(C3.3) Describe where and how climate-related risks and opportunities have influenced your strategy.
Have climate-
related risks
and
opportunities
influenced
your strategy
in this area?
Description of influence
Products
and
services
Yes Climate-related risks and opportunities, such as customer expectations and desire for efficient, sustainable-material tires, intelligent tires, and electric vehicles, are influencing
Goodyear’s products and services strategy, as Goodyear is actively working to decarbonize our value chain and provide products and services that help transition the transportation
sector to a low-emissions future. Goodyear is working to advance mobility, designing tires with low-GHG emissions materials, enhanced rolling resistance, lighter weight and longer tread
life to reduce certain Scope 3 GHG emissions across our value chain, including use phase emissions. Goodyear is advancing intelligent tire solutions to enable optimized tire pressure
and the use of tires for their full lifetime, reducing GHG emissions. Goodyear is also advancing and expanding our electric vehicle tire solutions, to enable the transition from internal
combustion engine vehicles to electric vehicles.
Case study: Goodyear continually works to seek sustainable material options that deliver product performance while meeting our high standards of quality and safety. In 2022,
Goodyear developed a demonstration tire made of 90% sustainable materials that was unveiled in January 2023. This demonstration tire was tested and found to have improved rolling
resistance when compared to a reference tire made with traditional materials. This means it has the potential to offer better fuel savings and carbon footprint reduction. Goodyear plans
to sell an up to 70% sustainable-material tire in the United States in 2023. This puts Goodyear further along the path toward our goal of introducing a 100% sustainable-material tire to
the market by 2030.
Supply
chain
and/or
value
chain
Yes To address all climate risks and opportunities, Goodyear developed a decarbonization roadmap including the following strategies: sustainable feedstocks and low-GHG emission
materials, reducing material consumption, supplier climate commitments, and transport mode, miles and density optimization (other strategies discussed in the Operations section
below).
Goodyear must turn to our suppliers to help decarbonize our business and reach our science-based targets, in addition to helping our customers reach their own targets. Goodyear is
working with material and transport suppliers to acquire low-GHG emission solutions. Goodyear is also pursuing advancements in reuse solutions for end-of-life tires, within the tire
business.
Goodyear realizes climate risks and opportunities potentially impact the availability and cost of low-GHG materials and technologies. Goodyear is working closely with suppliers and
advisors to acquire low-GHG materials and technologies in cost-effective ways. Goodyear also realizes that severe weather events and chronic weather patterns have the potential to
negatively impact the supply of materials, for example, natural rubber and Goodyear’s supply costs. With approximately 90% of global natural rubber production concentrated in
Southeast Asia, changes in annual rainfall or temperature can affect rubber production. Although there is no absolute substitution for natural rubber for all tire applications, synthetic
rubber alternatives have been developed for most applications. Goodyear utilizes a robust business continuity program to mitigate weather-related risk, continually monitoring weather in
procurement regions, storing back-up inventories of key materials, and implementing diversified sourcing strategies.
Case study: Goodyear’s R&D teams work to use alternative raw materials that are more sustainable and have the potential to reduce GHG emissions. For example, Goodyear is
exploring dandelion rubber as an alternative to natural rubber from the Hevea Brasiliensis tree species, through The Program of Excellence in Natural Rubber Alternatives (PENRA).
Goodyear is also working with a supplier to use carbon black produced by methane pyrolysis, taking the next step toward zero-emission carbon black in tire manufacturing.
Investment
in R&D
Yes To address all climate risks and opportunities, Goodyear is implementing a decarbonization roadmap and developing advanced forms of mobility—such as sustainable-material tires,
intelligent tires and services, and tires for electric vehicles—all in efforts to decarbonize and transform the mobility industry. Goodyear spent approximately $500 million on R&D in 2022,
with a portion of these expenditures invested into these climate-related strategies. Goodyear Ventures funds innovative start-ups that are helping drive the future of low-carbon mobility.
Case study: Goodyear and Gatik recently demonstrated, in a proof of concept, that Goodyear SightLine technology can accurately estimate tire-road friction potential and provide real-
time information to Gatik's automated driving system. This breakthrough provides critical data that can enhance vehicle safety and performance, increasing energy efficiency and value
for Gatik's customers in the business-to-business short-haul market. Goodyear SightLine technology is designed to measure the tire wear state, load, inflation pressure and temperature.
It combines that with real-time road-weather data and proprietary rubber friction models to estimate the tire-road friction potential. Having this information in real-time enables Gatik's fleet
to safely and efficiently.
Operations Yes Climate risks and opportunities, such as customer expectations and carbon taxes, influenced Goodyear to set goals to be at 100% renewable electricity by 2030 and 100% renewable
energy by 2040. To support these goals, Goodyear is continuing to implement our Energy Optimization Strategy, applying zero loss thinking to prioritize energy and cost savings
opportunities across all manufacturing facilities. This work is supported with scorecards to continuously monitor progress. Components of this strategy include: a Goodyear Global Energy
Management Team, annual reduction goals for energy use and carbon emissions; a global energy and GHG management system; ongoing development of the global energy projects
catalogue; investment in supporting infrastructure; expanding energy monitoring capability; Certified Energy Managers (CEM); certified Carbon Reduction Managers (CRM) accredited
by AEE; ongoing annual analysis of zero loss energy initiatives; and monthly energy reviews across global operations to share best practices. Goodyear integrated energy into our
global Operational Excellence strategy. With this integration, every manufacturing facility explores significant capital and non-capital opportunities to eliminate unnecessary energy use.
Best practices are captured and communicated in an enterprise management database.
In addition to energy optimization efforts, Goodyear is investing in renewable energy, through installing on-site renewable energy, procuring renewable energy through energy attribute
credits, green tariffs, power purchase agreements and virtual power purchase agreements, and investigating new technologies for process upgrades, electrification and renewable fuel
sources. At the end of 2022, Goodyear procured 100% renewable energy in all our manufacturing facilities across Europe, Middle East and Africa and 34% of global manufacturing
energy came from renewable sources.
Case study: By purchasing nearly 800K MWh of renewable electricity, Goodyear can ensure that our manufacturing plants, including Cooper facilities, in France, Germany,
Luxembourg, Poland, Slovenia, Serbia, South Africa, Turkey, the Netherlands and the UK now operate with renewable electricity. This shift has eliminated nearly 400K metric tons of
CO2 emissions annually from the company’s carbon footprint.
C3.4
(C3.4) Describe where and how climate-related risks and opportunities have influenced your financial planning.
Financial
planning
elements that
have been
influenced
Description of influence
Row
1
Revenues
Direct costs
Indirect costs
Capital
expenditures
Access to capital
Liabilities
Climate-related risks and opportunities are influencing Goodyear strategies across our operations (e.g., energy efficiency, renewable energy), value chain (e.g., low GHG materials and
transport), products and services (e.g., sustainable materials, tire efficiency, tire intelligence, electric vehicle tires), and Goodyear Ventures' investments supporting the movement to low-
GHG technologies.
Goodyear's global finance team evaluates significant climate-related risks and opportunities for potential revenue increase or loss and increased costs and evaluates Goodyear's
decarbonization strategies from a net-cost perspective, estimating direct costs, indirect costs, capital expenditures, cost savings, and cost avoidance.
Goodyear conducts an annual strategic planning process, looking out five years, identifying potential capital investments needed, to implement decarbonization and mitigation/resiliency
strategies. As an example, to improve Goodyear's energy efficiency and reduce emissions in our operations, Goodyear has a capital investment plan with budget categories for energy
efficiency projects, renewable electricity procurement and onsite renewable electricity generation. Goodyear works with our insurers on suggestions to improve property protection and
minimize weather-related risks.
Goodyear's Investor Relations and Treasury teams review stakeholder and lender expectations to ensure Goodyear is continually moving in the direction of climate-related investments and
advancements that promote favorable access to capital.
All of these efforts are coordinated by Goodyear cross-functional vice presidents and directors that sit on Goodyear's Better Future Steering Committee and the Climate Operating
Committee, the Chief Sustainability Officer, the Director, Global Sustainability and the global sustainability team.
C3.5