2009 Corporate Responsibility Report
Transcription
2009 Corporate Responsibility Report
The Road Ahead 2 0 0 9 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Contents 3 Letter from the Chairman 4 Introduction 6 Report overview 8 Company profile 12 Focus on consumers 20 Engage our associates 28 Respect the environment 40 Support for communities 12 20 28 40 Letter from the Chairman During challenging economic times, it can be easy for companies to become distracted and drift away from their core values. At Goodyear, I am proud to say we did not lose focus on our commitment to both product innovation and responding swiftly to the needs of our customers. Successful innovation is often a response to a specific customer need. For example, our research indicated that one of the most highly valued needs of our consumers was improved gas mileage. Acting with a sense of urgency, our integrated team developed a tire to help meet consumers’ needs — and did so at a cost that families could afford. The result was the Goodyear Assurance Fuel Max tire, which features a fuel-saving tread compound that helps reduce energy loss as the tire rolls. Therefore, less gas is required to keep the tire rolling, which means drivers can save up to 2,600 miles worth of gas over the life of a set of four tires. Popular Science magazine named Assurance Fuel Max one of the “100 Most Innovative Products,” and Fuel Max became the fastest tire in Goodyear’s history to surpass sales of more than 1 million. The Fuel Max technology reflects innovation that is good for our customers, for our employees, for our business and for our world. It is not the only example. We have introduced other fuel-efficient tires, such as the Goodyear EfficientGrip in Europe and the Goodyear DuraPlus in our Asia Pacific region. We also are designing factories and production processes that are more environmentally friendly than ever before, and we are exploring the increased use of renewable raw materials, such as BioIsoprene-derived polymers, in tire production. Near the end of 2009, Newsweek magazine recognized Goodyear as one of the “Greenest Big Companies in America,” which serves as a significant validation of the progress that we have made. In the following pages, you will read about the many ways in which Goodyear employees have discovered creative solutions to challenges and, as a result, found ways to make their workplace, their communities and their world a little better. Bob Keegan Chairman of the Board The Goodyear Tire & Rubber Company 3 Introduction The Goodyear Tire & Rubber Company’s 2009 Corporate Responsibility Report gives a broad overview of our programs, policies and activities over the last year. This report demonstrates how we at Goodyear are committed to fostering an inclusive, rewarding workplace for our associates, providing support for our 4 communities and implementing innovative, sustainable practices to manage our environmental impact, all while bringing industryleading products and services to consumers around the world. 2009 presented many challenges, and our global associates responded by working harder than ever to meet them head-on. Whether they are designing, building, testing, delivering, selling or servicing tires, or working in one of the many support functions necessary to run a company of our size, Goodyear associates have kept their focus on solving problems and moving forward. Throughout Goodyear’s 111-year history, we have built our foundation on a commitment to forward-thinking innovation. To that end, we are engaged in conversations with all of our stakeholders to stay ahead of the curve — every voice matters. It requires a delicate balance to address the needs of associates, suppliers, customers, consumers, investors, governments, regulatory agencies, non-governmental organizations, communities and civic groups, but through open communication we are able to identify the trends, issues and opportunities on the road ahead. By taking all these voices into account, we are better able to nurture sustainable growth based on innovative solutions. 5 Report overview The Road Ahead is divided into four sections summarizing Goodyear’s progress in 2009 in each of these areas: 6 Focus on consumers In 2009, Goodyear successfully introduced 62 new products worldwide. These included tires for nearly every type of personal or commercial vehicle. Our new, high-quality products were developed to offer consumers a multitude of fuel-efficiency and performance options. With so many choices, consumers could visit any of our retail stores or independent dealer outlets to find the right tires for them and their budgets. Goodyear’s retail and dealer networks also continued expanding globally, offering professional tire and automotive services, and providing job opportunities in new areas. In addition to providing quality tires and services, we are working with regional automotive and transportation agencies to educate consumers about the importance of proper tire maintenance and to promote road safety programs. Engage our associates Goodyear is committed to providing a welcoming, rewarding environment that values the diversity and talent of our global workforce. We place a strong emphasis on health and safety in our facilities as we strive to ensure that “No One Gets Hurt.” To maintain a workplace based on mutual respect and openness, Goodyear also provides ethical guidance through our Business Conduct Manual and reporting procedures. Our Human Resource group continues to cultivate career development opportunities that help Goodyear attract and retain a highly skilled workforce. In support of our employee engagement programs and in response to the global economic climate in 2009, Goodyear’s leadership team placed a high priority on communicating with associates, helping provide ongoing guidance about the company’s progress and every associate’s role in responding to challenges. Respect the environment Goodyear’s environmental initiatives are focused on the continuing strategy to reduce the environmental impact of our operations. This includes programs developed to meet all applicable global regulations, advance efficiencies in manufacturing, continually improve environmental management best practices, promote recycling and conservation in all facilities, raise awareness of environmental issues around the world, produce raw materials and products with improved environmental benefits and participate in industry-wide initiatives on the responsible use of products across their life cycle. As a result of these initiatives, Goodyear products and facilities were again recognized in 2009 for their environmental achievements. Support for communities Goodyear is a global company with associates working in numerous countries and cultures around the world. Volunteering and community outreach are vital elements of our worldwide social responsibility efforts, and our associates donate funds and countless hours to improve the quality of life in their local communities. Our associates also are quick to respond when disasters strike: in 2009, they provided much-needed relief to the victims of bushfires in Australia, flooding from typhoons in the Philippines and earthquakes in Indonesia. The commitment of our associates to help when they see a need is a major reason why Goodyear is consistently recognized by organizations around the world as a trusted and highly admired company. 7 Company profile When Frank Seiberling founded The Goodyear Tire & Rubber Company on August 29, 1898, he started a journey that would carry the fledgling bicycle tire industry into the automotive future. 8 Since the beginning, Goodyear has continually worked to find ways to improve our products, and the company’s history is marked by countless innovations. From developing the first all-weather tread design to Fuel Max technology, the first promotional blimp flight to airless tires for moon exploration, we have been dedicated to developing new technologies that offer practical solutions for transporting people and products from one place to another. Together with our U.S. and international subsidiaries and joint ventures, Goodyear develops, manufactures, distributes and sells tires for most applications. This includes tires for cars, trucks, buses, motorcycles, airplanes, earthmoving and mining equipment, industrial and agricultural equipment, and more. In addition to producing tires, Goodyear is one of the world’s largest operators of commercial truck service and retreading centers. We also operate approximately 1,500 tire and auto service center outlets, where we offer our products for sale to consumers and provide automotive repair and other services. Our products are also available to consumers around the world through our independent dealer network. Today, Goodyear is one of the world’s largest tire companies, with operations in most regions of the world. We employ approximately 69,000 people and manufacture our products in 57 facilities in 23 countries. Goodyear’s global corporate headquarters are located in Akron, Ohio. We operate our business through four segments representing our regional tire businesses: North American Tire; Europe, Middle East and Africa Tire; Latin American Tire; and Asia Pacific Tire. Goodyear is a publicly traded company with shares of our common stock principally available for sale on the New York Stock Exchange (symbol GT). All of the company’s financial information is available on the “Investor Relations” webpage at www.goodyear.com, including our most recent quarterly and annual earnings reports. www.goodyear.com/investor Financial data Financial Overview (Dollars in millions, except per share) Net Sales Total Segment Operating Income Year Ended December 31 2009 2008 $16,301 $19,488 372 804 Goodyear Net Loss (375) (77) — Per diluted share (1.55) (0.32) Total Assets $14,410 $15,226 Total Debt* 4,520 4,979 986 1,253 82.1% 79.9% 241 241 Total Shareholders’ Equity Debt to Debt and Equity Weighted Average Shares Outstanding – basic Weighted Average Shares Outstanding – diluted 241 241 Number of Associates 69,000 75,000 Price range of common stock – high $18.84 $30.10 3.17 3.93 Price range of common stock – low *Total debt includes notes payable and overdrafts, long-term debt and capital leases due within one year, and long-term debt and capital leases. 9 10 Goodyear’s commitment to innovation Goodyear’s commitment to integrity In 2009, Goodyear celebrated 111 years since our founding and 100 years of operation in our aviation division. These highlights from 2009 demonstrate how Goodyear’s focus on innovation helps our new product engine respond to the market, showcase the talent of associates and build trusted relationships with our customers and consumers: Goodyear’s executive team is committed to leading with integrity and sets a high standard for ethical behavior. Goodyear’s leadership and Board of Directors are guided by our code of ethics, which is described in full detail under “Corporate Governance” on the “Investor Relations” webpage at www.goodyear.com. Goodyear’s Corporate Social Responsibility activities are overseen by a team of board members, executives and functional leaders. • Goodyear launched many exciting new tires in 2009, including Assurance Fuel Max, EfficientGrip, DuraPlus, OptiGrip, Wrangler DuraTrac and Wrangler MT/R with Kevlar. We also released new fuel-saving tires and retread products for commercial, aviation and heavy-equipment applications. • Goodyear engineer Kevin Westgate became the first non-DuPont employee to receive DuPont’s prestigious Bolton/Carothers Innovative Science Award. Westgate worked with DuPont scientists to devise a way to insert DuPont Kevlar into Goodyear tires for enhanced toughness. • Forbes magazine and the Reputation Institute named Goodyear the “Most Respected Automotive” company for the second year in a row, Fortune magazine named Goodyear the second most admired motor vehicle parts company in the world and the top U.S. company on its “2009 Most Admired” list, and Reader’s Digest named Goodyear the “Most Trusted Tire Brand” in its 2009 surveys in the Philippines, Malaysia and Thailand. www.goodyear.com/investor Goodyear’s corporate compliance and ethics policies exemplify our commitment to leading with integrity, and these expectations are communicated at all levels of the company to help every associate maintain the highest standards of ethical behavior. Goodyear’s Business Conduct Manual was revised in 2009, translated into 26 languages and provided to associates. The manual defines behaviors necessary to support the company’s high standards and reinforces associate compliance with all applicable laws and business practices. We expect every associate to know and understand our ethics policy, and associates must agree to act accordingly. To reinforce that expectation, in 2009 global salaried associates certified that they agree to abide by these guidelines. In addition, everyone doing business with Goodyear, including suppliers, contractors, organizations and others, is directed to the company’s website so they may read the manual and be aware of our obligations and requirements. A downloadable copy of the Business Conduct Manual is available under “Corporate Governance” on the “Investor Relations” webpage at www.goodyear.com. www.goodyear.com/investor/pdf/corp_gov/ business_conduct_manual.pdf Our ethical awareness campaign covers topics from the Business Conduct Manual, and each North American Tire location receives posters, bulletins and discussion guides for managers to lead quarterly discussions on each issue. Other educational opportunities include ethics awareness segments in new-hire orientation sessions and training classes for new managers at corporate headquarters. Our ethics intranet site offers a variety of resources including a library of previously published “Ask the Ethics Officer” columns and “Ethical Dilemma” articles, which highlight appropriate associate actions in various workplace scenarios. Additionally, associates are encouraged to report any actual, suspected or potential misconduct to management or the corporation’s ethics hotline. Available toll-free 24 hours a day, seven days a week from anywhere in the world via telephone or internet, our ethics hotline allows associates to report a concern anonymously or to provide name and contact information. Every allegation is investigated, and Goodyear strictly prohibits retaliation for violation reports made in good faith. Responsible for compliance, ethics and privacy issues on a global basis, Goodyear’s Corporate Compliance and Ethics Department provides regular updates to the Board of Directors on ethics and compliance activities. Committee members take an active role in reviewing the activities and processes designed to uphold our commitment to ethical behavior. In addition, a Global Compliance and Ethics Committee, comprised of top company leaders from business and functional areas, meets on a quarterly basis. The purpose of the committee is to review ethics and compliance incidents, and maximize the flow of information across the enterprise on critical compliance and ethical issues. Goodyear’s leadership is committed to ensuring business is conducted in a way that promotes ethical behavior and legal compliance. Our Goodyear associates work hard to foster an environment that values mutual respect, openness and individual integrity. 11 Focus on consumers Whether commuting to work, traveling to a favorite vacation spot or delivering a load of goods, drivers get where they need to go with the help of Goodyear tires. By developing new features from 12 the latest advances in materials and technologies, Goodyear offers tires that help meet the needs of drivers for performance and value in many different places and applications around the world. Our quality and supplier programs are created to build our products to the highest standards in all of our facilities. Our extensive dealer network brings Goodyear’s family of tires and related services to consumers. Goodyear associates work together around the world to earn the trust of customers and maintain our stellar reputation. Designing innovative products In 2009, Goodyear introduced 62 new products, each built with the consumer in mind for improved fuel efficiency, performance or value, covering the entire range of commercial and personal vehicles. Goodyear’s award-winning products are created at our two Innovation Centers — the core of our industry-leading new product engine — in Akron, Ohio, and Colmar-Berg, Luxembourg. Goodyear scientists and engineers work with research and marketing analysts to identify the market trends, then use specific new technologies for our next generation of products. The process depends on a crossfunctional effort including research and development, quality control, engineering, manufacturing and supply chain associates working in tandem with marketing groups to bring new products to market that will help meet the needs and exceed the expectations of our customers. The process also depends on the extensive testing performed at our labs and proving grounds. Some of the new products introduced in 2009 and the innovative features they offer consumers are: • Goodyear Assurance Fuel Max, introduced in North America and Mexico to help give consumers improved fuel efficiency and all-season driving confidence. • Goodyear DuraPlus with Tredlife Technology, introduced in our Asia Pacific region to provide exceptional value for smaller, fuel-efficient cars and offering extended wear up to 100,000 km with great performance. • Goodyear EfficientGrip with FuelSaving Technology, a high-performance summer tire introduced in Europe to help deliver fuel savings coupled with high mileage and excellent wet-braking characteristics. • Goodyear OptiGrip with SmartWear Technology, a summer tire introduced in Europe to help give drivers great performance even when worn. SmartWear Technology was developed to reveal new compounds and grooves as the surface tread wears down, so it retains performance especially in wet conditions. The low-rolling-resistance tread helps improve fuel efficiency, and the tire uses a low Poly Cyclic Aromatic polymer tread. • Goodyear Wrangler DuraTrac, introduced in North America and Europe, is a versatile, multi-purpose tire for truck owners, offering enhanced traction and stability for recreation or work uses while meeting the European Commission’s noise standards. It also offers drivers enhanced toughness and longevity. • Goodyear Wrangler MT/R with Kevlar, introduced in Australia, Mexico and North America. For serious off-road applications, this new tire uses Kevlar to help bring superb sidewall cut and puncture resistance to an area of the tire demanding extra toughness when driving off-road. It also helps reinforce the sidewall as drivers return to the pavement for the drive home. Goodyear introduced our new Assurance Fuel Max, a fuel-saving tire offering 27 percent less rolling resistance than the previous Assurance tire. Since its tread compound rolls more easily and requires less power, Fuel Max can deliver up to a 4 percent overall improvement in highway fuel economy and potentially save consumers 2,600 miles worth of gas over its lifetime.* The Fuel Max tire earned a spot in Popular Science magazine’s “Best of What’s New” list of products in the automotive technology category in the December 2009 issue. It was also selected as a standard tire fitment on such fuel-efficient cars as the 2010 Toyota Prius and the 2010 Ford Fusion S and will be the exclusive tire outfitting the 2011 Chevrolet Volt. *2,600 miles based on a 4 percent fuel economy improvement, on 65,000 Mile Tread Life Limited Warranty, as compared to the standard Goodyear Assurance tire tested on P195/65R15 size — 2008 Honda Civic. Actual results may vary based on when tires are replaced, driving and road conditions, and proper tire maintenance. 13 The real test of a product is how well it performs, and Goodyear products earned praise from the automotive media, independent testing organizations and the driving public. Here’s a sampling of the global recognition received this year: • Goodyear Wrangler HP AW was named “Best SUV Tire of the Year” by China Motor Trend magazine. • Goodyear Eagle F1 Asymmetric was named “Best Tire Choice for High Performance Drivers” by Taiwan’s CARNEWS magazine. • Dunlop Grandtrek AT3 was named “Spanish Tire of 2009” in the four-wheel-drive category by Neumáticos y Mécanica Rápida, an aftermarket tire publication. • Goodyear DuraSeal won the 2009 Elastomer Product Award from the German Rubber Association, DeutscheKautschuk-Gesellschaft e.V. • Dunlop Direzza Sport Z1 Star Spec was top rated by Sports Car magazine in the United States. 14 • China’s Auto magazine recognized three Goodyear tires: Goodyear Eagle F1 Asymmetric received the “2009 Golden Tire Editors Choice Award,” Goodyear Wrangler AT with SilentArmor was named one of the “10 Best Tire Products of 2009,” and Goodyear DuraPlus was named the “2010 Recommended Tire of the Year.” To further leverage the benefits of new technologies, Goodyear embraces the concept of open innovation and works with our colleagues in government, academia and industry. Collaborating with experts outside the company allows us to explore a wider range of possibilities by incorporating the latest developments in various scientific disciplines to improve our products. Examples of this collaboration include the airless tire developed with the NASA Glenn Research Center in Cleveland, Ohio. The innovative spring tire has 800 load-bearing springs, designed to transport large, long-range vehicles across the surface of the moon. Its design makes it extremely durable and energy efficient, and it was successfully tested at NASA’s Johnson Space Center in Houston, Texas. In collaboration with scientists at DuPont, we introduced high-strength Kevlar material into Goodyear tires. The material property advantages of Kevlar are extensively used to develop new tire concepts that help deal with the challenges of the road, ride and comfort, handling, reduced tire weight and road noise. • Goodyear Eagle F1 Asymmetric and Dunlop Direzza DZ03G took home top honors in their respective categories in the 2009 Motor magazine tire test in Australia. BioIsoprene is a breakthrough alternative to petroleum-based isoprene, used to produce synthetic rubber. Its development is the product of Goodyear’s collaboration with Genencor, a division of Danisco A/S, a world leader in industrial biotechnology and enzyme innovation. BioIsoprene is made from renewable biomass, a development that could help reduce the industry’s impact on the environment by giving manufacturers the choice to use a renewable raw material and reduce dependency on oil-derived products. The world’s first concept tire made from BioIsoprene-derived polymers was introduced in Copenhagen concurrent with the United Nations Climate Change Conference held in December 2009. Building quality products Goodyear’s manufacturing operations rely on Goodyear’s Quality Policy to set the standard for all facilities throughout the organization and are committed to producing high-quality products. The policy defines six steps for achieving business excellence: Goodyear’s commitment to quality extends to our raw material suppliers • Listening to customers and helping to meet their needs. who must meet stringent quality requirements through our Supplier Quality Assurance (SQA) program, a well-defined screening and approval process. Once approved, suppliers are continually monitored and notified of any concerns with shipments of raw materials. The SQA program’s goal is to have suppliers deliver products that meet Goodyear’s specification 100 percent of the time. • Encouraging and expecting the creative involvement of every associate in continuous improvement activities. • Designing and producing superior products that provide value. • Managing processes for consistent quality performance. • Providing service excellence. • Adequately auditing quality system performance. In 2009, Goodyear demonstrated our commitment to this policy by performing product and process quality audits throughout our advantaged supply chain. Audits were conducted at Goodyear’s Innovation Centers and manufacturing plants as well as at our logistics and warehouse locations around the globe. They covered everything from product inception to customer delivery. In addition, Goodyear implemented specific quality initiatives in our strategic business units, including: • Latin America’s “Passion for Quality” program, which completed its seventh year of improving customer satisfaction through superior product performance. • North American Tire’s focus on these six keys for product leadership: understanding customer specifications, manufacturing process capability, design for manufacturability, design for life-cycle cost, complexity reduction and optimized stage gate process. • Asia Pacific’s drive to increase customer satisfaction through improving tire appearance and reducing the corrective weight required to balance tires on vehicles. • Europe, Middle East and Africa’s “High-Yield Process” aims to improve process controls in each manufacturing operation at every plant to reduce variations and improve customer satisfaction. While Goodyear’s product quality remains sound, the company continues to focus intently on further advancements. Since launching our Global Quality Initiative in 2003, Goodyear has invested more than $220 million so that all of our manufacturing facilities have state-of-the-art process control and finished-productscreening capabilities to deliver a quality product consistent with our premium brand name. 15 Delivering products to consumers Goodyear delivers our products to consumers through an extensive network of company-owned retail outlets and independent dealers in all of our regional businesses. Consumers can find Goodyear products for sale in almost every country around the world. Goodyear also operates commercial truck and retreading centers and is an original equipment supplier to motorcycle, automotive, truck, heavy equipment and airplane manufacturers. South Africa tire retailer Hi-Q has more than 170 stores across the country and 16 is recognized by customers for its professional service and friendly atmosphere. Hi-Q salesman Waleed Mathews has been a valuable member of the Hi-Q team in Milnerton and offers his philosophy for achieving great customer service: “My father worked for Goodyear so I grew up knowing about tires,” said Mathews. “As a salesman, the concept of service and a positive attitude are most important. I try to put myself in the customer’s shoes and think how I would like to be treated.” Because our dealers are often the main contact point with consumers, Goodyear places great emphasis on promoting retail excellence. In 2009, Goodyear held regional dealer conferences to introduce new products and marketing programs and to offer business management and training seminars. We work with dealers to communicate how to educate consumers about our products and take a hands-on approach to provide training for everyone from front-line salespeople to service technicians. When it comes to dealers, our goal is to be a better supplier of products as well as programs, training and information, which ultimately benefits the consumer. Given Goodyear’s global reach, our dealers are regionally focused and cater to their consumers and communities. We take pride in the network we have built with our dealers, offering opportunities for entrepreneurs to succeed around the world. Goodyear has wellestablished networks worldwide in countries such as Australia, China and South Africa, and we expanded our reach in 2009 with new outlets in countries including Botswana, Brazil, Bulgaria, Chile, Malaysia, Mexico, the Philippines, Peru, Romania and Thailand. These outlets offer consumers a reliable source for quality products and services and give a boost to local economies. Goodyear’s goal to be an excellent supplier extends to all of our customers, including vehicle manufacturers, and we have received supplier awards in recognition of this commitment. In 2009, Goodyear received best supplier awards from dealer networks in Austria, North America, South Africa and Spain as well as from automotive companies including Honda and Volkswagen in Brazil and Mack/Volvo in Venezuela, to name just a few. Listening to customers The drive to continually offer improved products depends on a constant dialogue with dealers and original equipment customers. This conversation also helps Goodyear ensure the satisfaction of consumers. Goodyear has teams in place in each region and division to interact with these different groups to determine needs and deal with any issues that may arise. In addition to sales and service support, Goodyear engages dealers and end-users at special events such as product launches, ride-and-drives, trade fairs, workshops, plant visits and motorsports events, and through educational programs and enthusiast publications. Associates in all regions engage customers, monitor feedback and make improvements where necessary. Associates from Goodyear plants in Turkey made monthly visits to dealers and fleet customers in a program called “Voice of the Customer.” Listening directly to their customers provides plant employees with a better understanding of the customers’ wants and expectations. Plants also host visits for dealers and customers. In Gadsden, Alabama, associates showcased their quality and manufacturing processes for local dealers and Walmart district managers. In Buffalo, New York, associates hosted leaders from original equipment customer Harley-Davidson. Another group of associates in Brazil got the chance to work directly with consumers on World Consumers Rights Day. Goodyear Brazil’s Customer Service group held an exchange program to bring in associates from other functions. They spent the day listening firsthand to what consumers had to say about the products they build, including questions, compliments or criticisms. 17 Goodyear teams also regularly attend trade shows and industry events. All around the world, we interact with customers to provide technical guidance and to demonstrate the benefits of our products for commercial, agricultural and industrial customers. For consumers, Goodyear produces free enthusiast publications, such as Dunlop Download and Dunlop Motorsports In Touch for fans of two-wheel and four-wheel racing. Several countries in Europe also publish a wide range of winter communications, loaded with information to help drivers know which winter tire to choose for their cars and driving style, prepare their vehicles for winter weather, learn when to change to winter tires, how to store unused tires and much more. In Europe’s Nordic region, Goodyear launched a set of websites with interactive winter driving guidance for motorists in Denmark, Finland, Norway, Sweden and the Baltic states. 18 Goodyear also participates with regional government, industry and automotive organizations to promote transportation and driver education initiatives. • In China, we are making use of our iconic blimp to display safety messages and to educate consumers about the importance of tire maintenance. In conjunction with the Society of Automotive Engineers of China, Goodyear is promoting safe-driving techniques and offering free tire inspection and maintenance tips as the blimp travels from city to city. • In our Asia Pacific region and across Europe, Goodyear continues to sponsor “Women with Drive” workshops to offer tire inspections and hands-on training in basic auto maintenance. These popular events have been held by dealers in Australia, Belgium, China, New Zealand, the Philippines, Slovakia and Thailand. • Goodyear is working in the Philippines with government, transportation and industry groups to find solutions to help lower the cost of spare parts in an effort to make transportation more affordable for the general public. • Australian tire retailer Beaurepaires launched a campaign to raise driver awareness about tire safety and maintenance techniques and to offer free tire-health checks. 19 Engage our associates To build a world-class organization, Goodyear relies on innovative ideas to attract, develop and retain associates as well as increase cultural diversity throughout the organization. Goodyear values our associates by rewarding initiative and accomplishment 20 and encouraging professional development through coaching, mentoring and training. We strive to provide associates with a safe work environment, the resources they need to do their jobs and ample opportunities for growth. These objectives, coupled with competitive compensation and benefits, allow the company to foster an environment where associates can work to achieve their full potential and contribute to the company’s success. Diversity and inclusion As a global company with nearly 69,000 people working in plants and retail locations around the world, Goodyear embraces the diversity of our workforce and values the contribution of employees’ varied talents and experiences. This commitment to inclusion is reflected in the make-up of our Board of Directors, which includes 40 percent minorities and women. In addition, 22 percent of our corporate officers are non-U.S. citizens, representing a strong global pipeline of talented leaders with international experience. Goodyear’s global associates work together in pursuit of common business goals that transcend boundaries. We believe our diverse workforce provides a strategic advantage, allowing us to successfully conduct business in global, multi-cultural marketplaces. One of the ways Goodyear encourages diversity is through our minority supplier and dealer programs. More than 300 of Goodyear’s U.S. dealerships are minority owned. In the U.S., Goodyear also participates in many minority-focused programs and career fairs and sponsors scholarships with organizations such as the National Association for the Advancement of Colored People, Catalyst, National Urban League, United Negro College Fund, Hispanic Scholarship Fund and International Women’s Forum. In addition, Goodyear facilities form alliances with colleges and universities to provide opportunities for education and development within communities. Female leaders from Goodyear’s Asia Pacific region joined more than 100 participants from China and around the world at a brainstorming session organized by the Women’s Forum for the Economy and Society in Beijing. This global initiative is focused on fostering female leadership and offering a forum to address corporate practices and national initiatives to give women a greater role in the growth of mature and emerging economies. 21 Training and development 22 A commitment to innovation requires an educated, highly motivated workforce, and Goodyear promotes an atmosphere encouraging continued education as well as offering the opportunity for career advancement. The company provides in-house training programs for individuals and groups and communicates career and technical information through many channels. Training can be accomplished in a central training center or on-site at plants and retail locations. Goodyear associates also have the opportunity to gain valuable global experience through international assignments. To better inform associates about new intra-company job opportunities, Goodyear’s online career intranet sites were updated, a direct result of associate feedback obtained through the company’s 2008 global associate engagement survey. Goodyear University offers thousands of courses and new associate training in many different languages. After years of successful operation in the United States, Goodyear University opened a training center in Beijing, China, in July with an online interactive platform. The goal of Goodyear University is to deliver systematic information and training support to the company’s professional team of sales associates and technicians, as well as dealers and retailers. Over the course of its operation, the university has trained a large number of professionals who are now working in almost all sectors of the tire industry. Goodyear also relies on our Continuous Improvement System (CIS) to drive results and continues to expand CIS activities throughout the organization. The goal for the program, which aims to drive waste and cost out of business processes, is to incorporate CIS thinking in every facet of Goodyear’s global operations, from customer service to tire design. This effort relies on a commitment to training and building CIS infrastructure, which grew by more than 10 percent in 2009. The Yellow Belt program now includes nearly 600 associates worldwide, with the expectation to increase the number of trained Yellow Belts by 50 percent in 2010. Training activities were held around the world from Argentina to Indonesia. Yellow Belts typically have a basic knowledge of CIS with training in statistics, data analysis and problem identification but do not lead complex projects. Associates receive four to five days of training, rather than the three-week training required for Green or Black Belts, giving more people the opportunity to engage in CIS activities. Goodyear also offers numerous leadership development programs in various countries. Some notable examples are the Trentyre Training Academy and Graduate in Training programs in South Africa, the European Graduate Development Program, a technical training program for maintenance associates in Turkey and North American Tire’s Manufacturing Leadership Development Program. Additionally, Goodyear participates in college recruiting fairs and offers internships to promising college students at our global facilities. Employee engagement Engaging employees is a key component of maintaining a highly motivated workforce. In 2008, Goodyear initiated our first global associate engagement survey and followed up the results in 2009 by developing specific action plans for each region and department based on associate opinions expressed in the survey. For example, associates rated leadership communication as important to the company’s overall success. As a result, in 2009 Goodyear’s management team, from the executive board to front-line managers, placed a high priority on continual communication to help keep associates informed of industry challenges and focused on critical tasks. Goodyear itself was recognized as a desirable and rewarding place to work. In Brazil, Goodyear was named one of the “100 Best Companies” in 2009 based on an Indicator of Human Organizational Development by Gestao and RH Editora. Goodyear Brazil also was the highest ranked tire company on Revista Epoca Negocios magazine’s “Epoca Yearbook 100” list of most prestigious companies. Goodyear Dunlop Tires Germany earned high marks for the third year in a row as a top German employer in the automotive sector as ranked by the Corporate Research Foundation and corporate consulting firm A.T. Kearney. Highlighting successes is equally important in driving an engaged workforce, and Goodyear held regular events to celebrate significant accomplishments. A few examples include Asia Pacific’s annual President’s awards; Europe, Middle East and Africa’s “First with People” awards; safety celebrations at plants; monthly recognition for patent recipients and our annual patent recognition dinner; articles highlighting associates who are featured in trade publications or receive industry and innovation awards; and recognition for manufacturing milestones. In 2009, Goodyear celebrated 111 years in business with a series of articles and videos on our intranet highlighting 111 innovations developed by Goodyear associates throughout our history. Goodyear’s Innovation Center in Colmar-Berg, Luxembourg, launched a series of Innovation Days. The first event focused on the products, machines and processes that have contributed to Goodyear’s success and included workshops presenting the innovative concepts and newest tire technologies developed by Goodyear engineers. Consumer marketing experts outlined the results of recent customer surveys and Goodyear’s marketing approach for new products. Goodyear’s Innovation Centers in Akron and Colmar-Berg are holding regular Innovation Days to leverage the power of open innovation for driving new developments. 23 Employee resource groups Health and well-being Goodyear’s Women’s Initiatives in Leadership (WIL) organization is a well-established international group, open to all associates. WIL’s vision promotes excellence and optimizes diversity by providing opportunities fostering the development and success of Goodyear women. Members take part in networking, community outreach, and professional and personal development programs. Each spring, WIL hosts an annual meeting and banquet, featuring a keynote address given by top female executives from around the United States. In 2009, WIL’s speaker was DuPont CEO Ellen Kullman. Goodyear provides guidance throughout our global locations to encourage healthy behaviors. We continually provide information, resources and tools for employees to stay informed about health-related issues. Mentoring is an important component of WIL’s mission. An ideal conduit for knowledge transfer, the program provides the opportunity for participants to share resources, expertise, values, skills, perspectives, attitudes and proficiencies. Mentees have the option of one-on-one mentoring or participating in a group. 24 Next Gen Leaders is a newly formed employee resource group at Goodyear’s corporate headquarters, which uses social interaction and networking opportunities to connect associates across functions and levels. Next Gen Leaders focuses on promoting Goodyear as an attractive destination for talented professionals by providing opportunities that enhance employee engagement, professional satisfaction and business performance. Goodyear also offers an externally provided, voluntary and confidential employee assistance program for U.S. associates. Help from caring professionals is available 24 hours a day, 365 days a year, and associates and their family members can contact the program anytime to receive counseling for personal or workrelated problems. These include marital, child and family issues, stress and change management, job performance difficulties, financial and legal concerns, alcohol and substance abuse, depression, anxiety and panic, health and wellness issues, and child or elder care needs. Some examples of health and wellness programs conducted around Goodyear’s global locations in 2009 include: • Basic Life Support training during Health and Wellness week at the Ballabgarh, India plant. • Stress control, time management, weight control and fitness workshops at corporate headquarters. • Global Preparedness Month activities to help associates and their families prepare for emergencies at home or in their communities. • Free seasonal and H1N1 flu shots at Goodyear clinics. • Monthly health and wellness articles published on Goodyear’s intranet and distributed via email and plant newsletters. • Recognition for Goodyear South Africa, which received an award for its outstanding efforts to promote and manage health and wellness in the workplace, given by the Port Elizabeth Regional Chamber of Commerce and Industry. Providing a safe workplace Safety, industrial hygiene and chemical stewardship remain top priorities for Goodyear as we pursue our vision of “No One Gets Hurt.” All Goodyear facilities develop strategies based on the four cornerstones of this vision: strong leadership and guidance, welldefined processes for examining and modifying at-risk behaviors, deploying ergonomics to reduce illness and injury, and strongly promoting standards for preventive maintenance and compliance. By setting aggressive goals, establishing proactive processes and executing systems in a timely manner, we have achieved significant positive change in our safety culture and continue to drive toward our goal of reducing incidents. The Health and Safety team worked hard in 2009 to continue improving safety worldwide. The team completed 40 global Health and Safety audits and conducted ergonomics training at 18 facilities worldwide, allowing Goodyear to identify risks and potential ergonomic improvements for more than 4,400 jobs and tasks. Our new “Target Zero” initiative provides a proactive process to identify more than 25,000 workplace conditions or behaviors along with corrective plans to help improve them. Global Health and Safety continued to roll out and monitor our global injury/illness management and industrial hygiene system and invested in capital improvement projects for safety and fire prevention worldwide. To promote safety, plants developed awareness campaigns to encourage safe behavior and celebrate safety milestones. Examples include the communications forum held at the Aurangabad plant in India to promote safety messages and share best practices. In Izmit, Turkey, the plant held a safety drawing contest for the children of associates to raise awareness and engage associates and their families. Plants in Latin America acknowledge safety milestones by flying a Blue Safety flag, which indicates 30 days of incident-free operation. In September, all seven plants in the region raised the flag together. In North America, the Bayport, Texas, plant celebrated five years of incident-free operations. Goodyear’s chemical division conducted comprehensive third-party Process Safety Management audits at all chemical facilities. They also conducted Incident Command System training for all first responders, supervisors and managers, and completed Arc Flash assessments. The Beaumont, Texas, facility earned “Star” status from the U.S. Occupational, Safety and Health Administration (OSHA) as a Voluntary Protection Program (VPP) site, the highest possible level, for implementing comprehensive, successful safety and health management systems and achieving an injury/illness rate below the industry’s national average. Goodyear’s Chemical Operations were recognized by OSHA for supporting the VPP and Special Government Employee program, which allows employees to work with OSHA during VPP on-site evaluations. 25 Since launching the “No One Gets Hurt” safety initiative in 2005, our associates have driven a dramatic and steady improvement in reducing global incidents each year, and the trend continued in 2009. Goodyear achieved a 22 percent decrease in the number of incidents of illness and injury from 2008. With the implementation of the “Target Zero” initiative, we are continuing to focus on integrating safety into every aspect of our business and will continue to work toward our goal of “No One Gets Hurt.” 26 Fire protection Business continuity planning Goodyear is upgrading the fire protection systems at our facilities to bring them up to the class of industrial properties known throughout the insurance industry as Highly Protected Risk (HPR). In 2009, six manufacturing and seven non-manufacturing facilities earned HPR certification. Fire protection project upgrades are being completed so other Goodyear facilities will earn HPR status in 2010. Goodyear continues to promote and enforce our fire protection policy throughout the company and to support the sustained implementation of fire prevention programs and equipment improvements so all of our facilities qualify for HPR status. Goodyear’s Global Business Continuity team is committed to delivering business value by continuing to focus on associates and customers when faced with extraordinary incidents. Over the last year, the team responded to approximately 35 large-scale human, natural and technological incidents. The impact of these incidents was reduced as a result of the team’s response and recovery plans. By successfully identifying risks and critical processes, Goodyear has plans ready to implement when incidents occur affecting our most critical processes. This “all risks” approach better prepares regional and facility teams for a variety of potential incidents. A key focus for the Business Continuity team in 2009 was dealing with the unknown potential impact of the H1N1 (swine flu) virus. Under the direction of the Business Continuity team, all regions and their facilities formed pandemic planning teams and worked on developing, implementing and testing a pandemic plan focused on protecting associates and continuing business operations. An extensive global exercise was conducted in September to test all regional and facility pandemic planning strategies across multiple time zones. During the exercise, 949 facilities participated, and more than 32,000 associates were engaged worldwide. Our business continuity process continues to mature through internal and external benchmarking, and our innovative processes have been featured at industry trade conferences and highlighted in industry publications. Goodyear’s involvement with the U.S. Department of Homeland Security’s directives to evaluate private-sector preparedness as a result of the 9/11 Commission recommendations continues to provide an opportunity for us to share these processes with external organizations. The team’s work is critical to ensuring continued operations and protecting our associates. Corporate policies to protect employees Goodyear’s commitment to providing a safe, inclusive workplace is based on adherence to these employment policies and guided by the standards for ethical behavior spelled out in our Business Conduct Manual: • Employment Practices: Goodyear strives to achieve and maintain compliance with all applicable international, federal, state and local laws at all of our facilities. Goodyear regularly submits compliance audits of our employment practices to the U.S. Department of Labor to help ensure that our practices, systems and processes are aligned with applicable regulations. • Global Human Rights: Goodyear’s policy on global human rights is part of our commitment to ethical and socially responsible business practices. Throughout our global operations, we are committed to maintaining an inclusive workplace, free of harassment based on a person’s status, such as gender, race, age, creed, religion, disability, ancestry, national origin, sexual orientation or other characteristics protected by law. Our voluntary employment commitment specifically prohibits all forms of prison labor, and Goodyear does not engage in or condone the unlawful employment or exploitation of children in the workplace. We recognize and respect associates’ rights and freedom to join organizations of their own choosing or to refrain from joining organizations. No associate is subject to dismissal, discrimination, harassment, intimidation or retaliation due to membership in a lawful workers’ association or union. View Goodyear’s global human rights policy under “Policy on Human Rights” on the “Our Company” webpage at www.goodyear.com. www.goodyear.com/corporate/about/ policy_human_rights.html • Zero Tolerance: Goodyear is committed to providing a work environment that is professional, respectful and free from discrimination, harassment or violence. The forms of discrimination, harassment or violence described in the zero tolerance policy are not acceptable conduct. Goodyear has zero tolerance for these forms of conduct and takes action on all reports. No incident is ignored. Goodyear considers it a management responsibility to ensure that penalties, whether disciplinary or corrective actions, are not imposed arbitrarily but are consistent, proportionate and lawful. We extend our zero tolerance commitment beyond the workplace to settings where associates may find themselves in connection with their employment. We apply our zero tolerance commitment to both associates and non-associates, including applicants, contract or temporary workers, guests, customers and vendors. • Workplace Violence: Upholding our mission to protect all company associates, visitors, products, assets and our good name, Goodyear’s Global Security and Investigations group is committed to providing a safe work environment free of workplace violence. In accordance with the Goodyear Zero Tolerance Policy, all incidents of workplace violence are to be reported, and all incidents are investigated. One of the ways Global Security has responded to educating associates on this issue is by developing presentations for management and associates defining and discussing types of workplace violence. These discussions include each associate’s responsibility to report incidents and management’s appropriate response. In addition, associates can report incidents using Goodyear’s Integrity Hotline. 27 Respect the environment Goodyear has a comprehensive, well-defined environmental management program that continues to evolve as the global team works with all manufacturing facilities to meet or exceed 28 our company’s standards. Goodyear’s Environmental Health and Safety (EHS) policy, our performance in 2009 and the goals we have set for 2010 are outlined on the following pages. Environmental, health and safety policy Managing environmental programs • Comply with all applicable environmental, health and safety laws and regulations, as well as Goodyear’s global EHS standards. Goodyear believes effective environmental management must be based on a clear policy, which provides direction for program development and drives the aggressive goals the company sets for itself. To implement this policy, our associates are highly trained, and the performance of each manufacturing plant is audited against Goodyear’s global standards with ever-increasing frequency and depth. The success of the company’s environmental program is achieved by this process of setting standards, holding each plant and its associates accountable for meeting them and continually striving for improvement. • Establish EHS management systems based on recognized standards, and set company-wide goals and objectives focused on continual improvement. • Integrate EHS considerations into all key business decisions, including the design, production, distribution and support of our products and services. • Ensure high-quality Goodyear products and work with suppliers and customers to promote responsible use throughout their life cycle. • Strive to reduce environmental impact and conserve natural resources by minimizing waste and emissions, reusing and recycling materials, and responsibly managing energy use. • Encourage and educate all associates to take personal accountability for protecting the environment and creating a safe and healthy workplace. We have established a set of environmental compliance standards to define the minimum requirements plants are expected to achieve. These global standards are published as documents, known as Mandatory Environmental Requirements. These documents are refreshed and revised annually, and the requirements are refined on an ongoing basis to ensure each facility improves its environmental performance and conforms to the latest and best procedures available. Goals and performance 2009 Goals Greenhouse Gases 2009 Performance 2010 Goals REDUCE REDUCED REDUCE 5% 13% 2% REDUCE REDUCED REDUCE Solvent Use 33% 17% 25% REDUCE REDUCED REDUCE Releases to Environment (Manufacturing) 50% 30% 50% 29 To achieve our goals, we rely on a comprehensive system for hiring the best engineers and scientists to work on daily environmental issues and develop strategies for the future. The company’s environmental training program provides detailed knowledge about our many processes and products, with a strong focus on the standard procedures used to guide plants toward achieving best practices. Communication is critical for global improvement. Information is shared through frequent contact with environmental associates in workshops, conference calls and monthly newsletters to ensure that everyone — from management through manufacturing associates on the plant floor — knows, understands and adopts the expected performance. In addition, Goodyear’s expanded network of regional and corporate EHS professionals meets regularly to discuss common problems and develop plans for future improvements. 30 In addition to process improvements, physical improvements drive environmental success. Goodyear has addressed areas of potential risk by requiring the storage of raw materials and unavoidable excess materials in areas where they are not exposed to weather. Plant designs are also optimized to prevent storm water from coming into contact with oils or chemicals. To initiate our comprehensive environmental Product and Process Quality (PPQ) system, Goodyear adopted the framework of ISO 14001 certification and unified all aspects of manufacturing excellence into a single, consistent system of best practices. The PPQ auditing system has grown into a mature process comparing manufacturing plants against a global standard, setting a well-defined benchmark for all plants to gauge and improve their performance. Goodyear’s global auditing program is a collaborative effort between regional manufacturing organizations and corporate technical experts. The audits require each plant to measure its performance against Goodyear’s published standards, and then an audit team of regional and corporate representatives follows up with an impartial, independent assessment. Relationships built during the auditing program drive learning, as associates cooperate to find the best ways to optimize environmental performance. Goodyear’s comprehensive auditing programs have expanded beyond compliance to become a proactive effort for minimizing risk and applying the best, most advanced manufacturing methods to reduce emissions, discharges to the environment and workplace exposures. As a result of the auditing program, plants work together to compare results and continually raise the global standards. Goodyear’s plants are driven to set clear, aggressive goals, and progress is measured and reported on a monthly and quarterly basis. This close attention verifies progress and drives continuous improvements in annual environmental performance. Goodyear charges our technical associates to seek the best combination of raw materials, manufacturing processes and energy use to produce the best tire and rubber products in the world. The company’s analysis of chemical use stretches across product design, materials chemistry, physical performance criteria and production technology. Goodyear’s environmental management system is a strong driver of our achievements, resulting in significant improvements on these key initiatives: zero waste to landfill, dramatic reductions in the use of solvents and only insignificant releases to the environment. Taken together, these accomplishments support the recognition of Goodyear by Newsweek magazine as one of the “Greenest Big Companies in America.” Initiatives to reduce Goodyear’s environmental footprint Zero Waste to Landfill: We achieved zero waste to landfill in 2008 and have maintained this goal since. This initiative was started in 2006 to reduce Goodyear’s environmental impact by requiring all plants to reduce, reuse and recycle manufacturing waste. Goodyear is working to find the most efficient outlets for reusable scrap material, as well as determining the best cost structure to manage waste. As a result of the program, more material is being recycled or used as fuel, and the sale of these by-products returns revenue to the manufacturing process, helping to drive further improvements. In 2009, waste management costs across Goodyear’s manufacturing plants decreased by nearly 18 percent compared to 2008. Solvent Reduction 100% 80% 60% 40% 20% 08 09 20 20 07 20 06 20 05 0% 20 Zero Solvent Use: Goodyear has historically used solvents in our manufacturing process and to maintain equipment and facilities. To reduce solvent use, alternative materials and simplified manufacturing processes have been developed that maintain quality. Numerous non-solvent maintenance chemicals and cleaners are now available. By reducing the amount of solvents used, it is easier to store and manage these materials and to reduce the risk of emission into the atmosphere. In 2009, solvent use by manufacturing plants continued to decline to historic lows, decreasing 17 percent from 2008 levels. In addition, Goodyear’s passenger tire plant in Amiens, France, achieved zero solvent use during the second half of 2009, a best-in-class achievement that is being shared with other Goodyear plants worldwide. In 2010, more plants are expected to reach this goal. 31 Goodyear’s North American Tire plant in Lawton, Oklahoma, earned two important environmental awards in 2009. The Oklahoma Star Incentive Program recognized the Lawton plant for achieving compliance to protect the environment and promote employee safety. The plant received a platinum ranking, the highest level, which means it voluntarily exceeded the program’s high standards of environmental responsibility and demonstrated to the public that its employees have gone well beyond compliance with environmental law and implemented improvements through waste and pollution prevention plans. The process included a review of the plant’s environmental performance for the past three years. The Lawton plant also was the only organization in Oklahoma in 2009 to receive the Frank Condon Award for Environmental Excellence, which recognizes companies exemplifying initiative and leadership managing their environmental affairs. The winner is selected by an independent panel appointed by the Board of Directors of the Environmental Federation of Oklahoma. The award was named for the late Frank Condon, who was actively involved in environmental issues in Oklahoma for more than 30 years. The federation’s mission is to ensure Oklahoma provides an environment conducive to a high quality of life for all Oklahomans through balanced, responsible economic growth and protection of natural resources. The plant received the award for its solvent reduction and zero-waste-to-landfill efforts in 2009, as well as for its recycling efforts and community involvement with the City of Lawton’s recycling program. Energy Efficiency: In 2009, Goodyear continued our efforts to improve energy efficiency in all regions and to allocate energyrelated capital funds. Key energy-related performance indicators are included with monthly management operations reviews. Goodyear and the developer of our new global headquarters building project remain committed to securing LEED (Leadership in Energy and Environmental Design) certification for the new facility. Goodyear also stepped up efforts in 2009 to improve energy efficiency at non-manufacturing facilities. 32 Manufacturing Efficiency: Overall, Goodyear faced manufacturing efficiency challenges in 2009; however, generally accepted methods of adjusting for production differences indicate a 1 percent improvement over 2008 levels. Measuring energy use (BTU) per pound of product, known as energy intensity, shows a 1.5 percent unadjusted efficiency improvement since 1990. Manufacturing BTU Per Pound (Indexed) 100% • Latin America was the 2009 leader in production-adjusted improvement. 95% • North American Tire achieved these goals: - Dedicated resources for energy improvement. 90% - Joined the U.S. Department of Energy (DOE) “Save Energy Now Leaders” program, agreeing to a 25 percent improvement in energy intensity over the next 10 years including commitments for both Goodyear and DOE. 85% 09 20 08 07 20 06 20 20 20 05 80% - Conducted energy review visits at all major manufacturing plants. Water Efficiency: As with manufacturing efficiency, water intensity was challenged in 2009, as this index increased compared with 2008. Goodyear plants use water primarily for cooling materials and equipment. Other uses include steam generation, cleaning and sanitary services, which continue at every facility regardless of its production status. The company’s widely employed water conservation and recycling methods include: Water Use Per Pound (Production-adjusted) 100% 90% 80% 70% • Capturing and returning process water and steam condensate. 60% • Using cooling towers and other equipment. 50% Recycling Rate (%) Europe U.S. Japan Tires 91 89 88 Glass 65 28 90 90 (UK) 99 – Steel containers 70 65 88 Aluminum cans 52 54 91 PET bottles 46 27 66 Paper/cardboard 67 57 74 Car batteries 33 Historical Recovery Rate Estimates For ELTs 100 80 60 40 20 08 06 20 04 20 02 20 00 20 98 20 19 96 94 0 19 www.wbcsd.org/templates/TemplateWBCSD5/ layout.asp?type=p&MenuId=MTYwNg&do Open=1&ClickMenu=LeftMenu (compared with other goods) 19 End-Of-Life Tires (ELT): Although most of Goodyear’s wasteelimination initiatives are focused on reducing, reusing and recycling raw materials, the company also looks for better ways to manage the disposal of finished goods, when a tire reaches the end of its useful life. Goodyear’s ELT program builds on long-term efforts that have resulted in an ever-increasing number of tires being recycled. For example, in 2008, 91 percent of ELTs in Europe and 88 percent in Japan were used for either energy recovery or other beneficial purposes. In the U.S. since 2007 that number now exceeds 89 percent. This rate compares favorably with the recycling data for other common goods. Goodyear has programs in place to ensure ELTs from our retail operations are properly managed. Goodyear also works cooperatively with the tire industry to develop scrap tire management systems. More details on industry recovery efforts and ELTs can be found under “Tire Industry Projects” at www.wbcsd.org, the website of the World Business Council for Sustainable Development. ELT Recovery Rate Percentage Recovery Rate In 2009, Goodyear’s manufacturing plants reported significant decreases in water use at facilities in Dalian, China; Lima, Peru; and Philippsburg, Germany, which continue to build on previous improvements. We set a zero discharge target for our new plant in China, which is currently under construction. In addition to the above methods, advancements such as water-efficient landscaping, innovative wastewater technologies and additional water-use reduction methods are being developed. 20 05 20 06 20 07 20 08 20 09 • Cooling with air instead of water in appropriate applications. Europe (EU27) adjusted to remove exports and retreads Japan adjusted to remove exports and retreads U.S. adjusted to remove exports The São Paulo State Companies Federation (FIESP) recently honored the Brazilian Association of the Tire Industry (ANIP) for its scrap Greenhouse Gases 100% 80% 60% 40% 20% 09 20 08 20 06 07 20 20 05 0% 20 34 tire recycling program. Reciclanip is an industry-supported nonprofit group that has achieved the responsible reuse of 200 million scrap tires. Created in 1999, the program has a network of 374 locations in 21 states throughout Brazil to collect used tires. Working with local councils, Reciclanip distributed tires to destinations where they will be recycled and reused. In addition to the environmental benefits, the recycling program creates economic benefits as the tires are used as source material for other industries that generate jobs and tax revenue. Goodyear Brazil has been a member of ANIP since its founding in 1999 and plays a strong role in the recycling program. REACH: With the European Union (EU) introduction of the REACH (Registration, Evaluation and Authorization of Chemicals) regulation, the global trend for environmental management is toward greater assessment of the whole life cycle of chemical substances. Manufacturers and users have the responsibility to demonstrate safe chemical use during a phased registration process through 2018. Goodyear supports the intent of REACH and, through the European Tyre & Rubber Manufacturers’ Association, is actively working with raw material suppliers to assist in risk assessments and the timely registrations for all chemicals used. Independently, Goodyear pre-registered all chemicals imported into the EU to ensure our supply chain and manufacturing activities are compliant until registrations are completed. Suppliers Partnership for the Environment: Goodyear is leading the tire industry by joining the Suppliers Partnership for the Environment – Chemical Issues Management work group. This is a U.S. Environmental Protection Agency and automotive industry partnership with the objective of corporate sustainability within the automotive supply chain. Goodyear’s participation in Phase Two of the Materials Assessment Strategy will focus on preparation of a common screening process for assessing the potential health and environmental effects of chemicals in automobile wear parts. World Business Council for Sustainable Development: Goodyear is a leader in the Tire Industry Project of the World Business Council for Sustainable Development (WBCSD), an industry group including 11 of the world’s largest tire manufacturers working together to review potential long-term environmental and health impacts related to tire use. This work is currently focusing on tire wear particles and global strategies for dealing with end-of-life tires. As a CEO-led global association of more than 200 international companies focusing on business and sustainable development, the WBCSD is regarded as a catalyst in global policy development, representing and promoting the role of business in achieving sustainable development. Climate Change: Since 2005, Goodyear has reduced its greenhouse gas emissions by nearly 20 percent. In 2009, a reduction of 13 percent was achieved, and continued efforts in 2010 are expected to yield a further reduction of 2 percent. Goodyear has been working diligently for many years on efficient use of raw materials and energy. As manufacturing efficiency has increased, energy usage has been reduced, with a related reduction in greenhouse gas emissions. Goodyear will continue to strive for lower greenhouse gas emissions through additional energy reductions and changes to renewable energy sources and more carbon efficient fuels. 35 Goodyear’s Fuel Max Technology for commercial truck tires received the 2009 Environmental Award from the Luxembourg Business Federation (FEDIL). The group recognized Fuel Max Technology as an innovative, practical and cost-efficient tool with valuable environmentally conscious features. Fuel Max Technology was specifically developed to achieve improved fuel efficiency, extended mileage and enhanced braking power. Goodyear’s new Marathon LHS II and LHD II truck tires are equipped with this innovative technology, which uses a new compound with high silica levels, new tread pattern and new carcass structure offering cost savings and improved fuel efficiency. 36 Some achievements of Environmental Health and Safety teams around the world in 2009 include: • In China, Goodyear’s Dalian plant was recognized by Shanghai General Motors (SGM) in April as an “Excellent Green Supplier.” The key objectives of SGM’s “Greening the Supply Chain” project include increasing energy efficiency, implementing cleaner production practices, training suppliers in effective resource management and cultivating a culture of environmental responsibility. This award is the highest level achievable, and only eight of SGM’s suppliers were recognized. • In Germany, the Riesa plant improved its reuse of steam condensate, resulting in significant savings in water consumption. Associates also installed a central fueling station for powered forklift trucks, eliminating the need to handle multiple containers of gas and saving fuel by minimizing leaks. • In Turkey, the Izmit plant installed an ultrafiltration system to treat incoming water drawn from wells. The system reduced well water consumption as well as wastewater discharge. Wastewater is now more effectively reused at the plant, eliminating the discharge of four tons per month of this scarce resource. The Adapazari plant completed a building to store by-products of its manufacturing process. These materials can now be reused or recycled more effectively because they are protected from damage by exposure to rain or sun, and the potential for leaks into surrounding soil or water is reduced. • In Chile, the Santiago plant implemented improved methods of chemical storage. Once chemicals are permitted to enter the plant, they are stored in designated areas that are clearly identified and equipped with chemical handling, spill management and fire-fighting equipment. The materials are stored on pallets, and the entire area is ventilated, covered from weather, equipped with containment dikes and sealed with concrete to prevent soil contamination, in case an unintended spill were to occur. • In Brazil, the Americana plant developed a neat, orderly storage system for recyclable rubber, glass, plastics, metals and paper. The system is one example of the Latin America region’s initiative to encourage segregation of waste to drive recycling efforts and eliminate waste. • In the United States, the Houston, Texas, chemical plant took a proactive approach to address emission of styrene, which has a particularly low odor threshold. The plant formed a team comprised of representatives from maintenance, operations, environmental and management. The team investigated each activity and took corrective actions, including adding instruments, making changes in work practices and equipment. As a result of the plant’s early actions, detections of styrene in nearby monitoring stations decreased by 90 percent from early 2008 to late 2008, and this downward trend continued in 2009. 37 38 Goodyear is building a new state-of-the-art manufacturing plant in Pulandian, China, that will incorporate some of the best ideas and technologies to reduce our environmental footprint to the lowest feasible level. The plant will operate in conformance with Goodyear’s overall objectives for zero disposal off waste to landfill, zero non-compliances and zero use of solvents, and will do so from its first day of operation. • Raw material use at the facility will be governed by the h strictest controls applicable to chemical use globally, adhering to existing requirements brought on by chemical control legislation, including the European Union’s REACH requirements. In addition, the use of aromatic oils will be restricted in accordance with EU regulations. • There will be no discharge of treated wastewater from the factory, and all of it will be reused. Wastewater and storm water flows will be kept separate, and wastewater from production areas, air pollution control equipment and other plant equipment will be treated in oil-water separators. Sanitary and food preparation wastewater will be collected and fully treated in a central wastewater treatment plant that will prepare treated wastewater for reuse in the plant or by outside users. • Air emissions will be controlled to the maximum extent possible. Process emissions will be treated using scrubbers and dry filters to meet strict emission standards set by Chinese regulations. In addition, the plant will be quiet with low-noise equipment and product flow layouts provided, as well as soundproofing as required to meet low-noise standards. • Installation of new equipment will allow the plant to generate minimal process waste, all of which will be separated and stored properly to encourage reuse of valuable components. Competent, licensed vendors will be engaged to manage unavoidable waste for maximum benefit to the environment and for those who would use the materials to make useful products. • Energy-saving lighting equipment will be used throughout the plant. This includes a system to capture sunlight and direct it through tubes to provide uniform light for workspaces, which, along with lighting control units, will limit the plant’s electrical load during daylight hours. The plant also will use Light Emitting Diode (LED) systems using less power than standard fixtures and reducing waste. LED task lighting will be deployed in offices and factory areas. To produce energy for use throughout the facility, photovoltaic cells will be installed on the plant’s roof, and stand-alone solarpowered outdoor lights will be placed on the grounds of the plant. • Steam generated during the tire-curing process will be captured using heat exchangers that will pass the thermal energy from spent steam into areas requiring heat for hot water or office heating units. • Ice storage systems for chilled water will be used for air conditioning, providing a cost-effective, reliable approach for cooling office and factory areas. Ice storage provides a steady source of low-temperature fluids for process-cooling applications. These systems lower energy consumption and reduce greenhouse gas emissions. Chillers produce ice for storage at night, and during the day they chill water for the air conditioning system. Their output is augmented by water circulating through the melting ice, so the plant can use smaller, more efficient chillers. 39 Support for communities Volunteering and outreach are vital elements of Goodyear’s community involvement efforts, and we have a long-standing tradition of philanthropic initiatives in the communities where we have operations. Our corporate giving is focused on the 40 areas of safety, economic development, arts, education and health services. Goodyear’s aerial ambassadors – our famous blimp fleet – routinely display messages supporting charitable and community organizations. In the United States, the Ohio-based Spirit of Goodyear, the California-based Spirit of America and the Florida-based Spirit of Innovation take time from their marketing and sports programming to participate in messaging and fund-raising activities as they travel across the country. Donors are willing to give handsomely to charities for the once-in-a-lifetime opportunity to ride on the company’s famous airships. Goodyear’s blimp the Navigator began flying over China in 2006 and serves as the company’s safety ambassador, supporting a tire maintenance and road safety campaign to raise awareness about these issues. For more information about our corporate giving programs and blimp fleet, visit the following webpages at www.goodyear.com. www.goodyear.com/corporate/about/ about_community.html www.goodyearblimp.com/ In addition to our corporate efforts, Goodyear associates volunteer individually and as groups to offer their time and resources to an endless list of programs supporting education, safety, communities and disaster relief. Many Goodyear associates also serve on nonprofit trustee boards and committees to offer professional expertise and guidance. Support for education With Goodyear’s reliance on industry-leading research, associates recognize the need for preparing the next generation of innovative thinkers and are especially dedicated when it comes to supporting education. Associates tutor students of all ages to help them improve their skills, expand their horizons and reach their goals. Goodyear is a partner to Junior Achievement (JA) programs around the world, working to teach young people the fundamental skills they will need to create a brighter future. Associates offer their time volunteering as teachers and raising money to support JA programs. In 2009, Shanghai associates taught the children of Chinese migrant workers the importance of imports and exports in a series of classes. In the United States, Topeka associates raised $15,000 for JA programs, and volunteers taught more than 30 classes in area schools. Job training was the focus of a program in Venezuela for young adults with disabilities. The “Casa de Todos” Center, a learning and developmental foundation, graduated its second class of students from its automotive technology program. The young people learned tire mounting, balancing and vehicle alignment skills, and gained on-the-job experience at Goodyear retail and dealer locations. Supported by Goodyear Venezuela, the program is designed to raise the standard of living for people with special needs. 41 Associates at Goodyear’s plant in Danville, Virginia, held their annual golf tournament to raise money for local school districts. The tournament has donated more than $235,000 since its beginning 18 years ago to fund grant requests for programs to supplement classroom activities. The 2009 proceeds will be used for a high school robotics team, portable planetarium, health-and-wellness garden, leadership program, driver education tool kit and more. Associates at the Dalian, China plant provided much-needed support to a primary school for 200 underprivileged children in Pulandian, site of Goodyear’s newest manufacturing plant in northeastern China. Associates raised funds and donated their time to install heating equipment in classrooms and purchase supplies for the school’s students. Goodyear associates welcomed students from Akron’s East High School to corporate headquarters in July 2009. The students are participating in Destination College, a program sponsored by Akron Public Schools, the University of Akron and Summit Education Initiative. The program matches senior students with a mentor to help them through the college application process. Students chosen for the program must demonstrate high academic potential. The visit to Goodyear headquarters was the first step in a months-long process of guiding the students through taking college entrance exams, filling out college applications, preparing essays and pursuing scholarships. “We are very excited to help you get into college, and we hope this visit shows you how a college degree can help you achieve the life you want,” said Faith Stewart, Goodyear’s director of community affairs. 42 Support for safety In addition to tire maintenance and road safety education efforts, Goodyear and our associates donate tires, services, time and funding for emergency and safety programs. Goodyear has long-standing ties throughout the world with safety and rescue organizations and works with civic and automotive organizations to support transportation and promote safety. Goodyear’s Akron-area company-owned stores and some independently operated dealers distributed free child booster seats to families with young children in cooperation with the Safe Kids Coalition of Summit County and Akron Children’s Hospital. In October 2009, an Ohio law went into effect requiring children ages 4 to 7 and shorter than 4'9" to be seated in the back seat of a car in a federally approved booster seat. The giveaway helped create awareness for the new law and provided booster seats for parents who might not be able to afford them. Goodyear store technicians also checked tire pressure on cars and handed out child safety information. In the United Kingdom, Goodyear Dunlop funded a training program for the Royal National Lifeboat Institution’s (RNLI) Flood Rescue Team. At its annual conference, teams practiced life-saving skills, including 4x4 driver training, which is essential to getting rescue teams around blocked roads and on the scene. Hugh Fogerty, head of RNLI Fleet Operations, said, “This specialist training was invaluable, and feedback from the team has been superb. We depend on donations from organizations such as Goodyear to fund specialist training; it is absolutely essential and ensures that our volunteers can go on saving lives.” To keep charitable organizations on the road, Goodyear South Africa donated Wrangler AT/SA tires to the Leopard Conservation Project. The donations will keep the group’s vehicles running through the tough conditions they encounter protecting leopards from poaching, poisoning, trapping and over-hunting throughout southern Africa. Goodyear South Africa also provided tires to the Port Elizabeth Meals on Wheels program, which delivers daily meals to poor, disabled and elderly residents. In Kranj, Slovenia, Goodyear’s Sava tire plant has a long-term relationship with the community’s emergency fire and rescue units. The plant regularly supplies tires for rescue vehicles, ensuring they are well equipped while traveling, often at high speed, to the scene of emergencies and allowing the crews to purchase other important safety equipment with their funds. Goodyear’s Highway Hero initiative continues to recognize truck drivers around the world who embody the ideals of selflessness and courage. The program started honoring road and highway safety in the United States in 1983 and has expanded to other regions. It acknowledges the often unnoticed, life-saving rescues and roadside assistance provided by professional and private drivers as they encounter motorists in need during the course of performing their daily jobs. • In North America, trucking-industry journalists select nominees from among a group of professional truck drivers. One driver annually receives the title of Goodyear Highway Hero. The winner receives a cash prize and a specially designed Goodyear Highway Hero ring. • In the Philippines, the Bayani ng Kalsada (BNK) program launched its fourth nationwide search for Filipino drivers. The Philippine version of the program relies on a search committee to seek out road heroes, and consumers are also encouraged to submit nominations at Goodyear dealers and retail outlets across the country. The BNK program honors five winners, one each from four regions and an overall champion. • Goodyear Vietnam launched its third annual Highway Hero search last year. The program features a nationwide Highway Hero radio program. The broadcast features listener-submitted heroic deeds and honors Vietnam’s professional drivers. • Goodyear South Africa launched its first Highway Hero search in 2009 to honor professional truck and bus drivers. Nominations are tallied and judged every three months. Finalists from each quarter receive media recognition and go on to the final award ceremony. The first winner will receive a trophy, cash prize and a trip to Goodyear’s Innovation Center in Colmar-Berg, Luxembourg. • In New Zealand, the Beaurepaires Highway Hero Award is sponsored by Goodyear’s network of retail outlets. The award is open to any professional truck, bus or coach driver for an act of bravery, heroism or humanity. The 2009 winner received a cash prize and trophy. • In Germany, Goodyear, in conjunction with the German Automobilclub Avd, German Federal Ministry of Transport and other partners, names a Highway Hero each month to recognize people who act heroically on the road. An overall winner is chosen at the annual “Highway Hero of the Year” event, where the winner receives several prizes. 43 Support for community Given the global nature of Goodyear’s workforce, many of the company’s outreach programs are directed regionally. Goodyear cooperates with local organizations and governments to offer support for a variety of programs targeting the needs of the people and communities in the areas where employees live and work. Associates support many different programs, which answer needs as diverse as the communities they serve. 44 The South African government has introduced a Broad-Based Black Economic Empowerment (B-BBEE) policy, which is aimed at empowering previously disadvantaged black people and through this realizing the country’s full economic potential. The policy incorporates a code of good practice against which the B-BBEE initiatives of business are measured. Goodyear South Africa (Pty) Ltd currently leads the local tire industry with a B-BBEE score that is ahead of those of its competitors. Goodyear South Africa also received a Diamond Arrow Award, and Hi-Q, its franchise dealer network, received a Silver Arrow Award based on the results of an annual survey of business groups performed by the Professional Management Review of Africa. The awards recognize regional organizations for making significant contributions to economic growth and development in their sectors in the Eastern Cape Province in 2009. At the 2009 World Economic Forum on East Asia, held in Seoul, South Korea, Goodyear Asia Pacific President Pierre Cohade participated in a panel discussion on “Shaping the New Values of Capitalism.” The forum attracted some of the world’s most respected leaders — from heads of government to top executives — to discuss the future of global, regional and industry agendas and the importance of corporate social responsibility initiatives. Goodyear Venezuela has been working with non-governmental organizations and other groups to support the indigenous Uruyen communities in Bolivar state to responsibly promote the culture of the Pemones Indians who live in the Amazon region. In addition to helping preserve the area’s native culture, associates provided health and wellness materials to help sustain the people of these indigenous communities, and a new community center, built in the traditional style, was recently opened. Goodyear facilities around the United States continued their strong support for the United Way. With U.S. unemployment rates rising throughout 2009, many new people turned to United Way agencies for help. Contributions to fund-raising campaigns help take care of basic emergency needs for food and shelter during tough economic times but are also directed to longer-term commitments that strengthen communities, such as education, training and health programs. Corporate headquarters’ associates responded to the rising need with increased donations. Goodyear donated more than $1.3 million to the United Way of Summit County in 2009 and continued the company’s long-standing role as the area’s top corporate donor. In Kansas, Goodyear Topeka associates held fund-raising events throughout the year and raised more than $184,000 — the second highest total in plant history — while associates at the plant in Lawton, Oklahoma raised a record $692,696. Combined with previous contributions, Lawton associates have contributed more than $9 million to their local United Way during the plant’s 30-year history. Agency tours are one of the ways associates learn about the direct impact their donations have and why giving is so important. Associates are able to take time during the workday to visit United Way agencies to see first-hand the services provided by a wide range of programs for people at all stages of life. To help improve the environment around Mexico City, Goodyear Mexico associates dedicated a week-long program to environmental conservation. Events included focusing on how to improve the planet through water conservation, recycling and natural resource optimization. Associates capped the week’s activities with a trip to the Villas del Carbon forest, where they planted 280 trees. Also in Latin America, Goodyear Brazil associates worked with community leaders on multiple health and wellness programs. Associates prepared training materials and taught young people and adults about the harmful effects of drug abuse. Another program regularly brings eye and dental exams to Brazilian truck drivers through three-day traveling clinics intended to prevent disease and encourage regular check-ups. 45 Goodyear South Africa appointed Nomkhita Mona, chief executive officer of the Uitenhage Despatch Development Initiative (UDDI), as a non-executive member to its board in 2009. Her goal is to set the industry benchmark in the areas of environmental sustainability, corporate governance, Black Economic Empowerment and corporate social investment. Mona has been recognized in government and corporate circles for her visionary leadership in a number of high-profile positions in the private and public sector. She believes thriving companies should adopt a four-fold approach that focuses not just on financial success but also on environmental and social issues and the development of its people. “As a board member, I know I will be learning as much as I will be contributing – but I’m determined to make a difference.” Support for disaster relief When disasters strike, Goodyear associates mobilize quickly to organize relief efforts and support for people affected by these unexpected incidents. In 2009, associates in Goodyear’s Asia Pacific region provided funds and supplies to help their communities respond to fires, flooding and earthquakes. Goodyear Australia associates held a variety of fundraisers in response to the devastating bushfires that swept across that country in February. Judith Swales, managing director and CEO of Goodyear & Dunlop Tyres, Australia and New Zealand, presented a check for $28,259.30 (AUD $) to the 2009 Red Cross Victorian Bushfire Appeal. The fires burned across the state during extreme weather conditions and resulted in Australia’s highest-ever loss of life from a bushfire. Associates donated portions of their salaries and held bake sales, raffles and casual dress days to support the people and animals affected by the disaster. 46 On the one-year anniversary of the earthquake that hit China’s Sichuan province in May 2008, UNICEF recognized the contributions of money and supplies provided by Goodyear and our associates in response to the disaster. UNICEF Representative to China Dr. Yin Yin Nwe presented a certificate of appreciation to Goodyear Asia Pacific President Pierre Cohade at a ceremony in Beijing. Supported by funds from government and corporate donors, including Goodyear, UNICEF was able to deliver more than $8 million in emergency relief in the first month following the earthquake. “I’m deeply touched and extremely proud of the generosity and compassion demonstrated by our associates,” Cohade said. “In the face of such devastating tragedies, we continue to demonstrate solidarity by spearheading initiatives that help to improve the lives of those in our surrounding communities.” When typhoons brought devastating flooding to the Philippines in September, the Goodyear Philippines’ WIL team immediately mobilized to collect clothing and other goods for evacuation centers in Las Piñas. In addition, associates collected individual and corporate contributions to aid the associates whose homes and belongings were destroyed. Goodyear and our regional dealer network also responded with funds to support dealers in the flooded area while their shops were closed for repairs. Goodyear Indonesia associates, distributors and auto care centers took immediate action when a 7.6-magnitude earthquake struck Padang, Indonesia, on Sept. 30. Associates mobilized to aid the people of West Sumatra with a donation of RP 144,600,000 (US $15,375) that was distributed to groups in the most seriously affected areas. The West Sumatra natural disaster mitigation task force put the death toll from the earthquake and subsequent landslides at more than 1,100, with severe damage reported to more than 70,000 houses, schools, businesses and markets. 47 www.goodyear.com/corporate/about/responsibility This report is printed on 100% post-consumer recycled process chlorine-free paper. Printed with soy ink. ©2010 The Goodyear Tire & Rubber Company. All rights reserved.