PLANET
18
19
PLANET
OUR CONTINUING EFFORTS TO REDUCE OUR
ENVIRONMENT
20
TAL IMPACT
IS SOMETHING WE NEVER TIRE OF.
Being a good corporate citizen extends to the environment. Cooper is committed to complying
with environmental laws and protecting the environment in the communities where we operate.
We believe it is the right thing to do.
Our commitments are specified in our environmental policy and include:
- Using good environmental practices globally;
- Considering the environment in the design of our products and processes;
- Preventing pollution by managing materials responsibly, using energy and natural resources
efficiently, controlling emissions and reducing waste;
- Training and educating our employees about their environmental management responsibilities;
- Monitoring our environmental performance and setting measurable objectives and targets
for achieving continual improvement;
- Communicating with our employees and others regarding our environmental commitments
and performance; and
- Auditing our operations to ensure compliance with environmental laws and regulations,
Cooper standards and the environmental policy.
ENVIRONMENTAL MANAGEMENT
Complying with environmental laws and protecting the environment is a corporate-wide
responsibility. Employees at all levels are expected to fulfill this responsibility within the
context of their particular roles and to cooperate with related Cooper programs.
As part of doing the right thing, Cooper has implemented environmental management systems
at all of our manufacturing plants. At a number of Cooper plants, the systems have been
certified to ISO 14001.
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PLANET
Management Systems Certifications
Cooper’s Findlay, Texarkana, Tupelo, Kunshan and Rongcheng tire plants, as well as the
Findlay Mold Operations facility, have been certified to the ISO 14001:2004 Environmental
Management Systems standard. The standard provides a structured approach to managing a
company’s environmental performance through policy, planning, monitoring and measuring,
checking, correcting, and reviewing.
The Cooper North America Technical Center Materials Labratory and Tire Testing Department
are ISO 17025;2005 certified.
Cooper’s Findlay, Texarkana, Tupelo, El Salto, Melksham, Kruševac, Kunshan and Rongcheng
tire plants, as well as the Findlay Mold Operations facility and Technical Center in Shanghai,
China, have been certified to the ISO 9001:2008 Quality Management Systems standard.
In addition, energy management systems at Cooper’s Rongcheng, Texarkana and Tupelo tire
plants have recently been recognized.
Compliance Record/Audit Program
We seek to exceed regulatory requirements and are proud of our compliance record. As part
of our environmental management system, we have established a regulatory compliance audit
program. This involves conducting regular reviews of Cooper manufacturing facilities to monitor
compliance and taking corrective action as necessary. In addition to these audits, our facilities
conduct regular internal audits of their operations.
ENVIRONMENTAL INNOVATION
Cooper and our public and private sector partners have received several grants over the past
few years for research intended to lead to developing more sustainable tires and rubber sources.
This research was ongoing in 2012.
$6.9 Million USDA Grant Fuels Guayule Research
Cooper partnered with Yulex Corporation, Arizona State University (ASU) and the Agricultural
Research Service (ARS) to conduct research on developing the guayule plant as an alternative
rubber source. This research is funded by a $6.9 million Biomass Research and Development
Initiative (BRDI) grant from the U.S. Department of Agriculture (USDA). The grant focuses on
research to develop enhanced manufacturing processes needed to produce guayule solid
rubber as a biomaterial for tire applications, as well as evaluating the plant’s residual biomass
for biofuel applications. The work has produced samples of guayule for use in tires, and we
plan to have a sample tire for testing with 100 percent of the natural and synthetic rubber
replaced by guayule-based rubber.
$1.5 Million DOE Grant Awarded to Develop Fuel-Efficient Tire
The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy
awarded Cooper $1.5 million to develop advanced fuel efficiency technologies during the
next three years. The grant was one of only five awarded by the DOE in the Fleet Efficiency
category, and calls for developing an ultra-lightweight tire that delivers a minimum of 3 percent
improvement in vehicle fuel efficiency. This funding is being used to accelerate innovative tire
design, construction, materials and reinforcement technologies focused on the replacement
tire market.
22
Support of Research into New Domestic Sources of Natural Rubber
Cooper is partnering with the Program of Excellence in Natural Rubber Alternatives (PENRA)
to study the Russian dandelion as a possible new domestic source of natural rubber. There is
potential for natural rubber to be extracted from the plant and used in polymer compounds for
multiple components of a tire. Russian dandelions have traditionally required little fertilization
or irrigation, and The Ohio State University’s Ohio Agricultural Research and Development
Center (OARDC) estimates farmers would make a greater profit per acre than growing more
traditional crops.
AIR, WATER AND LAND
In 2010, Cooper began a concerted effort to collect data on a number of environmental metrics:
- Energy consumption
- Water usage
- Greenhouse gas emissions
- Solvent usage
- Landfill usage
We set targets and goals for improvement for energy consumption as well as water and landfill
usage, all of which had been met by the end of 2012. Below is a summary of our progress
through 2012.
Progress on Energy Consumption
Energy is a key resource in the production of tires. It is used to power equipment; generate
steam; heat, cool and transport materials; control the environment in occupied spaces and
provide lighting. This energy typically comes from natural gas, fuel oil, propane and purchased
electricity and steam. In most cases, these energy sources are in the form of, or are generated
from, fossil fuel combustion. Energy usage results in air emissions, including greenhouse gas
emissions at Cooper facilities or at upstream electricity and steam generating locations.
Cooper has been working for many years to reduce our energy usage. Formal energy
management systems have been established in many of Cooper’s tire manufacturing plants.
The systems promote energy efficiency by using key metrics to examine daily performance,
analyze trends that highlight opportunities for improvement and implement energy-saving projects.
The system at the Texarkana plant has been certified to ISO 50001:2011and ANSI/MSE
50021:2012. Cross-functional energy teams identify opportunities and implement suggestions
in each plant. Best practices are being shared among plants on a regular basis. A number of
projects have been identified and implemented, resulting in significant reductions in energy
usage and greenhouse gas emissions.
Direct and indirect energy usage and energy usage intensity are reported for tire manufacturing
plants only. Cooper has reduced energy usage intensity (megajoule/kg product) by 20 percent
since 2009. This exceeds the goal established in 2010 to reduce energy usage intensity by
3 percent. In addition, based on 2012 production levels, the energy saved is approximately
2 million megajoules/year, which is equivalent to approximately 25 percent of current energy usage.
This reduction is the result of increasing the efficiency of existing utility systems and tire
manufacturing equipment and by replacing lighting.
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PLANET
COOPER TIRE MANUFACTURING DIRECT ENERGY USAGE
COOPER TIRE MANUFACTURING INDIRECT ENERGY USAGE
3,000
5,000
2,500
4,000
2,000
3,000
1,500
2,000
1,000
1,000
500
0
0
2009
Natural Gas
2010
2011
Oil Derived
2012
2009
Total Direct
Electricity
2010
2011
Steam
2012
Total Indirect
Units: terajoules Units: terajoules Indirect steam is used only at the Rongcheng facility.
COOPER IS ONE OF ONLY TWO TIRE MANUFACTURERS TO BE DESIGNATED AS AN ENERGY STAR PARTNER BY THE U.S. DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY.
COOPER TIRE MANUFACTURING ENERGY USAGE INTENSITY
120%
100%
80%
60%
40%
2009
24
2010
2011
Units: megajoule / kg product
2012
Progress on Water Usage
Cooper uses water in tire manufacturing for heating, cooling and cleaning. Since the water
does not become part of the product, most of it is returned to the environment. Although water
is relatively plentiful in areas where Cooper plants are located, we are working to conserve this
natural resource and adopted a goal in 2010 to reduce water usage per unit of production by 10
percent by the end of 2014, as compared to a 2009 baseline. That goal had been achieved by
the end of 2012.
Cooper obtains water from surface water, groundwater and municipal water supplies, some of
which are known to include groundwater. Surface water is withdrawn from the River Avon
at the Melksham plant, where it is used for cooling and other purposes. Most is returned to
the river. Water also is withdrawn from a stream adjacent to the Kunshan plant and used for
production. Some of the water is returned to the stream. Groundwater is withdrawn from wells
on site at the El Salto and Krusevac plants. The quantity of groundwater used at the El Salto
plant is included in our reported total water usage. The groundwater used at the new Krusevac
plant will be measured in the future.
COOPER TIRE MANUFACTURING TOTAL WATER USAGE
2.0
1.5
1.0
0.5
0.0
2009
2010
2011
2012
Units: millions of cubic meters
The 2012 increase is primarily due to increased water usage at the El Salto in Rongcheng
plants corresponding to increases in production. Water usage intensity decreased 18 percent
from 2009 to 2012.
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PLANET
Progress on Greenhouse Gas Emissions
Fossil fuels are used and greenhouse gases (GHGs) are emitted during various phases of a
tire’s life-cycle, including during raw material production and delivery, tire manufacturing, tire
delivery to customers, tire use, and scrap tire management. Most of the GHG emissions occur
during tire use due to the fuel consumed by the vehicle.
Greenhouse gases are directly emitted from fossil fuels consumed at Cooper manufacturing
plants and indirectly from purchased electricity and steam. Cooper is calculating GHG emissions
from our manufacturing operations. The GHG graph below shows direct, indirect and total
GHG emissions by weight from Cooper tire manufacturing operations only. Our calculations are
based on energy usage data and default GHG emission factors.
Cooper continues to focus on energy conservation, which reduces consumption of natural
resources and corresponding greenhouse gas emissions.
COOPER TIRE MANUFACTURING GHG EMISSIONS
1,000,000
800,000
600,000
400,000
200,000
0
2009
2010
Direct
2011
Indirect
2012
Total
Units: metric tons (tonnes)
While greenhouse gas emissions remained relatively flat from 2009-2012, Cooper production
increased nearly 30 percent during the same period. At the same time, our GHG emission
intensity dropped sharply, as shown on the graph below.
COOPER TIRE MANUFACTURING GHG EMISSION INTENSITY
100%
95%
90%
85%
80%
75%
26
2009
2010
2011
Units: tonnes CO2e / 1000 kg product
2012
Progress on Solvent Usage
Like most tire manufacturers, Cooper uses some solvent-based materials in manufacturing.
The solvent typically evaporates from these materials during usage and is emitted into the
atmosphere. To protect the environment, Cooper has been working for many years to reduce
solvent usage and the resulting emissions by reformulating compounds and improving material
management. While solvent usage has been decreasing, solvent usage intensity increased
sharply in 2012. This spike occurred primarily due to the addition of a newly acquired facility, the
Krusevac plant, which comprised 26 percent of total solvent usage in 2012.
COOPER TIRE MANUFACTURING SOLVENT USAGE INTENSITY
120%
100%
80%
60%
40%
20%
0%
2009
2010
2011
2012
Units: tonne solvent used / 1000 tonnes product
Progress on Landfill Usage
A typical tire manufacturing plant consumes 500,000 to 1 million pounds of raw materials every
day. Some portion of the raw materials and related packaging, maintenance and construction
materials become waste that must be managed properly. Traditionally, waste has been disposed
of at a local landfill. Cooper is working to minimize waste generation and to divert solid waste
from landfills where feasible. The company has made good progress to date.
Types of Waste
Cooper’s hazardous waste is primarily solvent-based waste and paint waste. The waste data
in this report includes waste generated only by U.S. tire manufacturing plants. Data was
provided by plant management. We will work to obtain hazardous waste data for all sites and
report it in the future. No data is available for non-hazardous waste; however, we will work to
obtain non-hazardous waste data for all sites and report it in the future.
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PLANET
U.S. TIRE MANUFACTURING HAZARDOUS WASTE GENERATION
4,000
3,000
2,000
1,000
0
2009
2010
2011
2012
Units: kg
Waste Disposal Methods
Our data for waste disposal methods is for waste generated by tire manufacturing only.
Reuse
- Some wastes are reused onsite, such as empty containers (drums and totes)
Recycling
- Some rubber scrap is recycled onsite and some is recycled offsite
- Paper, cardboard, plastic, metal, used oil and other materials are recycled offsite
Recovery, Including Energy Recovery
- Scrap tires and some other wastes are used by offsite cement kilns and paper mills for
energy recovery
Landfill
- Progress in reducing landfill usage is shown on the following graphs
- Data is provided by waste disposal contractors
COOPER TIRE MANUFACTURING LANDFILL USAGE
25,000
20,000
15,000
10,000
5,000
0
2009
28
2010
Units: tonnes
2011
2012
Cooper’s landfill usage has declined substantially since 2009 as specific efforts were put in
place to drive a reduction. The increase in 2010 shown on this graph is attributed to an abnormal
rate of waste generation at one facility, which returned to normal levels in 2011.
COOPER TIRE MANUFACTURING LANDFILL USAGE INTENSITY
110%
100%
90%
80%
70%
60%
2009
2010
2011
2012
Units: kg landfill usage / kg product
Cooper’s landfill usage intensity has declined dramatically since 2009, far exceeding the goal
set in 2010 to reduce landfill usage intensity by 15 percent. As noted above, the increase in
2010 is attributed to an abnormal rate of waste generation at one facility, which returned to
normal levels in 2011. For example, as noted in the following graphs, the Texarkana and
Melksham plants have steadily decreased landfill usage for a number of years. Their progress
sets the example for Cooper’s other plants.
TEXARKANA LANDFILL USAGE INTENSITY
100%
80%
60%
40%
20%
0%
2005
2006
2007
2008
2009
2010
2011
2012
Units: kg landfill usage / kg product
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PLANET
MELKSHAM LANDFILL USAGE
100%
80%
60%
40%
20%
0%
2005
2006
2007
2008
2009
2010
2011
2012
Units: kg landfill usage
Forward Goals
Most of the environmental performance improvement goals originally established in 2010 have been
met. A new set of goals is currently being developed.
TIRE IMPACTS
Cooper is a member of the World Business Council on Sustainable Development (WBCSD) and
is participating in the Tire Industry Project to identify and address the potential health and
environmental impacts of materials associated with tire making and use. Presently, the project
is focusing on:
- Understanding the properties, fate and impacts of particles generated by the interaction between tires and pavements during tire use.
- Safely developing and using nanomaterials in tires.
- Working to encourage effective scrap tire management.
Work on the project continues. A summary of the WBCSD work can be found at
www.wbcsd.org/work-program/sector-projects/tires.aspx.
Materials Usage
Cooper used approximately one billion pounds of raw materials in the U.S. tire plants in 2012.
This includes natural and synthetic rubber and polymers, carbon black, oils, steel wire, fabric,
and rubber chemicals. Approximately 1 percent of this material consisted of recycled rubber.
We are working to collect these metrics from all plants for future reports.
Scrap Tires
As part of doing the right thing, Cooper is working with the tire industry to promote the
responsible management of scrap tires and to develop markets that use this valuable resource.
Globally, an estimated 1 billion tires reach the end of their useful lives every year. These tires
are known as scrap tires or end-of-life tires (ELTs). In some countries, governmental authorities
and the tire industry are working together to implement and maintain programs for the sound
management of scrap tires, including innovative applications for reuse.
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Effective scrap tire management in countries where regulatory and collection infrastructures
are currently inadequate is a challenge. In addition to domestically generated scrap, these
areas often receive imported scrap tires. Absent infrastructure and markets to use the scrap
tires, they are often accumulated in stockpiles. Governmental authorities and industry are
taking steps to improve the situation in many of these areas. [Source: World Business Council
on Sustainable Development]
MORE THAN 2,500 SCRAP TIRES WERE COLLECTED
DURING THE COOPER-SPONSORED TIRE AMNESTY
DAY HELD IN HANCOCK COUNTY, OHIO, IN 2012.
Cooper Scrap Tires
Cooper recognizes our responsibility to manage the scrap tires it generates appropriately. In
addition to our membership in WBCSD, Cooper is a member of the U.S. Rubber Manufacturers
Association, in which our Chairman, Chief Executive Officer and President Roy Armes is serving
a two-year term as Chairman, October 2011-October 2013. These organizations work to promote
the beneficial management of scrap tires (among other sustainability initiatives). A high
percentage of scrap tires in the U.S., EU and other geographies are directed into end-use
markets. All scrap tires produced by Cooper manufacturing operations are managed according
to local requirements and directed into regional end-use markets. In 2012, an estimated
70 percent of the scrap tires generated by Cooper’s manufacturing operations were directed into
fuel markets, while 30 percent were directed into ground rubber and civil engineering applications.
U.S. Scrap Tires
Approximately 300 million scrap tires are generated in the U.S. each year. Proper management
of these tires is an important environmental concern. Cooper works with other tire manufacturers
through the RMA to advocate for effective scrap tire management legislation and regulations
and to promote sustainable end-use markets.
The RMA surveys scrap tire markets in the U.S. every two years. As shown in the graph below,
the 2011 survey indicates that nearly 82 percent of the scrap tires generated in the U.S. were
directed into an end-use market.
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PLANET
U.S. SCRAP TIRE TRENDS 2005-2011
5000
100%
4500
89.3%
82.0%
4000
85.3%
81.6%
80%
3000
60%
2500
2000
40%
Percent Utilized
Thousands of Tons
3500
1500
1000
20%
500
0
2005
2007
Total to Market
2009
2011
Total Generated
0%
Market %
© Rubber Manufacturers Association, 2013. All rights reserved.
The major uses of scrap tires include energy recovery as fuel in cement kilns and boilers,
new rubber products, rubber-modified asphalt, and civil engineering applications such as
roadway embankments.
U.S. SCRAP TIRE DISPOSITION 2011
(as percentage of total generation)
Land-Disposed
Exported
Ground
Rubber
24.5%
13.0% 8.0%
7.8%
8.9%
37.7%
Electric Arc
Furnace
Civil
Engineering
Other
Reclamation
Projects
1.7% 1.4%
0.9%
4.6%
Baled/
No Market
Misc. Uses
Processor Inventory/
Unknown
Tire-Derived Fuel
© Rubber Manufacturers Association, 2013. All rights reserved.
Tire Amnesty Days
Cooper co-sponsors Scrap Tire Amnesty Days in multiple locations in cooperation with the
local governments. At these events, residents are encouraged to bring scrap tires to designated
locations where Cooper volunteers accept them and load them into trailers for transport to
recycling facilities. Collecting the tires ensures that they are processed in an environmentally
responsible manner and eliminates a pest habitat.
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0.3%
Consumer Responsibility For Tire Management
Tires are designed and built with great care to provide thousands of miles of excellent service.
But to achieve maximum miles they must be maintained properly. Consumers can help minimize
scrap tire generation by “Being Tire Smart – Playing Your PART (Pressure, Alignment, Rotation
and Tread).” Maintaining the “right” air pressure, keeping the vehicle aligned, rotating the tires
and regularly checking the tires for uneven wear all help to prolong tire life. For more information,
visit the Rubber Manufacturers Association (RMA) website at http://www.rma.org.
Europe and United Kingdom Scrap Tires
The 1999 EU Landfill Directive prohibited the landfilling of whole tires in all EU states
beginning in 2003 and the landfilling of shredded tires beginning in 2006. Approximately
2.7 million tonnes of scrap tires are generated in the EU each year and 95 percent of them
are directed into a recovery market; about 49% are used for energy recovery as fuel in cement
kilns and power plants, 42 percent are used in products such as flooring, and 9 percent are
used in civil engineering and public works projects such as road and railway foundations.
[Source: European Tire & Rubber Manufacturers Association 2011 report on 2010 statistics]
China and Mexico Scrap Tires
Regulations, recycling markets and infrastructure for scrap tires in China and Mexico are
developing.
SELECTED ENVIRONMENTAL PROJECTS
Cooper Certifies Commitment to Energy Management
In July 2012, Cooper appointed the Texarkana plant’s Ken Leary, a Six Sigma Black Belt, as
our first certified energy manager. In his new role, Ken supervised the energy audit that resulted
in the Texarkana plant receiving Superior Energy Performance Gold level certification from
the U.S. Department of Energy for achieving a 10.1 percent energy savings improvement over
three years. The Superior Energy Performance certification program requires participants to
show a minimum energy performance improvement of 5 percent.
The energy management system at the facility has been certified as meeting requirements of
both ISO 50001:2011 and ANSI/MSE 50021:2012.
Resource Conservation Produces Abundance of Savings
The Findlay plant energy team received more than $186,900 in utility rebates for completing
energy efficiency projects in 2012, including installing energy efficient lighting fixtures in
the plant and main parking lots. These changes conserve resources, reduce greenhouse gas
emissions and are projected to save the Findlay plant more than $150,000 in energy costs
annually.
While completing a “waste walk” to look for improvement opportunities during a kaizen event,
Findlay employees discovered that a boiler room process was rejecting water that could be
diverted from the sewer to the cooling towers. This project cost less than $1,000 and is
anticipated to save more than 3.3 million gallons (12,500 cubic meters) per year in city water,
which is about 6 percent of total annual plant water usage.
U.S. Cooper Fleet
Cooper makes ongoing efforts to minimize fuel usage and maximize the efficiency of a fleet
that travels millions of miles each year transporting our products to customers as well as
transporting finished goods, equipment and raw materials between facilities. For example,
Cooper works to haul fully loaded trailers via routes that are strictly planned and controlled.
Additionally, each tractor is equipped with an auxiliary power unit (APU) that, for less fuel than
the idling tractor engine, provides power for heating, cooling, lights and entertainment systems
in the tractor cab for the driver’s mandatory break periods.
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PLANET
Tupelo Plant Energy Coordinator Elected to Environmental Boards
Cooper’s Tupelo plant is now represented on the Board of Directors for Manufacturing Extension
Partner (MEP) and the Mississippi Energy Coordinators Association (MECA) by the Plant Energy
Coordinator, Albert McShan. His election to these Board positions reflects Tupelo’s extensive
efforts, and those of our company overall, to save energy and be a good environmental steward.
MEP is a federal and local initiative to help U.S. manufacturers adapt and thrive in a new
business era focused on sustainability. MECA is a statewide non-profit organization that serves
state and government agencies, businesses, industries, and citizens of Mississippi in the areas
of energy management, utilities conservation and environmental stewardship.
SANCTIONS / INCIDENTS
Cooper did not receive any fines or sanctions in 2012 for non-compliance with environmental
laws and regulations. Our Texarkana plant is working to improve in certain areas. The plant is
subject to an order from the city to eliminate occasional oil concentrations that exceed what
is permitted in its wastewater discharge. The plant has installed a treatment system designed
to remove oil and allow the water to be reused. The Texarkana plant has also had difficulty
complying with the limits in its storm water discharge permit. The plant is working with the
State of Arkansas to resolve this issue.
During a shutdown / maintenance period in August 2012, a small but noticeable amount of oil
was discharged from the Melksham plant to the adjacent River Avon. The plant routinely draws
water from the river to use in cooling equipment and discharges the water back to the river.
Equipment is in place to prevent any impact to the river, and this normally occurs without
incident. However, in this case some oil was released during maintenance activities that
bypassed the interceptors and was discharged. The plant responded by placing a boom on the
river to contain the oil. The U.K. Environment Agency (EA) was notified. The plant has met
with the EA to discuss improvements to plant systems to prevent a recurrence. A study will be
conducted to evaluate potential improvements. In the meantime, the plant remains vigilant in
protecting the river.
Each manufacturing location has storage facilities equipped with secondary containment for
liquid petroleum products.
There were no other sanctions, incidents, or significant spills in 2012.
34