Rubber certainly has its role to play in forest landscapes across the world, with natural rubber plantations having risen as a substantial basis of deforestation. One element that addresses deforestation concerns is the correct certification of rubber – be it natural or synthetic. International Sustainability & Carbon Certification (ISCC), a globally leading certification system, works with the objective of providing sustainability solutions for fully traceable and deforestation-free supply chains, inter alia involving the rubber industry. ISCC was one of the presenters at the Tire Technology Expo 2022 at Hannover, Germany, and Dr Jan M Henke, Director, ISCC, threw light on the nitty-gritty of certifications in the rubber industry, their clients in the tyre and rubber industry and more, in an interaction with Tyre Trends.

Can you tell us about your global sustainability scheme?
Our global sustainability and carbon certification scheme has certified companies in more than 100 countries. We certify entire supply chains from farms to plantations and forestry, and also the point of origin of waste and residues, biogenic and fossil waste. This is also covering rubber and natural rubber. Moreover, we cover biogenic waste and residues, including fossil waste, like carbon black, which is, again, used in the rubber industry. We also certify pyrolysis, where recycled mixed plastic waste can help produce synthetic rubber out of the pyrolysis oil. And we certify the entire supply chain, sustainability of raw material.

What is Meo’s role?
Meo initiated ISCC in a multi-stakeholder process a long time ago. It once was a Meo project and went on to become an operations and certification scheme. It was even recognised by the European Commission and some other authorities. It later got segregated from Meo, and ISCC is governed by the ISCC Association with more than 200 members.

So, what role does Meo play in this in case of certification?
Certification is always by independent, third-party certification bodies. ISCC is the standard development. Today’s ISCC was once a project of Meo. It then went on to become independent and operational, and was no longer a project but an individual entity running and further developing and improving the certification scheme.

The operations of the certification system, database, registration, qualification, training programme, integrity programme, the website and all the day-to-day business is done by ISCC. We are currently incorporating 45 certification bodies that are actually doing the on-site audits based on the ISCC standard.

Is ISCC recognised by the European Union?
Yes, it is being used in many sectors, like in bio energy, bio fuel, renewable transport fuels etc. In fact, ISCC is also recognised by the European Commission and by companies based on their sustainability standards and different industry initiatives.

Hence, ISCC is active on a really broad scale, covering different types of raw materials, natural rubber being one of them. We are also covering waste and residues for pyrolysis and their outputs. We then go to all the different end markets, which can be polymers, rubber, tyres, packaging, all types of plastic products, bio energy or any type of renewable fuels, aviation fuels, maritime fuels etc. This is global and is being used in more than 100 countries.

Tyre companies are talking about sustainability, but the larger part of the industry is of small stakeholders, especially in the natural rubber segment, where traceability and accountability are the main issues. How do you see this?
That’s a big challenge, especially in rubber production. At the cultivation level, there are a lot of small holders. There also exist large plantations that are easier to implement and certify. However, it’s definitely a bigger challenge with the small holders; it always depends on how well they are organised, whether there are certain structures, cooperatives or some central units.

Can you tell us about the certification of natural rubber?
The certification of natural rubber is definitely possible. Palm oil is maybe another example where the setup is quite similar sometimes. Also, with respect to the small holders, sometimes the companies are the same. Furthermore, we are very active in the palm oil sector with ISCC. We now also see a demand for natural rubber sustainability certification.

Is there a different process for getting certified in the rubber industry or is it a standard process?
It’s a standard process. It works on plantation. In fact, it works more or less the same as for palm plantations. But you certainly need to make sure that all the small holders reach a certain level, which is difficult. So starting out, bigger plantations may be easier because it’s easier for them to properly prepare for the certification audits. And then, you need to involve more farmers, step by step.

Who decides the standard process to get the certifications?
ISCC develops the standards and the requirements in the multi-stakeholder process. It then comes down to a company saying that it wants to become certified, use ISCC and also make certain claims and communications to its customers and stakeholders. They then reach out to a certification body, that is cooperating with ISCC. Following this, the certification body will do the audit on site – the third-party auditor will also make a decision on the issuance of the certificate.

Can tyre manufacturers get different certifications? For instance, one for natural rubber and another one for synthetic rubber? Or do they get one for all?
If tyre manufacturers source raw material for manufacturing from natural rubber but also synthetic rubber and everything under ISCC, then it’s one audit. Then the auditor would look into aspects of the volume of natural rubber being used that has been certified, although upstream. If one buys from certified suppliers and if the same auditors check, then aspects like the share of the certified synthetic rubber being used, the share of carbon black, etc. are taken into account. And finally, everything can be put together and a certain claim can be made.

Can tyre companies get a separate certificate for natural rubber?
Yes, they can. They can have separate certificates for natural and synthetic rubber both, or even of everything together. As for the final tyre, let’s say, if it’s 20 percent natural rubber and 20 percent synthetic rubber (40 percent of the tyre), then they can make certain sustainability claims on use of sustainable, circular materials etc.

What is the value of a certification?
It’s no deforestation – that’s key when it comes to natural rubber. When you certify, ‘no deforestation’ is the core requirement and deforestation is not allowed under ISCC. It is about additional environmental and social human rights criteria. This fits fine in this part of ISCC’s sustainability standard. And then it’s certainly about traceability in the supply chain, all the way in the end to the final tyre. And if this is established, then you can certainly make claims about the rubber or the final tyre, saying that it has been sustainably produced, based on sustainably sourced raw materials etc.

Plus, if you do this in a smart way, then you can actually cover the natural and synthetic rubber. Natural rubber and synthetic rubber are both very important parts of the final tyre. Both can be covered under ISCC.

Deforestation is a big issue, mainly in Southeast Asian and African countries. How difficult is it to keep an eye on that?
It’s not always easy to handle. Deforestation is not allowed under ISCC; there is a cut-off date of January 2008. If there was deforestation after January 2008, one cannot become certified. However, replanting or a change from palm to rubber is not considered as deforestation.

For example, if you have a palm plantation and if you cut it and plant rubber after 25 years, then that’s not deforestation. That’s just normal replanting.

Also, ISCC is certainly doing assessments, supported by remote sensing. Our core principle is no deforestation, which is very important to ISCC and its stakeholders. ISCC is not just us doing the operations in Cologne; there’s the ISCC Association for the multi-stakeholder dialogue. It has over 200 members from entire supply chains, industries, plantation companies, mineral oil, chemical companies, converters etc. We also have research organisations from different regions involved. In fact, also a number of non-governmental organisations are members of the ISCC Association.

The association meets annually and makes important strategic decisions and elects the ISCC Board. Due to the representation of the research sector and non-governmental organisations, there is quite a good balance of what people want and further development.

Can you tell us about the commercial benefits involved in having a certification?
There is a big value in it. It reduces sustainability risks for companies, helps to establish monitoring, protects the license to operate and has commercial value. For example, the OEMs ask for more sustainable products or lower greenhouse gas emissions. They all have climate neutrality commitments in place and need to start delivering step-by-step now; they need to show what are the activities that they are engaged in and how those improve sustainability in the overall supply chain. Here, ISCC certification can be used.

How do you maintain transparency in certification as a third party?
There is an annual audit. The certificate is valid for one year and then there is a re-certification. The company needs to provide evidence in every re-certification that the rules are being followed. And if they are not, a renewal of the certificates is not possible.

We certainly have quality management and training for companies and the auditors as well, who conduct on-site audits. What’s more, we have our own integrity programmes, where we send out our own auditors. These auditors work for ISCC and double-check the performance of the companies and the work of third-party auditors. Therefore, this integrity programme is key. We have the website where all the certificates are being published and the entire standard is public.

Do you help companies improve their sustainability supply chain?
No, we don’t consult. At ISCC, we are not involved in supporting the companies in order to improve. We have the standard and we conduct the training for companies. The preparation for the audit is not where ISCC is involved; it’s independent from that type of work. And the certification bodies are not allowed to consult in parallel either. ISCC is the independent standard that is used to certify that companies fulfil the sustainability requirements.

What are the other segments that you cover in the tyre industry?
It’s the entire supply chain. Petrochemical industries, tyre manufacturers etc. can all be covered. This also includes everything from plantations to the end product in the tyre industry.

Which is the easiest and the toughest one to certify?
All elements of the supply chain need to be covered.

This can sometimes be a challenge in the beginning, so as to convince your suppliers and also get certified. But, in truth, we have more than 6,000 certificates under ISCC. So there are already a lot of players that have valid certificates, and now this is starting to move into the space of rubber and tyre manufacturers.

Can you tell us about your clients in the rubber and tyre industry?
We have requests from many tyre producers right now. Some producers are certified already. Plus, we have requests for carbon black and first requests for natural rubber. We see the number of requests increasing, and we do have first certificates and first registrations from tyre producers. So we expect this to rise further as the industry needs to show compliance with their sustainability and climate neutrality commitments.

We see the entire tyre industry now targeting sustainability. So how do you find more opportunities and what’s your plan to get more client support?
ISCC started to get really further engaged in the rubber and tyre industry about a year ago; the industry has started understanding the standards, participating in ISCC trainings, joining our stakeholder events etc. Therefore, step by step, they got to know ISCC better and what it could do for them. They have now even started to get involved and do certifications, including reaching out all the way to the cultivation of natural rubber.

Are you going to focus on the Asian market?
Yes. In fact, we already have a few hundred certificates in Malaysia, Indonesia and other countries in the region. These markets are truly important. Our other key markets are North America and Europe, while we are also active in Africa and South America.

We are, eventually, trying to do more and convince people to become certified, show compliance to sustainability requirements, engage in a continuous improvement approach to become more sustainable and then allow manufacturers to really make claims.  

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The European Commission’s Industrial Action Plan for the automotive sector included plans to publish Guidance on in-vehicle data alongside the implementation of the Data Act. In response, the European Tyre and Rubber Manufacturers’ Association (ETRMA), alongside other automotive industry groups, has developed an Automotive Sector Interpretation Guide of the Data Act to foster a common understanding ahead of the regulation’s application. This joint effort has helped clarify critical definitions and regulatory interfaces while also incorporating essential tyre-specific considerations – a step ETRMA strongly supports.

Despite this progress, the Data Act’s objectives may fall short without additional measures. Key solutions – such as human-machine interface (HMI) access for user consent and digital ID federation to enable secure, efficient data sharing within a unified European data space – require further exploration under sector-specific regulation. ETRMA remains dedicated to ensuring the Data Act’s implementation promotes fair, non-discriminatory access to in-vehicle data. The association will continue pushing for enforceable rules that guarantee real-time, secure and efficient access to relevant data, safeguarding innovation and competitiveness in the automotive and tyre industries.

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Bridgestone India, a key subsidiary of the global Bridgestone Group and a leader in tyres and mobility solutions, has expanded its premium retail network with the launch of Bridgestone Select Store – M/s Nashik Tyres and Services. The store was inaugurated by Rajarshi Moitra from Bridgestone India, reinforcing the company’s commitment to delivering innovative, customer-centric tyre retail experiences across the country.

Strategically located in Nashik, the store features modern infrastructure and a premium service setup, positioning it as a one-stop destination for tyres and related services in the region. Recognising that tyres are the sole contact point between a vehicle and the road, Bridgestone emphasises safety, performance and driving confidence through its Select stores. These outlets not only help customers choose the right tyres but also enhance their ownership experience with expert guidance and high-quality services.

With over 900 Select stores nationwide, Bridgestone India has established a premium retail network that goes beyond tyre sales to offer a superior, service-driven experience. The expansion of M/s Nashik Tyres and Services further strengthens Bridgestone’s mission to bring world-class tyre solutions closer to customers, reinforcing its pan-India presence with a focus on innovation and customer satisfaction.

Moitra said, “At Bridgestone India, we are committed to redefining the tyre buying experience through our Select stores. As we continue to expand our footprint and enhance manufacturing capabilities our goal is to provide premium products, services and customer experience.”

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Leading global tyre manufacturer NEXEN TIRE has released its 2024/25 Sustainability Report, demonstrating its commitment to transparent ESG disclosure in line with international standards. This year’s report marks a milestone as it includes consolidated performance data from 10 global subsidiaries, enhancing the company’s enterprise-wide sustainability reporting.

In environmental sustainability, NEXEN TIRE has advanced its carbon management strategy by expanding greenhouse gas (GHG) emissions tracking. The company completed a third-party verified inventory covering Scope 1, 2 and all 15 Scope 3 categories, enabling precise identification of carbon hotspots and targeted reduction initiatives. Additionally, the company is accelerating the development of sustainable materials, evaluating 23 renewable and recycled options across 10 categories. Through proprietary technology, NEXEN TIRE now produces tyres containing up to 70 percent sustainable content. Biodiversity efforts have also intensified, with the company adopting TNFD and LEAP frameworks to assess nature-related risks. An ecological survey around its Changnyeong plant identified protected zones and endangered species habitats within a 50-kilometre radius.

On the social front, NEXEN TIRE celebrated a decade without workplace accidents, a result of proactive safety investments, including facility upgrades, risk assessments and 24-hour disaster monitoring. Enhanced fire prevention systems earned the company the Excellence Award at the 1st Safety Culture Innovation Awards.

In governance, NEXEN TIRE strengthened board diversity by appointing a new female independent director, with independent directors now comprising 62.5 percent of the board. The company also expanded its TISAX certification to eight sites, maintaining zero data breaches for three consecutive years. These efforts underscore NEXEN TIRE’s commitment to sustainable and responsible business practices.

John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE, said, “As the industry undergoes rapid transformation driven by electrification, AI and sustainability, NEXEN TIRE is embracing ESG leadership as a core pillar of future competitiveness. Our commitment to responsible innovation and transparency will guide us through the next era of sustainable mobility.”

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Chinese tyre manufacturer Zhongce Rubber Group Co., Ltd (ZC Rubber) will inject 3.93 billion yuan ($541.3 million) of proceeds from its February initial public offering into wholly owned subsidiaries to fund expansion projects across its production network.

The company’s board approved the deployment of the raised capital through a combination of loans and equity injections to five subsidiaries, according to a regulatory filing. The move represents the full utilisation of net proceeds from ZC Rubber’s IPO, which raised 4.07 billion yuan through the issuance of 87.4 million A-shares at 46.50 yuan each.

Hangzhou Chaoyang Rubber Co Ltd, the group’s largest subsidiary by funding allocation, will receive up to 1.7 billion yuan in loan financing to support its high-performance radial tyre green 5G digital factory project. The facility represents ZC Rubber’s largest single investment among the five planned initiatives.

The company will also provide 850 million yuan to Zhongce Rubber (Tianjin) Co., Ltd. for upgrades in the high-end green tyre industry. At the same time, Zhongce Rubber (Thailand) Co., Ltd. will receive an equivalent amount through a direct capital injection to expand its radial tyre manufacturing capabilities.

Smaller allocations include 352.68 million yuan to Hangzhou Zhongce Qingquan Industrial Co., Ltd. for the production of all-steel radial truck tyres and 180 million yuan to Zhongce Rubber (Jiande) Co., Ltd. for the expansion of its workshop at the JianDe facility.

The funding deployment marks a revision to Zhongce’s original IPO prospectus, which had earmarked 4.85 billion yuan across the five projects. The company has adjusted its plans to align with the actual net proceeds available after deducting underwriting fees and other costs.

Interest rates on subsidiary loans will be benchmarked against comparable bank lending rates, with early repayment options available. The company stated that the funding structure would facilitate project execution while maintaining regulatory compliance through designated account supervision.

Zhongce received approval from China’s securities regulator for its IPO on 26 February, marking the completion of a listing process that positioned the company amongst China’s leading tyre manufacturers seeking to expand production capacity and technological capabilities.

The subsidiary funding initiative received backing from CITIC Securities, the company’s listing sponsor, and external auditors, with both parties indicating no objections to the proposed capital deployment structure.

ZC Rubber's shares have traded on the Shanghai Stock Exchange since its February debut, with the company targeting enhanced production efficiency and market positioning through its post-IPO investment programme.

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