2015 corporate social responsibility and sustainability report
Transcription
2015 corporate social responsibility and sustainability report
RESPONSIBILIT Y THE COOPER WAY 2015 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY MISSION THE POWER OF “AND” The people of Cooper Tire & Rubber Company believe in the power of “AND.” We are committed to delivering shareholder value AND operating our company in a way that reduces our impact on the environment. We believe in innovation, leveraging it to be successful in the marketplace AND to help us be responsible about the life cycle impacts of our products. We are relentless about improving the efficiency of our operations, AND we care deeply about our people, especially when it comes to their health and safety. We strive to continually improve our economic performance, AND we connect with our communities through philanthropy AND employee activation. Our future is one where Cooper continues to do the right thing AND succeeds because of it. RESPONSIBILITY THE COOPER WAY 2 2 CHAIRMAN’S LETTER It’s my pleasure to introduce our fourth annual Corporate Social Responsibility (CSR) and Sustainability Report: Responsibility the Cooper Way. This report summarizes our performance and activities at Cooper primarily during 2015, a year in which we continued to make positive strides toward our CSR and sustainability goals. For 2015, we are providing a condensed CSR and Sustainability Report, as we have moved this year to a webbased platform (OneReport) that enables us to centralize all of our CSR and sustainability information and data in one place online. OneReport complies with Global Reporting Initiative (known as GRI) reporting guidelines and is a userfriendly platform for those interested in a deep dive into Cooper’s CSR and sustainability progress and goals. This information will be available on Cooper’s corporate website in the fourth quarter at www.coopertire.com. Some highlights of our 2015 performance include: ÎÎ Improved environmental performance: ÎÎ All manufacturing plants reduced energy consumption. Energy usage intensity in 2015 was 17 percent lower than 2009. ÎÎ The positive trend in reducing greenhouse gas emission intensity also continued, with an overall reduction of 16 percent at our facilities since 2009. ÎÎ Cooper retained the services of an expert third-party consulting firm to assist us with a comprehensive audit of our U.S. plants located in Clarksdale, Miss., Findlay, Ohio, Texarkana, Ark., and Tupelo, Miss. This audit led to the development of short and long-term plans that will guide our sustainability efforts and continue to help Cooper align our performance with industry benchmarks and evolving customer requirements. majority of employees worldwide. The cause—driver and tire safety among teens and young adults—is the subject of a new program, dubbed “Tread Wisely,™” which seeks to drive awareness and appropriate actions among young people ages 15 to 25 when it comes to tire and auto safety. As car crashes continue to be the number one cause of death in teens worldwide and a major cause of death for young adults around the globe, we believe our involvement in addressing this persistent social issue is extremely important. As previously announced, I plan to retire as Chairman, Chief Executive Officer and President of Cooper effective August 31 of this year. Therefore, this is the final time I will author the letter introducing Cooper’s CSR and Sustainability Report. It has been my honor and privilege to lead Cooper for nearly 10 years and to see the achievements we’ve made on sustainability, particularly since 2009, our baseline year. I am also extremely proud of the time and resources Cooper people have contributed to bettering their communities around the world and thank them for making a difference. Effective upon my retirement, Cooper Chief Operating Officer, Brad Hughes, will be appointed as President and Chief Executive Officer. I am excited about the leadership that Brad brings to the business, and I am confident that he will continue to build on our CSR and sustainability successes in the years ahead. ÎÎ We continued our partnership with the World Business Council on Sustainable Development, participating on the Tire Industry Project, as the initiative celebrated its 10th anniversary. ÎÎ Cooper has reinvented our approach to corporate giving by selecting a “signature cause” for our philanthropy, meaning we will direct the majority of our corporate giving dollars and employee volunteerism to this single cause, which was overwhelmingly cited in 2015 as most important by the Roy V. Armes Chairman, Chief Executive Officer and President CSR AND SUSTAINABILITY REPORT 2015 3 ABOUT COOPER Cooper Tire & Rubber Company, headquartered in Findlay, Ohio, is the parent company of a global family of companies that specializes in the design, manufacture, marketing and sale of passenger car and light truck tires. Cooper and its subsidiaries also sell medium truck, motorcycle and racing tires. 2015 FACTS AND FIGURES ÎÎ Seven tire manufacturing plants (see below) and a bladder production facility ÎÎ Corporate headquarters in Findlay, Ohio. Cooper is one of only two major tire manufacturers headquartered in the United States Four Technical Centers, including a Global Technical Center, North America Technical Center, Asia Technical Center and Europe Technical Center, as well as a test track facility and a tire mold production facility ÎÎ $2.97 billion annual revenue Distribution and sales offices worldwide ÎÎ Record operating profit of $354 million in 2015 ÎÎ The 12th largest global tire manufacturer ÎÎ The 5th largest tire company in North America ÎÎ More than 9,000 employees ÎÎ ÎÎ TIRE MANUFACTURING PLANTS LOCATION SINCE OWNERSHIP UNITED STATES: Findlay, Ohio 1917 Wholly Owned UNITED STATES: Texarkana, Arkansas 1964 Wholly Owned UNITED STATES: Tupelo, Mississippi 1984 Wholly Owned MEXICO: El Salto, Jalisco 2008 Joint Venture/Majority Shareholder CHINA: Kunshan, Jiangsu Province 2005 Wholly Owned SERBIA: Kruševac 2012 Wholly Owned ENGLAND: Melksham 1997 Wholly Owned RESPONSIBILITY THE COOPER WAY 4 4 SUSTAINABILITY OVERVIEW SUSTAINABILITY SELF-ASSESSMENT Cooper retained an expert third-party consulting firm to conduct an assessment of its U.S. facilities, including the Clarksdale, Findlay, Texarkana and Tupelo plants, to compare Cooper’s sustainability status to the Automotive Industry Action Group guidelines and anticipated customer requirements. Topics addressed included environment, health and safety, human rights, compliance and ethics, diversity, and general management systems. As a result, specific areas of strength were identified, such as environmental compliance. In addition, areas for improvement were noted that would make our CSR and sustainability program even more robust. For example, Cooper revised its Supplier Guidebook to include supplier human rights and corporate responsibility training expectations. We also advised the plants of progress in reducing greenhouse gas emissions. Additionally, Cooper has addressed a number of the recommended short-term recommendations and will continue to work on longer-term items. In the future, we will conduct similar assessments in other geographies and repeat the process periodically to ensure that improvements are maintained. COLLABORATION Cooper collaborates with a number of entities and partners on sustainability topics. One of the key entities is the World Business Council on Sustainable Development, of which Cooper is a member and participates in the Tire Industry Project to identify and address the potential health, environmental and social impacts associated with tire making and use. The Tire Industry Project marked its 10th anniversary in 2015. The Tire Industry Project’s focus areas include: ÎÎ Understanding the properties, fate and impacts of particles generated by the interaction between tires and pavements during tire use ÎÎ Safely developing and using nanomaterials in tires ÎÎ Identifying key indicators of tire manufacturing sustainability performance ÎÎ Developing a standard protocol for conducting tire life cycle assessments ÎÎ Working to encourage effective scrap tire management A summary of the project work can be found at http://www.wbcsd.org/tires.aspx. CSR AND SUSTAINABILITY REPORT 2015 5 80% 80% 14,000 12,000 60% 6,000 ENERGY CONSUMPTION 0 Energy is used in tire production to power equipment, 40% 2009 2010 2011 2012 2013 2014 2015 2011 2012 2013 2014 generate2009 steam, 2010 heat, cool and transport materials, control2015 the environment in occupied spaces, and provide lighting. Energy COOPERTIRE TIREMANUFACTURING MANUFACTURINGWATER LANDFILL USAGE INTENSITY COOPER USAGE INTENSITY usage results in air emissions, including greenhouse gas 120% 120% emissions at Cooper plants (direct energy usage) or at upstream electricity and steam generating locations (indirect energy usage). 110% 100% 100% As indicated in the graphic below, Cooper has been working for 80% many years to reduce energy usage. The increase in intensity in 90% 201360% is attributed to reduced production levels during the year. The trend was reversed in 2014 and continues to be favorable. 80% Energy 40%usage intensity in 2015 was 17 percent lower than 2009, 2009 returned 2010 to the 201120122012 2014 2015 and level. 2013 70% has nearly 2010 2011 2012 2013 2014 70% 3,000 2,500 120% 2,000 2011 2012 2013 2014 2011 2012 DIRECT 2013 ENERGY 2014USAGE 2015 COOPER2010 TIRE MANUFACTURING COOPER TIRE MANUFACTURING ENERGY USAGE INTENSITY 2000 1500 1000 1,000 80% 500 0 60% 500 0 2009 2010 2009 2010 40% 2011 Natural Gas 2011 2012 2012 2013 Oil Derived 2013 2014 2500 2000 Total Direct 2014 2015 1500 1000 500 0 0 40% 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 Natural Gas Oil Derived Units: megajoules / kg product (millions of joules or 106 joules / kg) 2015 2015 Total Direct COOPER TIRE MANUFACTURING INDIRECT ENERGY USAGE COOPER TIRE MANUFACTURING RECORDABLE INCIDENT RATE GREENHOUSETOTAL GAS EMISSIONS (GHG) 2000 2009 2010 Units: terajoules 2011 Electricity 2012 2013 Steam 2014 Total Indirect COOPER TIRE MANUFACTURING GHG EMISSIONS 400,000 14 200,000 Greenhouse gases are directly emitted from fossil fuel energy sources consumed at Cooper manufacturing plants and 12 1000 indirectly from purchased electricity and steam. As Cooper continues to0 focus on energy conservation, GHG emissions are 10 2009 2010 2011 2012 2013 2014 reduced. GHG emission intensity closely follows energy usage intensity. The accompanying graphic indicates that a recent 500 8 downward trend from 2014 continues, resulting in an overall reduction in emission intensity of 16 percent since 2009. Direct Indirect Total 6 0 4 2015 600,000 2500 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 COOPER TIRE MANUFACTURING GHG EMISSION INTENSITY 100% 2015 400,000 COOPER TIRE MANUFACTURING TOTAL WATER USAGE 200,000 90% 80% 1.5 0 70% 2009 2010 2011 2012 2013 2014 2015 1.0 60% Direct Indirect Total Units:0.5 tonnes CO2e (CO2 equivalent) COOPER TIRE MANUFACTURING GHG EMISSION INTENSITY 100% 50% 40% 2009 0.0 90% 2009 2010 2011 2012 2013 2014 COOPER TIRE MANUFACTURING LANDFILL USAGE 6 THE COOPER WAY 80% RESPONSIBILITY 16,000 70% 2015 2015 COOPER TIRE MANUFACTURING GHG EMISSIONS Electricity Steam Total Indirect 2 600,0000 2015 2015 Units: terajoules (trillions of joules or 1012 joules) 2,500 100% 2,000 60% 500 t 2500 COOPER TIRE MANUFACTURING INDIRECT ENERGY USAGE 1,000 15 2015 1,500 100% 120% 3,000 1500 2010 2015 1,500 80% 15 2009 2009 COOPERTIRETIREMANUFACTURING MANUFACTURING DIRECTUSAGE ENERGY USAGE COOPER ENERGY INTENSITY TY GE 40% 80% 4,000 50% 2,000 2009 40% 90% 8,000 15 4 60% TIRE MANUFACTURING PLANTS ENVIRONMENTAL PERFORMANCE 15 60% 100% 70% 10,000 2015 2010 2011 2012 2013 2014 2015 Units: tonnes CO2e / metric ton (tonne) product COOPER TIRE MANUFACTURING WATER USAGE INTENSITY 120% 110% 6 015 15 15 TY 15 12 14 200,000 10 12 TIRE MANUFACTURING PLANTS ENVIRONMENTAL PERFORMANCE 600,000 8 COOPERMANUFACTURING TIRE MANUFACTURING WATER COOPER GHGRATE EMISSIONS TOTALTIRE RECORDABLE INCIDENT 600,000 4 6 LANDFILL 2 4 uses water in tire manufacturing for heating, cooling and Since the water does not become part of the product, most 10 of it is returned to the environment through evaporation, 200,000 direct discharge to surface water, or discharge to water treatment 8 facilities. 6 0 2011 2012 2013 2014 2015 As4indicated in the related graphic, a downward trend in water 2 usage intensity from 2009 through 2011 was reversed in 2012, Direct Indirect Total but0 appears to have leveled off in 2014 and 2015. Nonetheless, 2007 2008 2009 2010 2011 2012 2013 2014 2015 usage intensity has declined 6 percent since 2009. COOPER TIRE MANUFACTURING GHG EMISSION INTENSITY 100% COOPER TIRE MANUFACTURING TOTAL WATER USAGE 90% 1.5 80% 1.0 0.5 60% 0.0 50% 2009 2010 2011 2012 2013 2014 2013 2014 COOPER TIRE MANUFACTURING LANDFILL USAGE 16,000 2015 2015 COOPER TIRE MANUFACTURING WATER USAGE INTENSITY 14,000 120% 12,000 10,000 110% 8,000 90% 2,000 14,000 16,000 50% 12,000 14,000 10,000 40% 12,000 8,000 2009 10,000 6,000 8,000 4,000 6,000 120% 2,000 4,000 0 2,000 110% 2009 0 Units: tonnes 2009 100% 2010 2011 2012 2013 2014 COOPER TIRE MANUFACTURING LANDFILL USAGE COOPER TIRE MANUFACTURING LANDFILL USAGE 2015 2009 2010 2011 2012 2013 2014 2015 COOPER 2010 TIRE MANUFACTURING LANDFILL USAGE2014INTENSITY 2009 2011 2012 2013 2015 COOPER TIRE MANUFACTURING ENERGY USAGE INTENSITY 80% 70% 60% 50% 50% 40% 40% 120% 110% 100% 2010 2011 2012 2013 2014 100% 90% 2015 90% 80% COOPER TIRE MANUFACTURING WATER USAGE INTENSITY 80% 70% 2010 2010 2011 2011 2012 2012 2013 2013 2014 2015 2014 70% 2015 COOPER TIRE MANUFACTURING LANDFILL USAGE INTENSITY COOPER TIRE MANUFACTURING LANDFILL USAGE INTENSITY 120% 120% 100% 100% 80% 2015 80% 60% COOPER TIRE MANUFACTURING ENERGY USAGE INTENSITY 60% 40% 2009 80% 60% 90% 80% 120% 110% 100% 70%80% Units: cubic meters / tonne product; excludes Kruševac 100% 120% shown in the accompanying graphic, Cooper has reduced landfill usage intensity by more than 30 percent 0.5 90% since 2009. A slight up-tick in 2015 resulted, in part, from 0.5 rubber scrap market conditions that rendered some 80%0.0 recycling outlets2010 unavailable. 2009 2011 2012 2013 2014 2015 2009 100% 90% 70% 60% 120% 100% 80% 4,000 120% COOPER TIRE MANUFACTURING GHG EMISSION INTENSITY 100% As 1.0 120% 90% 6,000 100% 70% 1.0 60% 16,000 70% 0 80% portion the raw and related packaging, 2007 of 2008 2009materials 2010 2011 2012 2013 2014 2015 0 maintenance and construction materials used at a tire 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 manufacturing plant become waste must be2014 managed 2009 2010 2011 2012 that2013 2015 COOPERis working TIRE MANUFACTURING USAGEand properly. Cooper to minimize TOTAL wasteWATER generation 1.5 Direct IndirectTOTAL Total to divert solid waste from its traditional disposal outlet–landfills– COOPER TIRE MANUFACTURING WATER USAGE where feasible. The company has made good progress to date. 1.5 0.0 70% 40% millions of cubic meters; excludes Kruševac Units: 2009 2010 2011 2012 100% 0 2 200,000 Some 12 400,000 cleaning. 2010 0 6 400,000 14 Cooper 2009 COOPER TIRE MANUFACTURING GHG EMISSIONS 8 10 0 2010 2011 2012 2013 2014 60% 120% 40% 40% 2009 2010 2011 2012 2013 2014 2015 100% 40% 2009 2010 2011 2012 2013 2014 2015 COOPER TIRE MANUFACTURING DIRECT ENERGY USAGE COOPER TIRE MANUFACTURING DIRECT ENERGY USAGE 80% Units: tonnes landfill usage / tonne product 80% 100% 3,000 60% 80% 60% 2,500 3,000 60% 40% 1,500 2,000 40% 2,000 ENVIRONMENTAL AWARD-WINNING TIRE PLANTS 2,500 2009 2500 2000 2500 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 TEXARKANA 2014 2015 FINDLAY2009 TUPELO 1,000 1,500 40% American Electric Power Continuous Certified as a Superior 500 Energy Earned the Mississippi Department 1,000 2009 2010 2011 2012 2013 2014 2015 Energy Improvement (CEI) Program Performance® facility at the Gold level of Environmental Quality’s (MDEQ) 0 500 COOPER TIRE MANUFACTURING DIRECT ENERGY COOPER TIRE MANUFACTURING INDIRECT ENERGY USAGE 2015 2009 2010 2011 2012 2013 2014 recognized the Findlay plant for by theUSAGE U.S. Department of Energy enHance Partnership Award 0 2500 3,000 reductions in energy 2009 2010 Natural 2011Gas 2012 Oil Derived 2013 2014Total Direct 2015 2,500 2000 Recognized by the Tennessee Valley COOPER TIRE MANUFACTURING INDIRECT ENERGY USAGE 2,000 Natural Gas Oil Derived Total savings Direct Authority (TVA) for its energy 1500 2500 1,500 from new lighting installed in 2014-2015 1000 2000 1,000 500 500 1500 0 1000 500 CSR AND SUSTAINABILITY REPORT 2015 0 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 7 2015 1500 2000 1000 1500 500 1000 500 0 0 EMPLOYEE HEALTH AND SAFETY HEALTHY EMPLOYEES AND SAFE WORKPLACE against others in our industry. The company’s safety programs and values extend to many other employees who work in other parts of our business throughout the world. At Cooper, workforce safety includes: Cooper continues to promote a zeroinjury culture through our Safety Excellence System (SES) and our “Drive to Zero” campaign. Drive to Zero demonstrates our commitment to continuous improvement toward becoming an injury-free workplace. The SES is an enterprisewide, comprehensive, measurable and goal-oriented system that engages employees to eliminate hazards and avoid safety risks. ÎÎ Safety management systems ÎÎ Global risk assessments and hazard control procedures ÎÎ Use of technology to reduce or eliminate hazards ÎÎ Sharing of best practices for hazard elimination ÎÎ Enforcement of safety absolutes ÎÎ Employee engagement CLARKSDALE AND TUPELO PLANTS’ SAFETY RECORD RECOGNIZED The Total Recordable Incident Rate (TRIR) is one measure of safety performance. The TRIR is determined by multiplying the number of incidents by 200,000 and dividing by the total number of hours worked. The TRIR is shown for all Cooper manufacturing plants in the chart below. 600,000 COOPER TIRE MANUFACTURING TOTAL RECORDABLE INCIDENT RATE 400,000 14 The 2015 Manufacturers COOPERRubber TIRE MANUFACTURING GHGAssociation EMISSIONS (RMA) Safety Health Improvement Program (SHIP) Award was given to our Clarksdale and Tupelo, Miss., plants. ÎÎ The Clarksdale facility received an Excellence award 200,000 12 0 10 2009 8 for achieving a Days Away Restricted Transfer (DART) rate that was 75 percent better than the average achieved by2011 plants 2012 that provided data to RMA. 2010 2013 2014 2015 ÎÎ The Tupelo plant received an Improvement award Direct Indirect Total 6 4 2 100% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 The combined all Cooper tire manufacturing COOPERTRIR TIRE for MANUFACTURING TOTAL WATER USAGEplants 1.5has improved more than 50 percent since 2007, a tribute to the commitment of our employees and a systematic approach to risk mitigation. Although we did not see the year-over-year 1.0 improvement in 2015 that we strive for each year, we are pleased to see a return to a favorable trend through June 2016. Please 0.5 note that the TRIR performance charted above is limited to the Cooper tire manufacturing facilities that we regularly benchmark for achieving a DART rate that was both 10 percent better its rate in the and the same COOPER TIREthan MANUFACTURING GHGprevious EMISSIONyear INTENSITY or better than the RMA average incidence rate. 90% 80% 70% 60% 50% 40% Cooper Chief Operating Officer Brad Hughes accepts the SHIP 2010 2011 2012 2013 2014 2015 award from RMA President and CEO, Anne Forristall Luke. 2009 0.0 2009 2010 2011 2012 RESPONSIBILITY THE COOPER WAY 2013 8 2014 COOPER TIRE MANUFACTURING LANDFILL USAGE 2015 COOPER TIRE MANUFACTURING WATER USAGE INTENSITY 120% 8 TIRE SAFETY TIRE SAFETY EDUCATION Cooper is committed to addressing tire safety and educating consumers, especially teens and young adults, about how to stay safe on the road. In 2015, Cooper shifted its tire safety awareness efforts into high gear by teaming up with two notable names in auto racing—Arie Luyendyk Jr. and Tristan Nunez. On behalf of Cooper and as part of the Know B4 U Go campaign, Luyendyk shared tire safety information during the RMA’s National Tire Safety Week in May by hosting a special video tutorial. He also appeared on national news media outlets to emphasize the importance of tire safety and deployed social media platforms to reach consumers, especially young drivers. In all, the campaign created 85 million audience impressions. Tristan Nunez is not only an up-and-coming auto racer, he’s an advocate for teen distracted driving prevention. In October, Cooper joined then 19-year-old Nunez to address safety issues during National Teen Driver Safety Week. Among other efforts, Nunez appeared at the National Organizations for Youth Safety (NOYS) Summit, where he demonstrated tire safety tips and addressed dozens of high school students charged with going back to their schools to conduct peer education efforts. He also reached out through social and traditional media, generating hundreds of thousands of audience impressions. EN TO YOUR TIRES. Cooper recently announced the establishment of a global “signature cause” that will be the primary focus for our philanthropic funding and volunteer time. Our signature cause is driver and tire safety among teens and young adults ages 15 to 25. With car crashes being the number one cause of death for teens worldwide and a leading cause of death for young adults around the world, Cooper is committed to tackling this effort in a way that makes a real difference. Also, while Cooper certainly isn’t the only company or tire industry organization addressing this issue, we are taking a unique approach to it through a program we have dubbed “Tread Wisely.” At the center of Tread Wisely is a tire character who delivers important safety information with a dose of humor and a positive, proactive approach designed to appeal to teens and young adults. The program will involve young people in educating and motivating their peers to take important safety measures. To execute this campaign, Cooper partnered with NOYS, a not-for-profit organization that reaches 11 million young people annually through affiliation with more than 85 youth groups. For more information, visit TreadWisely.org. CSR AND SUSTAINABILITY REPORT 2015 9 COMMUNITY ENGAGEMENT Cooper has long been dedicated to being a good corporate citizen. The company and its employees donate countless hours and hundreds of thousands of dollars in donations to nonprofit organizations in the regions where we are located. In 2015, we supported a wide variety of projects and organizations, including United Way, Habitat for Humanity, Boy Scouts of America, American Heart Association, the China Youth Development Foundation, and the Special Operations Warrior Foundation. DREAM IT. DO IT. In 2015, Cooper participated for the first time in the Manufacturing Institute’s Dream It. Do It. program, which is designed to encourage youth to consider careers in manufacturing, addressing the widening gap in the nation’s workforce pipeline. Cooper celebrated National Manufacturing Day in October in our headquarters and plant communities of Findlay, Texarkana and Tupelo. Plans are already underway to support this effort again in 2016. To activate this program at a grassroots level, Cooper established a “Dream Team,” a group of early-career employees from our major facilities who are active in this program and others. Their goal is to raise awareness of the many positives associated with careers in manufacturing. Throughout the year, in 2015, the Dream Team executed multiple programs in local communities, including children’s mentoring efforts, teaching in local middle schools using interactive, manufacturingrelated curriculum, and engaging in a number of other community-based efforts, such as fairs and speaking engagements. Several activities took place during October to coincide with the celebration of Manufacturing Day : ÎÎ Findlay: More than 800 eighth-grade students were hosted for the Cooper Tire Manufacturing Experience, where a series of interactive experiences at Cooper were designed to spark their interest in manufacturing. ÎÎ Tupelo: The Imagine the Possibilities Career Expo was attended by 3,000 eighth-grade students. ÎÎ Texarkana: The Cooper Tire Manufacturing Experience was attended by 1,100 eighth-grade students. In all, throughout 2015, more than 7,000 students were reached by Cooper through the Dream It. Do It. program. RESPONSIBILITY THE COOPER WAY 10 10 SUSTAINABLE PRODUCT INNOVATION ALTERNATIVE MATERIALS Cooper is the lead entity in the Biomass Research and Development Initiative (BRDI) to conduct research on developing the guayule (pronounced why-YOU-lee) plant as an alternative natural rubber source for the tire industry. Other BRDI partners include Clemson University, the USDA Agricultural Research Service, Cornell University and PanAridus. The purpose of the research is to develop enhanced manufacturing processes for the production of solid rubber from the guayule plant as a biomaterial for tire applications, as well as evaluating the plant’s residual biomass for fuel applications. guayule based components, assessing high volume use of this material in tires. Prototype tires will be built and tested with maximum feasible replacement of both natural and synthetic rubber with guayule natural rubber as early as 2017. FUEL-EFFICIENT TIRES Cooper completed work sponsored by the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy to develop advanced tire technology aimed at increasing vehicle fuel efficiency. The project challenged Cooper to develop technology for light vehicle tires that delivered a minimum 3 percent improvement in vehicle fuel efficiency while lowering average tire weight by at least 20 percent without sacrificing performance. Cooper was successful in developing technologies that exceeded the project’s goals: delivering an average fuel efficiency improvement of 5.5 percent and weight reduction ranging from 23 percent to 37 percent in concept tires. Cooper presented its findings to the DOE last year for the development work done at Cooper’s North America and Global Technical Centers, both located in Findlay. Cooper’s engineers have made major strides and have completed tire builds made with multiple 100 percent guayule components. In August 2015, Cooper hosted the industry’s first ride and drive event on guayule tires with the BRDI consortium during its annual meeting at the Cooper Tire & Vehicle Test Center near San Antonio, Texas. Consortium members and their teams were able to drive on prototype tires that have been produced as an outcome of the work the grant team has been doing. Performance of these tires was equal to tires made with Hevea natural rubber, which is currently what is used to produce tires. In a nod to the importance of this research, in August 2015, the New York Times covered the milestone in a major story entitled “Making Tires From a Desert Shrub Found in the U.S.,” while in a related story, Bloomberg cited that “Cooper researchers discovered they are getting close to accomplishing a feat that eluded the great American inventor Thomas Edison.” The BRDI group continues to develop and evaluate tires with 100 percent Cooper achieved the project goals without any trade-offs in performance or durability. A new, energy efficient tire profile and design in combination with an ultra lightweight tire construction was developed. The process utilized innovative materials not typically used in tires today. In all, Cooper developed and evaluated six new technologies as part of the program’s first phase. We also evaluated the holistic impact of putting all of these technologies into a concept tire in the program’s second phase. Combining these advancements allowed us to reach and exceed the grant’s aggressive goals. As a result of this work, Cooper has already incorporated new tire modeling technology into its development process and is evaluating long wearing and fuel efficient tread compound technology for use in future tires for the replacement and original equipment markets. Other technologies are being further developed for potential commercial applications in the future. CSR AND SUSTAINABILITY REPORT 2015 11 SUSTAINABLE PRODUCT INNOVATION ENVIRONMENTALLY FRIENDLY TIRE FOR ASIA MARKET Cooper Tire Asia launched the new ECO C1, a passenger car tire designed to meet the emerging needs of the Asia market for tires that respond to environmental considerations. The Cooper ECO C1 delivers outstanding rolling resistance and wet grip performance, achieving a high level European grade label rating of B for wet grip and B for rolling resistance (205/55R16), while also delivering solid tread wear, noise reduction and a comfortable ride. Traditional tire compounds result in a decrease in rolling resistance as traction is improved. Our engineers and scientists have overcome these trade-offs, significantly increasing performance in both areas without compromise. Reaching this level of customer value in an environmentally friendly product involved use of innovative technologies including a new mold profile design, new tread compound, and new sidewall construction. PRODUCT INNOVATION AWARDS BEST BUY Cooper Zeon RS3-A, awarded by Consumers Digest (January 2015) GOOD DESIGN™ U.S. tires Discoverer STT Pro and Discoverer SRX; China tires Discoverer UTS and Weather Master Ice 100, awarded by the Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design and Urban Studies for their design excellence (December 2015) ENERGY-SAVING TIRE AWARD Cooper Zeon ECO C1, by Auto Magazine and A Car (May 2016) SUSTAINABILITY AT COOPER At Cooper, sustainability is part of The Cooper Way which embodies our core values: Help Each Other Succeed, Have Engaged Communication, Be Agile, Provide World-Class Customer Service, Be Results Focused, and Do The Right Thing. We believe each of these values involves sustainability. We will continue to practice sustainability AND succeed because of it. To ask questions about or comment on the 2015 Corporate Social Responsibility and Sustainability Report, please contact: Tom Wood Director, Global Environmental Affairs [email protected] 419-424-4345 RESPONSIBILITY THE COOPER WAY 12 12