Chief Sustainability Officer
Stock Exchange and Ticker
#22 Fortune 500
- CDP Climate Change – A
- CDP Forests – F
- CDP Water Security – A
- Mustang Mach-E
- Car and Driver Magazine’s inaugural Electrical Vehicle of the Year
- 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
- International Financing Review’s (IFR) Corporate Issuer of the Year for 2021
- 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
- all-electric Ford Mustang Mach-E earned Green Car of the Year and Green Truck of the Year awards.
- The World Environment Center (WEC) 36th annual Gold Medal for International Corporate Achievement in Sustainable Development
- CDP “A List” for protecting water security in 2021
- 4th year in a row, 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
- 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
- Explorer and Equator awarded the 5-star rating by China NCAP in 2021
- Escape given all Good Ratings on safety assessment protocols by C-IASI in 2021
- 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)
Ford Sustainability Report
Evaluation of Ford
Ford’s detailed and comprehensive reporting should be an example for other companies. All targets have sub targets and detailed reports 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 a 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, in spite of all its achievements, Ford receives a B rating, albeit with a positive outlook.
Ford Company Activity
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 - As per company declarations
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.
Certificate & Labels, Standards and Frameworks
ISO 14001: occupational health and safety management systems
ISO 9001: specifies requirements for a quality management system (QMS)
ISO 14065: Validating Environmental Information
Standards and Frameworks:
Responsible Business Alliance (RBA): the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.
UN Guiding Principles Framework (UNGPRF): the world’s first comprehensive guidance for companies to report on how they respect human rights.
Global Reporting Initiative (GRI): help organisations to publicly report the impacts of their activities in a structured way, transparent to stakeholders. Holds the company against NO clear rating system.
Sustainability Accounting Standards Board (SASB): Framework for sustainable Development tracking
UN Global Compact Index (UNGC)
Bloomberg Gender-Equality Index Survey (GEI): tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation, and transparency.
Ford in the News: Press and Social Media
Ford again receives global corporate sustainability honors for leadership in climate change, water management | Automotive World
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
Michigan executives sign letter against voting restrictions, including Ford and GM CEOs
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 accelerates electric vehicle push in Europe with seven new models
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.
Ford sued for allegedly dumping ‘toxic sludge’ on Ramapough Lenape land
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.
Ford to appeal $1.7bn verdict against it in Georgia truck crash case | Ford | The Guardian
After a pickup truck crash that killed a Georgia couple Ford has promised to appeal a $1.7bn verdict leveled against it.
Highlights from Ford Sustainability Report
- 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)
Targets vs Progress Reported
|Achieve carbon neutrality no later than 2050
- 76% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions by 2035 from a 2017 base year, approved by Science Based Targets Initiative (SBTi)
- 50% reduction in Scope 3 GHG emissions per vehicle kilometer from use of sold products by 2035 from a 2019 base year.
[This goal has a KPI roadmap presented in TCFD Report 2022]
| - Scope 1 GHG emissions reduced by 22% (2020-2018)
- Scope 2 GHG emissions reduced by 23% (2020-2018)
- Scope 3 GHG emissions reduced by 12% (2020-2018)
- Achieved a 35% reduction in absolute manufacturing GHG footprint since 2017
In 2020 Ford had 352 884 667metric tonnes C02 total emissions, out of which 99% were Scope 3.
|Reach true zero waste to landfill across our operations Eliminate single-use plastics from our operations by 2030|| - 85% of vehicles parts and materials recycled and reused at their end of life
- 89 zero waste to landfill sites globally
| Use 100% carbon-free electricity in all manufacturing by 2035
||32.4% renewable energy in 2021|
|100% zero-emission cars and vans globally by 2040, and 2035 in leading markets [This goal has a KPI roadmap presented in TCFD Report 2022]||Electric cars introduced include:
- F-150 Lightning Pickup
- Mustang Mach-E SUV
- E-Transit Commercial Van Reduced operational GHG emissions per vehicle produced by 30% so far
|Targets with no date|
|Work toward a future that is free from vehicle crashes and workplace injuries||- For the 2021 model year, a total of 20 Ford and Lincoln nameplates were rated with 5-Star Overall Vehicle Scores
- Global fatalities reached 0 in 2020 and 3 in 2021
- Nr of safety recalls (US) reached 45 in 2020 and 53 in 2021
|Source only raw materials that are responsibly produced||- Since 2014,Ford has been a part of Partnership for a Cleaner Environment (PACE) program, which allows to share successful initiatives with nearly 80 key suppliers
- Achieved a 100% response rate from in-scope suppliers to submit an annual Conflict Minerals Reporting Template
|Create a truly diverse culture where everyone feels like they belong|| Representation of women and minorities has been increasing yearly reaching in 2021:
-Global female employees 28%
-Global minorities employees 35%
- Board female (27%) and minorities (13%) employees
- Corporate officers female (18%) and minorities (18%) employees
- Women in senior management 22.5%
In 2021 Ford purchased goods and services worth more than $9.7 billion* from minority-owned suppliers, women-owned businesses, veteran-owned companies, and small businesses
|Drive human progress by providing mobility and accessibility for all||Pilot programs and and technology advancements in progress||Attain zero emissions from vehicles and facilities||Total worldwide facility energy consumption has been decreasing (9.84billion kilowatt hours) Per vehicle not reported in 2021||Utilize only recycled or renewable content in vehicle plastics||Collaborating with Redwood Materials to integrate battery recycling into domestic battery strategy. Redwood’s recycling technology can recover, on average, more than 95% of strategic materials such as nickel, cobalt, lithium, and coppe||Make zero water withdrawals for manufacturing processes Use freshwater only for human consumption||Ford has reduced its annual freshwater consumption by over 78% since 2000 3.8m^3 water use per vehicle produced|