Kumho Tire Co., Inc.
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:482572 tCO2e/year
Scope 1 Emissions:120213.2 tCO2e/year
Scope 2 Emissions:362341 tCO2e/year
Scope 3 Emissions:5282767.2 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1391385.8 MWh/year
Water Consumption:1408343 tons/year
Waste Generated:12954.8 tons/year
Carbon Intensity:1.86e-7 tCO2e/KRW and 0.01132562 tCO2e/tire
ESG Focus Areas
- Climate Change
- Sustainable Supply Chain
- Product Sustainability
Environmental Achievements
- Sold 2.29 million low carbon tires, earning KRW79.884 billion
- Invested in energy saving facilities, saving electricity use (1,619 MWh, 1,607 MWh, 281 MWh)
- Resource circulation rate improved by 28.6% compared to 2018
Social Achievements
- Launched ESG campaigns for employees with monetary incentives
- Improved customer satisfaction score to 4.88 out of 5
- Launched “Green Campaigner” program for climate change education
Governance Achievements
- Established ESG Management Committee under CEO
- Decided to establish ESG Committee under the Board in May 2022
- Participated in CDP assessment and committed to Net Zero
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions by 2045
Medium-term Goals:
- Achieve 40% reduction in emissions compared to 2018 by 2030
- Increase use of sustainable raw materials to 100% by 2045
Short-term Goals:
- Reduce emissions below allocated emission permits by 2025
- Increase use of sustainable raw materials to 40% by 2030
Environmental Challenges
- Increased indirect costs due to carbon pricing mechanisms
- Decreased revenues due to reduced demand for products and services
- Decreased corporate value due to increased stakeholder concern
- Increased direct costs due to changing precipitation patterns
Mitigation Strategies
- Investing in energy saving facilities
- Developing and expanding environment-friendly products
- Disclosing climate-related information through CDP and EcoVadis
- Participating in GPSNR for sustainable natural rubber supply chain
Supply Chain Management
Supplier Audits: 32 suppliers in 2021
Responsible Procurement
- Supplier Code of Conduct
- ESG assessments
- K-POS portal for supplier management
Climate-Related Risks & Opportunities
Physical Risks
- Floods
- Heat waves
- Water shortage
- Forest fires
- Reduced natural rubber yields
Transition Risks
- Carbon pricing
- Changing customer behavior
- Increased stakeholder concern
- Stricter regulations
Opportunities
- Participation in carbon market
- Development and expansion of low emission goods and services
- Increased access to capital
Reporting Standards
Frameworks Used: Greenhouse Gas Protocol, IPCC Guidelines for National Greenhouse Gas Inventories (2006), China Corporate Energy Conservation and GHG Management Programme, ISO 14064-1, Korea GHG and Energy Target Management System Operating Guidelines, AA1000 AS, EPD
Certifications: ISO 14001
Third-party Assurance: Third-party verification for Scope 1 and 2 emissions
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through emissions reduction, sustainable product development, and responsible supply chain management.
Sustainable Products & Innovation
- ECOWING ES31
- WATTRUN VS31
- Crugen HP71
- Ecsta PS71
- Fortran e
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:264,505 tCO2eq/year (domestic) + 270,748 tCO2eq/year (overseas)
Scope 1 Emissions:152,395 tCO2e/year (domestic) + 62,499 tCO2e/year (overseas)
Scope 2 Emissions:174,605 tCO2e/year (domestic) + 208,249 tCO2e/year (overseas)
Scope 3 Emissions:6,732,855 tCO2e/year
Renewable Energy Share:0.004% of total energy use
Total Energy Consumption:11,939,834 GJ/year
Water Consumption:1,402,769 tons/year (domestic) + 1,087,491 tons/year (overseas)
Waste Generated:13,886.2 tons/year (domestic) + 9,962.5 tons/year (overseas)
Carbon Intensity:0.9212 tCO2eq/ton (2022)
ESG Focus Areas
- Climate Change
- Sustainable Supply Chain Management
- Customer Satisfaction
- Developing Eco-friendly Technologies
- Ethical Management
- Waste Control
- Technology and Business Innovation
- Safety & Health
- Risk Management
- Energy Management
- Human Rights
- Employee Competency
Environmental Achievements
- Improved energy intensity by 4% compared to 2021
- Reduced carbon emissions by 8.4% compared to 2021
- Improved water withdrawal intensity by 8.8% compared to 2021
- Improved waste recycling rate to 80.8%
- Developed tires with 55% sustainable materials
- Reduced approximately 28,000 tons of carbon emissions based on 2022 sales volume of fuel-efficient tires
Social Achievements
- Conducted human rights impact assessment with 100% participation from domestic worksites
- Achieved 88.3 points (out of 100) in supplier satisfaction survey
- Zero product recalls and zero serious accidents
- Improved onboarding process for new hires
- Implemented Team Synergy Enhancement Program
- Provided training for 2,479 agency employees
Governance Achievements
- Established ESG Committee under the Board of Directors
- Joined SBTi (Science-Based Target initiative)
- Declared support for TCFD (Task Force on Climate-related Financial Disclosures)
- Improved governance ratings on KCGS evaluations
- Revised Supplier Code of Conduct
- Established a clean contract system
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality (Net-Zero) by 2045
- Achieve 100% sustainable raw materials use by 2045
Medium-term Goals:
- Reduce carbon emissions by 23.6% compared to 2021 by 2030
- Achieve 40% sustainable raw materials use by 2030
- Achieve 90% waste recycling rate by 2030
- Achieve 100% due diligence on suppliers by 2030
- Obtain anti-corruption and compliance management system (ISO 37001 & 37301) certification by 2030
- Achieve 100% compliance with the code of ethics by 2030 (all employees)
- Achieve 80% in ethical training completion rate by 2030 (all employees)
Short-term Goals:
- Reduce water consumption by 10% by 2025
- Reduce accident rate to 3.9% by 2025
- Achieve 100% completion rate of core supplier ESG evaluation by 2025
- Improve governance ratings to AA grade by 2025
- Achieve 100% human rights impact assessment rate by 2030
- Achieve 75 points in employee satisfaction by 2030
Environmental Challenges
- Supply chain disruptions due to climate events
- Increased compliance costs due to emissions regulations
- Decreased demand for conventional tire products due to the transition to electric vehicles
- Increased R&D costs for eco-friendly products
- Increased customer and investor demand for climate action
- Water risks, particularly in China and Vietnam
Mitigation Strategies
- Developed alternative sourcing strategies
- Established GHG reduction plans and invested in related facilities
- Developed eco-friendly tires and tires for hydrogen and electric vehicles
- Increased investment in R&D for lower climate impact tires
- Implemented ESG management
- Established water management system and conducted risk assessments
Supply Chain Management
Supplier Audits: 87 suppliers audited in 2022
Responsible Procurement
- Supplier Code of Conduct
- Green Purchasing Policy
- ESG assessment of suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
- Heat waves
- Water shortages
Transition Risks
- Regulatory changes
- Market shifts
- Decreased demand for conventional tires
Opportunities
- Development of energy-efficient products
- Expansion of the electric vehicle market
Reporting Standards
Frameworks Used: GRI Standards, SASB, TCFD, UN Global Compact, WEF IBC Stakeholder Capitalism Metrics, UN SDGs
Certifications: ISO 14001, ISO 45001, IATF 16949:2016
Third-party Assurance: Korea Management Registrar (KMR)
UN Sustainable Development Goals
- SDG 1
- SDG 3
- SDG 4
- SDG 5
- SDG 8
- SDG 9
- SDG 11
- SDG 12
- SDG 13
- SDG 15
- SDG 16
Initiatives contributing to various SDGs
Sustainable Products & Innovation
- Eco-friendly tires
- EV tires
- Fin-Sread tire
- Airless tire
- Airborne tire
Awards & Recognition
- Red Dot Design Award
- iF Design Award
- Good Design Award
- KNPS No.1
- KCSI No.1