What are the key ESG considerations in the US's tires industry?

ESG topics relate to environmental, social and governance issues. From an environmental perspective, tire manufacturing is energy- and petroleum-intensive, resulting in CO₂ emissions of ~1.5-2.5 tonnes per tire. Additionally, the usage of tires (i.e. tire rolling resistance) accounts for ~90% of a tire's total life cycle carbon emissions. With ~70% of natural rubber channeled into tire production, the industry also contributes to deforestation in Southeast Asia and West Africa. To curb their carbon footprint, incumbents adopt more sustainable materials and designs. Another environmental issue is the disposal of end-of-life tires, which can leach toxins, spark fires and accumulate in landfills. In response, identified players invest in recycling and circular programs to keep tires out of landfills. From a social standpoint, labor safety remains a central topic. Tire manufacturing plants and service centers use heavy machinery and handle bulky, pressurized products, thereby increasing the risk of accidents and injuries. Identified players mitigate safety risks by deploying formal safety-management systems grounded in Occupational Safety and Health Administration (OSHA) standards, expanding technician training, as well as using data tracking to prioritize high-risk tasks and reduce serious incidents. Governance matters primarily revolve around ensuring ethical sourcing throughout the supply chain, with a strong focus on labor standards within global operations. Another governance consideration pertains to antitrust laws. As a result, established companies face more rigorous compliance programs to deter price collusion across their supply chains.