Ford outlines sustainability progress in latest report

Vehicle manufacturer Ford has released its latest sustainability and financial report, outlining plans to remain on-track for carbon neutrality by 2050 and progress to-date.

The plans will see Ford operations, logistics and direct suppliers targeting carbon neutrality in 2035 across Europe, as well as zero tailpipe emissions for all cars and vans. It also highlights progress on raw materials and making the EV supply chain more transparent.

The manufacturer said it would hit an annual rate of 600,000 EVs by late 2023 with more than 2 million by the end of 2026. By 2030, the firm expects half its sales to be electric. It also outlines how its vehicles reduce lifetime carbon dioxide emissions by as much as 60% in the US compared to a typical ICE vehicle.

Ford reduced Scopes 1 and 2 emissions by 35.4% since 2017 – accounting for direct emissions from operations and indirect emissions from energy purchases. The company has achieved a 40% reduction in manufacturing emissions since 2017 as well as incorporating 61% carbon-free electricity into its global operations. Additionally, it cut Scope 3 emissions by 23% between 2019 and 2022 and is working with Tier 1 suppliers on their own emissions plans.

In 2021, Ford initiated EV and battery supply chain mapping and auditing to better understand the origins of raw materials in its EV supply chain, including nickel, lithium, cobalt and graphite. To-date, the project has conducted 30 supplier audits along four critical mineral battery supply chains at all tiers to the mine site. In early 2023, along with its suppliers, the company also underwent an audit of its nickel, lithium and cobalt due diligence management systems. Building on that process, Ford strengthened its corporate practices, including introducing new environmental, social and governance requirements into its sourcing agreements.

Executive chair Bill Ford said: “We believe the long-term success of any business is inextricably linked with creating value for customers, employees and communities, while also caring for the planet. We are undertaking a massive transformation to lead the electric and connected era of transportation and are committed to being transparent about our progress and opportunities for improvement. We are excited and optimistic about the future and look forward to making carbon-neutral transportation a reality.”

“In 2022, we made a number of advancements toward carbon neutrality, including introducing new exciting EVs, upgrading our facilities, investing in carbon-free and renewable electricity, and using our purchasing power to help scale low-carbon materials,” said Cynthia Williams, Ford’s global sustainability director. “We’re also creating new visibility and accountability for a global EV and battery supply chain that upholds our values. This is how we can help build a more sustainable, equitable and inclusive transportation future.”

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