DEARBORN, Mich., April X, 2023 – Today Ford releases its 2023 Integrated Sustainability and Financial Report, detailing the company’s progress on its Road to Better commitment to create a more sustainable, inclusive and equitable transportation future. Building on more than two decades of leadership in sustainability reporting, the report reveals new data that shows Ford on an accelerated path to achieve carbon neutrality no later than 2050 across its vehicles, operations and supply chain. A number of initiatives Ford has introduced to make its EV and battery supply chain more transparent and sustainable are also highlighted.

“We at Ford believe that the long-term success of any business depends on how it creates value for its customers, employees, and communities, while also caring for the planet,” said executive chair Bill Ford. “We are undertaking a massive transformation to lead the electric vehicle revolution, and the accomplishments in this report signal our genuine commitment to doing so in a way that is consistent with our values. We are excited and optimistic about the future and look forward to making carbon-neutral transportation a reality.”

“Now in its third year, Ford’s Integrated Report has evolved to provide a wealth of data that details all the progress we are making related to the environment, society, our products and services, and governance processes,” said Cynthia Williams, Global Director Sustainability, Homologation and Compliance at Ford Motor Company. “In 2022, we have made a number of advancements across key focus areas, including our pathway to carbon neutrality, human capital management and DEI, and human rights and supply chain management.”

Leading the Electric Vehicle Revolution

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

The company is on the path to reach its targeted annual run rate of 600,000 EVs by late 2023 and more than 2 million by the end of 2026. By 2030, half of its global vehicle sales volume will be electric.

Ford’s strategy goes beyond reducing tailpipe emissions and includes reducing vehicle emissions from a fuel-cycle perspective, commonly referred to as well-to-wheels emissions, which includes the production and consumption of energy during vehicle use and lifetime. 

The report outlines new statistics on the impact of Ford’s strategy, estimating that driving a Ford EV will result in up to a 60 percent reduction in lifetime carbon dioxide emissions compared to driving a similar internal combustion engine vehicle. For a vehicle like the F-150 Lighting, this equates to approximately 8,777 gallons of gasoline not used over a vehicle’s lifetime.

Launched in April 2022, the F-150 Lightning is already America’s best-selling electric pickup.

Ford also continues to improve the fuel economy of internal combustion, plug-in hybrid and traditional hybrid engines to give customers lower emissions options on the path to zero-emissions vehicles.

Between 2019 and 2022, Ford reduced the well-to-wheels lifetime carbon emissions from its vehicles by 23 percent. Ford's early EV innovation contributed to this reduction, as well as improvements in fuel economy in internal combustion and hybrid electric vehicles.

Accelerating Progress to Carbon Neutrality

From water to energy and source materials, Ford’s commitment to environmental leadership and sustainability focuses not just on what the company builds, but also on all the processes and facilities that support its global operations. 

Notably, Ford has already achieved a 35.4 percent reduction in its operational greenhouse gas (GHG) footprint since 2017, through improved energy efficiency and conservation across its facilities and manufacturing processes. In 2022, the company invested $26M in energy efficiency projects at multiple manufacturing locations in North America. These projects are expected to further reduce energy consumption by more than 21,00 megawatt hours and greenhouse gas emissions by more than 12,400 metric tons — enough to power 1.7M homes' energy use for one year or the equivalent of 1,395,297 gallons of gasoline not used.

OR 

The company also made strides to transition to renewable and carbon-free electricity usage – investing more than $26 million in facility upgrades and improvements, as well as building new ones, and incorporating 60.6 percent carbon-free electricity into its operations globally and 42.6 percent of electricity comes from renewable sources, including all purchased electricity for manufacturing in Europe and Mexico.

Ford’s water strategy aims to make zero water withdrawals for manufacturing processes in order to support freshwater availability in local communities, and uses recycling and reuse systems to save water and conserve energy. Since 2000, Ford has achieved a 76.2% reduction in absolute freshwater use, accounting for a cumulative 186.3 billion gallons of water saved. In 2022, Ford’s efforts in the areas of climate and water stewardship received a coveted “A” grade from the CDP, an organization which holds the largest environmental database in the world. Ford was among only 330 companies that earned an “A” overall, and among even fewer who received an “A” across multiple categories.  

Ford’s supply chain is essential to achieving the company’s carbon neutrality goals. Ford was the first American automakers to include its global supply chain on the Manufacture 2030 platform, inviting 3,000 Tier 1 supplier sites to participate in Phase 1 of the program and Ford plans an expansion of the program to additional suppliers, including suppliers who have yet to establish science-based targets. 

Building a Responsible EV Supply Chain

The shift to electric vehicles is critical to Ford achieving its sustainability goals, but such a transition comes with challenges due to changing technologies and the complex nature of global supply chains.  . Ford is focusing on a just transition to EVs by ensuring the company’s global supply chain protects the environment and human rights, and by supporting its workforce and local communities with upskill and reskill opportunities and training programs.  

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, and to ensure they are sourced responsibly. To date, the project has conducted 30 supplier audits along four select battery supply chains at all tiers, through 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. Additionally, Ford trained 844 purchasing, 2,647 other Ford employees and 979 suppliers in Supply Chain Sustainability topics. 

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 that will promote responsible mineral sourcing and empower women working in the copper and cobalt supply chains in the Democratic Republic of Congo. The project’s goal is to improve working conditions for the women, increase incomes, support the stability of their households and reduce the presence of children in mining. Ford Fund has recently extended support and doubled its spending on the project into 2023.

To provide more information on these topics and its commitment to a just transition to EVs, Ford released a Human Rights Progress Report, a companion to its inaugural 2022 Human Rights Report, that details all the initiatives that Ford is engaged with to ensure that everything the company makes – or that others make for Ford – upholds its commitment to sustainability and to protecting human rights.

Introducing 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. As the company celebrates its 120th anniversary this year, it recognizes that Ford’s long-term success will depend on creating value for customers, employees and communities while also advancing initiatives to protect the planet, support social equity and lead a just transition to electric vehicles. 

The Integrated Sustainability and Financial Report represents Ford’s leadership position on The Road to Better by providing transparency around the company’s progress towards reaching its sustainability goals and tracking tangible results. To read the full report, and to learn more about The Road to Better, visit sustainability.ford.com.

###