Ford Motor Company Partners With Manufacture 2030 To Enhance Supply Chain Sustainability
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Ford Motor Company and Manufacture 2030 recently established a strategic alliance to support Ford’s suppliers in achieving their carbon reduction targets in support of Ford’s objective to become carbon neutral globally by 2050 and in Europe by 2035.
Ford was one of the first American automakers to sign up for Manufacture 2030 and the first to do so with the inclusion of its entire global supply chain. M2030 is intended to support suppliers in tracking, controlling, and lowering carbon emissions. Ford is the largest carmaker in the United States, employs the most hourly workers nationwide, and was one of the first American automakers to join forces with other nations to reduce the effects of global warming as part of the Paris Climate Agreement.
“Achieving carbon neutrality for Ford is an important corporate goal and integral to our purpose to help build a better world,” said Jonathan Jennings, Ford’s Global Vice President, Supply Chain. “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 glide paths to achieving our goals.”
Ford is providing the optional platform to its more than 5,000 Tier 1 global supplier sites in more than 66 countries as part of the first phase of its partnership with M2030, including suppliers who haven’t yet set up science-based carbon reduction objectives. As suppliers develop their carbon neutrality strategies, M2030’s platform may assist them in deciding the steps they should take to measure, manage, and minimize carbon emissions as well as costs.
“This is a powerful example of how Ford’s scale and proven industry 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,” said Cynthia Williams, Global Director Sustainability, Homologation and Compliance at Ford. “By working together and leveraging our collective expertise, we believe this platform will help our suppliers deliver significant carbon reductions and greater positive impact.”
Ford recently announced a number of initiatives for sourcing battery capacity and raw materials, building on the strong demand for its new electric vehicles. These initiatives provide a clear path to Ford’s targeted annual run rates of 600,000 EVs by late 2023 and more than 2 million by the end of 2026. Ford continues to plan for more than half of its global production to be EVs by 2030 as it develops a new EV supply chain that fulfills its commitments to sustainability and human rights.
The initiative will also assist the business to fulfill its commitment to the First Movers Coalition, a global endeavor to use supply chains and purchasing power to develop early markets for cutting-edge clean energy solutions. Ford pledged to buy at least 10% near-zero carbon steel and aluminum as a member of the coalition by 2030.
Since 2003, Ford Motor Company has stated clear expectations for its suppliers with regard to human rights, the environment, responsible material sourcing, and legal business operations. In 2021, Ford formalized those expectations with the establishment of a supplier formal supplier code of conduct.
To reduce their impact on climate change, Ford suppliers are required by the code of conduct to develop action plans, clear reporting methods, and science-based greenhouse gas reduction targets that are in line with the Paris Climate Agreement.
Source and photo: Ford
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