The 2026 Automobile-Tire Cross-border Development Summit Forum was recently held in Beijing. The person in charge of relevant policy formulation in the field of ecological environment made in-depth sharing on the high-quality development issues of tire companies. It was clearly pointed out that China’s tire industry is currently standing at a critical intersection of green transformation, and compliance pressure has become a new development issue that all tire companies must face.
The first is the comprehensive upgrade of compliance pressure across the entire chain.
In August 2026, the “Ecological and Environmental Code” will be officially implemented. For the first time, “green and low-carbon development” will be included in this code. From a legal perspective, the environmental management logic of tire companies is required to shift from traditional “end management” to a full life cycle management of “source prevention + full-process control”. Carbon data management will also become the bottom line requirement for tire companies’ production and operations.
At the same time, the “15th Five-Year Plan” carbon emission dual control goals clearly require that carbon dioxide emissions per unit of GDP be reduced by 17%. The scope of carbon cost accounting for upstream raw materials is also expected to be expanded to the tire industry in 2028. This is combined with the ESG (environmental, social and governance) mandatory disclosure system that has been fully implemented by the Shanghai, Shenzhen and Beijing Stock Exchanges. Listed companies are required to disclose quantitative data such as pollutant emissions, energy utilization, water resource utilization, etc. All listed tire companies are required to accept official green production capacity inspections, and non-listed tire companies will gradually be included in relevant regulatory scope.
ESG disclosure requirements will also directly affect the financing capabilities of tire companies.
Currently, global ESG standards are accelerating their convergence. China has officially joined the ISSB (International Sustainable Standards Board Framework) and will formally implement relevant basic standards and climate standards in 2027.
Data shows that the current disclosure rate of the three core ESG data of domestic tire companies is only 5%, while the average disclosure rate of international peers has reached 70%. The gap between the two is very significant.
However, there are also many domestic leading tire companies that have made leading breakthroughs in ESG construction: Linglong Tire has been rated A- by FTSE Russell, ranking first in the industry, and has also received an MSCI BB rating; Triangle Tire has received EcoVadis gold certification; Sennics has been awarded the EcoVadis platinum rating for a consecutive year, ranking among the top 1% in the world.
Relevant data shows that the higher the ESG rating of a company, the corresponding financing costs will be significantly reduced. The relevant person in charge also said that “green financial tools such as carbon emission reduction support are providing new financing paths for the green transformation of tire companies.”
Faced with new regulatory requirements and industry development trends, industry experts have also given three clear paths to break through: The first is to optimize global production capacity layout to avoid green trade barriers in different regions. Currently, Sailun, the leading domestic tire company, has deployed five major overseas production bases in Vietnam, Cambodia, Indonesia, Mexico, and Egypt.
It has well adapted to the compliance requirements of different regions; the second is to promote the integration of green manufacturing and carbon management into the entire production process. At present, leading companies such as Triangle and Linglong have made significant breakthroughs in the development and application of low-energy production processes and sustainable materials, setting a demonstration for the entire industry; the third is to strengthen supply chain compliance management, including establishing a natural rubber traceability system and accelerating the research and development of 6PPD alternatives, and controlling green compliance from the source of the supply chain.
Industry analysts pointed out that this round of tightening of green regulatory requirements will indeed bring certain compliance cost pressures to some small and medium-sized tire companies in the short term. However, from a long-term development perspective, relevant policies will accelerate the clearance of backward production capacity in the industry and promote high-quality companies with green technology reserves and global layout capabilities to seize a higher market share. It will also help the Chinese tire industry better adapt to the green trade rules of the global market and further enhance the comprehensive competitiveness of Chinese tire products in the international market.
