Resource Circulation and Sustainable Raw Materials

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We aim to establish a circular economy business throughout our supply chain centered on the Tire Business, which is our mainstay business.
We will also work to reduce waste by minimizing and making effective use of resources that we use, and recycle resources by expanding their reuse and recycling.

“TOWANOWA,” a Business Model Designed to Support a Circular Economy through the Tire Business

  • The Sumitomo Rubber Group

Vision of and Value Delivered by TOWANOWA

Encapsulating our hope to support the long-lasting development of a sustainable mobility society in the future, the word TOWANOWA brings together the two Japanese terms TOWA, meaning “Everlasting,” and WA, meaning “Ring.”
In line with the TOWANOWA concept, we aim to facilitate the circulation and effective utilization of limited resources while promoting the use of big data, comprising data gleaned by such technologies as SENSING CORE, an asset unique to the Company. Through these efforts, we will deliver new value to customers, contribute to the creation of the next-generation mobility society and otherwise help realize a sustainable future in which all people can enjoy safety, security and comfort. We will thus promote the “TOWANOWA” concept to materialize a long-lasting tire business cycle as part of efforts to embody “Our Philosophy.” In the course of doing so, we will address issues associated with CASE* megatr help realize a sustainable world and contribute to the creation of a future of jo well-being for all.

* CASE is regularly used to describe the four main strategic areas of focus for the industry–an abbreviation for Connected, Autonomous, Shared, and Electrified.

Data Ring and Sustainable Ring

Data Ring and Sustainable Ring

The TOWANOWA concept consists of a “data ring” (here depicted in orange), which coordinates and leverages data obtained in each value chain process, and a “sustainable ring” (in blue), which facilitates the circulation of goods and materials throughout the value chain processes, eliminates redundant resource consumption and helps realize a circular economy. TOWANOWA thus creates new value by bringing together the sustainable ring and data ring.

Value Created and Provided by TOWAROWA

Expansion

KPI for Each Process

We have set target values as a KPI for each process that makes up the sustainable ring.

KPIs Designated for Each Process

Process Value provision Item Target year

Planning & Design


Planning & Design

Higher performance × Efficient resource usage

  • Lightweight tires, greater fuel efficiency, and longer tire life
  • Reducing CO2 emissions by trimming the weight of tires and lowering the Rolling Resistance Coefficient (RRC)* while the vehicle is in motion Reducing CO2 emissions by 5.3% compared to 2019 levels

    * Loss of energy occurring to a tire while it is in motion

  • Improving tires’ wear resistance Reducing the unit amount of road wear particles by 5% compared to 2019 levels
  • 2030


  • 2030

Material Development and Procurement


Material Development and Procurement

Promoting resource circulation and reducing CO2 emissions

  • Utilizing sustainable materials
  • Increasing the ratio of sustainable materials used
    40% by 2030, 100% by 2050
  • 2030
  • 2050

Sales and Usage


Sales and Usage

Proposing optimal tires for customers

  • Fuel (ICE) / Energy (EV) Efficiency
  • Longer tire life
  • Greater safety
  • Increase the ratio of sustainable products Standard 100%, including Gold 30%* Based on the internal standards of the Sumitomo Rubber Group
  • 2030

Recovery and Recycling


Recovery and Recycling

Promoting retread tires

  • Contributing to resolving the “Last One Mile” issue in the logistics and transportation industries
  • Resource conservation & cost reduction

Putting End-of-Life Tire (ELT) to use

  • Using ELT as recycled tire materials
  • Realizing a circular economy
  • Expanding the retread Tire business Increasing the sales quantity of retread tires in Japan to 190% of the quantity in 2021
  • 2030

Details of Initiatives in Other Processes

  • Production:Improving production efficiency by advanced supply/demand projections, predictive maintenance, and improved yield at factories to reduce losses in production and supply and conserve resources
  • Recycling:Making efforts to promote the recycling of chemicals and materials to reduce CO2 emissions from factories and utilize waste as recycled materials
  • Logistics:Making efforts to improve transportation efficiency, such as optimizing the level of inventories, to reduce CO2 emissions

For more information, please visit the following page.

Circular Economy Concept for the Tire Industry: “TOWANOWA”

Initiatives in Planning & Design

Developing “Tire Aerodynamic Simulation” Essential for Development of Next-Generation EV Tires

Sumitomo Rubber Industries aims to develop a tire that further contributes to lowering the electricity consumption of an EV as a nextgeneration EV tire to be launched in 2027.
The “Tire Aerodynamic Simulation” is a simulation technique that visualizes airflow around a tire and its impact (aerodynamics). A unique characteristic of this technique is its ability to calculate the aerodynamics of a rotating tire, using actual vehicle data, by simulating the tire pattern and changes in the tire shape in contact with the road surface caused by vehicle weight, through the use of AI technologies. In addition, we have newly developed a simulation technique that changes the shapes of the lettering and fine texture on the sidewall while they are rotating. While it is important to smoothen the sidewall to reduce air resistance in EV tires, the use of the newly developed simulation technique will enable the development of a tire that achieves both design and air resistance reduction at higher levels.

Road surface
Road surface
A big whirlpool is generated when the fine texture is passed.
A big whirlpool is generated when the fine texture is passed.

Initiatives in Material Development & Procurement

Promoting the Use of Sustainable Raw Materials

The Company aims to increase the content of sustainable raw materials in its tires to 40% by 2030 and 100% by 2050 to ultimately reduce the volume of CO2 emissions throughout the supply chain. In the motorsports field, which is at the front line of tire development, we will accelerate our initiatives to realize carbon neutrality by developing products using sustainable raw materials. In March 2023, the Company released DUNLOP racing tires with a ratio of sustainable raw materials increased to 38%, aiming to launch these tires for racecars by 2024. Through a series of processes for selecting materials, the Company succeeded in increasing the content of sustainable raw materials to 43%. As these tires showed steady performance in driving tests, we brought forward the introduction of these tires to the third round of the EV section of 2023 All Japan Karting Championship to which the Company supplies one-make tires. In the years ahead, we will contribute to realizing sustainable motorsports with a view to introducing these tires to broader categories of motorsports.
Leveraging our knowledge and experience, we released concept tires with the content of sustainable raw materials increased to 80% at Japan Mobility Show 2023. Also, from 2024 onward we will sequentially release some of these tires as new replacement tires.

Racing kart tires with a higher sustainable raw materials content equipped for the third round of the EV section of 2023 All Japan Karting Championship
Racing kart tires with a higher sustainable raw materials content equipped for the third round of the EV section of 2023 All Japan Karting Championship
Concept tire with the content of sustainable raw materials at 80%
Concept tire with the content of sustainable raw materials at 80%

TOPICS

Challenge of Developing Sustainable Raw Materials Participating in Waste Recycling Related Development Project with LanzaTech, US-based Biotech Company: Tripartite Collaboration of Sumitomo Riko, Sumitomo Rubber, and Sumitomo Electric

To realize innovation that enables us to create a future of joy and well-being for all, we have not only adopted sustainable raw materials but have taken on a challenge to develop sustainable raw materials on our own. Together with Sumitomo Riko and Sumitomo Electric, we are now pushing ahead with the development of new technologies in collaboration with LanzaTech. We aim to leverage LanzaTech’s carbon recycling technology to turn waste materials like tires into isoprene, which can be used as new rubber materials.
This will be achieved by gasifying the waste materials and purifying the resulting gas, and then putting them through a fermentation process that transforms the gas into new raw materials.
Working alongside raw materials manufacturers, we are also exploring the feasibility of establishing a recycling technology that enables the reuse of isoprene as materials for rubber and resin. We are also contemplating the idea of recycling the metals recovered during the gasifying process and reusing them as raw materials.

TOPICS

Initiatives in Sales & Usage

Certification System for Sustainable Products (Internal Standards)

In 2023, the Sumitomo Rubber Group introduced a certification system for sustainable products based on internal standards as part of measures specified in its Long-Term Sustainability Policy “Driving Our Future Challenge 2050.”
We thus apply our own assessment standards to the selection and certification of sustainable products from among all offerings of our Tire, Sports, Industrial Products and other businesses. Assessment items are set for each product group and include the ratio of sustainable raw materials used, the type of energy consumed in manufacturing processes, and the product’s recyclability after use. Products that meet bare minimum requirements are designated as “Standard” certification, while products boasting outstanding features in terms of sustainability are designated as “Gold” certification. Our current aim is to ensure that all products are certified “Standard” by 2030 and, to this end, are striving to update their features.
Looking ahead, we will continue to develop an internal certification framework to identify products capable of contributing to global warming countermeasures and environmental load reductions throughout their life cycles. By doing so, we will align our product development approach with a progressive shift to a business model in favor of circular economies.

The Current Ratio of Internally Certified Products and Our Target for 2030 Regarding This Ratio

We aim to achieve “standard” or above for all products by 2030.

Ratio of Certified Tires (based on units of tires)

Ratio of Certified Tires (based on units of tires)

Ratio of Certified Sports Business Offerings (based on sales)

Ratio of Certified Sports Business Offerings (based on sales)

Ratio of Certified Industrial Products Business Offerings (based on the number of sites)

Ratio of Certified Industrial Products Business Offerings (based on the number of sites)
(As of 2023)

Certification Scheme

The following diagram shows the flow of our certification scheme. First, separate product development committees are convened to examine Tire, Sports and Industrial Products business offerings to determine candidate products. Directors then screen these products at the annual meeting of the Sustainable Products Certification Committee to finalize those worthy of certification. Through this scheme, we will promote the development of an internal structure for incorporating sustainability elements into product development.

Certification Scheme

Plastic Reduction Initiatives

We have identified “Reducing Plastic Usage” as part of measures stipulated under the Long-Term Sustainability Policy: “Driving Our Future Challenge 2050.” In this regard, our Sports Business strives is moving forward with a 50% reduction in the amount of plastic used for product packaging and other materials by 2030 compared to the 2019 level. For golf balls released in the fall of 2021 and thereafter, window film on packaging is being phased out. In addition, from 2023, the plastic lids of PET packaging tubes for DUNLOP AUSTRALIAN OPEN and DUNLOP FORT tennis balls sold domestically will be replaced with paper ones.
Plastic lids for the St. JAMES brand training balls and other products were eliminated and the labels were replaced with paper ones that slip inside the containers. These initiatives are expected to reduce domestic plastic usage by approximately 20 tons per year. After 2024, we plan to take similar measures in other countries and regions.

Discontinuing window film on packaging

Discontinuing window film on packaging

Replacing plastic lids with paper ones

Replacing plastic lids with paper ones

Switching to paper labels and placing them inside the bottle

Switching to paper labels and placing them inside the bottle

For the relevant article, please visit the following page.

Initiatives in Recovery and Recycling

Expanding Sales of Retread Tires

We have positioned retreading* tires as one of the important initiatives in establishing a circular business model, aiming to increase the sales volume of retread tires in Japan to 190% of the level in 2021 by 2030. In addition, we will improve the rate of recovering quality base tires for retreading and the number of retreading to reduce tires to be disposed of by leveraging the information and history of use of tires obtained through the Tire Pressure Monitoring System (TPMS) and Radio Frequency Identification (RFID) as well as SENSING CORE.

* Retreading refers to a process for recycling worn-out tires by removing the spent tread and then applying new tread rubber to the tire casing.

Number of Retread Tires Produced by the Sumitomo Rubber Group

Number of Retread Tires Produced by the Sumitomo Rubber Group

Remanufacturing Process of Retread Tires (Remolding Method)

Our group manufactures retread tires utilizing the remolding method. The remolding method refers to a method that involves shaving off the rubber tread surface of a base tire, affixing non-cured rubber on the exposed surface and then curing it.
In this method, the robust cohesion of freshly affixed tread rubber with the base tire results in a retread tire with a beautiful outward appearance as well as high quality and high performance.

Initial inspection

Base Tires are scanned by inspection machines upon reception. Based on rigorous standards and screening, only Tires that satisfy the necessary criteria can proceed to the next process.
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Shearography inspection

A non-destructive testing method that can detect internal abnormalities not visible through a standard visual inspection. This test detects the separation of the rubber layer and cord due to damage, etc.
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Buffing

The buffing machine shaves off the surface of tread rubber and finishes the base tires into a predetermined shape and size.
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Shaping

Properly shaped fresh retreading rubber is affixed to the buffed area.
The Group’s remolding method employs jointless tread rubber.
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Curing

Shaped ties are put into metal molds and subjected to heat and pressure for a specific time.
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Final inspections

Finished retread tires undergo rigorous inspections of their outward appearance, internal structure, and other aspects. Only products deemed satisfactory in every respect can be shipped.

TOPICS

Release of Replacement Tires Equipped with RFID for the First Time as a Domestic Manufacturer*1

In October 2023, the Company released replacement tires equipped with RFID which allows for individual tire identification. These tires specifically include DUNLOP “e. ENASAVE SP148,” a rib tire for EV route buses, and DUNLOP “ALL SEASON MAXX AS1 for TAXI*2,” an all-season tire for taxis.
RFID is a wireless communication technology that uses radio waves for individual identification, instead of conventional barcodes or QR code, for traceability purposes, including quality assurance, responses to customer complaints, and elimination of counterfeit tires. In January 2023, the Company joined the Global Data Service Organization for Tires and Automotive Components (GDSO), an international association developing industry standards for the traceability of tires. The Company then satisfied a range of requirements, such as the impact of RFID on tire performance, a challenge when it is equipped with mass-produced tires, and the durability of RFID tags, and succeeded in releasing tires equipped with RFID this time. RFID built into tires will enable acquiring tire data in various stages, such as manufacturing, sales, and use, in the future. We expect that we can eventually improve the number of retreading, promote the recycling of materials, as well as enhancing safety and operational efficiency, by analyzing the status of use and driving history.
Going forward, we will strive to develop solution businesses, focused on retreading and maintenance, to provide high-value-added services tailored to customers’ situations and needs.

*1 Based on Sumitomo Rubber Industries’ own research (September 2023)
*2 Part of the products released

Tires
ALL SEASON
MAXX AS1 for
TAXI equipped
with RFID
Tires
e. ENASAVE
SP148 equipped
with RFID
Tires

Related Information

DUNLOP Retread Service Co. Website (Japanese Only)