Index Sustainability Report for Ford
Ford’s detailed and comprehensive reporting should lead as an example for other companies. All targets have subtargets and detailed report on progress, along SDG compliance. SDG compliance can be found in two of its reports, not only it is factual and backed with action, but Ford also explains why it complies with UN goals, in what way and what are its future plans. The amount of awards and ratings the automobile company has received and frameworks it follows proves its commitment to sustainability. Even though Ford cannot receive the highest rating just yet, we believe that it will achieve higher level of sustainability once it achieves more of its goals, such as share of renewable energy or emissions reduction. Nevertheless, it would be better if Ford were to fully operate on renewable energy sooner than 2035. For these reasons Ford receives B rating.
Ford Sustainability Scorecard
ISIC G45 – Wholesale And Retail Trade And Repair Of Motor Vehicles And Motorcycles
Ford Motor Company
1 American Road Dearborn,
Dearborn, MI 48126
Since 1903, Ford Motor Company has put the world on wheels. Since 1903, Ford Motor Company has built iconic vehicles, including Model T, Continental, Mustang, F-series, and Bronco. They have also manufactured many other products, such as aeroplanes, radios, refrigerators, postal machines, and weather satellites, and answered the call for manufacturing medical supplies, including PPE for first responders and frontline healthcare workers.
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit. The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business. The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.
Ford Sustainability Activity
The value of Ford is rooted in its purpose to help build a better world where every person is free to move and pursue their dreams. Ford is committed to making its purpose evident in every part of our business, from the way we source our materials, to the vehicles it creates, the services it provides, and the interactions it has with customers, employees, and communities.
Last year, Ford launched inaugural Integrated Sustainability and Financial Report, building on more than two decades of sustainability reporting at Ford and giving its stakeholders a more holistic view of performance. This year the company continued to evolve its process to better show the indelible link between commitment to sustainability and continued success, for generations to come.
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Annual Revenue: $136.3 B
Market Cap: $55.28 B
ESG Ratings & Rankings and Awards
- CDP Climate Change – A
- CDP Forests – F
- CDP Water Security – A
- Mustang Mach-E earns Car and Driver Magazine’s inaugural Electrical Vehicle of the Year, and the 2021 North American Utility Vehicle of the Year™ in its first year of production
- Maverick Truck 2022 North American Truck of the Year
- Bronco Truck 2022 North American Utility Vehicle of the Year
- Ford has been awarded the International Financing Review’s (IFR) Corporate Issuer of the Year for 2021 for funding a major electric vehicle push, while cutting costs and attracting green capital
- WeConnect International, Top 10 Global Champions in Supplier Diversity
- WBENC, Top Corporations – Gold
- Great Lakes Women’s Business Council, Excellence in Supplier Diversity
- National Minority Supplier Development Council, Corporation of the Year
- Michigan Minority Supplier Development Council, Corporation of the Year
- i4cp Next Practice Award winner in 2021.
- Euro NCAP Advanced Awards Gold
- International Financing Review’s (IFR) Corporate Issuer of the Year for 2021
- The all-electric Ford Mustang Mach-E and the all-new F-150 have earned Green Car Journal’s 2021 Green Car of the Year and Green Truck of the Year awards.
- 2020 The World Environment Center (WEC) is pleased to announce that its 36th annual Gold Medal for International Corporate Achievement in Sustainable Development will be awarded to Ford Motor Company
- Ford earned a place on the CDP “A List” for protecting water security again in 2021
- 4th year in a row, Ford has been recognized as part of the Bloomberg Gender-Equality Index
- DEI Recognitions 2021
- Disability:IN, DEI Index – Score of 100
- #1 automotive company and 20th overall on Just Capital annual ranking
- Ford claimed 10 Top Safety Pick/Top Safety Pick+ Awards for 2021: Escape, Edge, Explorer, Corsair, Aviator, Bronco Sport, F-150 Crew Cab, F-150 SuperCab, Mustang Mach-E, and Nautilus. This represents 63% of the Ford/Lincoln nameplates receiving the TSP/ TSP+ awards
- Ford had 10 Euro NCAP 5-star rated vehicles in 2021: Mustang Mach-E, S-Max, Galaxy, Fiesta, Focus, Mondeo, Kuga, Explorer, Puma, and Edge. These vehicles represent 83% of fleet on sale in Europe
- Explorer and Equator were awarded the 5-star rating by China NCAP in 2021
- Escape was awarded all Good Ratings on safety assessment protocols by C-IASI in 2021
Ford Sustainability Report Highlights
- Extremely detailed reporting (targets, progress, frameworks, SDG compliance, ESG data base)
- Interim targets and pilot programs
- No recent big controversies, generally positive image on media
- Multitude of awards and followed frameworks
- Many initiatives to attain sustainable supply chain
Weaknesses and Setbacks
- The share of renewable energy is rather small and the 100% use target is set far away
- Rather small representation of female and minorities employees (hopefully it will change soon)
- ISO 14001
- ISO 9001
- ISO 14065
Ford in the news: Press, Reviews and Social Media
Ford Motor Company was recognized for leadership in corporate sustainability by CDP, securing a place on the global environmental nonprofit group’s prestigious ‘A List’ for tackling climate change and protecting water security
About three dozen executives, including Ford’s, sign letter as Republican-controlled legislature weighs suite of new restrictions saying they oppose efforts to make it harder to vote.
Ford has accelerated its electric vehicle plans for Europe, launching seven new models, announcing a battery gigafactory in Turkey, doubling investment in Germany and the phasing out emissions from vans by 2035.
New Jersey accuses Ford of contaminating water, soil, groundwater, vegetation, and air for decades of Ramapough Lenape people’s land, that the company used for the waste disposal for its largest assembly plant that was built in 1955.
After a pickup truck crash that killed a Georgia couple Ford has promised to appeal a $1.7bn verdict levelled against it.
Standards and Frameworks
- Responsible Business Alliance (RBA)
- UN Guiding Principles Framework (UNGPRF)
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
- UN Global Compact Index (UNGC)
- Bloomberg Gender-Equality Index Survey (GEI)