American carmaker Ford Motor Company has inked a strategic partnership with Manufacture 2030 (M2030) to help Ford’s suppliers meet their carbon reduction targets toward its goal of reaching carbon neutrality by 2050 globally and 2035 in Europe.
The OEM says it is among the first American automakers to join Manufacture 2030, and the first to include its global supply chain on the platform. M2030 is designed to help suppliers measure, manage and reduce carbon emissions. Ford says it manufactures more vehicles in the U.S. and employs more hourly workers in America than any other automaker and was one of the first American automakers to align with the international community to limit the impacts of global warming as part of the Paris Climate Agreement.
Jonathan Jennings, Global P – Supply Chain, Ford Motor Company said, “Achieving carbon neutrality for Ford is an important corporate goal and integral to our purpose to help build a better world. It is becoming a strong demand from our customers, shareholders and investors, and the supply chain is essential in achieving this goal. Hitting our targets will require we cut emissions across our entire value chain, particularly from purchased energy, goods and services. M2030 is a key program for Ford to help us all in not only reporting emissions but in forming realistic action plans and glidepaths to achieving our goals.”
As part of the initiative, in the first phase of the partnership with M2030, Ford will offer voluntary platform to its more than 5,000 tier 1 global supplier sites covering more than 66 countries, including suppliers who have yet to establish science-based carbon reduction targets. The platform can help suppliers identify which actions to take to measure, manage and reduce carbon emissions and reduce costs as they build their carbon neutrality plans.
Cynthia Williams, Global Director Sustainability, Homologation and Compliance at Ford said, “This is a powerful example of how Ford’s scale and proven industrial expertise can help accelerate the shift to EVs and support a diverse supply chain that is good for people and the planet, and good for business. By working together and leveraging our collective expertise, we believe this platform will help our suppliers deliver significant carbon reductions and greater positive impact.”
The program builds on strong demand for its new electric vehicles, where Ford recently announced a series of initiatives for sourcing battery capacity and raw materials that light a clear path to reach its targeted annual run rate of 600,000 EVs by late 2023 and more than 2 million by end-2026. As the carmaker creates a new EV supply chain that upholds its commitments to sustainability and human rights, the company continues to plan for more than half its global production to be EVs by 2030.
The initiative will also support the company’s commitment to the First Movers Coalition, a global initiative to harness purchasing power and supply chains to create early markets for innovative clean energy technologies. As part of the coalition, Ford committed to purchase at least 10% near-zero carbon steel and aluminium by 2030.
Ford has outlined specific conduct guidelines for its suppliers since 2003, and in 2021, established a formal supplier code of conduct that applies clear expectations related to human rights, the environment, responsible material sourcing and lawful business practices for every member of the company’s supplier community. The code of conduct requires Ford suppliers to establish science-based greenhouse reduction targets, action plans, and transparent reporting mechanisms aligned with the Paris Climate Agreement to minimize their impact on climate change.