Kumho on road to zero with sustainable products, operations

SEOUL, South Korea—The road to a more sustainable tire industry ends at zero—that is zero carbon emissions from the manufacturing of tires that prove to be carbon-neutral during and after their service lives. So zero is exactly where Kumho Tire Co. Inc. intends to go.

And because the road to zero has no speed limit, Kumho intends to travel quickly.

Il Taik Jung, Kumho Tire's global president and CEO, sees good reason for that. When Kumho focuses on the development of environmentally friendly tires and tire products, it's not only better for the planet, it's good for the company, too.

"We will improve Kumho Tire's future value of the company," Jung said, "and raise trust in it to respond to the social requirement."

Kumho's sustainability goals are shaped from three sides—from the company's desire to better protect the planet, its determination to achieve governmental sustainability targets and its commitment to exceed customers' sustainability expectations.

Keeping all of these perspectives in focus as it moves forward is essential to building a healthier tire and mobility industry, yes. But Kumho sees these endeavors having a deep impact on communities and economies through business investments that help to create jobs and support local economies.

Ultimately, Jung said, sustainability is about relationships—with consumers, employees and other stakeholders. So Kumho is focused on enhancing those relationships and, in doing so, will meet and support the expectations of all its stakeholders, both environmentally and economically.

"The capital market has changed into a stakeholder-oriented paradigm where the corporate value is created from the sustainable relationship with stakeholders, including customers, suppliers, employees, shareholders, and local communities, etc.," Jung told Rubber News in an email interview. "Hence, under the vision of becoming a 'smart mobility partner,' Kumho established its strategies in five categories—of environment, quality, research/technology, society and human resources—putting a priority on sustainability to meet stakeholders' various needs."

When it comes to targets, Kumho's highest goal has the smallest number: Zero.

The tire maker is joining the global pledge to establish carbon-neutral operations by 2050, aligning with the Paris Climate Agreement and newly enhanced 2050 sustainability targets set by the South Korean government.

"We are stepping up our efforts toward carbon neutrality," Jung said, noting that Kumho is building partnerships and joining efforts worldwide that help it to minimize GHG emissions, achieve carbon neutrality and better evaluate the life cycles of its products. "We strive to minimize negative environmental impacts from our business, by reducing total GHG emissions from the stage of product development to disposal and the entire supply chain."

Life cycle product analysis will allow Kumho to better identify areas of improvement because it allows the tire maker "to measure GHG emissions, and to conduct studies utilizing the project results to improve materials, fuel efficiency, and production processes," Jung said.

One of Kumho's loftiest goals is to develop and roll out a 100-percent bio-based tire by 2045, using 40 percent recycled materials and 60 percent nature-based materials. The tire maker, Jung said, will meet that aim, in part by leaning into those key relationships it's building along the way.

"Achieving the goal requires cooperation with automotive manufacturers, tire manufacturers, raw material suppliers and recycling companies," Jung said.

At the same time, Kumho continues to invest in researching the use of alternative and recycled materials, including those supported by end-of-life-tire technologies such as recycled carbon black.

"Kumho is also paying attention to nature-based materials, which can replace petrochemical-based ones," Jung said. "We have finished an assessment on a test tire (that) substituted sunflower oil for petroleum, and we will apply natural materials to tire manufacturing."

Admittedly, the highest hurdle in the race to 100-percent bio-based tires is finding and developing solutions and material technologies that allow for replacing petroleum-based materials, so the use of sunflower oil is a big step forward for Kumho. But ensuring the performance of those materials in the tires is only part of the equation.

It has to be economical, too.

"Mass production technology is required to make sustainable materials more competitive than petroleum materials," Jung said.

All of that is achievable, he said, but it will take a number of industry players to make it happen.

"In order to achieve the goal by 2045, research on recycled materials as well as development of bio-based materials should be conducted at the same time," Jung said. "Kumho Tire will build a foundation to apply sunflower oil and rice husk silica to tires within this year."

Kumho began exploring the plausibility of using rice-husk-based silica in its tires about five years ago, partnering with other companies—particularly with Wilmar China—for research and development. So far, Kumho said, it has seen significant success in using the bio-based material in its rubber compounds.

"Rice husk-based silica," Jung said, "performs almost as well as traditional silica."

And that's good news, not just for Kumho, but for the planet, too.

"Production for existing silica emits a lot of carbon due to the process of high-temperature heat treatment furnaces on sand," Jung said. "On the other hand, the rice-husk-based silica manufacturing process minimizes carbon emissions because it uses ash and electricity that is created during burning rice bran.

"We can get 0.2 tons of rice husk from 1 ton of rice and produce 0.03 tons (30 kg) of silica."

And with that goal of carbon neutrality by 2050, it's possible that rice husk silica will play an important role in the company's achievement of that aim.

Kumho believes that sustainability isn't just about what you say you can do, it's proving how far you're willing to go.

Jung says Kumho is doing that, establishing itself as a sustainability leader within the tire industry. And he doesn't want you to take his word for it.

He wants you to take Morgan Stanley's, too.

Kumho recently earned an AA rating for its environmental, social and governance strides from Morgan Stanley Capital International. It's an indication that, when it comes to sustainability, Kumho is indeed moving in the right direction.

"It was hugely encouraging for us, (being) ranked among the top 12 percent of the auto components industry," Jung said. "… In addition to that, in terms of quality and safety, it was deemed that we have shown industry-leading management practices, as well as a progressive clean tech road map with EV-focused products."

AAA is the highest MSCI rating a company can receive, with CCC being the lowest. In 2019, Kumho received a BBB rating and last year earned an A rating. It's proof, Jung said, that Kumho is making great strides.

And Kumho's commitment on furthering sustainable solutions in the automotive space—particularly when it comes to e-mobility—played a role in the rising rating, Jung said.

"In terms of quality and safety, it was deemed that we have shown industry-leading management practices, as well as a progressive clean tech road map with EV-focused products," Jung said, adding that the company last year established a new division to build an ESG management system, which is helping to accelerate the company's progress in that area.

"We will do our best to advance stakeholders communication channels and become a leader who creates sustainable values."