No One Gets Hurt

2005 Environmental, Health & Safety Report

E n v i ro n m e n ta l , H e a lt h a n d Sa f e t y Ac h i e v e m e n t s

A s you review this report of Goodyear’s 2005 environmental, health and safety achievements, you will see examples of why this company is a world leader. Our associates believe in innovation and work to apply it in our products, our marketing, our business practices and in our commitment to safety and protecting the environment.

“No One Gets Hurt,” an initiative to take Goodyear’s safety performance to world-class levels grew from this spirit of innovation. We began 2005 in the number one position for workplace safety in our industry, yet we believed we could do better, and we did, finishing the year stronger and safer. But continuous improvement means our work is not finished. We will not be satisfied until we have eliminated all workplace injuries and improved the health and safety of all of our associates.

Goodyear considers our natural environment to be valuable and we proactively seek ways to ensure that it, too, does not get hurt. The 3-R principle – reduce, reuse, and recycle – is a global expectation and key to good stewardship of the precious resources that have been entrusted to us all.

I am proud to lead this great company. Whether we’re saying today that “no one gets hurt,” or looking ahead to the time when we can proclaim that “no one got hurt,” we will not be complacent.

Robert J. Keegan, Chairman and CEOThe Goodyear Tire & Rubber Company

E n v i ro n m e n ta l , H e a lt h a n d Sa f e t y Ac h i e v e m e n t s2005

In every aspect of life, leadership creates a sense of purpose and commitment, sets

the tone, and models the behavior it wants to see in both itself and others. During

2005, Goodyear’s leadership chartered the direction for its environmental, health and

safety commitments with the initiative “No One Gets Hurt.”

While it would be tempting to limit this initiative to workplace safety, the recognition

that no one gets hurt has universal applicability. It can apply to operations within the

workplace, the internal and external environment where a manufacturing, sales or

distribution facility is located, or the health and well being of human, financial and

capital resources.

“No One Gets Hurt” is a powerful statement that reflects Goodyear’s

strong commitment to develop a culture that tolerates nothing

short of continuous improvement to achieve perfection. Any

company that values the well being of its associates, the

environment, and those who use its products and services

can aspire to no higher goal.

N o O n e G e t s H u r t

A lthough Goodyear held the safety leadership position in

the tire and rubber industry in 2004, its leadership recognized that

achieving world-class performance would require a culture change

within the company and that any such change must begin at the

top of the organization.

Endorsing the four elements of Goodyear’s “No One Gets Hurt”

initiative: Leadership, Behavior, Ergonomics and Preventive

Maintenance/Compliance, leadership in 2005 set the stage to

achieve significant performance breakthroughs that would reduce

the company’s OSHA incident rate to less than 1.0 by the end

of 2007. Achieving this goal would place Goodyear’s safety

performance among the world’s best safety performance companies.

“Local leadership is held accountable to include safety goals

as part of annual operating plans, and make on-the-spot corrections of unsafe conditions and acts.”

Site visits became a key part of the strategy to reduce injuries, as

Goodyear’s executive leadership team visited locations whose safety

record in 2004 placed them among the operations with the highest

number of incidents, calling attention to the number of incidents

at a specific location. Such visits focused attention and resources

on how to reduce incidents occurring at locations around the

world. By the end of the year, the leadership team had visited ten

global locations.

In March 2005, Goodyear established the first Wednesday of each

month as Global Safety Day. In North American tire plants, face-

to-face communications was a primary tool to convey the value

of safety, with local management and safety leadership meeting

with team members during shift changes, reminding them to

work safely. Facilities in Europe, Latin America, and Asia also

implemented systems that not only communicated with associates,

but also to vendors and visitors. All manufacturing, service,

and warehouse sites

increased their attention

to identifying and

immediately addressing

conditions that created

opportunities for injury.

Building on its success,

the company established both Global Safety Week and Global

Safety Month. By the end of the year, Goodyear’s performance on

ten Global Safety Days, two Global Safety Weeks and one Global

Safety Month yielded improvements of more than 40 percent over

the daily average of OSHA incidents.

Working closely with the United Steelworkers, which represents

Goodyear’s bargaining unit associates in the U.S., Goodyear and

the USW held its first day-long safety summit, and formed a joint

steering committee to develop cooperative solutions to safety issues.

Actions undertaken to improve safety include preparing training

and certification programs, upgrading equipment, bringing

machines into compliance, and using the plant’s safety committee

to motivate associates to eliminate at-risk behavior. Business

team members, maintenance technicians, and machine operators

regularly inspect equipment to verify conditions, develop action

plans that specify improvement, ensure a good understanding

of work methods, and require job-specific safety training in

Goodyear’s global manufacturing locations. Post-incident surveys,

thorough safety audits, and widespread implementation of

corrective actions prevent incidents from recurring. In operations

worldwide, local leadership is held accountable to include safety

goals as part of annual operating plans, and make on-the-spot

corrections of unsafe conditions and acts, while all compliance

items are addressed within 72 hours.

876543210

2001 2002 2003 2004 2005

Total Global Case Incident Rate

Goodyear Takes Safety to New Levels

being a leader is not enough

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Goodyear’s tire plant in Americana, Brazil achieved a safety record,

going incident free for 51 days, while in Peru, associates were

able to take the safety test. Associates answering correctly all of

the questions could receive safety-theme prizes, such as home fire

extinguishers, auto emergency lights, and first-aid kits.

Wingfoot Commercial Systems developed a Job Safety Analysis

program to use in its training and daily operations. Its training

program also includes specific safety training prior to any task

being performed by a newly hired associate. In addition, an

experienced safety sponsor is assigned and works with the new

associate until job task proficiency is demonstrated. Wingfoot’s

approach to safety resulted in an OSHA incident rate decline of

almost four points.

In its U.S. retail operations, Goodyear developed and implemented

a 1-800-“how’s my driving” program for all company-owned

vehicles. All calls to the 800 number are investigated. As a result,

Goodyear recognized a 31 percent reduction in driver-related

incidents. Retail operations began auditing for at-risk behaviors

as part of regular monthly inspections of physical conditions at

company-operated outlets.

Goodyear’s commitment to strengthen its global safety performance

achieved a 21 percent improvement, when compared to the

previous year.

CompanyF

Goodyear RMAAverage

CompanyA

CompanyB

CompanyC

CompanyD

CompanyE

2005 U.S. Tire Manufacturers Total Case Incident Rate

20

15

10

5

0

Source: Rubber Manufacturers Association

being a leader is not enough

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Goodyear’s environmental, health and safety efforts continue

to play an important role in the development of the company’s

global Business Continuity Process announced in early 2004. Key

to this process is this strategy that aligns the company’s human and

material assets in such a way that any

number of those assets may be deployed

to successfully avoid or respond to an

extraordinary operational disruption.

Such disruptions include any number of

natural, technological or human events.

Under the process, particular emphasis

is placed on returning the company’s operations to normal as

quickly as possible in order to meet customer needs; protect

the company’s reputation; maintain profitability and provide

shareholder value. Each Goodyear business unit, facility and

functional group is part of this integration. In every case, the

BCP is closely coordinated with corporate emergency response,

crisis management, disaster recovery and business impact analysis

programs.

Goodyear’s BCP is led by a steering committee made up of

top executives from all the company’s business units and

functional areas, such as global support operations, human

resources, information technology, finance, health and safety and

communications, among others. Part of the initial organizational

effort provided by the steering committee was its adoption of

a proven BC planning model and providing for overall BCP

objectives. It also was responsible for organizing the BCP Tactical

Team, which includes senior and middle management associates

from all company business units and functional groups. Its members

are in charge of refining the company’s process and are on the front

line of putting the process in motion should the need arise. EHS

specialists are members of both the steering committee and tactical

team.

During 2005, several hurricanes along

the U.S. Gulf coast, typhoons in

Southeast Asia, and global concerns

over the possible development of a bird

flu pandemic put Goodyear’s BCP to

the test. In each instance, the process

proved its value – not only in meeting

the situation at hand and its aftermath, but in terms of providing

“lessons learned” for possible future incidents. EHS team members

were key to ensuring that company facilities were properly prepared

for the expected incidents, responded when necessary to storms,

and played a critical role in the company’s restoration and recovery

strategy. Their assistance was particularly valuable in preparing

associates to “work out of process” and avoiding injury.

As Goodyear’s EHS organization, or more specifically its BCP

group, continues to evolve, it has been developing various scenarios

that demonstrate how the business continuity process can be used

to lessen the effects of a business disruption, including a pandemic.

By year’s end, a national survey of major U.S.-based corporations

showed Goodyear well ahead of most companies in terms of its

BCP development.

ready for anythingGoodyear’s Business Continuity Planning

“This strategy that aligns the company’s human and material assets

in such a way that those assets may be deployed to successfully avoid or

respond to an extraordinary operational disruption.”

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Stretching, used by professional and amateur sports athletes

to prevent injury and maximize performance, is increasingly being

adopted as a best practice by the industrial athlete. For several years,

Goodyear plants in Americana and Sao Paulo, Brazil and Upper

Hutt, New Zealand have offered job-specific stretching programs

developed by physical therapists. The programs have been well

received by associates. In 2005, these efforts were expanded at

Goodyear’s tire manufacturing plant in Union City, Tenn., with a

symptom survey and job specific stretching exercises, and in its retail

operations. In Goodyear’s corporate headquarters, the Global

Medical Services Department organized small office stretching

groups, changing exercise routines quarterly. For computer users,

software that guides the user through brief stretches at their desk

several times a day is available through the Global Medical Services

web site. International travelers are offered a small book of specific

stretches for travel. All these activities are being shared through an

electronic team room to assist associates in identifying and using

best practices.

stopping hurt before it starts

Job Specific Stretching Programs

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Over the years, as more is learned about ergonomics,

equipment used to manufacture tires and engineered products has

become safer to operate. To further advance that effort, Goodyear’s

long-standing partnership with Sandia National Laboratories

now includes joint efforts in the rapidly emerging field of Human

Factors Engineering. HFE considers not just the interface between

the machine and the body, but the interface with the mind. A

basic principle of HFE is that the most efficient path and motion

sequence, and not necessarily the fastest, is generally the safest as

fewer movements translate into a lower incident probability.

For more than ten years Goodyear has partnered with Humantech,

the world’s foremost authority on ergonomics. To reduce

unnecessary injuries and maintain the health and safety of all

associates, Goodyear uses a six-step Ergonomic Problem Solving

Process that includes identifying and prioritizing jobs, analyzing

jobs, developing solutions, implementing solutions, follow up and

evaluation, documentation and communication.

Collecting data through photographs, video and other

documentation, Goodyear and Humantech developed site-

specific materials to use during subsequent Risk and Performance

Improvement Deployment (RAPID) events, activities designed

to make swift, measurable and relevant improvements to the

ergonomic conditions. Lessons learned from ergonomic solutions

are shared to facilitate implementation and avoid repeating

learning curves.

In 2005, Goodyear established the company’s first Ergonomic

Centers of Excellence (ECOE) at facilities in the U.S., Europe and

the Middle East with the goal to raise both safety and productivity

performance by implementing ergonomic improvements. ECOE

sites were established in Buffalo, N.Y., Gadsden, Ala., St. Marys,

Ohio, Amiens, France, and Izmit, Turkey. As an ECOE site, each

facility could address immediately business-critical issues and

identify human and financial savings by eliminating processes

that generate waste, while providing an environment for testing

improvement ideas that can be validated and replicated across all

Goodyear plants.

mind, body and machineHuman Factors Engineering

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In 2005, Goodyear put a concerted focus on achieving

world-class health, safety, and environmental performance

using Continuous Improvement tools. The phrase “Continuous

Improvement” refers to Goodyear’s integrated use of Six Sigma,

Lean, and other quality and value improvement methods.

Basic Continuous Improvement processes such as 5S, Team Daily

Management System (TDMS), and gap analyses were enhanced

both to increase the visibility and effectiveness of safety systems and

to more expediently resolve potential safety issues. 5S, one of the

foundational elements of Continuous Improvement, is a systematic,

disciplined approach

for achieving workplace

organization that also

is a key underlying

component of world-

class, safety performance.

Goodyear expanded its

5S method to increase

the emphasis upon safety

and ergonomics. Associate participation in safety, a requisite

ingredient in world-class safety performance, is increasing through

structured engagement, such as the TDMS, that is a planned, daily

work group meeting. This offers the opportunity to address safety

performance on a daily basis by reviewing actionable safety metrics

and increasing associate engagement in safety problem solving. A

strategic, gap analysis tool was created to use in conjunction with

value stream maps for planning a course of action in Continuous

Improvement deployment.

One of the 20 “key” areas is Environmental Health and Safety.

Using the tool permits an organization to determine the current

level of EHS performance and develop a plan for improvement.

Manufacturing Kaizen events, short bursts of intense, structured

activity lasting 3-5 days during which a team identifies and

implements a significant process improvement, must include safety

improvements as well.

Global manufacturing process standards are being developed to

incorporate more effectively job safety analyses, safety requirements,

ergonomic assessments, and objective-based training. Integration

and synergy between the EHS and Continuous Improvement

systems have definitely augmented the performance of each.

Globally, specific Continuous Improvement projects have

successfully lowered raw material usage, conserved energy, reduced

waste generation, eliminated ergonomic risks, and lowered injury

rates. Continuous Improvement professionals within the Global

EHS staff have improved the effectiveness of EHS raw material

approval processes, strengthened the industrial health program,

improved laboratory safety and efficiency, lowered the quantity

of manufacturing waste sent to landfills, and increased the cost

effectiveness of laboratory operations.

getting better all the timeGoodyear’s Continuous Improvement

“Continuous Improvement projects have

successfully lowered raw material usage, conserved

energy, reduced waste generation, eliminated ergonomic risks, and

lowered injury rates.”

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Goodyear is the world’s largest tire company. Together with its subsidiaries and

joint ventures, Goodyear manufactures and markets tires for most applications. It also

manufactures and sells several lines of belts, hose and other rubber products for the

transportation industry and various industrial and consumer markets.

Goodyear is committed to protecting the environment

and the health and safety of our associates, our

customers, and the communities where we operate.

As a global socially responsible corporate citizen, we

shall conduct our business in accordance with the

highest applicable legal and ethical standards, and shall

strive to contribute to economic development and environmental protections, while seeking

to improve the quality of life for our associates, families and communities, and society in

general. We want our associates to have a work environment where they feel safe and secure.

To that end, we shall:

• Comply with all applicable environmental, health and safety (EHS) regulations and

laws and Goodyear’s global EHS standards.

• Establish systems and set global corporate goals that seek continuous improvement.

• Integrate EHS into all key business decisions – including the design, production,

distribution and support of our products and services.

• Reduce environmental impact and conserve natural resources by minimizing waste

and emissions, reusing and recycling materials, and responsibly managing water

and energy use.

In everything we do, Protect Our Good Name is our credo – as it has been since 1915.

Our reputation demands it; our associates require it; our communities expect it.

being a good neighborGoodyear’s Environmental, Health & Safety Policy

“Goodyear is committed to protecting the environment and the health and safety of our associates, our customers, and the communities where we operate.”

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waste not...Goodyear remains keenly aware of its responsibility to

associates, customers, neighbors and society as it manufactures and

markets its products worldwide. Ninety-one manufacturing facilities

are certified to the ISO 14001, Environmental Management System

standard, and 18 manufacturing facilities have met OHSAS 18001,

the occupational health and safety management guideline. In 2005,

global EHS improvement programs reduced waste disposed in

landfills, organic solvent usage and emissions, and consumption of

natural resources such as energy and water.

Environmental, health and safety activities are fully integrated into

the ongoing management of each operation, including bringing all

acquisitions and joint ventures into compliance with Goodyear’s

standards.

In addition to gathering and analyzing environmental monitoring

data for permit compliance purposes, Goodyear’s EHS associates look

for ways to improve both manufacturing operations and efficiency to

minimize environmental releases.

When control systems do not perform as expected, findings are

appropriately disclosed to governing regulatory agencies and, if

required, to state and local emergency management organizations.

Environmental Footprint

Solvent usage and waste to landfill are tracked globally as key

indicators for minimizing our environmental impact. As a result of

associated reduction initiatives, Goodyear is continuously moving

toward its goal of “No One Gets Hurt” by minimizing human

exposure to chemical solvents and the environmental impacts of

landfill waste.

Natural and synthetic rubber mixes are used in manufacturing

rubber products, and the processing can result in volatile organic

compound emissions. Organic solvents, which also may be used,

make important contributions to safety, durability, ride and traction

characteristics, and other factors that provide Goodyear products

with distinctive competitive advantages. Efforts continue to reduce

organic solvent usage, seeking less harmful substitutes when solvent

usage is required, without sacrificing the quality of our product.

Goodyear’s “Best in Class” program, established in 2004 to identify

solvent usage for each step in the manufacturing process for each

tire type, continues to drive reductions in solvent usage globally.

Highlights include solvent reduction at our Ballabgarh, India facility,

where daily solvent usage was reduced 26 percent by following

“Best in Class” techniques. Goodyear’s efforts to reduce solvent

usage contribute to a safer working environment for our operators

and reduce emissions to the environment, continuing with our

commitment that “No One Gets Hurt.” Since 2001, Goodyear

has globally reduced the amount of solvents purchased per ton of

product by 32 percent.

Goodyear evaluates all potential waste by the 3-R principle that

focuses first on reduction, then reuse and finally recycling before

sending any material to a landfill. Since landfill waste historically

has had a significant environmental impact – due to the loss of

reusable resources and the potential contamination that may result

from landfilled materials – Goodyear prioritizes the reduction in

the amount of waste that it sends to landfills. Since 2001, Goodyear

has globally reduced by 31 percent the amount of landfilled waste

per ton of product. In addition, Goodyear assures that all waste

management is conducted in an appropriate manner through a

vigorous Waste Vendor Audit program.

Goodyear and the Environment

2001

2002

2003

2004

2005

0 25 50 75 100

Pounds of emissions per ton of production Base = 100% Pounds of waste per ton of production Base = 100%

Global Solvent EmissionsPer Ton Production

Global Landfill WastePer Ton Production

2001

2002

2003

2004

2005

0 25 50 75 100

10

Goodyear’s resource conservation practices link productivity and

prudent resource management, and encompass manufacturing,

support systems, and human and natural resources. Opportunities

and creative ideas to lower energy consumption and to reduce, reuse

and recycle by-products and finished products are actively sought

and evaluated. Rising costs have added emphasis to the efficiency

and conservation programs that have successfully reduced Goodyear’s

energy consumption.

Goodyear’s tire plant in Americana, Brazil served as a pilot for a

self-audit system for energy usage. Tire plants in Americana and

Colombia were recognized for excellence in energy management. In

its Asia-Pacific operations, Goodyear’s tire plant in Ballabgarh earned

the country’s National Energy Certificate of Merit, recognized for

making successive reductions in energy usage per pound of product

by 29 percent over five years.

Goodyear’s world headquarters began a process of converting from a

central utility system to local subsystems to improve flexibility, lower

its cost structure, and improve emissions. Retail operations carried

out energy improvements at company-owned stores, in some cases

reducing energy use as much as 40 percent. Goodyear’s chemical

operations in Houston began a conversion process to change

refrigeration systems to direct electric drive, dramatically reducing

direct fuel use while improving overall efficiency.

Goodyear believes product stewardship

addresses the potential health and

environmental concerns of customers,

associates and neighbors related to all

operations and products. Responsibility

covers the complete supply chain,

from raw-material selection and product design through customer

communications, product support and responsible disposal.

Chemists, biologists, and other professionals work with Goodyear

research chemists and design engineers to develop effective teams

for addressing each area. Goodyear also works closely with suppliers’

chemists to review raw materials. Several programs are underway to

develop new substitute materials with reduced potential for health

and environmental impacts.

In addition, Goodyear’s Environmental Health and Safety

organizations established and integrated an environmental, health

and safety project review system to verify that all modifications to

materials, processes, equipment or operating rate are checked for

environmental, safety and ergonomic considerations. It encompasses

all facets of operations worldwide.

Responsible product stewardship continues beyond the anticipated

and intended use of the company’s products. Radial tire production

contributes relatively little to overall environmental impacts. Most

scrap tires are used as fuel, conserving natural resources and resulting

in a product’s end of life having the lowest environmental impact.

Tires are complex composites of many types of rubber, fabric, steel

and other materials that, in general, are not biodegradable. Because

these components and overall qualities greatly limit tire disposal and

the ability to recycle, Goodyear continues to seek and develop scrap-

tire management options.

Goodyear’s philosophy of including the environment as part of

its initiatives is taken to heart by its numerous global operations,

resulting in third-party recognition of the company’s commitment to

ensure that “No One Gets Hurt.”

“Goodyear is dedicated to

operating in an environmentally

responsible manner.”

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South Pacific Tyre: Recognized for its long-standing and

continued commitment to greenhouse

gas management.

European Union: All manufacturing plants in Germany

eliminated wastes from landfills, in

compliance with national law.

North American Tire: • The Rubber Manufacturers

Association recognized tire plants

in Fayetteville, N.C., Lawton,

Okla., and Topeka, Kan., for safety

and health improvement.

• Medicine Hat, Alberta, Canada,

tire plant was recognized in 2005

as a Best Safety Performer for the

previous year.

• Stockbridge, Ga., retread facility

received the Georgia Department of

Labor’s Award of Excellence for

working 250 consecutive days

without a lost time injury, for five

consecutive years.

• Goodyear’s Dunlop facility in Buffalo,

N.Y., recognized by the state OSHA

organization as having the best safety

program in western New York.

Latin America: More than 300,000 obsolete tires,

representing 5,000 tons of waste, have

been recycled in Goodyear Chile. The

quantity of recycled tires would fill 30

soccer fields.

Engineered Products: Six plants had zero recordable

incidents last year: San Luis

Potosi, Delicias Industrial, Montlucon,

France, Brazil-Air Springs, Americana-

EP, American-Textile and Chile.

Asia-Pacific: • Goodyear operations in Malaysia

and Taiwan worked all of 2005

with no occupational safety and

health incidents.

• Goodyear operations in Aurangabad,

India; Dalian, China; Indonesia,

Malaysia, Taiwan and Thailand

worked all of 2005 with no lost

time cases.

• As of Dec. 31, 2005, Goodyear

Taiwan had worked 2,316 days

with no lost time incidents.

• Goodyear Indonesia won the

Pawitra Gemi Mahayre trophy,

recognized for occupational safety.

a world of excellenceRecognizing Goodyear’s Best

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