CO2 emissions
CO2 intensity
tCO2/ton

Weighted average CO2 intensity: total CO2 emissions for 11 TIP members / total production
volume of these companies.
*Scope 2 emissions are indirect emissions from the generation of acquired and consumed electricity,
steam, heat, or cooling. Scope 1 emissions are direct emissions from owned or controlled sources.

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Carbon policies and outstanding projects
Management

Global impactful initiatives

Climate change is an important topic for the industry.
Both the impacts related to the manufacturing sites andemissions emitted during the sourcing of raw material or
product-use phase are addressed by TIP members
through policies. CO2 policies on industrial sites aremostly linked to the energy strategies.

Several members joined international global initiatives to reinforce their engagement, forexample:• Climate targets were submitted to the Science Based Targets (SBTs) initiative forverification. These SBTs provide companies targets for carbon neutrality across their
manufacturing base by 2050. One example saw a TIP member set an internal carbon
price to spur further progress and analyze return on investment in capital projects.
• Members also joined International initiatives (RE100 or Paris Climate Agreement)
and committed to the promotion of renewable energy sources.
• Other initiatives saw members participate in National policies by setting long-termtargets with ministries when possible.

Most TIP members implement programs to shift to a lesscarbon-intensive energy mix, either by producing
renewable energy, or by changing the sourcing of theenergy they consume.
Targets
Most TIP members have set mid-term and/or long-term
GHG emission reduction targets. Target setting covers
scope 1, 2 and 3 emissions.

Developing renewable energy instead of fossil fuelsCompanies are using renewable energy at their manufacturing sites, such as solar panels
or biomass in a switch from fossil fuels to a less carbon-intensive energy mix:
• Policies on 100% renewable electricity: many companies identified switching to
renewable electricity in their plant management, usually at site level.
• Installation of solar panels: most companies installed photovoltaic panels. The
electricity generated is either directly consumed by the companies or sold back to thegrid. The power installed tends to increase over the years.
• Changes in the steam sources: when possible changes of the sourcing of steam to
low-carbon steam that incudes thermal energy from biomass, for example.
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Water intake
The weighted average water intensity also decreased sharply(-19%) between 2010 and 2019, especially between 2013 and2017, before remaining almost constant ever since.
Over the period, most TIP members managed to enhance theirperformance by implementing efficiency improvement projects attheir production facilities. Water optimization practices are largely
implemented because they reduce resource consumption andmitigate risk in water stressed areas.
Water reuse and water recycling are key objectives for theindustry, and TIP members consider water-scarcity risk in theirtarget setting.

Total water intake (manufacturing)
million m3

Total water intake significantly decreased over the reporting
period, even if overall production in 2019 was 12% higher than in
2010.

Water intensity
m3/tonWater saving generally does not bring significant return on
investment; notwithstanding, companies are achieving goodresults driven by their commitment to water/resource saving andreducing impact on local communities.
Weighted average water intensity: total water intake for 11 TIP members / total production
volume of these companies.

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Water policies and outstanding projects
Management
Cooling-water and steam are required for the tire production process
and water is used at site-level for sanitary purposes. Efforts toimprove the sustainable management of water include detecting,repairing and preventing water-leakage, improving water reuse andrecycling, and focusing efforts on water-stressed locations.
Targets
All companies have set targets that concern water use reduction.
Targets can be on:•

Ability to reduce water withdrawal in the coming years•

Global amount used•

Water recycling on the manufacturing sites

Special attention is given to manufacturing sites located in areas
where water stress is high. To properly account for these specificareas, a few members track water use and water withdrawal data at
their facilities and use the WRI Aqueduct Tool to annually assesswater stress, down to the basin level at every location.

Systematic implementation of measures to detect, repair and prevent
water-leakage
Many TIP members improved the measurement of water abstract and usage:• Installing of smart meters that improved the ability to track key water use
parameters• Measuring and tracking the usage regularly through online monitoring
Reducing water abstraction through water reuse and recycling
Many TIP members identified ways to reuse water in the equipment:• Ensuring closed loop-circuits for the cooling systems and change of theheat pumps to reduce the water lost through evaporation• Retreating wastewater at the facilities enabling the plant to reuse it assanitary water and cleansing water• Recovering, treating and reusing rainwater
Focusing on the at-risks plants
Several companies conducted water risks assessments to identify the plants
with the highest water scarcity risks and adapt the action plans to perfectly fit
to the local situation.
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ISO 14001 compliance
Certification rate%

It is important to note that 2019 covers the highest number ofindustrial sites since the beginning of collection of environmental
data and that it shows the highest certification rate.
Certification rates further illustrate the fact that most TIP members
have, or are, developing Environmental Management Systems(EMS) and policies.
TIP companies are aware of the importance of certification, as
demonstrated both internally, through their processes, andexternally, through communication and reporting. Certifications arealso a preferred means of meeting customers’ increasing
environmental requirements.
Several companies have included a 100% certification rate target
in their overall environmental policy, but in most cases, certification
processes are considered on a plant-by-plant basis.

ISO 14001 sites

The percentage of ISO 14001-certified sites among the total
number of sites slightly increased, after a period of stabilization
between 2015 and 2017 (weighted average).

Weighted average certification rate: number of ISO 14001 certified sites for 11 TIP
members / total number of sites for these companies included in the scope.

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Environmental management
Environmental Management Systems (EMS)
TIP member companies have set up EMS in almost all of
their manufacturing facilities. These systems ensure
environmental data are sufficiently monitored in an effort tofoster continuous improvements.
The benefit of rolling out EMS across an ever-growing
number of plants is that best practices may be tested moreeasily, and their results monitored in real-time. The whole
sector may derive major improvement as they pilot
innovative techniques faster and ultimately better implement
low-intensity processes.

Certifying all plants according to ISO 14001
Many companies have set up goals or policies to achieve 100% of
certified sites, through two main ways:• Working on certifying the last operating plants in the scope thatare not certified yet• Only acquiring certified sites
Training and education campaigns are a key requirement of the
EMS standards, thus reinforcing the impact of the certification.
Implementing broader Management System
Many TIP members have created their own Management System inorder to monitor and drive their performance at corporate level, andnot necessarily on the sole scope of the operating plants. These
policies often refer to the ISO 14001 certification which is areference in this topic.

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How have TIP members improved their performances?
The following lists provide examples of measures taken by TIP member companies that have directly contributed to improvements in theenvironmental performance of tire manufacturing operations as measured through the aggregated data set presented in this report. For
additional information on TIP members’ individual contributions toward sustainable development see next page.
Methods for improved energy efficiency and CO2 footprint reduction
Energy savings - energy efficiency• Completion of energy surveys for identifying energy loss and potential savings• Installation of energy efficient machinery to reduce energy loss
• Reduction of energy through zero loss thinking• Establishment of an Energy-Saving Technology Committee• Renewal to high-efficiency equipment (mixers, pumps, motors, air compressors, heatpumps, etc.)• Lighting optimization with LED lighting equipment installation• Implementation of systems for air, steam and nitrogen leak detection and repair• Implementation of online steam trap monitoring to improve boiler efficiency• Installation of heat pumps on the evaporative cooling towers to enable waste heat to
be repurposed, notably in heating systems
Management systems• Expansion of metering at the plants to enable more robust, real-time monitoring ofenergy performance in a centralized energy management system• Sharing of best practices between sites by the creation of a global energy project
catalog• Introduction of data management for detailed tracking of energy and water usage• Promotion of a modal shift in logistics and encouragement of low-carbon mobility• Implementation of an internal carbon price

Changes in the energy mix• Reducing CO2 emissions by switching fuels from heavy oil, coal and used tires to natural gas• Installation of solar and / or photovoltaic panels• Conversion to wind and hydroelectric energy sources• Studies to assess the feasibility of replacing coal with natural gas, biomass or other primaryenergy sources• Conversion from diesel to LPG fuel sources for boiler energy• Utilizing heat recovery technology to use factories’ waste heat for air-conditioning• Joining the RE100 initiative to promote renewable energy sources• Energy generation from biomass sources including food waste and vegetable oil

Methods for improved efficiency in water use• Systematic implementation of measures to detect, repair and prevent water-leakage• Implementation of closed-loop water management systems including water recycling andrainwater collection (used as cooling water and for restrooms)• Implementation of evaporative cooling to capture process water and steam condensate to reuse
and reduce the use of water• Promotion of the improvement of equipment for measuring the volume of discharges in order toimprove their accuracy• Installation of water treatment facilities at all production bases to prevent deterioration in thequality of wastewater• Assessment of water stresses within manufacturing plant catchments to enable smart water
management practices, using the WRI Aqueduct Tool

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Discover more about TIP members’ contributions to sustainable development
Bridgestone Corporation

Manufacture Française des Pneumatiques Michelin

https://www.bridgestone.com/responsibilities

https://www.michelin.com/en/sustainable-development-mobility

Continental AG

Pirelli Tyre S.p.A.

https://www.continental.com/en/sustainability

https://corporate.pirelli.com/corporate/en-ww/sustainability/sustainability

Cooper Tire & Rubber Company

Sumitomo Rubber Industries, Ltd.

http://coopertire.com/corporate-responsibility

https://www.srigroup.co.jp/english/sustainability/index.html

The Goodyear Tire & Rubber Company

Toyo Tire Corporation

https://corporate.goodyear.com/en-US/responsibility.html

https://www.toyotires-global.com/csr/

Hankook Tire & Technology Co., Ltd.

The Yokohama Rubber Co., Ltd.

https://www.hankooktire.com/global/sustainability.html

https://www.y-yokohama.com/global/csr/

Kumho Tire Company Inc.
https://www.kumhotire.com/ko/company/sustainableList.do (Korean)
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Appendix

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Methodological note
Entities and reporting scope
The reporting scope includes all sites under TIP members’ operational control. The
data are consolidated at 100% for all entities under operational control (regardless ofthe financial consolidation rate). The following activities are included in the reporting
scope: tire manufacturing sites and all related onsite activities (canteen, R&D, mixing,
bladder production, reused tire processing, etc.), and stand-alone sites with mixing
activities. Other stand-alone sites (bladder production, steel cord, textile facilities,
retread tire processing, HQ, offices, etc.) are excluded.
Please note that due to new acquisitions, greenfield sites or shutdowns over the years,
the reporting scope and the number of sites participating in the reporting is notconstant.
The qualitative information reported is not exhaustive and the implementation of
measures can vary both between and within companies.

Indicator definitions
All indicators were calculated using the “Common Methodology.” The “Common
Methodology” is a reporting protocol which defines the indicators, scope andcalculation methodology. The “Common Methodology” was set up and agreed uponby TIP members and is summarized below:
Energy consumption: The energy consumption is consolidated in Net Calorific Value(NCV). The electricity and steam sold to external third parties are deducted. Fuelconsumption related to offsite transportation (employees, products) is excluded.
CO2 emissions: This includes CO2 emissions from energy consumption related to thetire manufacturing process and other facilities on the production sites. The energy soldto external third parties (electricity and steam) are not deducted for the CO2 emissions

calculations. CO2 emissions associated with fuel consumption related to offsite
transportation (employees, products) are excluded.
Sources for emission factors:•

Scope 1 emission factors: 2006 IPCC (Intergovernmental Panel for Climate
Change) Guidelines for stationary combustion in the manufacturing industry.

•

Scope 2 emission factors associated with electricity purchases: IEA CO2Emissions from fuel combustion highlights (2018).

Water intake: The water intake represents the net amount of water entering the sites
and withdrawn from any external source (pumping from natural resources, public
networks, recycled water from external companies or from desalinization plants, steam
purchases, etc.). All external sources of water intake used for industrial, cooling anddomestic usage are considered, including the amount of water sold to offsite third
parties or consumed by activities of third-party companies onsite.
ISO 14001: The certification rate has been calculated based on dividing the total
number of sites with ISO 14001 certification by the total number of sites. A site isrecognized for ISO 14001 certification during a given calendar year, only if an external
certificate is valid on December 31st of that year.
Production: Production is calculated as the weight of intended products to be sold to
end-users as an output of the production lines as well as the weight of new materials
integrated in retread tires if part of the tire manufacturing plant.
The published value for the intensity indicators is the weighted average for the eleven
TIP members.

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Summary of KPIs
Absolute environmental indicators(manufacturing) (2009 value = 100%)

2Environmental Intensity indicators(manufacturing) (2009 value = 100%)

2

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ContactAnne-Cécile Remont

Director, WBCSD Tire Industry Project
Maison de la Paix
Chemin Eugène-Rigot 2B
CP 2075 1211 Geneva 1+41 79 568 06 13
www.wbcsd.org/tip

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WBCSD (Geneva)

Maison de la Paix
Chemin Eugène-Rigot 2B
1211 Geneva

WBCSD (New York)

29 East 19th Street, 4th Floor
New York, NY 10003
USA

WBCSD (Delhi)

WBCSD India, 4th Floor
Worldmark 2,
Aerocity New Delhi 110 037
India

WBCSD (London)

WeWork Mansion House
33 Queen Street
London EC4R 1BR
UK

WBCSD (Asia Pacific)
01-03 Science Park Drive
118222Singapore24

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