Ford has published its 2023 Single Sustainability and Financial Reporting Report, detailing its progress on its commitment to create a more sustainable, inclusive and fair future for transport.

Building on more than two decades of leadership in sustainability reporting, this year’s report shares new data that shows Ford is on track to achieve carbon neutrality by 2050 at the latest across all its vehicles, operations and supply chain. It also highlights progress on initiatives that align with the company’s commitment to source responsibly sourced raw materials by making the supply chain for both electric vehicles and their batteries more transparent.

“We believe that the long-term success of any business is inextricably linked to creating value for customers, employees and communities, and respecting the planet,” said Bill Ford, Executive Chair. “We are undertaking a massive transformation to lead the era of electric and connected transportation, and we 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 transport a reality.”

“2022 was a year of progress towards carbon neutrality as we introduced exciting new electric vehicles, upgraded our facilities, invested in renewables and carbon-free electricity, and used our purchasing power to support increased use of materials with low carbon footprint,” said Cynthia Williams, Ford’s global director of sustainability, type approval and compliance. “We are also creating new levels of transparency and accountability for a global EV and battery supply chain that supports our values. This is how we can help build a more sustainable, fair and inclusive future in transport.”

On The Road to Better

Road to Better is Ford’s commitment to building a more sustainable, inclusive and just future in transportation, where everyone is free to move and pursue their dreams. As Ford celebrates its 120th anniversary this year, it recognizes that its long-term success will depend on creating value for customers, employees and communities.

Ford is launching Road to Better sites in France, Germany, Italy, Spain and the UK, with other markets to follow soon. These sites will highlight Ford’s initiatives designed to help build a more sustainable future and clearly demonstrate the company’s progress towards its established sustainability goals.

Driving the electric car revolution

Worldwide, Ford is investing more than $50 billion from 2022 to 2026 in the development and production of electric vehicles and batteries. The company is on track to meet its goal of annual production of 600,000 EVs by the end of 2023 and more than 2 million by the end of 2026. By 2030, half of Ford’s global vehicle sales are expected to be electric .

The report outlines statistics on the impact of this strategy, including the savings in carbon dioxide emissions resulting from driving a Ford EV. Estimates show that, depending on the model, driving a Ford electric vehicle could reduce its lifetime carbon dioxide emissions by up to 60% when charged with electricity from an average US grid compared by driving a similar vehicle with an internal combustion engine. For the F-150® Lightning®, this reduction in carbon dioxide over the lifetime of the vehicle is equivalent to the CO2 saved by not using approximately 33,225 liters of gasoline. The F-150® Lightning® quickly became America’s best-selling electric pickup when it became available during its first full month of retail sales through Ford dealers in June 2022.

Accelerating progress towards carbon neutrality

Beyond reducing emissions from its vehicles, Ford’s carbon neutral commitment focuses on reducing emissions from the facilities, processes and electricity that support the company’s operations and global supply chain.

Ford has reduced direct and indirect emissions (Scope 1 and Scope 2) by 35.4% since 2017, i.e. direct emissions from its operations and indirect emissions from energy purchases. Ford has invested more than $26 million in facility upgrades to improve energy efficiency and conserve energy across all of its manufacturing plants and processes, which has helped the company achieve a 40 percent reduction in absolute greenhouse gas emissions from manufacturing. % compared to 2017. The company also took steps to transition to carbon-free electricity, incorporating 60.6% carbon-free electricity in its global operations, including all electricity purchased for generation in Europe and Mexico. Globally, 42.6% was electricity from renewable sources.

Between 2019 and 2022, Ford has further reduced its total Scope 3 emissions, which include emissions from suppliers, products and other off-site sources, by approximately 23%. Ford was the first US automaker to include its global supply chain in the Manufacture 2030 platform, inviting 3,000 Tier 1 supplier factories to join the program designed to help them measure, mitigate and reduce emissions. Ford plans to invite additional Tier 1 suppliers and indirect suppliers to participate in Manufacture 2030 in 2023.

Creating a responsible EV supply chain

Ford works to ensure that the company’s global supply chain protects the environment and human rights. As it creates a new supply chain for electric vehicles and batteries, the company is taking an important first step in securing raw materials directly from mining companies that are aligned with its corporate policy. The report details several new initiatives to increase transparency, traceability and due diligence.

In 2021, Ford began EV and battery supply chain mapping and auditing to better understand the origins of raw materials in the EV supply chain, including nickel, lithium, cobalt and graphite. To date, the project has carried out 30 supplier audits in these four critical supply chains for minerals used in batteries, at all stages up to the mining site. In early 2023, together with its suppliers, the company also underwent an audit of its due diligence management systems for nickel, lithium and cobalt. Building on this process, Ford strengthened its corporate practices, including introducing new environmental, social and governance requirements into its procurement agreements.

Across its wider supply chain, Ford continues to work closely with its suppliers and third-party assurance companies, such as the Initiative for Responsible Mining Assurance, the Responsible Minerals Initiative and the Responsible Business Alliance, to identify and address environmental and human rights issues in its supply chain against comprehensive criteria outlined in the company’s Supplier Code of Conduct. In 2022, Ford trained 844 purchasing employees, 2,647 other company employees and 979 suppliers in supply chain sustainability, including anti-corruption, fair labor and environmental practices.

Helping communities thrive

The Ford Motor Company Fund, the company’s philanthropic arm, works with nonprofit organizations and community leaders to help meet their unique needs in more than 40 countries around the world. In 2022, Ford and the Ford Fund contributed more than $64 million to philanthropic causes, investing in partnerships and programming in three important areas: unlocking access to essential goods and services, opening new paths in education for the future of work, and diversifying of the network of entrepreneurs. As part of its commitment to increase economic opportunities for women and address the root causes of child labour, Ford is supporting a pilot program through the Ford Fund to promote responsible sourcing of minerals and empower women working in supply chains copper and cobalt in the Democratic Republic of the Congo. In 2022, the program provided equipment, access to banking services and financial training for at least 50 women. More than 90 women working in artisanal cobalt areas benefited from training in entrepreneurship, financial literacy and environmental and social standards for artisanal and small-scale mining. The Ford Fund recently extended its support and doubled its spending on the project through 2023.

The Single Sustainability and Financial Reporting Report provides transparency on the company’s progress towards achieving its sustainability goals and shows its path to the best (The Road to Better). To read the full report and learn more about The Road to Better, visit sustainability.ford.com