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Road to Better: Ford Releases 2023 Integrated Sustainability and Financial Report, Details Progress Toward Carbon Neutrality and Commitment to Responsible EV Supply Chain

  • New data shows Ford on track to achieve carbon neutrality no later than 2050 across its vehicles, operations and supply chain, and estimates that lifetime vehicle carbon dioxide emissions may be reduced by as much as 60% for consumers driving a Ford EV versus a similar internal combustion engine vehicle

  • From 2017 to 2022, Ford reduced emissions from its manufacturing facilities by 40%; In 2022, 60% of the electricity the company used was carbon-free 

  • Ford has conducted 30 supplier audits along select critical mineral battery supply chains at all tiers to the mine site, and audited its nickel, lithium and cobalt due diligence management systems 

 

DEARBORN, Mich., April 3, 2023 – Today, Ford releases its 2023 Integrated Sustainability and Financial Report, detailing the company’s progress on its commitment to create a more sustainable, inclusive and equitable transportation future. 

Building on more than two decades of leadership in sustainability reporting, the report shares new data that shows Ford on track to achieve carbon neutrality no later than 2050 across its vehicles, operations and supply chain. It also highlights progress on initiatives aligned with the company’s commitment to source raw materials that are responsibly produced and make its EV and battery supply chain more transparent.

“We believe the long-term success of any business is inextricably linked with creating value for customers, employees and communities, while also caring for the planet. We are undertaking a massive transformation to lead the electric and connected era of transportation and 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 transportation a reality.”

-Bill Ford, executive chair

Leading the Electric Vehicle Revolution

Around the world, Ford is dedicating more than $50 billion from 2022 through 2026 to develop and manufacture electric vehicles and batteries.

The company is on the path to reach its targeted annual production run rate 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 volume is expected to be electric.

The report outlines statistics on the impact of this strategy, including the carbon dioxide emissions savings of driving a Ford EV. Estimates show that depending on the model, driving a Ford EV could reduce lifetime carbon dioxide emissions by as much as 60 percent when charged with U.S. grid-average electricity compared to driving a similar internal combustion engine vehicle.

For the F-150® Lightning®, this carbon dioxide reduction over the vehicle’s lifespan is equivalent to the carbon dioxide saved by not using approximately 8,777 gallons of gasoline. The F-150® Lightning® pickup quickly became America’s best-selling electric pickup when it began its first full month of dealer retail sales in June 2022.

Accelerating Progress to Carbon Neutrality

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

Ford reduced Scopes 1 and 2 emissions by 35.4 percent since 2017, which accounts for direct emissions from its operations and indirect emissions from energy purchases.

Ford invested more than $26 million in facility upgrades to improve energy efficiency and conservation across its facilities and manufacturing processes, helping the company achieve a 40 percent reduction in absolute manufacturing greenhouse gas emissions from 2017.

The company also made strides to transition to carbon-free electricity usage, incorporating 60.6 percent carbon-free electricity into its operations globally, including all purchased electricity for manufacturing in Europe and Mexico. Globally, 42.6 percent was renewable electricity.

“In 2022, we made a number of advancements toward carbon neutrality, including introducing new exciting EVs, upgrading our facilities, investing in carbon-free and renewable electricity, and using our purchasing power to help scale low-carbon materials. We're also creating new visibility and accountability for a global EV and battery supply chain that upholds our values. This is how we can help build a more sustainable, equitable and inclusive transportation future.”

-Cynthia Williams, Ford global director, sustainability, homologation and compliance

Between 2019 and 2022, Ford additionally reduced its overall Scope 3 emissions, which include emissions from suppliers, products and other non-facility sources, by an estimated 23 percent.

Ford was the first American automaker to include its global supply chain on the Manufacture 2030 platform, inviting 3,000 Tier 1 supplier sites to participate in the program designed to help them measure, mitigate and reduce emissions.

Ford plans to invite additional Tier 1 and indirect suppliers to participate in Manufacture 2030 in 2023.

Building a Responsible EV Supply Chain

Ford works to ensure that the company’s global supply chain protects the environment and human rights. As it builds a new EV and battery supply chain, the company is taking an important first step to secure raw materials directly from mining companies aligned with Ford’s corporate policy. The report details several new initiatives to increase transparency, traceability and due diligence.

In 2021, Ford initiated EV and battery supply chain mapping and auditing to better understand the origins of raw materials in its EV supply chain, including nickel, lithium, cobalt and graphite. To date, the project has conducted 30 supplier audits along these four critical mineral battery supply chains at all tiers to the mine site.

In early 2023, along with its suppliers, the company also underwent an audit of its nickel, lithium and cobalt due diligence management systems.

Building on that process, Ford strengthened its corporate practices, including introducing new environmental, social and governance requirements into its sourcing agreements. 

Across its broader supply chain, Ford continues to work closely with its suppliers and with third-party assurers like the Initiative for Responsible Mining Assurance, Responsible Minerals Initiative and 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 Ford employees and 979 suppliers in supply chain sustainability topics, including anti-corruption, fair labor and environmental protection practices.

Helping Communities Thrive

The company’s philanthropic arm, Ford Motor Company Fund, partners with nonprofits and community leaders to help meet the unique needs of communities in more than 40 countries around the world. In 2022, Ford and Ford Fund made more than $64 million in charitable contributions, investing in partnerships and programming across three impact areas: unlocking access to essential goods and services; opening pathways to education for the future of work; and diversifying the pipeline of entrepreneurs. 

As part of its commitment to increasing economic opportunities for women and addressing the root causes of child labor, Ford is supporting a pilot program through the Ford Fund to promote responsible mineral sourcing and empower women working in the copper and cobalt supply chains in the Democratic Republic of Congo. In 2022, the project provided equipment, access to banking services and financial education for at least 50 women. More than 90 women working in artisanal cobalt sites benefitted from training in entrepreneurship, financial literacy, and environmental and social standards for artisanal and small-scale mining. Ford Fund has recently extended support and doubled its spending on the project into 2023.

On The Road to Better

The Road to Better is Ford’s commitment to building a more sustainable, inclusive and equitable transportation future, where every person is free to move and pursue their dreams. The Integrated Sustainability and Financial Report provides transparency about the company’s progress towards reaching its sustainability goals and shows how it is moving forward on The Road to Better. To read the full report, and to learn more about The Road to Better, visit sustainability.ford.com.

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* Lifetime miles for F-150 Lightning/Pickup (225,865) and Mustang Mach-E/Car SUV (195,264) are defined in 40 CFR 86.1865 12(k)(4) and for E-Transit/Transit useful life (150,000) in 49 CFR 535.5 (a)(10)(ii).

** The 2022 model year F-150 Lightning Platinum (ext. range) and Mustang Mach-E RWD (base range) city and highway kWh/100 mile were obtained from fueleconomy.gov/ and weighted 43% city, 57% highway to get real-world combined kWh/100 mile, following the 2021 U.S. EPA Automotive Trends Report methodology: F-150 Lightning Platinum (ext. range) 51.7 kWh/100 miles and Mustang Mach-E RWD (base range) 33.3 kWh/100 miles.

*** The estimated City and Highway kWh/100 miles for E-Transit (130-inch wheelbase, low roof) were analytically derived using models based on test procedures and calculations for light-duty electric vehicles set forth in 40 CFR Part 600, with inputs reflecting E-Transit attributes including Average Loaded Vehicle Weight Engineering Test Weight (ALVW ETW). Applying the EPA trends report real-world weightings of 43% city and 57% highway, gives combined real-world 62.3 kWh/100 miles. Estimates are illustrative only and not representative of all drivers or circumstances. Actual mileage will vary based on external environment (including ambient temperature), driving behaviors, payload, vehicle use, vehicle, charging habits, lithium-ion battery age and state of health, vehicle upfits and alterations, and other factors.

**** The CO2 savings from EVs are converted to an equivalent gallons of gasoline not used based on the EPA Greenhouse Gas Equivalencies Calculator, which applies the factor 0.008887 metric tons CO2 per gallon of gasoline consumed.

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams.  The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty.  Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services.  The company does that through three customer-centered business segments:  Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs.  Additionally, Ford provides financial services through Ford Motor Credit Company.  Ford employs about 177,000 people worldwide.  More information about the company and its products and services is available at corporate.ford.com.

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