Sustainability Driven

Reducing supply chain GHG emissions

PART OF PATHWAY 2 Implement sustainable procurement practices

Recognizing the opportunity that the supply chain presents to reduce GHG emissions, TIP members engage suppliers to drive climate action.

Michelin has GHG reduction targets approved by the Science Based Targets initiative (SBTi) and has also encouraged its main raw material suppliers to set science-based targets for GHG emissions reductions, with the objective that, by 2024, suppliers responsible for 70% scope 3 emissions related to purchased goods and services will have set targets.

Pirelli has SBTi-approved GHG reduction targets that have been set in line with maintaining climate warming well below 2°C.

This includes cutting the absolute CO2 emissions linked to the acquisition of raw materials by 2025 by 9% compared to 2018. Pirelli is working with its suppliers to reduce their carbon footprints using mechanisms that consider potential impacts and opportunities, including material life cycle assessments and direct engagement.

Michelin, Pirelli and Yokohama Rubber use the Carbon Disclosure Project (CDP) Supply Chain Program to engage their leading raw materials suppliers, pinpoint risks and identify emissions reductions opportunities. This process has played an important role in driving effective action across the supply chain by encouraging the deployment of best practices to reduce GHG emissions. Additionally, the CDP Supplier Engagement Rating Leaderboard highlights Bridgestone, Continental and Michelin as they play a crucial role in the transition to the netzero sustainable economy by engaging their suppliers on climate change.

Improved assessment of the potential environmental impacts of tires: Raw materials

A Product Category Rule (PCR) is an agreed-to, industry-specific guideline used to determine the environmental impacts of a product. It allows manufacturers to develop Environmental Product Declarations (EPDs), which are an internationally recognized way to verify the potential environmental impacts of a product, including the establishment of product life cycle assessments (LCAs).

TIP developed a PCR for tires in an important proactive step in developing internationally useful guidelines to measure the environmental impacts of tires. The standardized approach taken by a PCR can give consumers confidence in the information disclosed by the tire industry on the environmental impacts of its tire products.

By improving awareness of potential environmental impacts, the PCR for tires contributes to industry efforts to improve the sustainable performance of tire products.

In 2020, TIP initiated an update of the PCR with the intent to incorporate guidelines to calculate the environmental impacts linked to the manufacturing of the raw materials used in tire production. These new guidelines will strengthen the PCR by providing increased consistency and contribute to dialogues between supply-chain actors on the sustainable sourcing and use of raw materials.

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