Ford Motor Co. in Dearborn has earned a place on CDP’s Climate A List for climate change for the first time. The automaker was recognized for its actions to cut emissions, mitigate climate risks, and contribute to the development of the low-carbon economy. It is one of 35 American companies recognized this year.
CDP is a global environmental impact nonprofit based in London. Its annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency.
“Climate change is an undeniable business risk if unaddressed, and we must transition to a low-carbon economy now to avoid the worst impacts,” says Bruno Sarda, president of CDP North America. “A List companies know sustainability presents an exciting race to the top, an opportunity to innovate and rethink business as usual, proving that environmental responsibility simply makes good business sense.”
Ford’s commitment to reduce CO2 emissions is consistent with guidelines in the Paris Climate Accord and includes investing more than $11.5 billion in electric vehicles. To increase the appeal and adoption of such vehicles, Ford is introducing zero-emissions versions of some of its most successful vehicles, including the Mustang Mach-E later this year and an electric F-150 in the near future. The company also recently launched North America’s largest electric vehicle charging network.
“Our people, our customers, and our investors expect us to constantly do more to address climate change,” says Bob Holycross, vice president of sustainability, environment, and safety engineering. “For more than 20 years, Bill Ford, our executive chairman, has been driving us to act more boldly around climate change. We believe making great vehicles, protecting the planet, and maintaining a strong business are dependent on each other and not mutually exclusive priorities.”
In 2017, Ford said it had reduced carbon dioxide emissions from manufacturing operations by 30 percent per vehicle produced. This was completed eight years earlier than planned. The goal was set in 2010.
The company also announced a carbon reduction strategy for manufacturing with an emphasis on renewable energy and a continued focus on low-emission sources and energy efficiency. Ford hopes to run all of its manufacturing plants on 100 percent renewable energy by 2035.
In 2019, more than 525 investors with assets in excess of $96 trillion, along with 125 major purchasers, which together spend $3.6 trillion on procurement, have asked companies to disclose data on environmental effects, risks, and opportunities through CDP’s platform. More than 8,400 responded.
CDP gives grades of A to D- based on the comprehensiveness of disclosure, awareness, and management of environmental risks. It also encourages companies to demonstrate best practices associated with environmental leadership such as setting targets. Companies that don’t disclose information or provide insufficient information are given a failing grade.
