A Singapore-based tire manufacturer and a German cement producer have adopted “E-liability” accounting.
E-liability accounting, however, assesses a product’s carbon intensity , and steel. Together, these components made up 86% of the tire’s weight and provided a starting point for inquiring into upstream supplier data. Petiot recruited three managers for the internal pilot-study team.
. The team placed the suppliers’ estimates on a dynamic E-liability spreadsheet. The second column in Table 1 provides indexed values of COPetiot and his team then looked internally to develop a flowchart to identify the major emission sources when manufacturing the passenger tire. They homed in on the two most energy-intensive processes: compounding and curing .
Petiot had initially expected that calculating PTGT’s tire-specific emissions data would be a challenge. However, the pilot had taken only about two months, and Petiot realized that they already had much of the necessary data recorded on disclosures filed with regulators.
Once its suppliers realized that PTGT was actively invested in reducing its carbon footprint, they started to propose their own lower-emission alternatives. The carbon-black supplier suggested using circular production methods that reduced emissions by 38% by optimizing resource use over the products’ lifecycle. The natural-rubber supplier could reduce emissions by 27% by switching from a domestic-plantation supplier to a more productive one in Thailand.
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