Response to Climate Change

Response to Climate Change

Since participating in the greenhouse gas reduction project for the first time in the tire industry in 2007, Kumho Tire has been continuing efforts to respond to the global environmental crisis. We have established a system to respond to climate change in 2022 in order to reduce greenhouse gas emission more systematically, and we plan to improve existing manufacturing processes and facility systems to mitigate negative environmental impacts from business.

Carbon Neutrality 2045 Declaration

Kumho Tire has declared Carbon Neutrality 2045 based on the consensus of the management in order to actively participate in the transition to a carbon-neutral era. We are establishing carbon neutrality strategies to be able to respond fully to carbon neutrality, and we plan to systematically calculate and to manage emissions from business sites home and abroad (Scope 1, 2) as well as our supply chain (Scope 3).

Carbon Neutrality 2045 Road Map
Carbon Neutrality 2045 Road Map Carbon Neutrality 2045 Road Map
23.6% Reduction in 2030, 67.9% Reduction in 2040,, Carbon Neutrality in 2045,
  1. 1) Emission during tire use (while driving the vehicle)(C11)
  2. 2) Other indirect emissions excluding C11 such as raw materials, transport, and product disposal

Joining the SBTi

SBTi

Kumho Tire has adopted the SBTi (Science Based Targets initiative) standard in establishing greenhouse gas reduction targets. By joining SBTi in July 2022, we have set a carbon-neutral target according to an internationally recognized standard meeting the 1.5℃ scenario, and we plan to submit a reduction plan in 2023 to get the target approved.

Carbon Neutrality 2045 Road Map

Category 2022 to 2025 2026 to 2030 After 2030
GOVERNANCE
  • Build a performance management system related to climate change
  • Establish a governance framework for reporting climate-related issues
    (the Global Carbon and Energy Management Committee convening twice a year)
  • Increase alignment of compensation with KPIs
  • Institutionalize regular climate change scenario analysis within the finance and strategy division
  • Monitor and enhance net-zero performance
EMISSIONS MANAGEMENT
  • Expand renewable energy use
  • Transition to zero emission vehicles and cleaner marine fuels
  • Expand the use of sustainable raw materials
  • Expand development of eco-friendly tires
  • Establish a End-of-Life tire (ELT) management system
  • Support suppliers to respond to climate change
  • Expand direct PPA agreements
  • Request suppliers to set carbon reduction targets
  • Expand LCA-based product design
  • Promote emissions reduction activities through absorption and offsetting
  • Transition to cleaner fuels
  • Apply 100% sustainable raw materials
  • Establish a circular economy system
INITIATIVE
  • Expand the number of products with eco-friendly certifications
  • Increase participation in issue-specific initiatives
  • Enhance involvement in biodiversity-related activities
  • Review introducing waste-related certifications and programs
  • Expand stakeholder collaboration around waste and biodiversity
  • Designate and monitor biodiversity conservation areas
Category 2022 to 2025
GOVERNANCE
  • Build a performance management system related to climate change
  • Establish a governance framework for reporting climate-related issues
    (the Global Carbon and Energy Management Committee convening twice a year)
EMISSIONS MANAGEMENT
  • Expand renewable energy use
  • Transition to zero emission vehicles and cleaner marine fuels
  • Expand the use of sustainable raw materials
  • Expand development of eco-friendly tires
  • Establish a End-of-Life tire (ELT) management system
  • Support suppliers to respond to climate change
INITIATIVE
  • Expand the number of products with eco-friendly certifications
  • Increase participation in issue-specific initiatives
  • Enhance involvement in biodiversity-related activities
  • Review introducing waste-related certifications and programs
Category 2026 to 2030
GOVERNANCE
  • Increase alignment of compensation with KPIs
  • Institutionalize regular climate change scenario analysis within the finance and strategy division
EMISSIONS MANAGEMENT
  • Expand direct PPA agreements
  • Request suppliers to set carbon reduction targets
  • Expand LCA-based product design
INITIATIVE
  • Expand stakeholder collaboration around waste and biodiversity
  • Designate and monitor biodiversity conservation areas
Category After 2030
GOVERNANCE
  • Monitor and enhance net-zero performance
EMISSIONS MANAGEMENT
  • Promote emissions reduction activities through absorption and offsetting
  • Transition to cleaner fuels
  • Apply 100% sustainable raw materials
  • Establish a circular economy system
INITIATIVE

CDP Response

Kumho Tire CDP(Carbon Disclosure Project) 2023 Climate Change