The Goodyear Tire & Rubber Company (GT) — ESG & Values Scores

Environment story

Goodyear exhibits moderate environmental risk with significant gaps in climate disclosure and supply-chain transparency. The company has not publicly disclosed absolute Scope 1, 2, or 3 emissions metrics or a specific net-zero target year in the filed documents. Capital expenditures for climate initiatives are mentioned but lack quantified decarbonization infrastructure investments. Supply-chain environmental risks are acknowledged (natural rubber, deforestation) but mitigation measures are underdeveloped. The company faces regulatory pressures under EU CSRD, ESPR, and EUDR, which may require material capital spending increases. Environmental controversies include a pending EPA Clean Air Act violation notice at the Beaumont, Texas facility with potential penalties exceeding $1 million, and historical asbestos litigation. The company's reliance on carbon-intensive manufacturing and unresolved emissions targets place it in the lower-middle range.

Criticisms on file

EPA Notice of Violation—Clean Air Act (August 2025) at Beaumont, Texas chemical facility; potential penalties exceed $1 million; company intends to defend.
Source: GT 10-K Item 3. Legal Proceedings, Environmental Matter
Asbestos litigation involving approximately 30,400 claimants alleging exposure to asbestos in products or at facilities; $16 million in defense and claim resolution costs during 2025.
Source: GT 10-K Item 3. Legal Proceedings, Asbestos Litigation
Historical waste disposal sites identified by EPA and state agencies for remedial investigation and cleanup; company acknowledges no single site is material but cumulative exposure exists.
Source: GT 10-K Item 3. Legal Proceedings, Other Matters

Disclosed initiatives

Global Climate Ambition and Capital Expenditures

Company states capital expenditures may be needed to achieve global climate ambition and related goals; no specific targets, timelines, or quantified investment amounts disclosed.
EU Regulatory Compliance (CSRD, ESPR, EUDR)

Company acknowledges compliance requirements under Corporate Sustainability Reporting Directive, Ecodesign for Sustainable Products Regulation, and EU Deforestation Regulation; may require increased capital spending and R&D.
Natural Rubber Supply-Chain Due Diligence

Company subject to EUDR requirements addressing deforestation in natural rubber sourcing; implementation status and mitigation specifics undisclosed.

Social story

Goodyear presents mixed social performance with notable labor relations strengths but concerning diversity gaps and pay-ratio risks. The company operates under USW collective bargaining agreements covering approximately 4,300 U.S. employees at main facilities and ~19,000 international unionized workers, with the primary U.S. contract expiring July 2026. Union standing is neutral (no documented suppression activity or major strikes in past 24 months reported). However, diversity in executive and board leadership is not disclosed in the 10-K, raising transparency concerns. CEO-to-median-worker pay ratio is undisclosed but may exceed 200:1 (penalty threshold) given typical industrial-company structures. The company has undertaken rationalization programs affecting workforce levels (Fulda, Fürstenwalde, Kariega closures; Danville production cuts; Fayetteville headcount reduction planned). Supply-chain human-rights risks are present but not fully audited; natural rubber sourcing and regional operations in China, India, and emerging markets expose the company to labor and modern-slavery risks. No civil-rights audit or comprehensive human-rights statement is referenced.

Criticisms on file

Planned workforce reductions and plant closures affecting thousands of employees globally; no evidence of severance or transition support programs disclosed in 10-K.
Source: GT 10-K MD&A Results of Operations—Segment Information and Rationalizations sections
USW primary collective bargaining agreement covering ~4,300 U.S. employees expires July 2026; risk of strike or work stoppage if negotiations fail; company acknowledges material adverse impact possible.
Source: GT 10-K Item 1A. Risk Factors—Labor union agreements
Operations in geographies with elevated labor and human-rights risks (China, India, Latin America, Eastern Europe, Africa) with limited disclosed supply-chain auditing.
Source: GT 10-K Item 1A. Risk Factors—International operations and supply-chain risks

Disclosed initiatives

Workforce Rationalization and Plant Restructuring

Announced closures of Fulda (Germany), Fürstenwalde (Germany), and Kariega (South Africa) tire plants; commercial tire production eliminated at Danville (Virginia); headcount reduction planned at Fayetteville (North Carolina). Net rationalization charges of $194 million in 2025.

Negative impact on employment; estimated $120 million annual segment operating income improvement upon completion of plans.
Shared Service Center Opening in Costa Rica

Opened shared service center in Costa Rica as part of SAG reduction and operational efficiency initiatives.

Potential relocation of administrative jobs; cost reduction benefit.
Labor Relations Management

Collective bargaining agreements with USW and international unions; stated satisfactory relations with workforce; no evidence of adversarial practices disclosed.

Stable labor relations; risk of significant cost increases if negotiations fail on 2026 USW contract expiration.

Governance story

Goodyear exhibits moderate governance deficiencies with material financial and regulatory challenges. Board independence percentage is not disclosed in the 10-K, preventing assessment of the 75% threshold. The company's share structure is not described as dual-class; single-class voting is assumed. Lobbying expenditures are not disclosed, limiting transparency on regulatory advocacy, though the company acknowledges regulatory pressures (NHTSA, EPA, EU regulations). Governance risks include: (1) substantial debt ($6.2 billion as of Dec 31, 2025) with restrictive covenants limiting strategic flexibility; (2) an ongoing European Commission antitrust investigation (commenced January 2024) regarding potential price-fixing in replacement tire markets, with related private litigation in the U.S. (multidistrict litigation in Northern District of Ohio); (3) a goodwill impairment charge of $674 million in 2025, indicating past acquisition misjudgment; (4) establishment of a full $1.4 billion valuation allowance on U.S. deferred tax assets in Q3 2025, signaling loss of confidence in future profitability and raising questions about management's prior forecasting accuracy; (5) asset write-offs, accelerated depreciation, and rationalization charges totaling $160 million in 2025, reflecting execution challenges. The company maintains compliance with principal covenants as of Dec 31, 2025, but covenant reliance is high, limiting operational flexibility. No evidence of shareholder litigation or SEC enforcement actions is disclosed, though asbestos, tax, and antitrust proceedings create tail risks.

Criticisms on file

European Commission antitrust investigation (launched January 2024) into alleged price-fixing in replacement tire markets; unannounced inspections conducted at Goodyear and competitors; investigation ongoing; company cooperating.
Source: GT 10-K Item 3. Legal Proceedings, European Commission Antitrust Investigation
Private antitrust class-action litigation in U.S. (multidistrict litigation, Northern District of Ohio) alleging violations of U.S. antitrust laws; District Court granted motion to dismiss on Feb 25, 2025; plaintiffs filed motions for leave to amend on April 11, 2025; company intends to defend.
Source: GT 10-K Item 3. Legal Proceedings, European Commission Antitrust Investigation
Goodwill impairment charge of $674 million in 2025 (Americas North America reporting unit); prior $125 million intangible asset impairment in 2024 (Cooper Tire lower-tier brand); reflects acquisition valuation errors and competitive market pressures.
Source: GT 10-K MD&A Goodwill and Intangible Asset Impairment section
Establishment of full $1.4 billion valuation allowance on U.S. net deferred tax assets in Q3 2025; indicates management loss of confidence in ability to generate sufficient future U.S. taxable income; based on three-year cumulative losses and negative industry outlook.
Source: GT 10-K MD&A Income Taxes and Notes to Consolidated Financial Statements No. 7, Income Taxes
Substantial debt burden ($6.2 billion) with restrictive financial and operational covenants limiting flexibility for capital expenditure, dividends, asset sales, and M&A activities; credit facility borrowing base tied to accounts receivable and inventory volatility.
Source: GT 10-K Item 1A. Risk Factors—Capital Structure and Liquidity; Financing Arrangements section

Disclosed initiatives

Cybersecurity Risk Management Program

Company has implemented NIST-CSF and TISAX-based cybersecurity program with third-party certification; Audit Committee oversees cybersecurity risks; no material cybersecurity incidents affecting operations reported in 2025.

Proactive risk mitigation; Audit Committee governance oversight established.
Covenant Compliance and Financial Covenants

Company maintains compliance with material covenants in first lien revolving credit facility and European revolving credit facility; EBITDA-to-Interest-Expense ratio and leverage covenants monitored; currently in compliance as of Dec 31, 2025.

Preserves borrowing capacity; covenant restrictions limit strategic flexibility (asset sales, dividends, M&A).
Internal Control and Compliance Programs

Company acknowledges implementation of policies and procedures for FCPA, UK Bribery Act, data privacy (GDPR), and anti-corruption compliance; acknowledges higher fraud/corruption risk in certain foreign jurisdictions.

Standard governance framework; no violations disclosed; continued risk in emerging markets.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of The Goodyear Tire & Rubber Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open The Goodyear Tire & Rubber Company in the app for interactive charts and portfolio building.

More in Consumer Cyclical

SharkNinja, Inc. (SN) Burlington Stores, Inc. (BURL) DICK'S Sporting Goods, Inc. (DKS) Hyatt Hotels Corporation (H) Somnigroup International Inc (SGI) Toll Brothers, Inc. (TOL)