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

The 2023 Ford Integrated Sustainability and Financial Report has been released today. It details the company’s progress toward creating a more sustainable, inclusive and equitable transportation future.

Ford is on track to achieve carbon neutrality no later than 2050 across our vehicles, operations and supply chain. The company remains committed to responsibly-sourced raw materials and a more transparent EV and battery supply chain.

“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,” said Executive Chair Bill Ford. “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.”

Leading the Electric Vehicle Revolution

Ford is dedicating more than $50 billion globally 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% compared to driving a similar internal combustion engine vehicle (when charged with U.S. grid-average electricity.) For example, the carbon dioxide reduction provided by an  F-150® Lightning® is equivalent to avoiding the use of approximately 8,777 gallons of gasoline over the vehicle’s lifespan.

Accelerating Progress to Carbon Neutrality

Beyond reducing vehicle tailpipe emissions, 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.

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 the company’s global supply chain protects the environment and human rights. As we build 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 our 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, the company and our suppliers also underwent an audit of nickel, lithium and cobalt due diligence management systems. Building on that process, Ford strengthened our corporate practices, including introducing new environmental, social and governance requirements into its sourcing agreements.

Across our broader supply chain, Ford continues to work closely with 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, 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 our 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.