Ford Motor Co. in Dearborn has released its first integrated sustainability and financial report of accomplishments and aspirations. It also announced targets toward the company’s ambition to be carbon neutral by 2050 in line with terms of the Paris Climate Agreement.
The targets — to reduce Scope 1 and 2 greenhouse gas emissions from operations by 76 percent from 2017 and Scope 3 greenhouse gas emissions from the company’s products by 50 percent from 2019, both by 2035 — were approved by the Science Based Targets initiative.
Scope 1 emissions are from owned or controlled sources. Scope 2 covers emissions from the generation of purchased electricity, steam, heating, and cooling, and Scope 3 includes all other indirect emissions that occur in a company’s value chain.
“Success in sustainability requires a financially healthy business, and financial health depends on effectiveness in sustainability areas,” says John Lawler, CFO of Ford. “Combining those topics in a single report reflects that, more than ever, investors and other stakeholders want to know not only what you plan to do, but what you’re accomplishing and how you’re managing risks along the way.”
Highlights in the report include Ford’s social response to the COVID-19 pandemic; investment in and initial launches of electric vehicles; and actions to protect human rights and create greater diversity, equity, and inclusion within the company.
Ford shut down and then restarted worldwide manufacturing operations with COVID-19 precautions in place about a year ago and, through its Project Apollo, has developed, made, and delivered medical and personal protective equipment, often in conjunction with the UAW in the U.S.
The company has produced nearly 160 million face masks, more than 20 million face shields, 1.6 million washable isolation gowns, 50,000 ventilators with GE Healthcare, and more than 32,000 powered air-purifying respirators in a collaboration with 3M. Additionally, virus-related contributions through the Ford Motor Co. Fund included $1.13 million to relief programs worldwide.
In Europe, the Ford Fund provided almost $500,000 to nonprofit organizations to support relief efforts linked to food provision, medical equipment, protective clothing, and other necessities.
Separate from the virus, social support provided by the fund during 2020 included meal programs in places including Detroit and Bangkok, emergency-relief funds to Hispanic and historically Black colleges and universities, and grants to Black and Latina entrepreneurs and small-business owners.
Ford plans to invest more than $22 billion to engineer and introduce connected electric vehicles through 2025, including electric version of its most popular nameplates across pickup trucks, SUVs, and commercial vehicles.
Shipments of the Mustang Mach-E began in North America in 2020, followed by Europe in early 2021, and China later this year. All-electric Transit commercial vans will be introduced toward the end of the year, and a battery-electric F-150 is scheduled for launch in 2022.
Ford announced last month its entire commercial vehicle lineup in Europe will be zero-emissions capable by 2024. All of the company’s passenger vehicles in the region will be all-electric or plug-in hybrid by mid-2026 and entirely battery electric by 2030.
To expand production capacity for electric vehicles, Ford started construction on the new Rouge Electric Vehicle Center in Dearborn, where the all-electric F-150 will be built. In February 2021, the company announced a $1 billion investment to create the Ford Cologne Electrification Center in Germany.
Investments in Dearborn and Cologne manufacturing, together with another $1 billion announced in February to transform operations in Pretoria, South Africa, will further help reduce Ford’s overall carbon footprint. An additional goal is to use completely locally sourced, renewable electricity at all Ford plants by 2035.
“We will lead in achieving carbon neutrality because it’s the right thing for customers, the planet, and Ford,” says Bob Holycross, vice president of sustainability, environment, and safety engineering at Ford. “Ninety-five percent of our carbon emissions today come from our vehicles, operations, and suppliers, and we’re tackling all three of those sources with urgency and optimism.”
Finally, Ford is working to improve its diversity, equity, and inclusion informed by an audit of its U.S. salaried employees in 2020. The company is increasing reliance on existing employee resources groups to better solve business problems; establishing programs to develop the diversity, equity, and inclusion capabilities of managers; and appointing Ford’s first racial equity director to lead investigating and addressing career barriers for Black and Hispanic employees.
All corporate officers now have diversity, equity, and inclusion-based performance objectives to cultivate belonging. For the first time, Ford is making its 2020 U.S. EEO-1 equal-opportunity and U.S. Supplemental Diversity data publicly available.
For several years, the company has worked to recruit employees from underrepresented groups. Ford is increasing the number of professional organizations and historically Black colleges and universities it works with to attract diverse candidates.
Finally, Ford’s commitment to human rights is embodied in its newly published “We Are Committed to Protecting Human Rights and the Environment Policy.” The company produced a supplier code of conduct in early 2021 outlining expectations and standards for its supply chain partners and also became the first American automaker to join the Initiative for Responsible Mining Assurance.
In Related News, Ford announced 12,000 pounds of winching power will soon be available for any properly equipped Super Duty pickup. The news builds on the success of the Ford Performance Parts Winch by Warn that was offered on the Ford Super Duty Tremor.
“We have Super Duty customers who saw the Tremor winch calling to say they want that same choice,” says Ron Meredith, truck vehicle personalization planning manager for Ford. “So, we’ve expanded its availability to every new Super Duty pickup and made sure it meets the needs of all of our hardworking Super Duty customers.”
Available as a factory-orderable option or dealer-installed accessory, the winch can be added to optional 7.3-liter gas V8 or 6.7-liter Power Strike V8 diesel-powered 2020 or newer 4×4-equipped F-250 and F-350 Super Duty pickups with available dual batteries and dual 397-amp alternators.
The winch is mounted behind the steel bumper and features optimized airflow and clearance. It offers high-tensile strength and abrasion-resistant synthetic cable. It includes a wireless remote control and a wired remote control.
The Ford Performance Parts winch by Warn will be available for order beginning April 8 as a $3,000 factory option, or it can be added after purchase at a Ford dealership for the $3,000 manufacturer suggested retail price plus labor.