More than 20 years ago, Ford launched the automotive industry’s first Sustainability Report. In 2021, the company launched their first Integrated Sustainability and Financial Report to share a more holistic view of their performance. The report covers their efforts in reducing the emissions associated with their vehicles, responsibly managing their operations, and encouraging best practices among their suppliers.
Ford aspires to achieve carbon neutrality by 2050, with interim targets that address the urgency of climate change as well as regional differences.
To further drive collaboration and progress toward their new carbon-neutrality goal, Ford has joined the CEO Climate Dialogue and the Climate Leadership Council, and signed up to the UN Business Ambition Pledge for 1.5°C and the New Deal for Europe initiative to devise a comprehensive Sustainable Europe 2030 Strategy.
Three main areas globally account for 95% of Ford’s carbon emissions: vehicle use, suppliers and operations.
Ford announced that by 2030, their passenger vehicles in Europe will be all-electric, while two-thirds of commercial vehicle sales are expected to be all-electric or plug-in hybrid.
Their operations are moving toward 100% local, renewable electricity in all manufacturing by 2035, procuring a mix of wind and solar power, storage, and hydro to replace the fossil-based generation.
By using renewable and recycled materials in their vehicles, Ford reduces waste, uses fewer natural resources, and improves vehicle quality and performance. The company reuses steel and aluminum scrap from their stamping plants, as well as recycled materials such as post-consumer carpet and recycled tires in their manufacturing processes.
In 2019–2020, Ford examined their climate strategy using human-centered design to see if there was a better approach to integrate the wants and needs of consumers, the possibilities of technology, and the requirements for business success.
Ford’s global fuels migration path and technology migration plan are based on delivering high-quality vehicles that consumers desire while responding to the risks associated with climate change.
The company will continue to improve fuel economy for their internal combustion vehicles for the foreseeable future, while also rapidly increasing the sales rate of their electrified vehicles.
Ford is prioritizing the launch of electrified versions of their most popular nameplates, including the all-electric Mustang Mach-E and E-Transit. Their global vehicle lineup includes both passenger cars and commercial vehicles that are powered by non-petroleum energy.
They aspire to utilize only recycled or renewable content in vehicle plastics with lower life cycle impacts that provide equivalent quality, appearance, and performance as existing materials.
Ford relies on thousands of suppliers to provide them with materials, components, and services for their vehicles — by sharing what has worked well at Ford, they can help them cut costs, improve quality, and become more sustainable.
increased planned investment in electrification through 2025
reduction in Ford’s carbon footprint
Throughout our nearly 118-year history, one thing that has not changed is our desire to help build a better world, where every person is free to move and pursue their dreams.
Chairman and Jim Farley
President and Chief Executive Officer
22 years ago, Bill Ford received criticism when he pushed the company to produce its first sustainability report. A lot has changed since then: Ford’s continued investments in electrification, sustainable operations, and responsible sourcing have championed the belief that sustainability doesn’t need to be at odds with financial performance.
The company aspires to lead the electric vehicle revolution and continues to make significant strides in their commitment to protecting the environment. Ford’s evolving business model aims to create long-term value by reducing their reliance on natural capital and non-renewable materials and resources. Their strategy is to transition to a model that emphasizes services, relationships, and human and social capital — and supports the company’s purpose.
places to charge (and growing)
of vehicle parts and materials are recycled and reused at their end of their useful life
We plan to lead the electrification revolution, because it is a smart business decision and accelerating adoption of electrified products is the right thing to do. We have never wavered on our commitment to sustainability.
Executive Chairman and Jim Farley, President and Chief Executive Officer
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